New-York tribune., 1909-03-02
NEW YORK NOT BROKE"
LEGISL4TTTE COMMITTEE
REPORTS-SPLTT.
Majority against Repassage Of Con-
StitutionaI amendment Erem pit
ing Bonds from Debt Limit.
JBy Telegraph 70 The Tribune. J


uonal amendment eXempting income producing
bonds from New York Cty's debt limit. the re-
port Of the Cassidy Merritt legislative commit
tee which investigated New York City's
finances was submitted to the Legislature to
nisht- Waste. vast number Of employees who
were unnecessary. and OF others who laid
down on their jobs and slipshod methods which
would not be tolerated in any business firm were
found But the committee enphatfcaIy rejects
the idea that the city is broke
One part of the report is a brief Of counsel
Louis A. Bedeu and Charles A. Collin. which
declares that counting contractural and land
liabilities in the total of the debt, the city to-
day has debt limit Of S77 ,511 ,O1O37. But since
the Court OF Appeals has not decided that these
debts should be figured and counsel are Of the
opinion that they should not he taken into
count. they believe that the city actually has
debt limit Of. approximately S135O00G00
Emphasis Is laid the proposition that every
bond issued by the city is good and that any
bonds about to he issued Will be equally good
Two things stand out in the report, the ma
iority report against the re-enaotrnent Of the
constitutional amendment regarding the debt
limit and the recommendation for the creation
Of a central purchasing bureau with elaborate
provisions regarding the Standardization Of
acquisitions t. do away with the present loose
and wasteful methods Of supply purchasing
1 most FlIditE SJTlElng - tNe 1aCT IIlaL II-
committee sounds a warning regarding further
expenditure Of money on the Ashokan water
supply project. pointing cut that the Board Of
Water Supply has not yet perfected a method
OF getting the water into New York City, and
that under those circumstances any big ex-
penditure Of money is somewhat risky
on the exemption Of income producing bonds
from the Cttv's debt limit the majority of the
committee took the ground that no amendment
Of the constitution would he needed if waste Of
city money on supply. purchasing and political
ofHceholders Who do not do days work vas
eliminated on this Senator Cassidy and As
serblvrren Merritt. Palmer. Oliver and Bennett
agreed. Senators NcCar~en. SAKE and Assem-
blvuan Lee dissented. fling minority reports.
COMMISSIONS RECOMMENDATIONS.
Following is a summary of the reoom-o0da-
tons made by the committee:
Frrst-The city authorities should be pro
hih.red hv Law from issuing the S22oo1 900 of
corporate stock NOT Vet issued but which the
Board ~ Estimate and Apporfiorre0f N 1905
authorized 70 ne issued 10 make ~ deHr!encies
written or as urool.sCrihle such law should
also provide that such S3S ono oo1 % distributed
over the tax IeNles o. the neVt fen years. ana
that such amount "Een collected should be re-
stored 20 The several funds from which q had
been diverted for the purpose of paying current
operating expenses If the city.
SerCr1-The city authorities should 6e pro
hfhrted by au from issuing corporate stock for
t1~ payment u current operating expenses as
With provision for DETERMINATION hr tho B-ar5 |
2L ASfl 7'1 ma APPorl.' ~ q" 'iu' vi dS
distinguished from current 'pe-a'-nE expenses
The current expenses of the Dock Department
in the operation ot 01In''p pal ferries and reorea-
tl0n piers H.H NJ ...--'1 aS gHFl"h operating
expenses, for the Iat l''' "i "hleh me issue "i
0oTP%r5lo 1s s,,'% go, go-,tce s5oid he r~o
n 5raI nv Ia fern
mn, ".li[. a,.' - ~ BE- ,oI,g,,5 m
betie,. trr-75e than assessment bonds
Fourth-The city should be required by law |
10 establish q bureau for m" purchase OF sup !
:,,, - 80 ~ 49, or T-ti,,ts ana No
-lonneut the head of which should b. charged |
as far as practicable. "lth ne TsSponsloiIi'E f"T
ne p'' ',1SI ~ ~ az r, 80 -Jl ~, .
zatfon If the accounting methods of the city |
along The lines laid down at length i'm the re-
port ana as no" pong ,nslaL.ed tS IT" 60. con
ro5IrT oi ne cry u, ',l - pa pa 'it'c, %. -aall1'
I7enr
SiEth-The law should provide for the estah- |
ishment of q hui'au "i reaI estate Wh.,n S-h"uLG -
- r-+,..o "a .yr.orf irr,yoan+ hero all ,,,sra
books and records Of the real estate holdings Of
he CRY should be kept in ciasSlhed order. ana
may ~ i"'na ana rHti,,tilfu j3 1l ny -,
so as To- allow the acquisition by the cit. Of that
portion of the state forest preserve located with
n tn 3o"naar'rS 81 i,+ ,I5 ~, zs
20 ae 70 nroyide for improved methods Of con
lemnation applicable throughout the entire
state. If practicable or, # that he not practica-
oe applcahle a, G@5 10 tb ,ae it, ~ Ta Y r
,r hIfng acquired by the city OF New York for
he purposes of increasing rs water supply
Ninth-I ne i 1i,rl t Ibt % ~ ~
~. of ~ey- YORK
- ,-r-r-r,e, e1s ooo mn vrAp
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