The sun., 1907-08-18
CITY MUST STOP IMPROVING
UNLESS ITS LEAN PURSE ~ soon
REPLENISHED.
some Important Contracts Not Awarded
and Interest Being Paid On Land which
Can't Take Over only Hsif Mtiiion
ON Hand to Pay Ten MtIliODs OF Debts.


and Interest Being Paid On Land which
II Can't Take Over only HsN Million
ON Hand TO Pay Ten Mniions OF Debts.
Unless the city is able soon to find market
for it's bonds the many improvements which
have been authorized in the last few months
will have to be abandoned for the time being
Some Of these improvements consist OF new
docks, new parks. the municipal building
on the terminal site at the Manhattan end
of the Brooklyn Bridge and the beginning OF
the work Of constructing the aqueduct and
dams for the new water supply system. The
cost Of these improvements would amount
to at least si0O. .OOO, 900. and they cannot be
begun unless the city can borrow money
with more facility than il In now doing.
The Water Supply Board has not felt
justified in awarding the big contract, for
which the John Peirce company was the
lowest bidder. for the construction OF Asho-
kan dam. Furthermore. as the city is un-
able to pay for the land condemned for the
Delanoey street widening. the Brooklyn
Bridge terminal and for several small parks
and new schools. it is obliged TO pay inter
est at the rate OF per cent. on these land
purchases.
OF the proceeds Of the last two bond sales,
amounting to little more than 81 100000 out
Of the So, 900. 600 Of bonds offered, there is
now in the citys treasury only between
s4Oo. 900 and S5O0.0OO. And there are now
awaiting payment warrants due to con-
tractors and others amounting to $4,'OO.OOO.
In addition to this there are claims in the
Comptroller's Office, for which the City
Chamberlain has not issued warrants,
amounting to another se.O00,0oO.
Although the city cannot even begin TO
liouidate this Indebtedness, Deputy Comp
troIler McCooey insists that there is nothing
in the situation to justify any uneasiness'
He said yesterday that the city's credit was
as good as il ever was, and the failure OF
the bond sales at this time was due solely
to the tightness Of money. As soon as the
stringency has passed away. he said. the city
will have no difficulty in borrowing all the
money it needs. MIR. McCoo ey repeated
Yesterday that. while some Of the cont rae
tors who had not accepted bonds in part
payment OF their claims might have to wait
a little while before they could DO paid in
cash provision had been made for the carry
ing on of all the work Of building and equip
ping the new schools.
Mr.. McCooey lost no time in getting back
at Borough President Coler Of Brooklyn.
On Friday Coler wrote to the Comptroller
twitting the Finance Department because
Of it's inability TO sell the city's bonds. and
facetiousy Offering to take his salary in
corporate stock. To this letter Mr. McCooey
replied yesterday:
Replying TO your communication Of the
18th inst, relative to the payment OF your
salary warrant for the month OF August,
have TO inform you that your suggestion
that the same be paid 10 city bonds cannot
be complied with. for the reason that salary
warrants are chargeable to the appropriation
account and not to the. bond account.
assumed that your experience ss Comp
troller for four years would have enabled you
to be in possession Of this information.
I would suggest. however. that upon the
receipt Of your salary warrant. you tender
the same TO this ONCE, when We will imme-
diately take steps to give you the equivalent
in New York City bonds.