The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-11-17
BARRED BYTHE DEBT LIMIT
WHY THE CITY CAN'T BuItD THE
TUNNEL ROAD,

n CONSTITUTIONAL impeachment to the Proposed
ioiein.the-eround Rapid Transit Accor-
ding 70 the Present Plan = Legally the
city Couldn't Raise the Money to Ray fer rt.
It'll one thing for tho Rapid Transit Commits
sion to insist that the city shall build an under
ground railroad. after plans which the Commits
Bloncrs have recommended, but IL Is quite
another thing TO provide tho money with which
to pay for tho work. This Ia tho view taken by
a surprisingly large number Of taxpayers, who
feel that they have a right to DO possessed OF
more satisfactory Information relative to the pro-
jcct before tho municipality is plunged into debt.
When the Rapid Transit Commissioners say
that the road will cost only $50, 900, 900, perhaps
only $50, GOO, 600, these taxpayers ask: How
do you known To this the reply Is: "Our en-.
gineer tolls us So" Its inadcquacy as n clincl-
ing argument in a matter OF such consequence
is shown by the fact that nearly every estimate
Mr.. Parsons has made has been contradicted,
not by one. but by many engineers Of standing
equal to his own.
But granting that the road can be bdilt for
1856, 900, 600 or even $50. 200, 900, these taxpay.
ers declare that tho city cannot afford to spend
that amount Of money at this time or within
the next few years. They call attention to
Article VIII. section 10, OF the State Constitu.
ton. which reads:
mo county or city shall DO allowed to become
indebted, for any purpose or in any manner, to
an amount which, including existing indebted
ness, shall exceed 10 per ccntum Of tho assessed
valuation Of the real estate Of such county or
city subject to taxation. as 1t appeared by the
assessment rolls Of said county or city on the
last assessment rolls OF said county or city on the
last assessment for State or county taxes prior
to the mourning of such indebtedness: and
all Indebtedness in excess of such linn
~itation. except such as may now exist,
shall be absolutely void. except as here
in otherwise provided. No county or
contum Of the assessed valuation Of. is real
estate subject to taxation, shall be allowed 70
such indebtedness shall be reduced within such
limit. Whenever hereafter the boundaries of
any so;yn city tb shall now become on ih the so s " "a as b saose 81 in a
sass 81 tIT ne %s eits : deB.. 'Ahall not DO included as a
While laying such restrictions on the debt
certificates OF Indebtedness or revenue bonds to
be issued in anticipation Of tho collection Of
taxes for the amounts actually contained. or. to
such certificates or bonds are issued and paya-
BILE out OF such, taxes. The constitution also
ply Of water, but the term Of these bonds shall
not exceed twenty years, and a sinking fund shall
and for the payment Of the interest. The Con.
stitution further provides that all certificates
ticlpation OF the collection OF taxes. not retired
within five years after the date OF issue, and
Slse eU and. i is' sact. t any PfGG eGti sh hof 'f Be 'iH nefaae Cd
when 1t comes to be determined what power, II
any. the city has to incur further Indebtedness.
tuition. those who believe the city cannotafford to
60 into the business of building an underground
about the debt Of the present city Of New York.
1t is commonly supposed, that. when inquiry is
made Of the Comptroller office for the bonded
total amount, 50 far as the constitutions limit
ground railroad say that that this SRr is wrong VI ny suppo.
sition, and they produce figures to prove II.
now and Dec. 1 what the amount OF the city,
bonded debt is. the following statement, taken
from tho books made up on Nov. 10, will be
Gross outstanding bonded indebted.
Deduct from this assets held by Sink. 20
ing Fund Commissioner" e2.345, 1877 "a
Net bonded Indebtedness. ........ slao, ISL, eos IL
Then. II you ask the assessed valuation Of the
eiIty's real estate. the reply will 3. p .Ts7. 1886
quot aSsi from Til: the amount q tSss nj bcnded
Indebtedness, and yon have s4s. 9Ss. 776. which
may spend before i reaches. the %eonsttat.
etShd' spend pend SIS 81 S SsS Goo ff os an and ens Siaaa
railroad and still. have a margin OF $13..
statement OF, the city's Indebtedness. con.
se%rvative business men say that the margin
small small for oro great mUnicIp MmIitty IN m0e case U Of ' S1
emergency. But. It is asserted, the statement
sons. Sc rs 1s est i11% 9o OF The ss cost 81 the Ss u aTs Mn; rafi
road:
and stock outstanding. offered In evidence be.
the report Of the Rapid Transit Commissioners.
the Comptroller included the following:
Revenue bonds payable from taxes of
Revenue bond; payable from tho taxes '0'''0
Revenue bonds awards from Fort wash. '<
ington Park Ayable from sale of con-
Revenue bonds Issued for Appellate
Division Courthouse site. payable by
sale of consolidated stock. laws of 1897 8e9, AL
OF these items the only one, by the terms of
total bonded Indebtedness is the one Of 1924, 476,.
be6, because these bonds are payable from tho
the list out of consideration and add tho sum Of
the other items to The net bonded indebtedness
indebtedness. Now it must be romembered that
the city has taken certain lands for city I'm.
efUns% ese ia naiis w sS %h' seq TGs dieiSs as II for tR %S Eek
the city has not yet paid; In many, instances
lands, has dispossessed the owners and tenants shc
torn down, the buildings, and converted the
to TAKE the ella lands Il. back tG.s or BY yr which en-, their 81 former
ss%atlon; SONG Of the property thus ssaafirsd
TT Msnty pairad' % 3Sf TEMP Park wa fcr speei ,ST
extension. for sanitary protection Of water.
Westchester county and Putnam county, for
Elm street widening, for tho Third avenue
now Hall OF Records. for docks from Gansevoort
street to West Eleventh street and Pier 40,
East River, and for the Grand boulevard and
Concourse. from Burnside avenue north. These
lands have already been appraised at $22, 007,
4S6. Add this to the net public debt and 1
jumps np agnin 10 1854, 500, 3s1. leaving q mar
gin OF $5O,415, S76.
In addition to the lands mentioned. lands have
been taken for 2l5 street openings. No awards
on these have yet been made. but from state
ments furnished by the Corporation Counsel 9
office, 1t is estimated that the city's liability
for these lands will be about 81 1884, 900. Another
liability of the city that must be taken into con.
alteration is tho balances due on contracts.
from which the city can receive no 70.
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