New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-04-11
THE MAYOR ON RAPID TRANSIT.
HE WRITES TO LIEUTENANT GOVERNOR SHEE-
HAN OPPOSING TIE CHAMBER or COM
MERGE AND BUTTS LEXow BILLS
THE SALE OF \ FRAN
CHISE FAVORED


Mayor Giiroy made public yesterday a letter which
he to Lieutenant; Governor Sheehan. president
Of the State Senate. April :. in connection with
the pending Rapid Transit legislation. While recog-
nizng the absolute necessity for improved rapid
transit facilities in this city. the Mayor realizes
he says. that for the last year two the con-
dition OF affairs. the business depression and hnan-
cial distress such that no favorable oppor
tunity afforded for the sale OF a rapid transit
franchise But In the improved and improving con-
dltion of business he IL not certain that fair fran
chse might not be disposed Of and under terms
which will weld considerable revenue to the city
The Mayor then proceeds TO oppose the Chamber
OF Commerce bill which he looks upon an at
tempt evade the spirit Of the constitutional pro
hibtion regarding the ot public money to build
rapid transit road. In what is known a. the
Butts-Lexow BILL the attempt by another means.
the Mayor argues. would prove a failure. The
Mayor adds:
THE assessed valuation Of the taxable real es-
tate OF the city OF New-Yor; In 1893 81 j62.jo2.
S93: the net Indebtedness OF the city OF New-York
on December 81 1888. slOo 762.i07 81. This shows
margin Of less than SjOcoOoo between the net
Indebtedness Of the city and III" constitutional limit
The Chamber OF Commerce Rapid Transit bill pro
Vides at once for an expenditure Of $@C@GD Inis
expenditure regard as pficucalN hrs' Hls'i'rr
ment. and consider that the probable total cost OF
the work contemplated would be soOcN'".
1T will thus be seen that provision Is made at
once Cor exceeding tn. constitutional l!m, OF New
York Ctys indebtedness. The additional eXpendi-
that might sonahly be- expected would serve
10 put the city's indebtedness largely beyond the
constitutional Imitation and unless real estate
valuations should advance with phenomena rapid
ity the work OF construction would have 20 cease
In the mean time. every other public Improvement
wOu.d be paralyzed.
I'm the last six years the average Increase Of
real estate valuation IN this city has been 5000
90 year which. under the 10 per cent const!;u-
tional limitation Of indebtedness. would authorize
additional bond issue not - exceed SJOo%O a
The financial aspect OF the question. IA far as
the city IS concerned, has only received on"-sdeI
consideration. The chief argument In favor ~ the
employment OF the citys credit Is that its bonds
be noated with interest at per cent. This
would no longer be true II the proposition - 50
greatly increase the clty's Indebtedness should be
enacted into law. The manstay 81 credit In the
OF the individual or the corporation is the mar
gin between assets and liabilities. To decrease or
wipe ont that margin Is 70 attack or destroy credN
Tho c.ty's credit would undoubtedly be 50 affected
by this increase Of Indebtedness that rs bonds
could only be foated at or >, ard perhaps even
par cent
Albany. April 10 (SpeciaD -Lieutcnan Governor
Sheehan submitted 10 the senate to-day Mayor 'li-
roy's letter opposing senator LeXpws Rapii-ITanslt
bill and that OF the Chamber Of Commerce.