New-York tribune., 1910-03-09

The bonds are to be interchangeable
registered or coupon, and the interest is
payable semi annually in New York,
London or Paris in dollars. pounds ster-
ling or francs.
In specifying the purposes for which
corporate stock, formerly disposed of
under the blanket designation of for
various municipal purposes" will here
after be sold the Controller has not re-
turned to the old practice. i'll vogue dur
ing the years Immediately after con-
solidation, of specifying the individual
purpose for which each bond is sold
The enormous increase in the scope of
the city's permanent improvements dur
ing latter years made a return to this
practice impractiCable because of the
very large number of purposes for which
the proceeds are used.
Instead. the whole proposed issue of
1000 900 has been divided into what
might properly be called nine functional
groups within which are contained the
one hundred and fifty odd permanent
Improvement accounts on the city's
books.
Balances May Be Transferred.
This new plan Will permit OF an inter
change Of balances between the various
individual accounts in each of the nine
functional groups for the general pur-
poses of which the bonds are tC be sold.
In the event OF it being necessary to
transfer balances temporarily from one
group to another pending a bond sale II
Is understood that the Controller will
ask the Board Of Estimate TO formally
authorize such temporary transfer by
resolution. stating the time for which
such transfer of funds is required, so
that any temporary interchange Of bal
arces between the groups for which the
bonds are to be sold, or from any one of
the nine groups to other accounts for
which authorizations OF corporate stock
have been made, will become a matter
Of official record.
The practice of selling corporate stock
for various municipal purposes was
introduced curing Controller Grout's
term Of office in 1904. The ostensible
reason given for the change was that
under the previous practice of selling
bonds for each permanent Improvement
account unused balances in one account
could not legally be transferred to an
other account for the purposes Of which
the money was required.
Rv substituting for each specific pur-
nose the general designation OF various
municipal purposes the city authorities
were able to transfer the proceeds from
the sale of corporate stock to any one OF !
the nermanent improvement accounts as
the money was found 70 be required,
The trouble was that It also enabled
+ne city authorities TO hold over from
one wear to another as a general city
treasury balance portions of the pro
ceeds from the sale Of corporate stock
"for various municipal purposes that
had not yet been transferred TO any one
Of the permanent Improvement accounts
mon the city's books. In 1904, the first
wear that this new practice was intro
duced. S15, 100000 of corporate stock pro-
ceeds we're carried over to 1905 without
being transferred to the accounts for
which the bonds were sold.
I'm 1903 the balance carried over was
81 800. .Oo0. IN 1906 it was $2,UOUO0. In
1907 it was 81. 100000. and in 1908 it
was 81. .5OO.Ooo Until transferred these
balances constituted simply cash in the
CITY treasury, which, under the opera
tion Of the general pot system. the
,acords show was used for any purpose
for which il was required
The official statement issued by Con-
,roIIer Prendergast shows that over $14.-
moono Of the proceeds of the sale of
corporate stock was used to redeem rev
.nna bonds issued against uncollectible
.a,ee contrary 10 the provisions of the
city charte'
.rother evil which grew out of the
o,,sto,o Of selling corporate stock for
yario,,s municipal purposes" and after
cL-1rnnrn On ser onI Ence