New-York tribune., 1908-03-30
DISCUSSES DEBT LIMIT.
PSC SUGGESTS CHANGE.
Asks LEGISLATURE to Erempt Bonds
of SeIf-Supporting Subsrays.

7, q, annerdix 10 its annual report, which has
tusr been issued the Public Service Commission luz
,he Is+ District takes UP the question OF the re-
,a-,an Of the constitutional debt limit Of the city 10
.,,u-s construction and draws the conclusion tha'
the debt limit has always acted as oarrier 10 '
construction Of suhways and other means oI iaP
transit In view Of its examination or 'he hiS'oi'
q. the enactment of legislation placing limit upon
.bs debt 20 be inc1rred by states or sn1aIel poii
al ,,,;ts and its conclusion that the object OF 'he
constitutional limitation was not so nuoh 'o pi
vent .he creation of debts by cities as 10 Fie'
.be -lacinE Of burdens upon the taxpayers IN pr
vidins for the payment Of interest ano tepa
of tho principal OF such debt. the commission nae
.,--,a5pced into the Legislature joint resoiutloh
eliminating from consideration IN regard ~ ~
seht nr-i, all bonds already issued loi suoE
construction 50 long as the revenue proou0eu -
-be s,,nz-ays built shall Re sufficient 20 pay tIie
Interest the bonds and pToNloe >iie
for their redemption
The existing subway. the commission Poill'e
Va. authorized by the rapid transit act OF il' ou
:, Was ten wears after that the actual "orh OF co
e-rucrion was be gun snd three years later tndI '
subway vas opened for public use thlel OF 'iie
,r5-a-oes 70 the beginning and complexion OF me
u-rr. vas .he ever recurring question o. 'h- oe"'
limit.
The a7rendix gives detailed history ol In"
z.-,ore stems leading u the final authorization
NJ the issf7e Of bonds for the SUBWAY liCi''i-e
,te manifest rjrlic disapprovai voiced when me
old Rapid Transit Commission falilns 10 see NV
s,b7svs could Re built under the cohs'''u'ioIlHi
debt limit provision. proposed the granting u
perpetual Franchise TO q private corpora'oi i0
a. constipation II also discusses the causes VI
a.. .,,,,e,,- IF legislative measures limiting the
6ent 10 ne incurred by municipalities Inc 1edo-
t,or came after the period from 1850 10 1879, 'e
-he states and municipalities pursued poho! %
extensive internal improvement. WITHOUT iiaA
.,v adeouste provision for the payment OF Irili0
pal or interest on SUBSCRIPTIONS 10 s'" ~
OF private enterprises
The commission points out that when 'he oeO'
limit provisions were enacted IL was NANNY "
rer,ee r,i,nicipal Indebtedness vas almost "iioIis
devoted 70 works which produced no revenue. me
animal interest vas climbing at RAPID rate J.
..rs and every one foresav that unless some
res1r,c-ions were adopted the taxpayers OF the
.,-,,re would be called upon TO meet enormous n
-c-es- and sinking fund payments The eonlr1lls-
sion adds
s;nce that time the situation has changed consid, d
tro-ro,-=noents which only are OF great aoEai w
age 10 % the s cT rot onT the ordinary ot
maintenance and operation. hut elso ne es5i
fo5a soa S'IE prnt l be3fds Such indebtedness is not
therefore burden 2pon ne taaIa5o an annual
Interest charge - he paid is not burden; u
Vision was 70 Re carried out the Indebtedness IN
CURED for gndert kings '9.1 are fndshte5ness in
C1lrre5 fer public inqro1 eraerts winch are q fSu
lie bene e 9gs ~S e1a,,se he IS Obliged to pay the
Interest and sinking fund charges through usAaGi'
T7ha ar7eDdy~ents So far made point IN 'llS a.
ection for water bonds ara exempt from lne !"
Ter cent limit the water works beng sel1-suSla'ii
ing -. .;-, <o-
rhe construction OF the present subway tne OPP
srirE COMPANY has agreed 70 pay the cllE me II
terest and sinking fund charges thereon. 20 io-is
IS II does -bis the commission says. the dehf -
ror 2 burden upon the -axpayer but -rather 'aio-
ebIe asset of course. II future Sui'HalS Stt,-i'+
MOI he self sustaining burden would re placed
117or the 7axqay%r. but though the eNpe' . ~ ~
the present subwav does not presase such an
emergency. commission proposes tlai Sii',l'I
an erterprise ever become non-suppor1ins. ne '-tt
bonds issued TO efrav cost would lrllr1e1id'"E
be counted IN estimating the citys indepteoness