New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-10
STATE PAYS S19,0O0,0OO
MORE THAN IS NEEDED
People Contribute Greatly in Ex-
cess of Sinking Fund Demands,
Says SuIzer Committee.
TAX ON UNISSUED BONDS
Method Vicious, Absolutely
Ridiculous and an Imposi-
ton, the Governor
Declares.
TAX ON UNISSUED BONDS

Albany Feb. 9.-The people Of New
York State were required during the last
seven years TO contribute nearly $4,000,
600 in excess Of the amount needed for the
retirement OF the states funded debt ac-
cording TO a report made TO Governor
Sulzer by his committee Of inquiry. The
committee has recommended temporarily
deferring contributions to the sinking
funds until such time as it is necessary
under the customary plan Of amortizing
debt. and that hereafter such contribu-
tons shall be made only in amounts suf-
ncient to discharge the principal at ma
turity
Under the proposed plan il would not
be necessary for the state to appropriate
nearly $4,000. 000 asked for this year by
the State Controller for sinking fund pur-
poses. and would permit the present adj
ministration TO abandon the leyying Of
direct tax.
James Cameron. chief investigator for
the Governors committee. reports that the
amount of the present funded debt OF the
state totals $1O6.I12.66 divided as fol-
lows Canals, 500. f07 $50; highways. s34.-
100000. Palisades Interstate Park, 81
800 600 and Saratoga state Reservation.
$3.50. 600 OF the bonds authorized $l2i,-
$4,000 have not yet been issued.
on December 81 last the sinking funds
Of the state totalled S22,30i,040 %, which
Mr.. Cameron reports is s1S.173,Oi5 % in
excess OF the amount required under a
scientific bond amortization plan.
Mr.. Cameron reports that the manner
Of arriving at the amount of the contri-
button To he set aside yearly for the sink
ing funds was the idea Of W. q. Schaible,
chief clerk Of the State Canal Bureau,
and was based upon advice given him by
ex-senator Henry W. Hill. George Clinton
and other canal advocates. Mr.. Cameron
points out that the attaches OF the state
Controllers office contend that the excess
sinking funds have resulted from "a man
datory imposition on the part OF the con-
stitution and the statutes enacted pursu-
ant thereto" Mr.. Cameron dsagrees with
this contention.
Mr.. Cameron consulted with nine well
known hnanciers in New York city. and
says they agreed with the conclusion he
has reached He suggests that "inasmuch
a.. the greatest proportion Of the excess
was accumulated within the last seven
years the adjustment, operating TO
correct the abuses. should be made et-
fcctiye Immediately. 10 the end that the
same decade receives the benefit Of such
corrections as far as II possible
John r Norton. counsel for the com
.1ittcc. has made a study Of the legal
& e.. has xtriftpn a
exhaustive opinion Tor the Governor.
Governor Sulzcr in a statement on the
situation says.
II is not clear to nae how a matter OF
this magnitude could be by four differ
ent administrations left practically 20
the opinion Of one man ~ state De
partment Had the seriousness OF TINS
matter beers forced to an issue TINS
vicious system. causing the peopl. oil
New York To pay these millions OF
dollars unnecessarily, could have been
adjusted more than seven years ago, as
Mr.. Cameron shows In his report that
IL was I'm the year 1907. and for three
wears thereafter. that ther' was q tax
on the people for a sinking fund on
bonds which had never ooen issued IAN
Won conceive anything more absolutely
ridiculous? And say therefore that "h"n
use the term imposition | am using
IN extremely moderate expression.
The hnanciers with whom .Ir. Cam
eron has conferred and advised-and be-
Iicve me. they are among the greatest
I'm our country-haye declared that the
system is ridiculous and that II is my
duty 10 adjust it. TO the end that the
people who have contributed this money
will receive the benefit OF this ADJUST
mont" the Governor adds.