New-York tribune., 1907-08-18
CITY SHORT OF FUNDS.
BONDS NOT IN DEMAND.
Deputy Controller M'Co~y Hofd'
Optimistic Tiescs, HOSCeCer.

,-,. .,z,-r- sav adds 20 the difficulties OF
Tie finance department OF the CITY. ho" " hAe''
sbe certified warrants that have been given 10 con
tractors when there IS only a small amount OF
-. A., g. .-.as,,-v and when the certified war
&c .-,o,,,t 70 many times the cash. is puzzling
TIE finance cfi1cieis-
There is at present IN the city treasury ieS'
shan s5eSO,o in cash. Certified warrants nave peeh
Issued ar5 are outstanding to the amount VI
tsrnae9 Holders of these, city contractors arr
clar;,c-srr fc- their money. They do not want 10
take the city's bonds or corporate STOCK ihstesa,
for yesterday bonds Of the lest issue OF sioo''oo'
were selling the street for a fracuoh over 80
whereas the city will not part with them FOR less
than par. ,,-
Deputv Controller NcCooey admits the situation
20 be a critical one. but he still maintains MS
cEstiT.St:c attitude
with certified warrants calling for the payment
NJ n;ne times tie amount OF money the CITY mas
"a its treasury outstanding. there are so'"to'V
a-arrh of warrants for work that has been oolle
,v contractors for the city and thaf nave ioe "'
VT been certified by the City Chamberlain. ihe'e
warrants il is understood, should be ceruneu a.
,.,oe and the contractors should be able 10 cash
,t,, Fs,. ,he Chamberlain and the other officials
tn charge of the city's finances know Wen inc ci
sition of the treasury az present and Hfe pU'e
,rf as long as possible the day when cer'ilioa'Oi
ran be postponed no longer
II is held by city officials that in two hlohlIs
the city syil receive from various sources SUI
cient revenue &c meet the demands on i's He"'
NV But at present some Of them frailhi! AZ
knowledge that. owing TO the ughtness oh u '
money market and the consequent laa"ie "a =. =:
the June and August bond sales. tfle NfeaSH'S - "
ma ros,,son to meet the demands upon it
-sontracts for the Chelsea dock the new "s'h
street municipal ferry. payment for propets
widening Delaney street. for the condemnation va
-,ronerty for the extension of the Manhattan Ter
.at % .,a rsroollyn Bridge for Chelsea and some
-uantv other small parks involve the city IN tie
expendsture Of s1oo.eeO.oOo Ihls IS ou'sl ~
of any expenditure the Public Service COMMISSION
NAV make for the building Of new elevated A'ieS
and subways.
The sale Of bonds over the counter yesterday We
-.,e srnsIles, of the week The Acting Controner
said that only s250oo worth of the city securities
were taken 49,,
There are continued rumors that some OF the
large purchasers of city bonds have decided 10 for
felt their per cent deposit and refuse TO take ule
hon5s they bid for. 1T would pay them 10 1oiO"
such course leaving out any etnical consiuef
tion" said one Of the clerks IN me oOn'i oei :
office Yesterday ''They deposited 2 per cent 10
b,ud their bids They can let this deposit 60 buy
the bonds at Sc g. and still save themselves
one 10 two dollars the hundred
r1ern,tv Controller McCooey said be saw nothing
really alarming In the situation, that lie believed
,h city would he able TO keep its credit good but
he added il would be better IL there were a h'le
more cash fn the treasury.
Contractors refused yesterday to take any part or
the citys Indebtedness TO them in city bonds Soie
Of them told the Controller that they could borrow
only IS per cent OF the par value OF the securities
from local banks leaving the bonds as collaterai
security Earlier in the week many OF the con-
tractors were willing TO accept IS per cent OF the
money owed them by the city in securities
In reply TO Borough President Colers offer to
accept bonds in lieu Of his salary. Mr.. McCooeE
sent him the following letter:
Replying your communication OF the 1otn
@ e1 Teafse f ,oob Io % oP snsst Il have TO Inform You
-hat your suggestion that the sum be paid in city
bonds cannot be complied with for the reason tnat
salary warrants are chargeable 10 the approprla-
.ion account and not the bond account. as
ss1roed that experience Controller for four
years would have enabled you to be in possession
Of this inforIne ton -
i would suggest, however, that upon receipt of
your salary warrant, you tender the same 20 this
office when will Immediately take steps to give
you the equivalent IN New York City bonds.