The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-22
City Finances.

The problem Of taxation in our city,
always an important one, is doubly so at
the present time. What may without
misconception be called the plunge taken
by the city into rapid transit construc-
ton, the peremptory demands for new
schoohouses and similar calls for funds
by reason of other public necessities and
improvements which are matters Of
common knowledge, have resulted in
heavy increase in the burdens Of taxa
ton. Great credit attaches to the Comp
trollers Office Of the city for its praise
worthy efforts to reduce this weight of
taxation by proper and legal means. We
refer especially to the proposed amend
ment to the Greater New York Charter
known as the new sinking-fund PROPOSE
ton. a scheme which is not Mayor
Lows, as is commonly and enormously
stated, but which proceeded entirely
from Deputy Comptroller JAMES W.
STEVENSON, received the approval Of his
chief, Comptroller EDWARD NJ. GRorT.
and was then by the Comptroller sub
mtted to the Mayor.
Mr.. STEVENSON and Mr. CIRCUIT direct
attention TO the absurd and intolerable
position in which the taxpayers Of the
city now find themselves by reason Of
the application to the sinking fund OF the
revenues of the city from it's docks. its
water system. its license and franchise
fees, &c. The present sinking fund OF
the old city of New York-as carefully
distinguished from the sinking fund OF
the Greater New York-was created in
1873 by an act Of the Legislature which
provided that all moneys and revenues
of the city heretofore pledged and APP
propriated to the city sinking fund
should continue to be appropriated to
the fund. until all of such bonds and
stocks Of the said city were fully and
finally redeemed. The sinking fund of
the Greater New York under the present
Charter is supplied from a fund main
tanned by annual installments raised by
taxation. All the revenues of the old
city of New York that were formerly paid
into the old sinking fund are still main
tanned separately for extinguishng the
bonds issued prior to the consolidation.
Now the crux Of the present situation
is simply this: The revenues thus
pledged TO the sinking fund of the old city
of New York are 80 much in excess OF the
proportionate annual amount necessary
to meet the obligations Of the fund that,
10 quote Comptroller STEVENSON $ words,
in 1923, when the final obligation is due
it is estimated that there will be on hand
in the sinking fund nearly $500, 900. 600 in
excess Of the amount required to redeem
the obligation. The excess of these
revenues This year is nearly $500, 600
In other words, under our present laws
the sinking fund is taking from the tax
payers Of the city an enormous sum each
year beyond what is sufficient for n
proper annual payment for the purposes
Of bond extinction, so that when the time
for the sinking fund TO close arrives pay
ment of the original debt will not only
have been provided for, but $500, 900 900
Of debt in addition will be wiped out. In
1929 the annual budget of the city will
suffer sudden reduction OF SIC. 900 900
less than the year previous. The present
generation will have taken upon its own
shoulders the burden of all this enormous
debt. paying for all the present perma-
ncnt improvements and convenences of
the city out OF its own pocket, and heap
ing up lump sum Of $500 900 900 more.
The natural suggestion Is, therefore,
that some means shall be found whereby
only such an amount OF the revenues OF
the old city Of New York shall be placed
each year in the sinking fund and applied
to the purchase Of corporate stock as is
found necessary by means of proper and
scientific calculation to provide for the
payment Of the debt to which they are
applied. In the belief Of all who have
examined the question, including all
the financial and legal experts in the city
to whom the matter has been submitted
means Of accomplishing this fair and
much-to-b be desired result may be reached
by the scheme outlined by Mr.. STEVEN
soN and Mr.. CIRCUIT. That scheme ID
that RI" balance Of the CITY revenues