Evening star., 1909-06-18
SUBWAYS IN NEW YORK
New Rapid Transit Made Pos
sibIe by Change in Law.
CITY MAY INCREASE DEBT
Revenue Producing Bonds to Be Ex.
cluded in Limitation.
GREAT PROJECTS OF BUILDERS
Moving Platform Scheme Has Ap-
proval of Financiers-Under
River Service Grows.
GREAT PROJECTS OF BUILDERS
RY WILLIAM r. CT RTIS.

RY WILLIAM f. CURTIS.
Special Correspondence of The Star and the
Chicago Record Herald.
NEW YORK. June II. 1909.
At the last session Of the legislature a
constitutional amendment was adopted
for submission to the people at the cleo
ton next November and a law was
passed to enable the city of New York
to build new subways or other transpor
tation lines. which are very much needed
and. indeed. are becoming Imperative.
The present transportation facilities are
already taxed to their utmost capacity.
B. ]. Arnold. the Chicago expert who
came on here last winter to make an in
vestigation and recommend what should
be done, told the municipal officials sim
ply that the present subways must be ex
tended from the lower part of the city
into the suburbs as rapidly as possible.
because the present facilities would not
be able very long to do the business re-
quired of them. And. in Mr.. Arnold's
Judgment the only way for the future
was to send the business men of New
York and the shoppers home under
ground.
Revenue-Producing Bonds.
Acting upon this high authority, the
legislature decided to submit to the peo-
pie at the November election an amend
ment to the constitution providing that
revenue-producing bonds shall hereafter
be excluded in computing the debt limits
of cities of first second and third class
There is no doubt that this amendment
will be adopted by the people. although
the Bankers Association, the savings
banks. the insurance companies and other
large investors in municipal bonds agree
that the present Indebtedness of New
York and other cities is about as large as
they can safely carry. and that it is not
wise or prudent to incur any further OBJ
legations for future generations to meet.
The debt of the city of New York is al
ready more than half as large as that of
the federal government.
The savings banks of the city own
nearly S15OmO.OOO of sthe bonds. which
constitute about one-tenth of their as
sets. and do not dare invest in them any
farther. The big insurance companies
are beginning to feel the same way.
At the same time they fear that If they
should refuse to take them such action
might depreciate the value of the bonds,
On the other hand If the new bonds
should be sold at a lower rate than the
present quotations of the old ones it
would also have bad effect.
Some bankers declare that the consti-
tutional amendment is a breach of faith,
on the ground that they invested their as
sets in previous loans with the distinct
understanding that constitutional limit
would be placed upon all municipal debts.
That limit was altogether more liberal
than they considered safe at the time.
and now it is proposed to extend it still
further and permit municipalities to in
cur still greater obligations. which cannot
be done without impairing their credit.
Nevertheless the amendment will be
adopted. The debt will be increased. The
craze for spending money before earn
ing it will so on.
Some time ago the board of estimates
of the city Of New York employed Gen.
B. F. Tracy. formerly Secretary of the
Navy, a commissioner to investigate
the question. He reported that, under
the constitution, the city debt of New
York could be lawfully increased by
S1O6. 100000.
The city controller had previously said
that it could be increased $50 900, 900. In
fluential persons who thought differently
began legal proceedings. Gen. Tracy's
conclusions hpjpe investigated