The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-01-22
Senator Minturn Says There
Is No Reason Why Jersey
City Should Seek This
Legislation
BANKERS READY TO BUY
ALL THE TALK OF INABILITY
TO SELL WATER BONDS IS
MERE FAGAN-RECoRD POP
PYCoCK
Special to s.The Jersey city News.")


passage of the Jersey City Water Bond
Bill, introduced by Assemblyman Coyle
last Monday night at the request of the
Recora-Fagan faction, and there is ev-
cry likelihood that it will be defeated in
either the House or Senate. Senator
Minturn, of Hudson, who, last year, sup
ported similar measure, is opposed to
the bill on the ground that Jersey City
does not require legislation to float
S7,5O0,000 of bonds by protecting them
with mortgage on the new water plant
which the city is about to purchase
when / supported this bill last year, 7
said thee Senator to-day, i was led to
believe that Jersey City could not sell
water bonds to the amount of ST ,500.-
600 without securing such bonds with a
mortgage Since then | have made an
investigation and learned that there are
reputable bankers in New York who
stand ready to buy the entire issue OF
! bonds at four and one-half per cent,
without compelling Jersey City to protect
them with a mortgage upons the water
plant While l am not at liberty just
at present to make public the names of
these bankers. can safely say that they
are reliable men, with a frst-class stand
ing in the financial world; men who have
purchased municipal bonds for many
years
Senator Minturn added that the Jer-
sey City authorities should have made
inquiry as to whether or not they could
float the water bonds without mort
gage on the water plant before making
an appeal for legislation.
.'Why, it seems to me ridiculous" he
said, that any municipality should be
compelled to execute mortgage upon
anything that it wishes to buy before it
can float its bonds. The bonds in them
selves issued in the corporate name OF
the municipality should be sufficient Sc
curity. If the bonds cannot be hoated
without executing mortgage, then the
municipality may as well go into bank
ruptcy. as it would be compelled to give
4 mortgage on City property for every
bond issue raised hereafter But as l
have already said, the new water bonds
cln be foated without giving mort
gage. can see no good reason why
Jersey City should seek legislation Per-
shaps. he concluded, Mayor Fagan and
Corporation Counsel Record have rea-
sons which they have not yet made pub
lie. but if they haveI have no knowledge
of Them
While Senator Minturn would not say
just what action he proposed taking on
the Coyle bill if reached the Senate he
allowed it to be inferred that he would
vigorously oppose its pessage.
The Coyle water bill was drafted by
Corporation Counsel Record, and is al
most similar in its provisions with the
bill introduced by ex-Assemblyman Jo-
seph G. Duff last year, which passed
both Houses, only to be vetoed by Gov
ernor Stokes. There was concerted eff
fort made last year in the House to
defeat the Duff bill. because it was
claimed it was drawn in the interests Of
several prominent financial men in Jer-
sey City and practically that debarred
New York bankers from competing for
the bond issue. The Democratic minor
ity. led by James A. Hamill and Mr.
Duff, Loyalty supported by their col
laagues, succeeded in procuring the
necessary majority Of one vote to enable
the bill TO pass through the House.
In the Senate, Mr.. Minturn supported
the bill and it was only after q stubborn
fight that he succeeded in getting il
through. Several Senators who are rec
ognized as corporation men fought the
bill and did everything they could to ac-
comDlish its defeat.
No sooner was the Duff bill presented
to Governor Stokes for his approval than
Colonel S. D. Dickinson appeared on the
scene as an active opponent Of the mea-
sure. Before leaving for Europe he se'
cured d pledge fgemsthe Governor that
the latter wouldS notT sign t before he
returned. in theSeveIlt that he decided
not to veto it.
Mayor Pagan. Corporation counse,
Record and Finance Commissioner Jacob
EinsIe made several visits to the Coy