New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-06
BANKERS Insist on New
Policy in Furnishing
S1OO,OOO,OOO.
WOULD CHECK RUSH
OF IMPROVEMENTS
Hold They Should BE Paid for
Out of Each Years Taxes
No Pay for Syndicate.


from those that are self-supporting,
such as subways, docks and water sup
nlv The Wall street bankers nave
insisted upon this as part OF the
agreement they have undertaken 10
make with the city TO furnish $lOO,-
200 600 to meet its outstanding ooli-
cations abroad and short term oohgl-
iions here.
Az the situation was serious, Con-
troller PredergaSt and Acting Mayor
MeAnenv have agreed to the PROPOSE
ton. However, the syndicate man
agers-J. ?. Morgan & Co.. and hunh:
Loeb & Co, desire a certlhed copy VI
a Board of Estimate resolution hXlng
the new policy. Controller PrendeI,
cast CITY Chamberlain Bruere and
Acting Mayor McAneny have all sent
kilograms to Mayor Mitchell who is IN
the wilds Of New Brunswick, asking
him TO return at once.
For years the policy of the city mas
been to pay for permanent improve
ments bv the sale of fifty-year cor
porate stock, the interest and provision
for an amortization fund being put IN
the annual budget.
The proposal is that in the future
the CITY shall not issue any such long
term bonds, that work already under
contract shall be paid for by htteen-
wear serial bonds and that all new work
shall be paid for out OF taxes ms
colicv will be likely to prevent the
Clamor for improvements, when II Is
considered that the cost cannot be SAD
died on future generations out must
be paid for at the time.
The agreement provides for the pur-
chase by the syndicate Of S5LOOO,OOU III
corporate stock notes and the TalsluS
of the remainder Of the money through
revenue notes sold IN anticipation VI
the collection of taxes.
Substance of Resolution.
The following are the points that the
syn5icate insists must be covered by
BOARD of Estimate resolution:
"I1O In so far as the corporate stoCh
,otes IN he purchased under the pro
posed contract shall be retired oy ISSUE I,
- corDorate stock, the corporate STOCK
20 issued shall mature in equal annual
inatalments during a period OF NOV
more than fifteen years. Inc nlaIuiins
instalments of such corporate s'VSH ,
sbsll be paid of by incluGlng tne
amount thereof in the annual 1uusL
for each year during the Ire OF SUI"
corporate stock. -,,..,, he agreed
.ho works already under contract Out
IN resnect of which new bonds are 70
he issued. are to be financed IN the
se,,o method as above provided Dy Vne
issuance of serial bonds payaole III
aSoi annual instruments during
ns~iod Of not exceeding fifteen years,
- PROVISION in the annual DudgeVs
sbsll he made for each such lnstaimeh'
so maturing. u ,o,7 NO
nev obligaUC-s lother than revenue
hills bonds or notes in anticipation %
faxes) are to be issued IN respse' ".
anv work heretofore autnorIeu' III
which no contract has actuaIiy DevH
n,ede nor for any work hereafter au-
thorized, but all such work shaIl Oe
paid for out of taxes.
an harmony with the policy OF reS-
sonsble economy and rerrenchment al
,oaSy under way" said Mr.. premier
cast speaking about the new pian'
= nronosed to abolish the practice oil
;ss2inS long term bonds for any I'M I'M
,,roye9ents except those that are seu-
sustaining. nov and that
which is already under contract VIII
Inc exception OF transit, docks AZ" az
water supply (which are IN the sen sen
sustaining class, it IS designed Hhauy
20 nav for in the form OF h'teen-y ',;Ii
seriaj bonds. The effect OF TINS VIII
So IN the first years TO put a some
,,bet larger amount in the budget thSh
e 6ftv-vear bonds we're issued, but the
gross outlay. principal and interest,"
s,nder this system will be many mill
IONS less than if long term bonds were
issued.
Fify.year Bond Plan Costly.
"The people of the city should pear
in mind that a ffty-year BOND oel9Ie
il is cancelled, means that the CITY mas
disbursed three times the amount OF
+be original outlay. Further, so FAR as
entirely new work is concerned, and Dy
tbat 7 mean work not already un1er
contract or for which no authorizations
arc made. il is proposed that these I'M
movements, with the exception OF trah-
81 docks and water supply (Which are
self-sustainingl will be paid for out OF
each years taxes.
"This will mean the inclusion IN each
tax budget Of such sum as the boarG
Of Estimate and ApPoruonmeht WIN
determine for permanent improve
ments. and while al first some NAV be-
lieve that this will be a hsrship still
the very fact that these Improvements
should be so paid for will be deter
rent and a most wholesome one upon
the innumerable demands that are
made upon the Board Of Estimate and
Apportionment for different improve
ments throughout the city,"
The proposed agreement provides
that of the s48. 100000 in revenue notes
10 be purchased by the syndicate $751;
10000 shall be payable in two years
and S35OOO0OO in three years. In Ar
tiele 4 the syndicate undertakes to ar
range for the payment of the $SO,243,-
p4O47 obligations in England and
France at a rate of exchange of S5.O35
for each pound sterling and 20 cents
for each franc.
But a war clause is inserted to the
effect that, inasmuch as article us
negotiated under conditions unprece-
dented and unforseeable ia their out
come, both Great Britain and France
Nbeing ut war and Paris actually in
state of siege, il is expressly under
stood that in the event that ocean
massage between New York and Eng
and or New York and France shall not
continue open to substantially the
Eame extent as prevails at this date,
and the shipment Of gold or grain or
other American products from New
York 10 England or France shall be
materially impeded, or If by reason Of
INV superior force further proceedings
. hail become impraeticable," the syndi-
ate shall be relieved Of its obligations
10 provide for the payment to England
and France. II will still, however, I'M
sertake 70 provide the $l00,OoO,OOO by
The purchase of city notes.
To Act without Pay.
- - tt,t H. candidate man