New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-05-25
MILLIONS Topped OFF.
TAMMANY ESTIMATES OF THE CITY
DEBT LIMIT REDUCED FURTHER.

THE LATEST OPINION OF CORPORATION couN-
Sci. wHA1EN-BorroM or THE TAMMANY
DECLARATION KNOCKED OFT.
rammany estimates OF the citys debt limit were
reduced again yesterday on account OF anothef oph
ION by Corporation Counsel Whaen TO the enect
that contracts by the city "for estimated quantities
OF certain kinds OF work which are TO be PAID TOY
by units OF measurement are not TO be taken 'n'o
account IN sscertaining the citys debt limit
The opinion was sent 10 the Controller as a reply
10 questions which were based on the DEMANDS Oh
sheehan & Collin. attorneys for John e sheehan
and is another indication that the Tammany oi'
cials are unwilling to withstand the nood OF mug
nation which was let loose by the stopping OF pay
ment on all contracts authorized by Mayor Srons
administration and the general suspension OF puohc
works.
In the Controllers recent report upon the Guy
debt limit based largely upon an opinion by 'ne
CORPORATION Counsel. he estimated that the ueo'
limit OF the former city o. New-York hao Deeh
passed by about s24 100000 The report was made
the basis for stopping all public works on the theory
that as the debt limit had been passed when oohd
issues to pay for the improvements were au'oii]cu
the issues were illegal and the bonds couo moi DO
issued to pay for the work under the contracts.
Later tho Corporation Counsel gave an opinion tnat
ia biIi.,es for park and street openings need not ne
counted IN ascertaining the city's debt limit. ana
that about s2oooo0OO might be deducted rom the
Controllers estimates His opinion OF yesterday
will tako of about $4,000 900 more The Con'roi.er
therefore can issue bonds and pay for WORK uhoer
existing contracts without delay. The entire Dol"
tom OF the Tammany declaration that the ao"'h'S
tration Of Mayor Strong authorized Illegal issues Vi
honda TO nav for improvements has fallen out IL Is
clear now that the city's debt limit was NOT passeo
when tho issues Of bonds were authorized
In the beginning OF his opinion Of yesterday. after
stating the claims Of the contractors. the corpora
hat
indebtedness should count the same as oondeo IN
debtedness in ascertainng the city's debt limit AS
to contracts containing a Suspension" clause. MI
Whalen declares that. while they might be suspend
ed when the debt limit passed. they could not
be abandoned and therefore they must be counted
IN ascertainng the city's debt limit Then he turns
his attention to contracts like those for excavation
In which tho work is to be paid for by units OF
measurement and his advice to the Controller Is as
follows:
1t is the element Of uncertainty and not OF futu.
co,S;ntinr them as within the constitutional limit 1t
cannot be denied that at the time OF the making or
such contract some kind of liability arises on the
part of the city: whether 1t be called an obligation
or debt is Of very little Importance put what Is OF
great Importance is that the amount OF the deot
can never be known. except as the work progresses
TO avoid any misconceptions will say that 40 not
mean to hold that the obligation or debt IN suen
case accrues from time to time as the quantities
ascsrtaned On the contrary In this as IN az o.ner
INK of the contract. But while the mere fact OF la
hiiity exists the Is indefinite ana uncer-
tain II cannot be ascertained with any reason
able certainty except the work progresses. ana;
as have said until the amount can be asccrtained
city's debt.
Further on IN the opinion Mr.. Whalen says:
The aqueduct contracts for the Cornell Dam and
the Jerome Park Reservoir are very good examples
OF contracts which. In my opinion. should be ex-
cluded in computing the amount OF the city dept
for the purpose ascertaining whether or not the
debt limit has been passed more doubtful class
of contracts and which should not, In my opin-
contracts which, although partly founded upon est-
mated quantities and units OF measurement yet also
are in part. based upon easily ascertalnaole guam
titles, as. for instance, for the construction or
bridge. In this there might be a difhculty IN
computing beforehand the excavation and emDank-
ment but none whatever in ascertaining the amount
of iron or work which Is to 90 into the bridge
The same ruling would apply to the case OF q via
duct, the largest part of the cost OF which might
cases as these where there is doubt the contract
should not be excluded In ascertaining the amount
OF the debt.
John c. Sheehan. who has the contract for the
yiaduct extension Of the Riverside Drive which has
been held up will not be pleased by the fine dis
tinction which excludes from a computation OF the
ctys debt limit the contracts for excavating reser-
voirs and includes the contracts for viaducts and
bridges but the effect OF the opinion Is to reduce
SO greatly the previous estimates OF the amounts by
which the cy's debt limit was declared TO have
been passed that bonds to pay for the work on the
viaduct probably will be issued without further de-
lay.