The record-union., 1894-12-28
A NEW STREET IMPROVEMENT
PLAN.

PLAN.
A correspondent has suggested plan
for street improvement that is worthy Of
consideration. He says that it has been
East i'll several cities. If so il would be
well to write to authorities in those cities
and get the facts and a statement of the
results of experience there under the
plan.
In brief, the idea is that the cost of
street improvement should be assumed
the property, with provision that the lien
may be discharged by installment pay
ments. We present now the question as
we understand it, without approving or
disappearing the plan until more thought
is given to it and the other needs of the
city, clear water, sewer system, etc.
But the following may be deemed an
affirmative argument for the new plan.
Thus, assume, if the city ordered up
street and directed the work to be done,
that it would issue five or ten-year bonds
against each piece of property with re-
demption coupons attached, so that the
owner OF the property might redeem in
five, ten or any other number of annual
payments.
Admit that this involves interest paw
ment; but, say its friends, this is offset
by enhanced values and the added
comforts of life. Interest can be avoided,
of course, but if one has not the spot
cash to pay for street improvements he
avoids interest at the cost of industrial
and municipal growth, comfort and en-
hancement of values.
But as a matter of fact, it is argued, six
out of ten property owners do pay inter-
est on the sum of their assessments for
street work. How? Why six out of ten,
in this city at least, have to borrow the
money to pay the assessment charge, and
pay not only interest but the cost of
search of title and conveyancer's fees.
But under the proposed system, as the
lien for the work on the street goes upon
the property no matter how much mort
gagged or how deeply incum bered, the
city is in better position to do well by
the property-owner than is the banker or
other money-lender.
But tits by no means certain that bond s
can issue against property except by
the individual assent of the owner, and
that amounts to a mortgage and nothing
more. So far, then, as that part of the
scheme is concerned, it is doubted if it is
practicable, or if even the Legislature
possesses the power to authorize lien of
this character without the consent of the
mortgagor.
But there is nothing. it is replied, in
the way of the city issuing its own bonds
by virtue of vote of the people, for street
work, and then doing it with such funds
and calling in the assessments on the
property in instaliments so as to meet the
interest and principal. Thus the cost of
street improvement will be distributed
over a series of years and among a
greatly larger number of beneficiaries,
which is the more equitable plan.
OF course, all this may require action
by the Legislature, but as its friends now
see it, it will not. 1t is held that the
Constitution now clearly authorizes lust
such procedure. OF course, too, it in
wolves interest payment. But the pro-
jectors put to any unprejudiced mind
this simple question: "Will not the bene-
fits of immediate and general improve
ment vastly overshadow the interest
charger" OF course not all the bonds
would issue at once. but be sold only as
streets are ordered up and cash is needed
for the improvement, and only as the
limitations of the city debt permit us to
incur the liability.
Let us look at the matter in figures
presented by the friends of the plan.
Suppose the city is now competent to
borrow $250, 200 for general street i'm
provement; that it takes it for five years
only, and because of the short time
1t would have to pay per cent. interest.
That would make an annual interest
payment of $1,000, or the whole debt
S3l2.500. Divided into five equal annual