The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-09
WATER BOARD.
At,V FNI~ - u" .FOI .
CITY CAN'T SELL THE BONDS AND
. MAY NAVE TO STOP WORK.


In~IsslOnery Don't knSw What 10 DO
and viii Appeal TO the Mayor.
Because OF the failure OF the Comptroller
to sell the new water supply bonds the
likelihood is hat the Boahd OF water Sup
ply will have TO cease work Tor a while.
The board was appointed 10 provide the
/ city with an additional water supply and
IL has prepared plans for bringing water
from the Catskills. 1t has been estimated
that the cost OF the project will be about
3iol 900. 900. " The board has already spent
about SSO0NOO in preliminary work and
expected to let a contract for the building
! Of one Of the. sections OF the big conduit
] in November next. The cost Of this work
would be between o., 900. 600 and $50 DOG. 600.
Comptroller Metz said yesterday that
there was no possibility Of proceeding
with this plan, because he foresaw that
under the provisions of the act creating
the board il would be impossible for him
TO raise the money needed by the board.
Il intend to hav q conference on the
situation on Monday with the Mayor" Mr..
Metz said, -and to impress the fact upon
him that a serious situation has arisen
with regard to the water board which must
have serious attention. At the last bond
sale il was shown that investors would not
buy the water stock. Under the act the
bonds must be shortaterm bonds, limited
to twenty years, and the city must not
pay more than 4 per cent, no matter what
exigenoies may arise.
AT the BON sale last July / offered
$500, 900 worth of the water bonds and the
only Bid 1 received was one for 500 at a
fraction above par. T. Investors in municipal
bonds do not care for short term city stock.
and moreover there seems TO be a desire
on the part of financiers to avoid dealing
with them, because they are not as well
secured as the ordinary corporate stock.
1t is provided in the act that the water
bonds shall not be included in the debt
limit, and it is probable that this may have
had something TO do with the failure Of the
July issue. But. anyway, il is clear hat
under present conditions the water bonds
will not sell and it Is clear also that the
board will rave to stop work until some
thing is done.
What that something shall be l am not
prepared to suggest now. On Monday
l intend to go into the matter with the
Mayor and | may have a statement TO make
afterward.
Undoubtedly there will have to be some
notifications nae in the act. IL may
be necessary to increase the term OF the
bonds and to make them more attractive
TO investors by giving the Finance De-
partment discretionary powers in the
matter OF interest to be paid on the bonds.
To my mind 1t Is an outrage to ask one
generation to bear the entire cost Of IN i'm
provement of which the succeeding -ca+ra-
ton will nave the benefit. 1t is not fair
to expect that the cost of this great work
shall be borne entirely by the taxpayers
OF the next twenty years"
At the offices OF the water board il was
admitted yesterday that the Comptroller
had informed the Commissioners that they
could expect no money from him under
existing conditions and that they would
have to shut up shop for the time being.
The notice they have received from the
Comptroller has put them in a ~quandary.
Since the beginning of the year they nave
got together an extremely expensive staff
Because Of the high salaries they are pay
ing they have practically robbed the other
city departments Of all the best engineers
in the municipal employ, and they nave
of salaries OF the clerical stan.
The money for all this has come from the
Sinking Fund Commission. which has I'D
to date purchased about $6OO,OOO worth Of
the water bonds. 1t Is understood that
the Sinking Fund Commission is not pre-
pared to advance further money and 80
complex are the conditions facing the
board that Thomas Hassett, the secretary
Of the commission, was directed to see the
Mayor "a soon as possible after his arrival
home for the purpose Of seeking advice
as to the course the board ought to take.
The commissioners are without money
and without prospect Of getting any. They
have let contracts for borings on land
and diamond drillings in the bed Of the
Hudson River. The extent Of their payroll
may be gagged from the fact that the
board has in It's employ more than 100 en-
gineers alone whose salaries amount TO
about $4,000 a year.
Mr.. Metz said yesterday that 20 far IA
he could see there would have to be a item
porary Saying on Of a large number Of these
engineers and he limited that il his advice
were followed the amendments which he
insists must be made in the act would per-
init OF a general reorganization OF the
be ard.