New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-07
SULzER REPUD|ATES
EXTRA BOND INTEREST
Issues Proclamation That Lost
Bills Repeating Allowance
Will Be Passed.
HUNT FOR MEASURES VAIN
Assembly Speaker Unable to
Explain-Sinking Fund Raid
Law Also in Doubt
Tammany's Revenge.
by Telegraph to The Tribune. !


Albany, May 6.-The mystery as TO
what became of two financial bills sought
by Governor Sulzer in so many emer-
gency messages in the last moments OF
the Assembly session last Monday night
is still unsolved, but Governor Sulzer be-
lleves his extraordinary session will show
him way out Of the difficulty. lie sali
| tonight that. even though he mad not IN
| tended TO call an extra session to pass his
direct primary bill. he would do so for
no other reason than to clear up this
| situation.
Because OF the uncertainty regarding
these bills the Governor to-day sum-
moned Speaker A. L. Smith 10 Albany.
Mr.. Smith would not discuss the ques-
ton before seeing the Governor, but af-
terward the chief executive said that
the Speaker told him he was certain both
bills were passed by the Assembly. The
records. however. do not show that they
were passed. and the Speaker was un-
| able TO explain their failure to do so.
The bills involved repeal the Frawley
laws. approved earlier in the session. in
creasing the rate OF interest on state
bonds from 10 az per cent interest and
exempting them from the provisions of
the inheritance tax law The purpose Of
/ these laws was TO encourage the sale OF
state bonds The Governor sought TO re-
peal them when he was informed that
they were retroactive and would result
in the state having to pay the increased
interest on millions of dollars worth Of
state bonds held by New York bondnf
houses and which they were unable to
dispose OF because of the low rate Of In
terest Speaker Smith was sure the bills
were passed by the Assembly but when
, Governor Sulzer was asked why the
Speaker did not sign them and forward
them TO the chief executive for his APP
proval he said that the fact that their
passage did not show on the records of
the House might lead 10 litigation.
Therefore. he said. IL was determined TO
have the bills passed again at the extra
session.
The Governor issued a proclamation to-
night stating that the Frawley laws were
passed under a msapprehension; that it
was the intention To repeal them at the
end of the regular session. and that they
would be repealed without fail at the
extra session. The state he said, will
not pay the additional interest on any
of these bonds as result of the Frawlcy
laws, and the purpose of the proclama-
ton was to discourage anybody from
purchasing state bonds in the belief that
II would.
In recommending the Frawley laws the
Governor said Il was the intention to
have them apply only 10 bonds to be is
sued In the future After he asked for
their repeal another bill was introduced
increasing the rate of interest on future
bonds. IL is not sure whether this bill
got through both houses and Governor
Suzer probably will not know about IL
until after he has looked over and In
dexed the bills pending before him.
which will be done within the next day
or two.
Another bill about which there was un-
certainty is one allowing the state To
take about sl2,0O0.0OO from the state
sinking fund to help out the Governor
i'm his efforts not to have to impose a
direct tax Mr.. Sulzer felt sure to-day
that his bill was passed and is now
waiting his approval.
Reports are rife here to-day that the
legislative leaders. In their anger at the
Governors conduct I'm not making the
appointments they wished him to. at a
secret conference Saturday afternoon de-
cided to Kill all these financial bills. This,
ii Is said might explain the present pc
culiar situation regarding them.