The New York herald., 1879-03-27


between large cities and small towns in the
management of elections is question
which only he can decide.
Taxation Of City Bonds.
A lucid and carefully reasoned article by
Mr. Perry Belmont in the new number of
the International Reuie,o raises the question
of the expediency of subjecting municipal
bonds to taxation by the cities that issue
them. The constitutional right to tax
shch bonds is not disputed, and the ques-.
tion is one of simple expediency. 1t is
for the interest of municipalities making
loans to borrow at the lowest rates. and
they could unquestionably make loans on
better terms if they forbore to tax their
own bonds. There is no reason, for ex-
ample, why the city of New York should
not borrow money from its own citizens
at as low a rate OF interest as
government is disposing of four
per cent bonds with great success,
but it would be impossible for the city of
New York, whose credit is equally good, to
sell four per cent bonds at par. The rea-
son is that the city taxes its own bonds,
whereas the federal government neither
taxes it's bonds nor permits them to be
taxed by State or municipal authority.
The city Of New York could not
sell four per cent bonds because,
like other property held in the city, they
are subject to tax of more than two and
half per cent. After deducting the tax the
income yielded by such bonds would be
only one and a half per cent. and nobody
would wish to purchase bonds sub
ject to such liabilities. The city gains
little by the tax, because it is in
great part evaded, but since its bonds
held by its own citizens are liable
to it, it operates as fatal impediment to
cheap loans. Mr.. Belmont shows that the
city receives only twenty-five thousand dol
lars per annum from taxes on its bondsx II
it could save two per cent in the rate of in.
terest by exempting them from taxation
therewould be on annual relief to the tax
payers of two million dollars. The article
in the International Rerie,o deserves the
thoughtful examination of the municipal
authorities of oil American cities. sf
Shall y Broadway Railroad he Built
The Aldermen are still interesting them
selves in Broadway railroad. Mr.. Morris
is again in the field with long series Of
preambles and resolutions apparently de-
signed to promote the enterprise; but as he
follows them by n declaration that he
is opposed to putting rnilroad on Broad
way under any circumstances, his PROPOSE
tions, excellent MS some of them may be,
must be looked upon with distrust. Mr..
Slevin wisely suggests that the Aldermen
had better find out whether they have the
right to grant such a franchise at oil before
discussing on what terms they are ready to
dispose Of it.
A rnilrond should only be allowed on
Broadway, between Union square and the
Battery, MS q public convenience. II it
fought to be constructed and built the
constitution provides how it may be done,
even against the wishes of the property
owners. But the property owners in this
instance favor a railroad, and 1t seems to be
conceded that the public interests demand
one. Whether general law is needed be-
fore such n road can be constructed, or
whether the Common Council has right
to grant the franchise without further legis-
lation. il is certain that if it is built the
people and the city ought to be better pro-
tccted than they have been in regard to
other street railroads. AZ q valuable fran
chisc it ought to be mado TO render n
fair equivalent to the city, whether in tho
shape of premium or of good percent
age Of the receipts. The company can
afford and ought to bo required to clean
Broadway, to remove the snow and to keep
the pavement in good condition, and those
requirements ought to be rendered some-
thing more than o mere form by the i'm
position and prompt enforcement Of PEN
alties in case Of their non-tulfilment. Tho
peoples interests ought to be guarded by
the limitation Of the faro to five cents for
through trips from the Battery to the
northern termination Of oil connect
ing roads. The company SHOULD be
required TO run n sufficient number of cars
at convenient intervals to admit to n car
only as many passengers rs can be supplied
with seats; TO divide tho Seats as on the
elevated railroads and to provide heat in
the winter. IF the Common Council has
the authority TO grant a franchise for
Broadway railroad with these safeguards
and restrictions, it ought to do 80 at once
and stop talking about it. If a general law
is needed it ought to bc passed by tho Leg
islature. for the people want road thus
guarded, and the real estate owners believe
that IL is the only thing that can save
Broadway property from deterioration.