New-York tribune., 1909-03-02
NEW YORK NOT BROKE"
Continued from first page.

purposes. which bonds shall not be incluoed III
the debt limit
Senator SAKE took the Same attitude. except
that he favored limiting the amount Of money
which might be spent under such conditions IN
auv one year Assemblyman Lee presented
memorandum. Of which the following is part:
II the next administration is sincerely. desir-
Gus of promoting economy, II VIII be encourages
by being able to make use OF TINS uepl Illilt
amendment TO meet the immediate demand Tor
rapid transit improvements. Conversely, II VIII
he discouraged Gf the amendment is defaated)
bI, having turned over to IL financially i'm
paired city with pressing necessity Tor re-
trenchment and a virtual impossibility OF meet
ing with public funds the demand LOT lhlIHeulhIe
rapid transit relief.
The clamor for subWays VIII most likely dt
the amendment is defeated) result IN turning
over the transit situation to private capital
under ruinOus terms
No bond is to be excluded upon the debt limit
computation until II has been demonstrated that
out Of the property for which it has been issued
the city is receiving current net revenue sufi-
cient to pay the interest and annual instalment
into sinking fund of sufficient size so that the
sin king fund will retire the bond at maturity
No bond IS to be excluded from the debt limit
computation until such a sinking fund has
ally been established and maintained
The additional borrowing capacity secured by
the exclusion from the debt limit computation
Of bonds heretofore issued shall be used for no
other purposes than those for which the bonds
were issued in the first instance. They arc
rapid transit and dock bonds. and amount. &C
sI25.OO0. 600. Since the demand for rapid transit
improvements is so much greater than the de-
mand for dock improvements, this means that
the first S125 100000 of additional borrowing ca
pacity will be practically all used for rapid
sit improvements.
The amendment is not self operative and the
method by which il shall be determined whether
the bonds comply with the provisions emitting
them to exclusion from the debt limit computa-
ton must be fixed by law. This makes ii nee
essary for the Legislature to pass and the Gov
ernor TO approve a law before any bonds can be
excluded from the debt limit.
After the report had been presented in the
Assembly the majority leader Mr. Merritt, one
Of the members of the committee, made a brief
statement saying he would move IN a day or
two to have the testimony, report and some Of
the exhibits printed. Then he said Of the con-
stitutio'aI amendment:
Assuming the law to remain as IL now does
and the methods of doing business in New York
city as they now are l should not favor the re-
passage of this amendment Should the charter
be sufficiently amended or revised to meet the
recommendations Of this committee, might be
willing to vote for its repassage.
Near the end the Assembly adopted a resolu-
tion offered by AssembIyman Hammond. which
provides that the Cassidy commission formulate
bills embodying its recommendations and that
it consult with the standing committees of the
two houses in relation TO these bills and also
the bills which might be recommended by the
finances. Mr.. Merritt explained that the resolu-
ton would not contemplate any additional ex-
pense.