The New York herald., 1921-08-10

Mr. Hylan was not familiar at all with
that. He had no idea. He would have
to look up the facts.
/ IF / told you il was s4o,ooo,oOo.
would that surprise your
! II don't know that IL would"
/ The Mayor did remember that the
authorization was about S40,000,000. but
he could not remember what part OF II
had been spent.
Mr.. Brown jumped to the Sinking
/ Fund financing.
Mr.. Mayor, you are acquainted with
a sinking fund in the government known
as the Sinking Fund for the Payment
of Interest on the City DebtY' After
4 the question was repeated. the Mayor
! said he knew there was such fund.
What is 1t for?"
''ro pay the interest on the city debt"
"The interest on what city debit"
II think II Is one OF those funds where
there Is some question whether 1t is
sinking fund or not"
Tells Use of sinking Fund.
You have been head OF the Sinking
Fund Commission since you have been
| Mayor; do you know whether IL has
! sunk or not?'
| "It is a sinking fund to pay the in
terest on tho city debt--the New York
city debt"
"As the city now is?''
Yes. as II is now"
"If told you II was for the payment
of interest on the debt of the old city
lieve that?"
Yes. the old city, little larger now"
now''
There followed q long examination
about the other branches of the Sinking
Fund. of which there are eight.
The Mayor supposed one of the big
gest funds handling millions every year
was for reduction of the general city
debt and was quite surprised that 1t ap-
piled to the old city Of Brooklyn.
There are eight of them. I get them
mixed. we have so many of them"
Mr. Brown tried to find out about a
transfer Of a s32.0oo.000 fund from one
sinking fund for the general city ex-
penSos and how 1t was that In the trans
fel there was q charge for interest or
less or something, amounting to about
| $4,000 900, but the transaction was not
| explained. The counsel tr'sd to get the
Mayor to tell about the general funds
| bonds but learned little.
Terms Confuse Mayor.
i
1 ing fund for the payment of interest on
the city debt in 1920 amounted to s17,-
| T4S.000. Did you vote to transfer from
that fund to the redemption of city debt
No. S13,300,0 ,000?"
J II think probably l did. If it was
transferred ! think did"
| This fund sold TO the sinking fund
| for New York securities s6.675.0oo. DO
you remember that?"
II remember something about IT,
And out OF money in sinking fund
| No. / there was $S2. 100000 transferred
to the city treasury"
| Il haven't the figures here"
did the city treasury get that money
unencumbercd with any charger
| II don't understand what you mean"
WAS the money paid over free and
clear or was 1t subject to a charge that
reduced it?'
II don't just get what you mean"
Mr.. Brown explained he wanted to
know whether there was interest deduc-
tion or other charges. The Mayor could
not remember any.
But as / see the figures from the
Comptroler's report that ss2, 100000 had
to be reduced by s9.500.000. which went
as interest on the general fund bonds.
DO you so understand it?"
NO; | think the Comptroller could
explain that
II hope he can. What did the city
treasury give for the $4,000. 0.000?"
General fund bonds"
What are those?'
Nothing more nor less than a piece
OF paper TO take the place of the money
there
Virtually a receipt. them"
Practically, yes"
Now. the point am getting at with
you Is this BY means OF this transfer
OF the S32.500.000 from the sinking
fund for the payment OF city debt No
/ to the city treasury. and the payment
cf other dock, slip and wharfage rentals
into the city treasury. you got money
for the management of the affairs of
the city OF New York. didn't you, the
conduct of It's business, and payment
OF its expenses in reduction of the tax
levy?"
Yes, I think So"
you know so?"
Yes. that has been done In times
gone by
on the dock bonds was put into the
public servicc?"
That / am not certain about"
What Go you think about it?"
They are included in the budget
but the question OF debt service / am
rot sure off,
They are long term bonds and cor
porate stock of which I think $4,000
900 Is exempt, so that you reduce your
tax levy by the aInout OF the total
receipts from docks, wharvss and slips.
and then put into the debt service all
that was paid for the interest on the
| dock bonds and the amortization. isn't
that correct7'
You will have TO ask tho Comptroller
about that. | haven't the items here.
I am not positive about that"
"The revenues from the water system
whore are they paid?"
"A part goes in the water sinking
fund Of tho city"
wy Of Ghnxxy