The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-06
SMALL OBSERVATION-DISCLOSURES
UNTIL ELSBERG BILLS AMENDED
TO EXEND THE TERN.
rfetx Doesn't Believe the City's Debt Limit
VIII Permit II to Build Mayor Mere
Hopeful aud They'll Try 10 Agree
To Appeal 10 n Legislature.

Apparently there is little prospect of any
new subway being started for at least an
ether year. 1t is the belief Of most of the
members of the Rapid Transit Commission
and also of some of the heads Of the NUM-
cipal government that it is almost hopeless
to expect that bids will be received so long
as the short term operation provisions OF
the Elsberg hill remain in force.
In that event all that would he left for
the city is to build the roads itself or TO adj
vance the money for the construction 10
contractors, Al was hone in the case OF the
present subway. The city is not likely to
adopt either ~ these two courses.
The three routes which will he approved
on Fri1av by the Board Of Estimate would
cost AZ least SIPS. 900 900. and It is the opinion
} Of Comptr1llar Net that the debt borrow
ins capacitv of the city will not permit the
construction Of the routes with the city
money. Even should the Legislature alter
III, Flsberg Hill before the adjournment IN
the late spring the necessary changes
which would have II he made in the form ot
contract and the approVals tn he obtained
from the Board Of Estimate and the Cor
poration Counsel would mean a delay OF
several months more.
Comptroller Metz saii Yesterday: "Ad-
hitting that the city has now a WING
capacity of 500. 600 400 t. Sl3O,OOo ,O00. bond
Issues II the amount of at least $iO0,0Oo,0N
have been authorized for public improve
rnepts. and while these bonds have not heen
issued I regard them IS = lien on the credit
of the CITY. Consequently IN" city has no
money - erpend On subwHys. " they are
70 be built they must be built with private
capital, If my view Of the financial CONDITION
Of the city is the correct one.
Nayor Mcclellan d~isagrees with the view
taken nv Mr.. Metz. The Mayor thinks
that bonds a. vet unissued, although
authorized. ~hould not he added to the
city's Indeht edness and that therefore,
the CITY Is IN a position 70 spend a. least
twc-thirds Of its borrowing margin, or about
$50, 900 900 a year on the building OF new
subwavs. .
An effort is 70 he made on the part Of
the Mayor and the Comptroller TO come
70 some underst anding on this difference
OF opinion. They will soon have a con-
ference. which will he attended by the
Corporation Counsel and the Commissioner
OF Accounts and endeavor 70 reach a def
mite conclusion as 10 Just what is the
present b%orrowing power of the city. One
result NJ this conference will be the intro
duetion of a bill in the Legislaturetaking
ont OF the city's debt column all bonds
issued for improvements which bring a
revenue to the city h $4,000 900 spent
for the present subway would come in this
CATEGORY, because the city not only gets
higher interest on the bonds than is paid
10 the bondholders, but the PETERBOROUGH
compsny is required TO make up a sinking
fund for the retirement of the bonds at the
end of fifty years.
Should unsatisfactory bids for the build
ing Of the new subways be received when
offers are advertised for next month the
Rapid Transit Commission and the city
authorities will combine in an effort to have
the Elsberg bill amended.