New-York tribune., 1907-07-30
l1ETZSIDEA UNPOPULAR
NO PRW1TE BOND SALE.
City W0uld BE Defrauded, Speakers
Sag at Hearing.

Much opposition to Controller Metz's idea OF hav-
ing city bonds sold at private sale manifested
yesterday at the hearing on Senator McCarren 9
bill to permit this. held before Acting Mayor Nc
Gowan Holders Of city bonds protested that the
value OF outstanding bonds would depreciate. and
declarations that collusion 10 defraud the city
would be easy came from nearly every speaker.
CHARLES Pope Caldwell who said he represented
holders OF 3i2 per cent bonds argued that any
controller who chose could sell bonds at par to a
banking house. which could sell TO It's favored GUS
toners ut less than par and stil realize pront
from the transaction. Graft under such an ar
rangement would flourish. he maintained
what is 10 prevent the Controller from making
an arrangement with some bank or trust company
designated as city depository to turn over stocks
ana bonds at private sale, leaving the price paid
in this bank as deposit OF CITY money! mus tho
city would be paying the depository per cent for
money never actually out OF its hands and on the
deposit be paying per cent on every Q.CooODU
OF STOCK the depository would be making $1,000 20
nt; Shid"eH referred TO the widespread criticism
which had been levelled at the National CITY
banks purchase OF the Custom House. Precisely
the same transaction could be mnde with city
bonds he said II the McCarren biz became law.
lie urged that II such legislation were necessary
ana the bonds could not be sold az public auction
that there be inserted a limitation OF time-rrorn
thirty TO sixty days-in which the bonds might DO
sold. and Limitation as 10 the amount or hoplis
TO be sold in such way.
W. H Ryan. OF No. slS West 2sth street who
salo ne was in tho Treasury Department under
PRESIDENT Cleveland compared the Metz private
sale plan TO the Cleveland bond sales which no
criticised severely He advocated n popular sale OF
ponds' IN amounts OF 80. Tho people he
would be glad 10 buy the bonds II the price WASH I
hxed too high w c. Cornwell representing ]
B. Bache & Co, also urged popular Gale OF tho
bonds. Private sales OF bonds would depreciota
those outstanding. ne declared and II the bond
houses know that the bonds could be obtained AZ
private sale II unsold at public sale they would
not be SO likely TO OFFER premiums the public
bidding. The only way TO allay suspicion of colu-
sion was TO have popular sale. which would
foster civic pride and offer good investment to
the people
Deputy Controller McCooey who represented Mr
he thought there had been popular bond sale at
some time in the city's history but he deprecated
the idea because OF tho It cost the CITY 30
cents TO issue bond OF 1900 he said, and bonds
for smaller amounts would be Just as costly while
the cost Of clerk hire and other expenses probably
would be somewhat greater in proportion.
Alderman Henry Clay Peters. advocating n pop
ulsr bond sale. referred 10 the patriotism OF the
French in subscribing 10 popular loans His re-
marks drew from Acting Mayor MCGOWAN the COM
ment that Americans Were second 10 none in their
patriotism.
a hearing also held the Robinson bill
providing for redstrcting Of the city into alder
manic districts. Nobody appeared TO argue for or
against II. The measure reduces the number OF
districts from seventy-three. at present TO sev-
enty. Manhattan loses two and The Bronx one
This aldermanic reapportionment is necessary be-
cause Of the readJustment of Senate and Assem-
bly, district lines TO which the boundaries OF the
aldermanic districts will be made TO conform II
will offer opportunity for considerable political
manipulation within the various Democratic fac
tions.