The Paducah evening sun., 1910-03-21
BONDED OBLIGATION PROVES A
VITAL PROBLEM.
william Il. Curtis Describes New
York's Wants and Expenses as
Compared With Chicago's
TRANSIT NEEDS ARE GREAT

The BONDED debt of the city of New
York is larger than that of the
United States, and is increasing rap
idly every year, while the debt of the
federal government Is gradually de-
creasing. The latter, on the 1st Of
January. 1910, was s913,317,4SO,
while the gross bonded indebtedness
of the city of New York, which on
that date was $946,OO5, ,72S.SS, in
creased S55,419.O19 during the year
1907, thus making a total increase
of $1S0,111,5 ,596 in three years.
In calculating the constitutional
borrowing capacity of the city the
comptroller deducts from this total
s142,75O, ,699 of bonds which are said
to be exempt and s229.53O.O51 of
sinking fund holdings and adds GER
tain judgments and floating indebted
ness, which makes the net indebted
ness $631,612.653. This is very i'm
portant, because upon IL hinges the
ability OF the Municipality to secure
a new loan for the purpose of extend
ing the subways to relieve the tre-
mendous congestion in traffic
During the last gear the total num-
Der OF passengers carried by the vari-
GUS transportation routes in Greater
New York, excluding steam railroads
on Staten Island and all passengers
holding transfers, was 1,4O2.474. 354.
of which the elevated roads carried
415,3S7.O73. the subways 252.622.-
49S and the surface cars 734, 4,461,7S3
passengers.
According to the report of the pub
lie service commission, II appears that
so per cent of the people in Greater
New York dropped nickels into the
ticket boxes of the different transpor-
tation lines every day, Sundays in
cluded, during the last year-that is.
the number of fares collected daily
was equivalent to so per cent of the
population. OF course. this is only a
figure of speech. We might say that
40 per cent of the population made
two trips and come nearer the actual
truth, but It was so thoroughly DEM
onstrated that the present facilities
are unequal to the demands upon
them that the public service commits
sion and the municipal officials are
determined to duplicate the subways
as soon as possible. The growth OF
the population during the last five
years has been unprecedented and the
transportation facilities have not in
creased in anything like the same
proportion, and before new subway
can be built and placed In operation
it is estimated that at least $500
will be added to the daily average Of
passengers.
The policy adopted by New York
city a few years ago was government
ownership of transportation lines to
be leased for term of years at ~
per cent upon the actual cost of con-
struction to private operating compa-
nies. At the end of so years the
municipality becomes the owner OF
the entire property, including i'm
provements. The bonds issued TO pay
for construction will then have been
paid off, and the municipality will be
in possession of the principal trans
portation lines within its limits. But
under this plan the city is compelled
to borrow money TO pay for new
lines, and the constitution of the state
limits its borrowing capacity to 10
per cent of the assessed valuation of
real estate subject TO taxation.
The assessors in making up the list
for the present year have increased
the total assessment slpon real estate
for the city Of rGeater New York
from $6,332,177, ,SO4 TO $6,599,1S7,-
1922, being an increase of 67,O09.-
SIS, which, according to the calcula-
tions Of the mayor and the comp !
troller, will permit the municipality /
to borrow the sum of $71 500 900 in /,
to its outstanding bonded |,
of $946,OO5,72S.
These facts are very interesting for
several reasons: In the first place, |
New York has the largest debt of any J
city in the world, and, in the second I
place, 1t is the most expensive city to !
run in the world. It's administration |
costs more than that OF London or
Paris, and more than any OF the
states of the Union. But, at the same |
time, this enormous indebtedness rep !
public improvements which |
had to be made. and which are OF
permanent value.
During the six years of the admin
lstration of Mayor Mcclellan the debt
Of New York City increased from
s376,O15,346 on January 1, 1904. TO
S946, ,005, ,4S0 on January 1, 1910-a
difference of $569, 9,990,134.
1t cannot be said that this money
was improperly expended, but the
present generation is doing things to
promote the comfort, the convenience
and the pleasure of the public which |
must be paid for by the next genera
ton. For example, $50 100000 went |
for new school houses, $4,000. 600 |
for increased water supply, $50, ,00O.-
600 for rapid transit, $40, ,00O, 900 for
$4,000, 900 for new streets
and roads, $4,000, 900 for the i'm
of docks. $4,000, 900 for
hospitals and charitable institutions,