New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-03
rrArrNs OPINION.


.-.,.- role- SAID yesterday tha. I'm week or
- h.. probably would issue repor; upon the
"" - Indebtedness % the city based upon the
- ~ CORPORATION Counsel Whaien given on
So In anticipation Of the decision that con-
-. s.sshtednes= vas or TIE Same footing as
Nod indeh.e.ncss es Affecting The debt limit Of
.,.y ,ho Controller set corps OF experts 10
rr,,t several days ago 20 ascertain the exact
Emit Of contract Indebtedness for the entire
= ara ,nou the completion Of heir work the
,.rore- will make his report; While the Con-
- would not say yesterday what his report
~ Certain u was stated by other officials OF
- r-esent administration that when the large
o.rao. Indebtedness was considered the debt limit
- ,hs city wouil he found 10 have been passed BY
=. last SDOocn. and that 3; would be Impossible
:, issue bonds for any Improvements undl there
- been large increase Ok assessed valuations Of
real estate N the city
The Controller may decline 10 issue bonds for the
contracts amounting 10 $olo1oo-p for which bond
,s.sss were ordered by Mayor Strong's administra-
,,or He sal5 Yesterday on that point: The Cor
rora,on Counsel holds that can issue bonds which
were authorized before the deb; limit was passed
hi. I am not prepared TO say If will unless am
ordered hy the courts. II will be question 10 be
decided IS 70 when the debt limit was passed"
Fx-Mayo- strong said yesterday: There Is 10
doubt IS 20 tho legality Of the 81 10000 bond
Issues ordered by my a1ministr ation Before those
carefully into the subject. and found that the cy
wss at least 80 o0,co under tho deb. limit Even
n the debt limit was passed al the time Of con-
solldat.on therefore according 10 The decision OF
the Corporation Counsel, the Controller can 90
ahead and issue the bonds whenever he sees n TO
ray Tor the contracts
Mayor Van Wyck IN his message gave the margin
o. Indebtedness Of the ot city OF New-York 20 be
Ss@3ss which would siin leave margin of
about s. 10000 IL the contract Indebtedness IS go
OoWo The Mayors figures made the amounts by
which the other boroughs had exceeded their limits
Of bonded Indebtedness as follows Brooklyn. 81
lBsE; Queens So5ls5S. and Richmond &0.l7. a
total deficiency Of s2os7o52S to be subtracted from
any margin contributed by the old city OF New
York
Corporation Counsel Whaen's opinion was not
unexpected by the Rapid Transit Commissioners.
and Il is believed that they have already formu-
lated some plan OF action. Commissioners VINO
were seen yesterday would not admit this. however
They said that the Commission body had not
Vet had time 20 consider the matter The men,
hers az the Board do not think that the debt
limit has been reached. and 1t is understood that
the policy they Will pursue viii BE- 20 award TIE
contract and then 10 have some citizen raise the
point that the CITY had no funds available for the
enterprise. III this way the question VII! be
one great difficulty. it has been pointed out,
might stand IN the way OF this course OF pro,
cedure; it might b. doubtful Z contractors would
undertake the work Of building the underground
railroad unless they satisfied that the city
had 70 pay for H. Edward NJ Shepard,
counsel 10 the Board. said 20 a Tribune reporter
yesterday that obstacle OF any kind was likely
10 arise and interfere with the plans which mad
been laid down. Speaking further on MI.
Whalen's opinion. he said.
SO far as the synopsis OF Mr.. Whalens opinion
goes ! do not see how "lere can De any dissent
from what he says. lie merely answers the inquiry
whether the constitutional limit OF debt applies 10
contract debt well a. bonded debt. 90 not
suppose IL possible for any one 70 imagine that
the limitation did not apply 10 all debt Every deot
implies a contract: bond IL merely one form or
contract The Corpora ton Counsel does not state
to enable him TO stafe-whcther in fact the debt
of the city. including what he calls contract In
debtedness' and what he calls bonded indebted
ness is equal 10 10 per cent Of the last assessed
valuation OF real estate within the limits % the
citv Tha Corporation Counsel does not seem 10
nave dealt with the question whether sheerly con-
tngent obligations Of the city 20 arise IN the
future are 70 be reckoned IN determining me deot
limit. That question Will undoubtedly in Vie" OF
the natural anxiety OF The city officials have 20
BE- DISPOSED OF by the courts. The construction or
the rauid-transi- railroad does not. hovevsr. de-
pend upon the answer 20 any OF these inquiries
y depends upon the question. whether within the
period Of time necessary for inc construction OF
M road the city viii have the means or the debt
!rcur-ing capacit. necessary 20 provide me cost
o. ne ralroad II Is not seriously open 70 doubt
that the city will within that period have abundant
means and abundant dehf-ilcurr!rg capacity. ana
do not mink that contractors Viii decline 20 maj
O. have any real anxiety IN making the contract
on account Of any such risk"