New-York tribune., 1903-05-07
DECISIONS IN TWO CASES.
Mayor of Rochester Points Out Relation OF
Debt Limit to Franchises

To the Editor OF The Trfbne
Sir: In view OF the controversy over the question
70 whether not special franchises should bs
treated real estate for the purpose OF esttmar-
ing the power Of a city to become indebted under
the constitution, IL might not be Inappropriate to
send you reference two that have ariGRn
in Rochester. where this question was under con
sideration, and IN both OF which the courts held
that special franchises were 10 be considered
real estate under the constitutional provisions re-
ferred to-
The first case was one where the issue OF bonds
OF this city was questioned the ground that
special franchises not to be considered "a
real estate for the purpose Of estimating the
power OF the city TO become indebted That case
is not reported. but Judge Nash. at Special Term
held that special franchises were 20 be treated a.
real in estima ting the power of the city 20
add TO its Indebtedness.
The second case is that OF KTonsbein vs. Ctty
Of Rochester. reported In IS app Div f4 In
that case the proposition as IN tne
previous case was urged and the court said We
are Of the opinion. therefore, that the valuation
OF these franchises Is 70 be taken into account
in ascertaining the assessed value OF the reaI
estate of the city for the purpose Of determining
whether there has been any infringement upon 'ie
constitutional fnterdictiOn referred TO
This case is also interesting upon another pnaS7
of the question az the power Of city 70 pc
come indebted viz whether cash resources or
city are TO be deducted from the Indebtedness OF
court held that cash resources be deducted
If there were set apart pursuant 20 statutory a.
thOrirv in each instance. and as a RUE 10 Hes-
some lingering specific Indebtedness against ne
citv n a fund 70 used 70 reduce the prlncipal
OF definite existing liability OF the city, We thS.
10 that extent should be deducted IN esttInaung
rhe cItvs liabilities This language would SEEN
10 permit OF the deduction OF any sinking runo1
created and preserved by virtue or express
statutory authority. and which can De appied OinJ
ro the pavment OF specific obligations -
The same case also held that where loc-l III
provements paid for IN cert1hcates or ooICS l
payabIe solely out OF the assessments 10 pc cor
iected such certificates or bonds dd noL eo. cor
stitute an Indebtedness Of the city under the con-
stitUtiOn- - ,.,i.t,4-
There must be some limitation upon the IeSlsItL-
ure as to its power 70 define real sstale-
II Is nor within the authority OF the les1sIa
fO make black white The mere deciar@tlois
OF the legislature not change the cnarafter OF
nrop4rtv In the definition OF special franchises as
real estate however. the legislature mas not eN-
ceeded irs authority The right OF corporation 20
ODerate IN a street partakes OF the character OF
rsaj asfare and has been treated such Tor many
years by assessors - :. - ,..h.vx
In Considering what the people had in mind wnea
they enacted the provision IN the constructor, T.
iaffre 10 the limit OF Indebtedness, II should De
borne in mind that the section was re-snac{ed aIts
+ba Dassage Of the Special Franchise Tax law. ana
bv its adoption the inclusion OF special franenlses
aS real estate by the legislature was rea1rrrnso
by the people Very truly yours, -.
" - A J. RODENBECK. Mayor
r9ocbasrer Y May 8 1903