New-York tribune., 1902-07-19
ASSESSMENTS AND THE DEBT LIMIT

What Mayor Low says about the advisahilit
Of assessing property In this city at It's full
value is theoretically correct The low assess
ments unreasonably restrict the borrowing
power OF the city at moment when money is
greatly needed for public works which viii in
due tine earn handsome income for the city
When a certain specific sum OF money is 10 be
raised II makes no difference in the end
whether IL be at a rate Of per cent on an as
sessmeut of $4,000. or at per cent on an as
sessment OF $4,000. When the State tax was
high a certain advantage vas gained By low
assessments, though the State officials endeav-
ored 70 equalize the valuations in the different
counties Now that direct taxation FOR State
purposes has been practically abolished. that
consideration IS OF 10 weight.
There are, however, some practical obtec-
tons 70 the proposed innovation In spite OF lts
theoretical merits An increased assessment
would, with present expenditures. mean a
lower tax rate. and the taxpayer would be no
worse off Mr. Low could doubtless be trust
ed not to abuse the opportunity for eXtrava-
Zance which would be thus created. But the
situation would offer peculiar temptations to
a Tammany adminIstration should It secure
power IN few years. The assessments, being
once established On the high level. would never
come down. while the tax rate could be gradu-
ally jacked up higher and higher, till the old
figure was reached and property owners were
paying taxes AZ the old rate on the higher as
sessment II would please Tammany i'm
nensely 70 have a reform administration thus
lay a foundation for increased Tammany eE-
actions. In making plans for the future con.
duct Of the city, Il Is necessary 70 bear In mind
the possibility that the old looters may slip
back into power. OF course. we cannot neglect
cials may misuse them. but we should give no
unnecessary opportunities for future malad-
mlnistration and oppression. The question of
valuation Is at best a troublesome one The
law says property shall be assessed at it's full
value, but that is difficult to determine. The
meaning Of the statute is not the price that
somebody who wants the property will pay in
boom times, but what the owner could realize
under unfavorabe conditions at forced sale.
It is commonly said that the law is not obeyed.
Doubtless the assessments are low, but ii may
be questioned II any scheme OF assessment
could be said with confidence to obey it. Valu-
ations below actual quotable prices may be
called Illegal, but valuations at actual prices
would be greater than what certainly could be
realized.
Nevertheless as the Mayor points out, the
city is faced with the need Of undertaking ex-
tensive improvements, particularly for inter-
borough transit That necessity once more
calls attention to Mr.. BelmOnts offer OF some
months ago to furnish the credit for subway
extensions. Why should the city limit its bor-
rowing capacity for other works by issuing
subway bonds, the interest and principal of
which the contractor pays, when 1t can secure
the same subways, own them absolutely at the
end of the same term of years. and let the con-
tractor issue the bonds? Likewise WHY should
the city go on and bond itself for S16.000,O00.
according to the Mayors fgures-it is as likely
to be $50, 600 0O0-for the Manhattan bridge,
and for S12.5OO,OO0 for the Blackwells Island
bridge when equal accommodations can be
cured In less time by tunnels, and at far less
expense IL the city builds them, and at no ex-
pense TO the city at all If they are built by pri-
vate capital under such an arrangement as
Mr.. Belmont proposed? We know that the
demagogues will shout for municipal owner
ship" but let deal with facts not names.
The Brooklyn Bridge is an example Of "munic-
ipal ownership" Does the city benefit more
from it than IL the Brooklyn Rapid Transit
ComDapy's money had built 1t under long
term franchise7 The company uses it for an
inadequate rental, and only as the company is
permitted to use it can Brooklyn people reach
Manhattan without change OF cars, for the
company owns the connecting lines. So with
other lines. The thing to do is TO make those
who, under the conditions Of traffic, are bound