New-York tribune., 1909-04-09
DEBT LIMIT SlO6.2O5,7l4
CTTT'S LEEH'1T JUNE -,
1908, S1TS GEN. TRACY
Referee Reports TO Supreme Co"t'
Lea1ing ont Of His Estimate
81! .GGO .OO0 Of Contracts.

General Benjamin r Tracy. as referee # the
supre-nc Court has decided that the censu1u-
tiorai debt limit of the city of New York on
T,,ne 20 1905 was Si0s905.7l4 Sc The most
striking feature of his report. hled yesterday
Sc the decision that contracts for public I'M
movements are not debts under the meaning
of the constitution until the consideration mas
heen received by the city, so the referee does
ret Include in his estimate some S54eee.ooo OF
contracts which Controller Metz. the Bureau
- Municipal Research. and others figured mt"
the de bt limit Deputy Controller McC"oey SAID
last night that b. the method Of computation
used by General Tracy the debt limit no"
would be some SI54000A00. while. according TO
the figuring of his office, il is only about s4s'-
ooeooe
As the report Of General Tracy fs subject TO
the action of the courts his findings en- the
debt limit viii not he taken final until the
question has been decided by the Court Of Ap-
reals. 10 which il will be taken by general con-
sent Of the parties interested
General Tracy-s report uas prepared at the
direction Of for its guidance I'm the suit
Of Jefferson ~ Levy. brought II June against
the Board or Estimate t. restrain that BODY
from approving contracts for the Fourth avenue
subzay or the eeound that such action would
violate the constitutional limitation in the in
curing Of debt by the city. 4 preliminary in
junction was granted. with order TO shoT
cause shy the injunction should not be con-
tinued pending the determination Of the case
On the return Of this order General Tracy vas
appointed as referee Similar suits of David
Never and the Fleischmann Realty and Con
struction COMPANY asking for injunctions were
referred TO General Tracy.
APPEAL IN ANY EVENT
Within short time the Corporation Counsel
will make motion fer an argument on the or
der in the light Of the referees report What
ever decision is reached by the lower court an
appeal vIll be taken TO the Appellate Division
end i'm turn to the Court Of Appeals. il is the
desire OF the city authorities legally 10 establish
2 method Of determining the debt limit under
the constitution.
II the injunction is continued by the court,
which does not seem likely ia view Of the con
tention Of the plaintiff that Jhe debt limit on
June 50 vas only about 81 sos o8e Of course. the
city officials would still be unable TO go ahead
with the Fourth avenue subway or improve
nents Of like magnitude. But if the lhJuhc-
tion is vacated they viii be free 10 use their
judgment unless the court should grant stay
under a special motion.
Nr Levy. the complainant in the first suit,
said last night ne was delighted to hear that the
city had such large margin Of safety. II the
advocates of the Fourth avenue subway no"
wanted to go ahead. he said. he would not be
disposed TO object in case they cut the plans
from q four - 4 two track subway fer the en-
tire distance. He said he did not wish To COM
Raeas en- the methods used by General Tracy IN
his computations until he had further oppor-
tunity Of studying them
General Tracy's judgment with reference 10
the debt incurrinr capacity Of the city viii make
no difference for the time being with the policy
ef the Mcclellan administration. Mayor Nc
Clellan and Deputy Controller McCOoey said
yesterday that until the opinion confirmed
hv the highest ceurt il would not he binding
Controller Metz viii within d week issue 4
quarterly financial statement as Of March 81
showing The debt margin TO be in the neighbor-