The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-04
Mayor. in Annual Message,
ReiterateS Position on
Home Rule in City.
BUILDING OF SHIP CANAL
Urges Caution In Issuance of New
City Bonds-.O Only Increase of
City Debt During Year Was
for Building of Schools.
Merit to Fix Salaries.

The first annual message of Mayor
Jecob Haussling was presented to the
Common Council last night. He paid
particular attention to the finances of
the city. The message was couched
in simple terms, and a pleasing inno-
walton was the absence of routine
data that in the past has been so tire
some, this data being left for inser-
ton in the reports of the various de-
partments. The message deals with the
views of the city executive on general
matters of public interest. The docu-
ment is as follows:
ITO the Honorable the Common Council:
In a review Of the year just past and a
forecast of the coming twelve months, a
consideration of the financial condition of
the city must necessarily be of prime i'm
portance. Through the courtesy of the
auditor of accounts and the secretary of
the sinking fund commission. I am en-
abled to present the figures relating to
the financial status of the city In advance
of the publication of the official reports.
On January /, 1908, the total bonded debt
of the city was 1928, 973,5 500. To offset this
there was in the sinking fund S7,623,35S.6l
thus leaving q net bonded Indebtedness OF
SIG. $780, 41, 80. As compared with January
!, 1907, the net bonded Indebtedness has
increased $4S5, 049.61. The total indebted
ness at the date mentioned was 22,925, 600,
and there was In the sinking fund at that
time 81, 059, 902. %, making n net city debt
of SIS, S65, 097. rs. The increase in the bonded
Indebtedness was entirely due to the issue
and sale of 81, 165, 800 in school construction
bonds bearing date Of May l last. The
necessity for issuing a major part OF these
bonds at least was imperative in order to
supply adequate accommodations for the
pupils of the public schools. During the
wear bonds to the amount of $4,000 ma
tured and were redeemed, and there was
an increase in the same period in the
sinking fund account Of 1868 ,456.39.
City Debt Under @ Per Cent.
THE net city debt represents a trife
over 515 per cent. of the ratables of the
city, which in 1907 were $295, 7S7,S2S. This
is well within the limit of 10 per cent. OF
the ratables, which is generally considered
as a safe figure for a municipal debt. An
analysis of the items making up the bond
ed indebtedness of the city shows, how
ever, our financial condition to be even
more satisfactory, There are, properly
speaking, four items in the bonded in
debtedness, to wit:
'1-Bonds which are a direct charge on
the taxpayer.
'2-Bonds which are a partial charge on
the taxpayer.
'S-Bonds not chargeable to the taxpayer,
but secured by liens on property in arrears
for axes.
'4-Bonds not directly chargeable upon
the taxpayer, but payable, interest and
principal, out of the income of the Water
Department.
"When the water and tax arrearage
bonds, both of which are self-discharg1ng,
are deducted, it is found that the tax
payers of this city have to bear interest
and sinking fund charges on $,SOo,0OO OF
only, an amount equivalent to
9-5 per cent. of the tax ratables. The
accompanying table will perhaps give a
clearer idea than any other exhibit Of the
status of the bonded indebtedness of the
city:
l. Bonds for which the whole
sinking fund and interest
are placed in the lax levy
and are therefore a direct
charge on the properly
Hail bonds .o............,.$ 81, 1913. 10000
}. Bonds for which only a
part of the interest and
sinking fund charges are
t pleef market bonds 80. 100000
!. Bonds for which the charges
are paid by property owners
Indirectly but not from the
tax levy, as water bonds. u,So1,Voo.00
!. Bonds which are not a
charge upon the taxpayer,
either directly or indirectly,
as tax arrearage bonds. 465,VOo'OO
Total .$28.M 8. $4,000
Appreciation of City's Bonds.
1.-THE appreciation by the financial
world of the excellent condition of New
.rk was amply evinoed when the issue