The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-17
CITY CONTRACTS May STOP
UNLESS SOME or THE OVERDUE
PAYMENTS ARE NET.

The Bis Contractors Are Taking Bonds. hut
the LittIe Fellows want Cash -Mca,ooey
Net Alarmed Golfer Butts In by Oner-
lng 10 Take Hts salary ia Bonds.
The failure OF the last two bond sales In
imposing great hardship on some OF the
smaller contractors who are doing work
for the city. They are unable to get the
money due them, and as many have not
a large working capital the situation is
rather serious for them. In the last few
days many OF these contractors have
visited the Finance Department and have
told Deputy Comptroller McCooey that
unless they can nave something on ac-
count they will have to lay OF their men
and stop work on their contracts.
The contractors with plenty of resources
behind them have consented to liquidate
part Of their claims by taking the city's
unsold bonds. and it is due to the action
Of. these men in taking the bonds down TO
Wall Street and selling them at a discount
hat the price OF the municipalities stock
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par.
The seriousness Of the situation OF the
small contractors can be sized up when il
is stated that in June the city sought to
sell $40, oOo, 900 Of bonds and on Monday
last SIS, 0OO, 900 worth. This money was
needed for carrying on public improve
ments. or the two authorized issues only
Lx.s sc N am kn.v. LAA. nAl1 AN1 the
rate at which bonds are being sold "over
the counter" is not more han 800 600 a
day 80 far, and this includes the bonds
taken up by the contractors in part pay
ment.
Deputy Comptroller McCooey is telling
| the contractors who are calling on him
to say that they must have money il they
are TO continue work that there is no need
for them to worry because money is com
ing in fast enough to pay all their clsims
within a few days. The same promise
was made to them in June when the bond
sale of that month failed, and on the
strength Of assurances that the succeeding
bond sale would provide all the money
needed many Of the contractors continued
! 10 do business by borrowing capital on
promissory notes. These notes are now
fndCuTlUR anu Tic COutTbtbOfb W aiTdtu
that they will have to apply for extensions,
which will mean that they will nave 20 pay
! something for the accommodation.
Mr.. McCooey professed yesterday to BEE
/ nothing alarming in the situation. He be-
lieves that there il merely a temporary
! %stringency ina the money market and that
when this is over the city would be able
20 dispose OF its securities without difficulty
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raising the rate Of interest. Unless Mr.
McCooey's optimistic outlook is realized
soon the city is likely to find itself in a very
bad way because there is now owing IN
contract or for work actually completed at
least So, 600, 900 and on the first Of next
month 81. 900. 900 will be added to this in
debtedness.
Mr.. McCooey said yesterday that while
an effort was being made to pay Of some
Of the contractors in bonds those who we're
erecting and e%quipping new schools we're
being paid in cash and that there would
be no impediment to the fulflment Of the
contracts for the opening OF the new schools
which the city has provided shall be finished
in September.
President Coler of Brooklyn, who never
loses an opportunity 70 get in q dig at Comp
troller Metz. went to the trouble yesterday
Of preparing a statement for distribution
to the newspapers in which he declared
that IL the claims against the city by con-
tractors were to be paid in bonds il might
be as we'll TO extend the idea TO the payment
Of salaries. and added Coler. Il desire
to be the first elected Official on the city's
payroll 10 take the city's notes in satisfsc-
ton OF my salary claims
Mr.. Colerls salary. it may be stated. has
been paid up 10 date.