The sun., 1894-10-30

terest n 20 be paid on the loans, during
construction, and in the event Of the gran
tees not paying the rentals.
III. The probability Of the success Of the
scheme drawn from experience elsewhere,
and the general effect Of its failure.
The gentleman most prominent in the
discussion, is understood TO have remarked,
at the outset, that although they had
agreed on an underground railroad, their
plans were wholly incomplete as TO the east
side Of the city: and they had no safe esti-
mate Of the cost Of the work to be under
taken. or the time required for its
completion. In the mean time, II the city
voted for municipal construction, il would
mortgage all its financial resources and de-
pendent interests for fifty millions or more;
and as the city could not borrow more than
ten per cent. on the assessed value Of the
real estate within its limits, with vote
in favor Of the taxpayers bearing the ex-
pense, the underground railroad liability,
so indefinite in ultimate financial require
ment, would take precedence Of all other
expenditures. 1t would be an established
obligation. created by the highest authority"
Therefore improvements for docks, parks,
schools, public buildings, or other munich
pal UT COIlHltECldl utNtcSiNltS NOuih
subordinate; and he demanded to know Of
his associates why they should not in
straightforward way tell the voters OF this
important effect OF their affirmative action.
He asked, pointedly, what would be their
position il they obtained popular approval
through concealment amounting to gross
deception, when the people should too late
realize the consequences He contended
that the people should be informed that
there would be no more margin for borrow
ing for any purpose until the assessed values
of the real estate of the city should be raised
sufficiently high. OF course this would mean
no ordinary rise to meet the normal develop
ment OF the city, but for this novel purpose,
now for the first time assumed, the extent of
which in financial involvement no one could
predict The speaker turning to his asso-
ciates, said:
"Who is it among us that knows, even ap-
proximately, what this underground scheme
will cost 1t is true, we are limited to fifty
millions except with the consent of the Leg
islature; but as that amount proves insult
ficient we will have to 20 to the Legislature
to enlarge the limit from time to time,
as an essential part OF our contract
obligation and pending the uncer-
tainty, the financial authorities Of the
city must stop all loan expenditures. IL the
taxpayers are willing to take this RESPONSE
bility it is their right; but they should know,
fully. what they are doing To provide a
margin for fifty ymillion issue Of bonds,
supposing for the moment that this will lie
sufficient, would require an increase OF
valuations to the extent of five hundred
81 l,, - tl,a
tire assessed valuation of the real estate Of
the CITY, The assessed valuation Of the
real estate of the State of New York for
taxation, outside of this city, is only about
two thousand millions of dollars There is
little probability of increase in assessed
values in the agricultural districts, rs
farmland results are not encouraging. The
assessed valuations for this city for State
purposes is now over 81 ,6OO, 200. 900. II
there is added to this an increase to cover
this new underground railroad purpose Of
say $500, ,000, 600, we will have our assessed
valuations at more than those Of all the
rest OF the real estate of the State, and
necessarily increasing from year to year.
THE effect of this will be that our taxpay-
ers will have to pay for the support OF the
State according to that proportion, as well
as our tremendous and increasing city ex
penses. Can our real estate stand it Is not
such taxation perilously near confiscation
But why should we not present this CON
sideration, also, to the taxpayers when we
propose to put them in the breach Our
| feather-headed lawyer has been telling the
taxpayers, through the press, that the city
| is not to be involved in any way: and some
! of the newspapers, really believing this 10
| be the case, have published statements to
that effect; but who of us is willing to he
responsible for such a reckless declaration
He has told the public through the press
that the city treasury is not TO be required
TO pay interest on the bonds, that the rentals
would meet that expense. We all know
what reliance on the rentals means City
bonds are to be issued to build the road
whether the cost is fifty millions or hun
dred millions. The work must be COM
pletely finished before the railroad can be
used The last dollar of the last bond
will then have been expended to reach
that result; and until that consumma-
tion is reached there can be no earn
ings Where is the interest to come
from in the interregnum' And il, when
It goes into operation, the underground
| railroad falls 10 pay IN competition with
above ground means Of transit, how is the
interest to be met then ? The debt cannot
be wiped out by failure. The bonds are TO be
paid from the sinking fund, and, il the
scheme does not pay, every dollar due on
every bond will have 10 be paid by taxation.
| Why should we not say so II we are go
ing 10 guarantee the success of the scheme
with our private fortunes, that is another
thing, but if we are putting the taxpayers
of this great city in the position OF guar
anteeing success pledging all their taxable
property for that purpose, why should they
| not know the fact
As Ia the interest, which one Of us be
leves that the bonds will be taken il the
bondholders are 10 look only TO the rentals
for the interest on their investment They
would be in the position Of taking
all the risk, giving their money for
an underground railroad 10 be oper-