New-York tribune., 1909-05-15
TRACY REPORT UPHELD
METZ WILL DELAY WORK.
appellate DiUision Afrms J&stices S
Z Order on Debt Limit.

The Appellate Division affirmed yesterday the
order OF Justice Erlanger of Special Term. in
which he sustained the report of General Ben
:amn F. Tracy IN determining the debt limit OF
the city OF New York General Tracy fixed the
limit, as Of June 30. 1908 at 500, ,2a5,7l4 Sc
Justice Ingraham wrote opinion in which he
expressed his dissent from of the more I'M
portant conclusions the referee. HIS most strik
ing point that special franchises should not be
considered as real estate under the terms Of the
law although they have been considered by
Controller Metz and almost every one who has COM
puted the debt limit. According to the views of
Justice 1ngrahar- sos 100000 should be de
Quoted from the debt limit figures Of General
Tracy
Because the court did not hand down opinion
in affirming the order OF the lower court. but did
append Justice Ingrahsm's views to the genera
statement OF affirmation. Controller Metz ana
Others In his office chose believe that the justice
in a measure expressed the views OF the entire
court
Taking this view Of the case. Controller Metz
said last night that he would refuse 10 ceru1y a
single contract until the question was finally set
tied by the Court of Appeals This action Woulo
hold up considerable city work, including schools
iand possibly certain parts OF the Mammalian
bridge for at least month Arrangements nave
tfeen made 10 argue the case before the Court OF
Appeals IN the first week in June. and an OPINION
will be handed down by the final tribunal oeioIe Il
adiourns the latter part Of that month
The opinion Of Justice Ingraham shows that
Controller In fact. # shows that 1 have not beeh
conservative enough For he holds that special
franchises cannot be classed as real estate bu'
can saw this that to-day s5oooo.eoo within
the debt limit and the final court holds that we
cannot count oar s45U0ea0 worth Of special iran
! chses in computing the debt limit we VIII ho'
have exceeded the latter
But in view Of the great uncertainty about the
entire question | shall refuse TO certify a single
contract or issue single bond until we know just
where we are I do not purpose to have susp In-
icion a single bond Of the CITY, ho i
how many improvements suffer
The Controller said that he might ask the boaiu
of Estimate 10 rescind the appropriations made oE
The board yesterday, but added that II WouIu no'
be necessary if he refused TO certify any
In addition TO clipping s45too,0O on the asSets vi
- it,, for debit limit purposes. Justice lngraharn
zo7,ld add TO the liabilities the following which
,-e,erar Tray decided should not be classed as
-debts-contract liabilities 10 the extent OF %-''t
and exempt water bonds IN me sillAiiie i -
extent Of Ss6oo,ea
1t was pointed out by the Bureau OF MlnlclpaI
Research last night that Justice lnsrahan od no'
SAY ANYTHING as 10 whether S24.OOO00e OF revenue
bonds issued against taxes 10 be collected sloulu
r. clssse,5 as debts General Tracy held not Nor
5id the Justice speak Of the 900 bonds issued
10 refund deficiencies in the taxes General AI0tS
did not mention this in his report but hy sPeClai
agreement Of counsel for III sides this ano all o'er
,ozeih;s Questions will be submitted to the Court
of Appeals.
Robert F. Wagner. counsel for Jefferson NJ Levy,
who brought the injunction restraining the Boaro
OF Estimate and Apportionnent from certifying the
contracts for the Fourth avenue subway Which
brought the question of the debt limit before me
courts said night that he was glad TO see 1na'
Justice Ingrahsn had agreed with him that contract
liabilities should be considered as debts and that
The exempt water bonds in the sinking fund should
not be deducted from the debt limit
Il do not think however, added Mr Wagner
that the Court of Appeals will hold that special
franchises cannot be classed real estate for the
of- zxa-fo and he