New-York tribune., 1908-12-17
WINS ON DEBT LIMIT
CUTS METZ'S ESTIMATE.
Margin of Borrozcing Capacity Re
duced TO IS, ,582, ,905.

In q repor. TO the Governor on the cltys oeoI
limit William NJ. Ivins. chairman of the Charter
Revision Commission. cuts Controller Metz esu-
mate Of SS7.95l $40 as tie margin OF borrowing
cansriry down 70 SS.5S21O5. Then he raises the
point whether special franchise taxes can consti-
tutionauy be reckoned coming from real estate.
II not the assessed value Of real estate On July o.
1eas viii have Re reduced by S492i~l4'V ne hnos'
.bereb,- further reducing basis Of calculation
for the determination Of the oity-s borrowing ca
pacity by 70 per cent OF this sum. or Sisz4so4'-
This Is matter Of vital importance he con-
rinles and e is answered in one way or the
other must deterrnine immediate future course
OF the municipal authorities in respect Of the
further issue Of corporate stock" The report
reaches this conclusion
We are Of the opinion hat when the borrowing
CAPACITY of the city has been nearly exhausted
appears a. the present time TO be. Whatever
Il as factor of safety. That the city is in its
+ al the monet SO limited. is manifestIy due,
among other things to the fact Of the city s fal-
was due the city as Of November J. for unpaid
years. the following:
S7ectsI sra7ch:so taxes . i7.e64 so
Assess date 2eooocoo
Total ..-...-.....-...... So. 1901 oee
There should be no doubt about the collection of
There should be no doubt about the collection of
part OF the special franchise taxes. but how much
Il is Impossible TO say how much, Of the per
5nilion dollars of personal property taxes haze
been written of the books as uncollectihle, which
sum is not Included in the foregoing figures
TIE Controllers statement Of the city's hor-
rowing capacity was prepared at the request OF
she special committee OF the Senate and Assem-
bly, investigating the municipal finances and
also al the request OF the Charter Commission
= special committee Of the Charter Commission
undertook an investigation Of the citys debt limit
OF its OWL initiative early in last May
The element Of the Controllers calculation to
evoke most OF the criticism Of the Charter Com
mission Is his estimate for land liabilities of
SIS s35. .sel. The report observes at the start
that this estimate Of liability covers only that
land where title has actually passed TO the city
The most careful examination it SAYS, shows
this estimate be inadequate even for what II
covers. and that It should he increased by not
less than 80 per cent. s9,5Oo,ooo But it says
that the contingent liability for real estate in
course Of condemnation. where the city has not
YET actually acquired title, should also be reck-
oned in. making total increase in the items of
land liability Of s23.500.00o-
The following table shows the Controllers
method Of calculation:
s Ss' rs2Sss s3s: 6@5 Na s56 5
Gross funded .s7e8 5z8 c57
apT@op-iatioa account ---- s4541e52a
1iahility sor Jana esqurea, as est
Ee@saue Fonss issued arz,-st ur-
'olso'ed s665 taxes f9r years prior to os o52 2,o
1otzl ............. -sss8 s47. .761
De6ucticos
Bonds ~ sinking fund. and
under Bank
Savings -Sip0 S49-564
COUNTY bonds exempt under the
constitution ---.-------- 21.fCE-219
Water bonds debt incurred
January / 1900. exempt
constitution "a SSl,o34
ProceeEs of bonds IN the CITY
TreaEu--. deducted by the Con
- - 249 81. .s12
carried forward 1854 800 s39
80 Fss sr-a+e I9os - So 241 SIS
Margin % borrowing ospacity of the city - -.
uron II the above cslculation SS1Ft5l eSe
Here Is how the charter commission would. re-
wise the Controllers estimate:
Additional liability. 20 800 ooo
improperly deducted 234s.a35
Contracts certified 35oo 600
s2a84s a35
Pezdsustinz the Controllers figures by the
deduction have a re -
rnainder Of only Se'5e- 10