New-York tribune., 1909-04-16
TO GIVE STATE MILLIONS
G0Tprn0r Far0rs Sinking Fund tor
Canal Debt.

Arban,. Arril I5-Ciovernor Hughes, in a sIeei'l
MESA &c to the Legislature recomnenaSd 70 o-us
reduction in the rate ~ taxation - as 10 ~ o -
sinking fund for the barge canal debt suIlcIe"'
meet the bonds actually issued Inc Su.s'9,, 80
change will give the state annually between S, S"'y.,
ooo and 81 600 ooO. in addition to present ie>
10 meet current expenses Bills eTnbodSI' ~ -
concentrations were introduced TO-DAY ~ -
ernor points out that there have pee' ~ ,+ tho
e,,a5 only s1l 600 600 Of barge canal bonds pul
sf-l,inq fund had been built lp as though IAe e
500 600 ooo Of bonds authorized had been iSsOe''
The Governor adds
That is to say an annual direct tax o3 d66 6 has
provide the pay raent OF t ths en- 7ount has
appropriated from the general tqnas aesed e vaIa-
tiPn Of the taXahle property OF the state a ~ 500
aasC ea from about 5000 600 to about 50
oI'carTle the requirements Of the noaS a.,
tuallv issued. but it ls laid upon an I''1i
Ths x had fnancerne and results @ c in are not
&slde Of aIhon'5 % rer m T protection the bonds ana
will provide unnecessary accuLl! ,eare before
must be held BY the t.,s2 state Tor many years
the bonds be retired -,o.,, of 81 600 OO0
In order 10 provide Tor the pay mem o iferest at
nsr cent less than $4,000 is annuaiI ~ Ied ~ f1I
The bonds ISSUED oa6 ande5 de6 'e IN 1907 S. 1905
3 900 Provision has thus faI ,e esf' his Year
fuTIteI Tp sinking fund payments actually needed up
TO this time in order to Hhhe Ttfie more than
81 5o16G Instead of this, We have RaG t - aboEf
,i5a this purpose, tle tItSSl!' No
t7S a.! fo And unless the tax rate Is cIaIieeu Iie ~.
-, ,,rr,Ta this year for "A further aGuluol l"
The canal debt sinking fund ABOUT e49Gi,t3o sroyo
nv direct tax or by equivalent apptopllaIioli
Ol,r general funds Such an excess OF ,,ata~a
tion yrnich must be held for long peIlou pSlN
II can he aDDlied the payment OF lhe "o.;uS.
cannot be justified II is a serious daIS'i i"'''e'
than a proper security 40, -,,,ry &C
The uresent of progress on tht 'd'st " - 80
-ra+if,ijnr and indicates that within few years
The remaining bonds will be required but iile .dA
should adjusted that II may ne eiIIte! -
fcierr and at the time be hNed Win Gue
regard the requirements as heN aCtuelIH 49,
II il not proposed disturb the present SIlIhtLs
fr7pd hut Z would advisable 10 TX 10! ti'ee
frrl-re proper of following the pttgtufht
of the ACT Of 1906 for each S0DCH or part iLeffol
in par value Of bonds that may be issued ana OUT
standing.
The act Of 1903 imposed for each year until all
the bonds should he due annual tax OF l2-l"
Of a mill on each dollar Of valuation Of the real
and personal property the state subject To taxa
ton for each H,G0le0 part thereof in value OF
said bonds issued and outstanding I'm any of SAID
wears The Legislature imposed direct annual tax
cf iSl-l0lO of mill each dollar Of valuation of
real and personal property subject TO taxation for
the purpose Of providing for the payment Of the
bonds, interest and principal
In closing the Governor says:
The security Of investors will be amply protected
adequate 10 provide for all bond issues. while the
risks and mprOprietieS involved in creating sink
ing fund grossly excessive Will he avoided
the bill followed conferences between legislative
leaders and interests all being agreeable 10
the proposed change in the law.