New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-11
THE MAYOR ON TAXATION.
EXCESSIVE AND NEEDLESS EXPENSE
ON ACCOUNT OF CITY'S DEBT.

Mayor Low gave the first of his promised talks
70 the reporters yesterday morning. He spoke of
our excessive and needless taxation" He said:
ns d91day wish to speak of our excessive and
[AfpP96tonment has authorized the issue this year
of the docks, especially of the Chelsea section
ip ms Improvement. when completed. will
iir,ooine as shown by all similar expenditures
ing the last twenty years, of less than per
$500 600 T fJ cost o or say an annual income OF
me ctealt or the sinking fund. This sum. by it
IMAM sufficient TO pay interest on this issue of bonds
T ilu TO redeem th-m at maturity. But existing
IoT current purposes of the income from this ex
taxation the full amount of interest on the bonds
a2 SIoVVyV ana an annual instalment sufficient
redeem EN- the debt at maturity. Of say $4,000 or in
Thus; the taxpayers of to-day are. as it were
needs OF the pert, and for making good invest
from these bonds of $500 90 and they are burdened
win an additional charge of S26O.OO0 or. in all
pose the sum Of $4,000
SON In other OF words the city is raising money by
81 No. oI tHls debt at rate that would pay off
$4,000 OF bonds in ten years. So that. if the
he bonds the city Would PToy&e 5a9 I'VE With Gh
WhlGn TO pay $4,000 disregarding entirely the
come from compromising the interest.
form, If / were to be Exact Should say that the
city has several sinking funds; that the income
only and indeed, should have take c9gnizance
way affect the point 1 am trying to make clear
that the city. under existing law is compelled to
raise by taxation very large sum In excess of all
requirements arising from its debt.
ss o IL be asked why not credit this income Of
purposes by taxation, the answer is that this is
done because the nature OF the law forbids,
this legislation AFFORDS Of the long consequences
OF bad government. Tweed wrecked, for the time
being. the credit of the city. In 1878, therefore
when 1t became necessary TO borrow money again
on on Ia large scale for public large
ing the revenues from the docks, pledged
unusual provision that this pledge Of SPECIFIC
revenues rev tue SHOULD be contract between the city
of the city have out of all proportion to the
but this contractual clause called stands in the
way OF asking for direct relief.
though ali win require legislation. I speak Of two,
Ever Is 70 70 def 1itb the ne sbit Jegi
thoroughly. and not from purely temporary point
First-The courts have decided that the bonds
held in the sinking fund are not part of the city
upon these bonds as though they were still obliga
lions on January last the sinking fund held
interest on this would be $4,000. 1t is not
city should continue pay this interest 1t is not
needed for any purpose, and it therefore repre-
Second-The Sinking Fund No. l. which absorbs
re par Oh our Is so iucn IN excess
OF the actuI heed thst IL seems 10 me wholly un-
necessary for some time to come to raise new
The last bond protected by this sinking fund ma
lures In 1928 Deputy Controller Leveys esti-
1
is changed. the unnecessary taxation, direct and
indirect, due TO this fund. would be for that year
alone $65C coo while the fund would then contain.
after discharging the last bond 1t is pledged
deem. the of $500 900 600; that is say,
a sum equal to the entire present net debt of the
city. Under these circumstances, il does not seem
either necessary wise to provide additional sink
| ing fund protection for a good many years TO
come. The $6.C10000 Of dock bonds, therefore. TO
TeCur TO my illustration. could properly be issued.
did the law permit, without laying tax of $4,000
a year for their redemption. The total relief TO
be had from this source have not estimated.
but If the rule be generally applied the relief would
be substantial l have doubt that the tax levy
can properly and safely be relieved in way or
another through proper legislation. of excessive
taxation that is entirely due 10 existing laws reat-
Ing to debt of at least 100000 annually.
The existence of this excessive taxation for this
purpose is Erievously felt in every direction. 1t
makes tax levy large that the citys current
needs cannot be adequately dealt with. II COM
pels the Board Of Estimate and Apportionment to
leave undone everything that by any POSSIBLE
ity be put Off instead OF doing. ought be the
case everything that good Judgment requires to be
done, In other words, the city is suffering from
bad fnanCiering that ought to be corrected.
Next week l shall speak of the insufficiency Of
working capital