New-York tribune., 1905-01-03
MAYOR HITS AT GAS TRUST.
ASKS NEW WATER SUPPLY.
City's Debt IncurTing Capacity
Noe S86O606o0. o

Cfty's Debt IncarTTng Capacity
No5r SS6D00;6o0.
Mayor Mcclellans annual message. sent to the
Board OF Aldermen yesterday. among other things
recommends a municipal lighting plant and new
commission. with fun authority TO proceed with
1he work OF ofincreasing the city's water supply In
all the boroughs. and the Mayor indorses the
recommendation of the Controller 90 the effect
that the legislature be asked for authority 20 issue
corporate stock 10 cover a deficiency OF about
$50 oOOOOa due to uncollectble personal taxes. He
finds the debt mourning capacity OF the city TO
be sss,OooOeO.
The sergeants-at-arms had hard Job getting
quorum OF the City Fathers 20 the City Hail.
despite the fact that Il would have been a mis-
deneanor for the Board Of Aldermen TO have
failed 70 meet John H. O'Brien, the Mayors
secretary, delivered the message TO Michael F.
Blake. the reading clerk. who turned Il over 10
City Clerk Scully. who in turn handed II TO Pres-
dent Fornes In q twinlling motion was adopted
10 refer the message TO the appropriate COM
mfttee. and then the aldermen scattered with a
far greater degree OF alacrity than they gathered
Considerable surprise manifested over the
failure OF the Mayor 70 explain the increase OF
about So 001000 in the funded debt Taxpayers
generally were aware OF large expenditures by
the city in the last twelve months, but few are
prepared for the figures presented by the Mayor. as
received from the Controller. The increase In the
funded debt in 1903. the last year OF the Low ad-
rninistration. was S29OooOOc. The Tammany ad-
minstration almost exactly tripled this, the exact
figures being S66 765, SIS s5.
Some OF the larger items OF the increases were
Sl500oeOO for bridges. Sl2OOooO for schools. S7Ooo-
600 docks and about SlO0OOOoO for rapid transit
purposes. These are round figures and approximate
the actual appropriations. They not in-or-
pOrated In the Mayors message.
CTrY'S DEBT INCURRING CAPACITY.
Using the Controllers figures. the Mayor says
The condition Of the citys finances in relation
further indebtedness on October !, 1904 was as
follows:
real year .S5o15 546s77 90
e eouh laRafa qsst 4s2 SIS 90
Net contract liability dn-
suuoton. Manhattan and
$4,000. 600. 'and sEtEs work
Brooklyn Manhattan as
1s5y H1S os9 5og land: acquired ;ff77sss ;igsE $
Liability for judgments tes-
' -------HT 4i4esee, 30
Margin Of O 10 per cent Of assessed ,o oo
From This n9rgin or excess must be de
1905 outstanding october !. lSO4........ $4,000 %
Balance Of excess OF 10 per cent of as
sessed valuation debt ssss26 727 90
From a report made to the Board of Estimate and
az q aT b re6 e thaf ibe normal increase
per annum Of the city borrowing capacity will be
policy keep the issue OF obligations for ordinary
requirements within this limit, and TO reserve the
present existing margin for such large and I'M
portant public works as wafer supply and rapid
We must congratulate ourselves the resource
ful condition of the finances OF the city, but the the
calls for special attention, and If possible remedy
the fall ii is necessary in order TO make payments
from the beginning OF the year until the taxes are
in, issue revenue bonds in anticipation OF their
collection. In other words. live through the
intervening months non on credit ts ne
the revenue bonds as the taxes come in, thereby
Practical operation and experience show far diff
ferent result In the schedule Of uncollected taxes
199iiReng SpeaiieaiigSlt 10 S0''' are large sums "''
radical faults exist in "a system OF taxation which
permits 10 reach such condition. and unless
a remedy is found they viii ultimately bring our
unconeeted personal taxes were imposed without
proper estimate Of the responsoliI'y OF the md
10 enforce payment is defective. Uncollected real
on the pTope2ty but IT since fSSs no Controller in
Manhattan and The Bronx has undertaken to col
lect them by tax sale, the, means prescribed by
The practice Of living on borrowed money from
January October costs the city annually 100000
In interest adding TO. the burden OF taxation.
and for the other weaknesses of our financial
system must 9e naa Ry legislaI0n StaIi apoldds ptbd
and report a plan TO perfect them.
M PLAN FOR A CITY LIGHTING PLANT.
n The chapter in the message the finances is
really the Controllers The leading feature of the
Mayors message proper is his stand for municipal
am in favor of runiciral ownership and opera
tion OF electric lighting plant to light the streets
parks and public buildings of New-Nork. do not
believe that government should engage in any SER
vice which can be done better or as well by private
enterprise, should invade business fields in COM
petition with the legitimate trade Of the citizen
Mhefe service ienceieo py pIlEste corporations is
unsatisfactory, either because or its lnIelorlty OF
excessive cost it. becomes the province Of govern
ment 70 take control Of that utility for its own
uses The prices which the city IS compelled pay
for gas and electric light Of proportion
with the charges other cities that they must be
extortionste No relief is in sight as there appears
be absence of real competition.
This matter has received the attention OF the
Board OF Estimate and Apportionment and at its
last meeting, after hearing the opinion Of the Cor
poration Counsel and Judge lDlllon a commission
was appointed consisting Of Professor George O.
6eaver, OF Columbia University; w. T. Cary Hutch
inson electrical engineer, and Nelson p. Lewis,
the engineer Of the Board Estimate and Appor-
tionment, and instructed TO report. pos
sible, general plans and estimates Of cost for a
public buildings of the city whole, by boroughs
and districts This project IL decided will be
greatly aided by the use or the rights reserved in
grants heretofore gwen 10 The Consolidated Iele-
graph and Electrical subway Company and the
Empire City Subway Company and by virtue Of
which these companies have constructed and now
maintain their conduit systems
Here have the right TO the free OF the
conduts in which TO place wires for the trans
from the discussion large clement Of expense. and
TO leave il open 10 the city. even If II should
not build its own generating plant, 10 perhaps Sc
the market the electrical current,
II necessary, from localities outside the
city or state Of NeW-York. ] do apprehend that
the matter Of purchasing the lamps and poles
supplying others IN their stead would offer any
serious problem.
establish and maintain plant for supplying light
20 the public and buildings appear from the
recent opinions of the Corporation Counsel and
Judge Dillon 10 be settled II may be that when
such q is determined upon interested per