New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-23

A., .,,+,,oritv granted him at his own -.
80 ,--,,as+ A., 1905 was not only illosl-
p, 49, aisastrous. Only S3,00O.OOO OF Iile
soe ooooOo Of corporate stock author"
800 nos issued in 1907 or has nee"
$50 and even that was not useo 10
-osae,, old revenue bonds. But tne
controller had TO have money 10
deem or refund S14,1S7,l3S OF revenue
bonds issued against the taxes OF years
Drior to 1907 in excess of the taxes ana
ether revenues available to redeem tneln'
these bonds naatured in 1907. In the
early months of the year he used the
,-oceeds from the sale of the current
wears revenue bonds and the receipts OF
permanent Improvement accounts for
that purpose. but in the last three
months Of the year he was compelled to
refund at least a part of the money SO
used
A STILL WORSE EXPEDIENT-
In order to get out of the predicament
in which he found himself. because of
his failure to use the means Of escape he
had himself provided in 1906, the Con
troIler resorted to an expedient many
times worse than that which had been
employed by his predecessor. He entered
into an agreement for the sale of $780,
100000 of revenue bonds bearing inter
est at per cent per annum for terms
varying from one to three years. The
division Of the issue was as follows:
Seven million dollars against. the taxes
of 1905. S5,00o.O0O against the taxes of
1906 and 100000 against the taxes Of
1907, all redeemable in November, 1908;
| 100000 against the taxes Of 1906 and
| 100000 against the taxes Of 1907,
both payable in 1909. and $5.O00,OO0
against the taxes of 1907, payable in
1910.
Il is true that by means of this sale
the Controller got S16,OOOOOO to refund
the S141S7.13 of maturing revenue
bonds that were outstanding against tax
levies prior to 1907 in excess of the tax
collections and other revenues available
TO redeem them. He also got $4,000. 900
in addition on that part of the bonds
Issued in anticipation of the collection Of
| the tax levy Of the current year, So, $780,
600 of which he afterward discovered
were illegally issued according to his
own method Of calculation. BY book
keeping entry in the following year he
assumed TO correct this error by calling
the S3,2S9.OO0 of an overissue revenue
bonds issued in anticipation of the COL
lection of arrears of the 1904 levy.
COST TO THE TAXPAYER.
This agreement made by the Controller
in 1907 for the sale of $30,OO0,OOO Of 6
per cent revenue bonds for terms of one.
two and three years win have cost the
taxpayers before the last of these bonds
is redeemed, a year from now, lust
100000 in interest. It has been urged
that at the time this money was Dor
roWed call loan rates in Wall Street
were as high as 10 per cent per annum.
II would have been cheaper for the Con-
troller, If he had been compelled to do so
to have paid even call loan rates on the
money he actually needed to borrow for
few months until the money market
got back TO normal again. But the fact
Is that both before and after this mar
ueular loan was made the city had been
aDle 10 secure money for short terms
upon revenue bonds at from ; TO ~
per cent per annum
In addition to the ac. al cost ~ The
taxpayers of this $500 ID. GEO loan unor
revenue bonds made IT. 1907. the record.
plainly show that more Of the tax Ievies
against which the bonds were issued
were pledged than there remained +axe-
10 collect The total uncollected taxes
OF the 1905 levy a. the end of 1907 were
$S''of'l62 Of this amount $4,000 .OOr
mad been deemed uncollectibIe and had
been provided for by an appropriation
in the budget of 1907. There remained
therefore only Se.7s71s2 Of uneollected
taxes to provide for $2.2s9.ss4 of unex-
pended appropriations authorized in the
budget of that year and to redeem 81
100000 of these per cent revenue
bonds.
The total uncollected taxes of the 1906
levy at the end Of 1907 were 81. 70s sol
OF this amount $4,000, 600 had been de-
elared uncollectible and had been pro-
vided for by an appropriation in the
budget of 1908 before the $50. 0Oo. 900 loan
on revenue bonds was made There re-
manned. therefore. only $9,7O6,3O1 of I'M
collected taxes TO provide $1,6sO.Se4 for
unexpended appropriations authorized in
the budget of that year, S619.210 for the
redemption OF other revenue bonds out
standing against 1906 taxes al the end
OF 1907 and 100000 TO provide for the
redemption of these per cent revenue
| bonds.
The unsolicited taxes Of the 1907 levy
at the end of that year were s2s, ,65l.
] out Of this amount had to be provided
| s9,ss2.203 for unexpended appropriations
authorized in the budget of that year,
$141sLs26 10 redeem other revenue
bonds outstanding against uncollected
taxes OF 1907 and $14OOO.O0O to- redeem
these per cent revenue bonds.
GROWING FEAT IN TRAVESTY.
Il is difficult TO conceive any adequate
defence for the illegality and utter folly
| Of this kind of municipal finance. But
the browning feat in the travesty was
| performed in 1908. when the Controller
sold in the very first week Of the year
another lot of s35.OOO.O0O OF revenue
bonds bearing interest at per cent per
annum for terms varying from nine
mouths 10 thirty-three months. This
time all the bonds were issued in antici-
patton Of the collection of taxes OF the