The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-10-19

OF years in order TO provide a low rate o.
taxation. At this time, with the claimet
excessive valuations, the extreme limit Il
which the city can 20 in issuing bonds OF
borrowing money is less than s5S, 900, 600
II. The city In to issue bonds and lend it,
credit to within eight millions Of its Mt.
most capacity, for this new system, never
before undertaken by this or any other city
on this continent, and which has failed
TO pay wherever tried abroad, at the sacri.
fee Of all other important measures involv.
ing large outlays, such as the acquisition
Of dock property and the general improve
ment Of our dock facilities to meet com
mercial requirements and due develop
ment, the improvement of our great parks
beyond the Harlem, and our smaller parks
this side, providing school grounds, and
many other well known essential municipal
needs. What newspaper supporting the
scheme has presented these consequences
to its readers
III It Is said that the city is not to pay
either principal or interest, but both are to
be paid from the rentals derived from the
successful operation OF the railroad. But it
is said, too, that the reason the city Is called
upon to Use its credit IN the issue OF bonds
Is that with existing means Of rapid transit,
the scheme will not be a sufficiently paying
one in competition to enlist private capital.
This proposition would Seem, therefore.
necessarily and logically, to prove that the
project, from its practical operation, will
not meet the responsibility incurred.
". The principal Of the bonds is to I've
paid from the general sinking fund of the
city, not from a special sinking fund Of the
rentals, SO that IL the rentals fail, the
taxpayers will have to pay the entire
amount from taxation; and that require
ment will come soon If the project does
not pay its way, as any large part of the
total ISSUE Of bonds could not be collected in
any one year by tax, under the constitutional
Limitation. The taxation would require TO
be spread over n series Of years in large
amounts 1t IL claimed that the interest, too
is to lie paid from the rentals, and in this
there is u deep absurdity somewhere. The
building of the railroad, IL IL said, will re-
quire four or five years, but the heavier
part Of the work, and the greater expendi-
ture will probably I've In the two first years,
requiring thirty to forty millions while the
succeeding period will be devoted more to
than to substantial tunnelling.
The bonds are to he issued az required to pay
for the work, and the entire proceeds will
have been expended when the work is
finished. Where will the interest on the
bonds come from before the railroad is in
operation and begins to receive earnings
V. Again. 1t is said, that the great adj
vantage OF the scheme is that the bonds
being issued by the city can be fioated
1t lesser rate OF interest than IL n private
corporation were to issue them: and yet the
,ity Is TO have no responsibility for the pay
nent OF the interest, because it is to lie paid
wholly from the rentals. Where does the
advantage OF the city's responsibility come
NJ IL the bondholders are to look entirely
o the profits Of the scheme for their inter
st who will take the risk The scheme,
'ou admit, cannot succeed In private
lands, or have a possible chance of being
undertaken by private capital, because it is |
lot deemed to be u possible paying project
8 il probable. therefore, that the bonds cs,n
NJ foated IL the interest has no other !
ource of payment than the rent |
Is! Allow us To ask here, is il |
contemplated, IL the people vote for the
cheme, to apply to the Legislature, next |
winter, to make the city, through its tax
ayers, responsible as R,iarantors tor the |
interest on the bonds, adding RESPONSE
ility which may, very soon. amount to |
early two millions of dollars Of addition to
he annual taxation, a burden which would
e felt by our people in their incomes, rents,
nd the cost OF necessaries, In everything
, fact, into which taxation eats Its way
vi. II your underground scheme fails,
no fifty millions or more will I've utterly
'st TO the taxpayers without redress, for
10 subterranean excavation will be wholly
Unavailable for any practical purpose.
VII. In conclusion, On this branch of the
object, is not the effect Of the people voting
against municipal construction" simply
nat you must dispose of the right to con-
ruct and operate the proposed railroad, at
nblic auction, to the highest hidder'
Now, gentlemen in common fairness, why
D you not elucidate these questions by a
essage to the people which will effectually
} away with misrepresen tations We
Innot believe that you desire to have these
sues decided by the people without full,
ir, and responsible understanding as to
NV, and how far, they are to lie affected.
he powers conferred on you are very great;
'ur term Of Office, as the law has been ar
ngsd for you, practically keeps you
Ofiice, that il, those ~ you named
the law with the privilege OF
inning your successors, during the
riOd ~ the grant, which is to he for thirty
re or nfty years, with a provision for cove
nts OF renewal for underlined terms. You
we authority under the law to incur ex-
nses for lawyers, engineers, and assistants
thOnt restriction: and their personal sal
les as we'll as your own, are provided for
iron-bound, summary means Of raising
9 money through revenue bonds of the
" to he issued in anticipation OF taxation.
is needless 10 say that gentlemen OF your
aracter would not Intentionally do any
TO extend your terms for day, or add to
nr emoluments to the extent of dollar. I
III can understand, however, that less ele-
ted and more dependent employees, who I
a.. II