New-York tribune., 1901-12-02
NO EXTENSION, SAYS CIRCUIT
WOULDN'T STRETCH CITY'S BORROW
ING CAPACITY. EXCEPT ON BASIS
OF PRODUCING PROPERTY

Controller-eiec. Edward N. Grout is opposed
to the proposition TO take out of fhe city debt
by constitutional amendment, what the city has
.spent for docks markets and water systems ana
what II Is spending for rapid transit NO
greater temptation and opportunity for munici-
PAL extravaganza could be created says MI
'Grous than thus suddenly and with one stroke
OF the pen to expand the citys borrowing ca
pacfty by hundred or more millions OF dol
lars"
Mr. Grouf believes that the city Will have all it
can comfortably and honestly do in the next
two years IL it carries out the improvements
that are now under way and provided for he
enlbodiss his ideas in statement made public
yesterdsy- II Is as follows
should resard II as no serious impedment for
the new administration if it be that the i'm
prcvenents now under way or provided ior are are
such as TO prevent and additional ones OF
extensive nature during the next TWO years
roo 1,a @ a' ne two new bridges over the East River
besides the one now b11ildins new nsioSg S 81
Records, the sites for the nifty or more Carnegie
fhraries the Public Library Bdlns Inc sr
new schonlhouses- normal expenditure tor street
sRd f6s EaTeH % st p5f Of Minor enterprises all Of
debt and present debt mourning capacity, New
York has already under way about as noch as
new ailinisfration viii have fieId enough prose
crrtng these improvements In a businessllke way
and al the same time cutting off sinecures and eS-
1ravasant salaries so as somewhat 10 reouce the
annual levy
For these reasons am not in favor Of the pres
constitutional amendment what the city has spent
sor docks markets G 5 a9d gater s.er ane tpfs
don and oppeegtunity for MUNICIPAL extrsFa sance
ccald be created than thus suddenly AND at one one
by hundred or more millions Of dollars BsSldeS:
properties are by no means the tests Of their pres
DO not dispute the sound business force Of the
proposition that the city debt should be entitled to
B " fbe ot cref should be measured BY
present net earning capacity, not by cost, ana
figuring and estimate Of the city officials alone II
1s wide and dangerous way when II Is pTppoSeo @
thus 10 open and careful restrictions should be I'M
posed - :
by the Requirement that the approval Of the local
government board. a Parliamentary body shah be
home rule TO requiring 2 city which proposes TO
sStain ceTtifcation Of The figures and computa-
don from State official With these restrictions
that SSeW-TorE should soon have proper consti
Tutioal credit on rs Geot on account od It's income
i is unfortunate that il should after year be
70 Excite 3o sD Of the fact and as 6elieTer
in municipal ownership. perceive, too; that no
4nef such as ali the srsa5 cities Of Europe have
OF this difference between debt unsecured by prop
erty and debt incurred 10 purchase or create in
FORE FORE for pubic discussion the following amend
Fnent to the section of the constitution which limits
The city debt 10 per of the assessed value of
sts real value
Add TO Article VIII Section 10 Of the Constitu-
fiun-
Amy city of the first class possessed Of property
1roducing clear net income over and above its ex
IeEses of operation may from time 10 time al the
request OF its Mayor controller or chief nnarcldl
officer and board OF aldermen or legislative body,
require the controller Of the State TO fix and de-
4ernine TIE capital value of such property at the
SUN which at per cent per annurl. would pro-
<fuce an equivalent annual income; and such
city may thereafter incur Indebtedness, beyond the
In per cent OF the assessed valuation Of the real
estate thereof subject to taxation 10 an amount
which In any one year shall not exceed one-tenth,
and IN the entire aggregate siXtenths, of the total
capital vafue Of such income producing property
te6 and determined