New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-02
TUE CITY DEBT LIMIT
ox aY CORPORATION COUNSEL
WHALEN.


,.-,oS As TO THE POSSIBLE
rrrrcr on SCHOOLS.
RAPID TRAN
SIT. ETC.
..,o, Counsel Whalen yesterday gave OUT
Co.r. ,-,.r which he had sent 10 ConTO"er Co'e'
'"e , the debt limit OF the c'y uhoer ti'e cl@l-
snswer,ng eleven questions which me Coh-
'e' g. "a n-opourded him. The opinion con-
''o"'- ,sral thousand words. and In the beginning
tahs -. ,ha. .he Controller may certify 10 con-
II " =. ha na,d FOR BY bonds. when the bonds
-. hesn authorized and before the oohus are IS
- such a plan saves money 20 'He cry Oe
80 O. IL not necessary 10 issue the oohus UNI"
-,o,ev e needed and the city does not begin
-. ,rts-es, on the bonds until they are issued
I" 20, ,a-, Of the opinion is devoted 10 answer
-, - .bA Affirmative the question: Does the lmi-
- .. indebtedness OF cities provided for IN
s.on 10 Article VIII. OF the Constitution. relate
=. oo-.-art Indebtedness as well as bonds or n
son.ss,ess7' After quoting from many decisions
:. ,ha courts the Corporation Counsel declares
-, ",-orn all the authorities cited from the alb
80 rnaniu,itv OF the decisions OF the courts
- his question there be no doubt that con-
-r.ct indebtedne stands exactly upon the Same
footing as bonded indebtedness"
IA 10 contracts 20 be paid for in bonds made BY
81. c,.v O. New-York previous 10 the consolidation
,hs opinion declares that III is the time OF making
~, contract; not the issuing Of the bond TO pay for
II, that Is material
An affirmative answer IS given 10 the question:
.shoula cash balances In the city treasury result
,nr from previous sales OF BONDS. and applicable 10
,5s partial payment % bond contracts. be Onset
sraiust such contract Indebtedness" Nj Whalen
savs he is aware OF decisions 10 the contrary. but
there ,s 10 general floating cash balance on: OF
which contracts are 10 be paid. each bond Issue be-
iug applicable TO a certain contract and 20 nothing
else.
As 20 the power 20 issue bonds FOR contracts al.
ready made Il the city .s found 20 have exceeded
zee debt limit under the Constitution. the opinion
declares that "the Of the power 20 Issue bonds
mus, be found IN the financial condition OF the city
Ct the time contract was made. not when bonds
may be issued 10 make payment thereon. II the
cor:-ac, was legally entered into the time IL
made. then you are perfectly authorized 10 Issue
bonds thereon. and such bonds valid obl.ga-
nons OF the city"
The opinion declares that special revenue bonds
Yedeemable from the proceeds OF tho tax levy OF
the year succeeding the OF their issue are not
70 be ciassed part OF the city's debt Bonds Of
the city held by the Sinking Fund can De deducted
from the gross bonded debt OF the city. but cash II
the Sinking Fund cannot be deducted.
The Corporation Counsel prefers not 20 answer
the question: II the city were found 10 have
ceeded SIS constitutional limit OF indebtedness
would I. De lawful for the Sinking Fund 20 invest
ifs cash IN further issue OF bonds. lie says il the
opinion that ne is willing 10 answer only in sps-
ciAc cases.
Controller coler said yesterday that tho Corpora
tion Counsels decision that contrac. Indebtedness
mus; be considered on the footing with bonded
Indebtedness most important. lie preferred
not 20 make any Statement 10 the financial con-
tition OF the city. determinable by the Corpora
ton Counsels opinion in advance OF formal state
ment which he would issue In few days. He said
he had several men a work determining the actual
condition OF the finances. and he did not wish 10
anticipate the report II IS expected that the re-
por, will show that the ctys debt limit has been
reached.
FEARS FOR THE SCHOOLS.
Charles Buckley Hubben. President OF the Board
o. Education said yesterday afternoon that he very
much feared that the Corporation Counsels opin-
ion would have the effect OF arresting the work.
begun IN contemplation. Of providing new school
houses. Some OF these buildings were in course OF
construction. ne added and others were completed
except for the equipment o. them with heating AMI
ventatng appliances and the installation OF lights.
The only money which might be al present avail
able was that obtained from premiums o,
the bonds sold. II might be, too. that work would
have 10 be suspended on the new hall % The Board
uptown a building watch was sor.ly needed. as ne
present quarters were seriously overcrowdcd and Z
was necessary 10 rent outside Offices. az al eggre-
gate annual expense OF $4,000. IN order 70 provide
the absolutely essential space for the machinery OF
administration OF the public school system The
n Mr.. Hubbells opinion. mean the saving OF money
10 the city. as Il would obviate the necessity for
continued occupancy OF scattered Offices. Yet there
was before the Mayor :or his action a bill !nc-eas-
ing the salaries OF teachers. The Board. Mr. Hub
bel said. all in favor OF increasing the com
pensation OF the teachers but they did feel that
such Increases should be made while the accom-
rodatons FOR the little children in the schools were
Ear insufficient al present the Be
sides. the bill while raising the present minimum
o, salary would during a period OF ten or twelve
years service give smaller amount the teacher
than would be paid under the rates established by
the Board OF Education. Mr. Hubbell added that in
al its dealings with Controller Coler the Board
had received al his hands every consideration and
uniformly courteous treatment.
Commissioner Z. Ellery Anderson said: We'll.
I've thought for some time that the city was being
run regardless OF the constitutional limitations and
the time stop. II IS all very well
have small parks and public buildings and improve
ments, but city. as well as individuals. should al
ways maintain It's credit and should be prudent In
its expenditures"
superintendent Jasper OF the boroughs Of Man
haitian and The Bronx much surprised az the
,cror o, the decision. Every effort ought 10 be
made. he said 10 keep the children IN school and.
Il necessary 10 that end sacrifice the proposed
small parks and Fairgrounds. He had knowl-
edge Of the number OF buildings upon which work
would be stopped or hindered II the decision OF the
Corporation Counsel prevented further issues OF
bonds.
THE RAPID TRANSIT SITUATION.
When Tribune reporter saw Lewis l.. Della
he'd, secretary OF the Rapid Transit Commission.
al his Office yesterday. and asked him what effect
the opinion OF the Corporation Counsel would have
upon the plans Of the Rapid Transit Commission
M. Delaheld made a statement that raised poin.
winch il ls more than possible has not occurred
10 Mayor Van Wyck and his appo!ntees. Mr. Della
he.ds statement contains hint that the Com
m'ssioners do not intend 70 allow the Corporation
Counsels opinion 10 go unchaenged. But Il fur