The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-13
BOND PLAN TO SAVE
STATE $SO,OOO,OOO
Constitutional Convention
Gets Report on RcOrganiz-
ing Sinking Funds.
TO ISSUE SERIALS ONLY

ALnASY. July ia saving Of $780,
00o. 900 in interest charges will he made
for the state IL a plan to rcorganize
The State sinking funds and to change
the manner of issuing State bonds re-
ported to the constitutional convention
Tonight is adopted. The report was
made by the Committee Of Finance. of
which Henry l.. Stims-n Is chairman,
and embraces virtually all the work OF
set. the plans for which have not yet
been tentatively framed.
In the new plan the Legislature is
authorized TO provide for the exchange
Of outstanding fifty year bonds ut par
for serial bonds. The Legislature may
give an additional o~ue-quarter per
cent. interest IN order to make the
change attractive to the present bond
holders. Tho serial bonds will run only
rs long as the nifty year bonds have to
run Mt The time of the exchange. No
further contributions to the sinking fund
need be made on account of bonds ~
exchanged for serial bonds and a due
proportion OF the sinking fund may be
applied from time to time to the pay
ment OF the substituted serial bonds.
IL Is further provided that no more
nifty year bonds shall be issued, but that
serial bonds hereafter shall be issued
in all cases in which State debts have
already been auth rized but not yet con-
tracted. More than $50. 200. 900 of canal
and highway bonds already authorized
remain TO be issued, and II the Stinson
plan goes through they will be serial
bonds.
The good roads which are being built
- = NnA A.n AAA - - .-Il
for by fifty year bonds and these roads
will nave to be replaced -four or five
times before the bonds mature. as they
uniavel rapid. under the heavy auto
mobile traffic. The Stimson plan en-.
braces a provision in the Constitution
which provides that 10 bond issued
hereafter shall run longer than the pro-
posed improvement will last.
Another provision empowers the
Comptroller TO meet casual deficits or
failures in State revenue by contracting
debts for purposes for which a%ppropria-
lions have been made and within the
amount so appropriated, In anticipation
of the receipt OF taxes and revenues.
Notes or revenue bonds nay he issued
by the Comptroller for a period pay
able within one year to meet such DEBTS
The present Constitution permits Inc
State to incur only a Sl.0OO.Ovo Gept
without a referendum. although Comp
troller Travis has just borrowed $1,000
900 to meet a casual deficit. This was
done under a legislative enactment ana
was questioned in the courts.
The provisions Of tie Stimson plan
governing the sinking fund follow:
"The sinking funds provided for the pay
ment of interest and the eNnnguisiment
of the principal of the debts heretofore
contracted shall be continued they shaIi
be separately kept and safely invested
and neither of them shall he appropriated
or used in any manner other thah LOT
such payment and extinguishimeht as
hereinafter provided.
THE Comptroller shall each year APP
praise the securities held for investment
in each of such funds at their fair market
yalue not exceeding par. he snail then
determine and certify TO the Legislature
the amount which. II thereafter ar
nually contributed TO said fund' woulu
together with the Accommodations upon
the aggregate OF such contributions and
the existing amount OF said fund rs thus
appraised, at the rate Of 3 per cent. per
annum, produce at the date OF maturity
the amount of the principal OF the bonds
for which the fun was created. and the
Legislature shall thereupon appropriate
as the contribution TO said fund for such
wear at least the amount thus certiileu.
when the annual income upon any
such fund reaches AN amount more thah
sufficient to provide the entire annuaI
contribution above provided Tor, u eN-
cess may be applied TO the interest OF
tire bonds for which the iuhd was
created.
"whenever any sinking fund shall
anual in amount The debt for which
n was created no further contribution
shall be made thereto. but the income
thereof shall be thereafter devoted 10
maintaining such fund constantly equal
TO the principal of the debt outstanding.
to the payment OF the interest thereon
and to the extinguishing of the debt,
as hereinafter provided. Any excess
in such income not needed for the fore
going purposes shall be applied to the
completion of me other sinking funds
of the State, and after the completion
OF all of such funds to the general fund
OF the State.
"Wheneyer any such sinking fund
shall equal in amount the debt for which
It was created it may he used proper
~tionately for the retirement by purchase
upon reasonable terms before maturity
and cancellation OF any of the bonds
ev,dencing such debt, and for the re-
duction or extinction thereby OF the
debt and the Legislature shall pro-
vide al! reasonable means and authority
for such retirement
~ NAlf N'iiA' Wv 'i - -
amendment submitted by the New York
State Conference of Mayors have about
despaired Of being able to get what
they want from the cities committee,
of which Seth Low is chairman. The
general impression is that the committee
feels the Mayors want too much power.
The leaders of the convention are con-
hdent, however, that a compromise will
be reached, under which the cities will
have much more freedom in legislating
for themselves, so that the Legislature
will not be forced to give so much
of its time to considering local leglsla-
ton.
The lumber interests are fighting hard
ton article under watch scientific lum-
herring will be permitted in the State for
ests. H.. Leroy Austin, who was one Of
the men named by Coy. Hughes to inves-
tigate thefts of timber in the Adiron-
dacks, is leading the fight against this
plan.
The State forests would disappear in
n short time should the lumber interests
once get an entering wedge in the con-
%stitution, it Is pred ted.
TIL tax committee, which has killed
the proposal to abolish all tax exemp-
lions except on United States property,
has prepared a taxation article under
the supervision OF It's chairman, Mar
tin Sake, chairman Of the state Tax
Commission, under which the Legislature
will have owe to make any amend
b1ents 10 the tax laws which It deems ad-
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