New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-05
Vanishing Lines Bounding
Civic Finances Shown
by Prendergast.
MAY STRETCH LEGAL
POINT FOR MILLIONS
No Need to Worry Over Improve
ments, as Borrowing Power
Is Still Busy.

According 20 a financial statement made
by Controller Prcndergast 10 Mayor
/ Mitchell. the debt mourning power Of the
city on January .. 1914, was S5l373. 40 s.
This is what is known as the legal debt
| limit
But. as the Board Of Estimate in the
last administration adopted a policy OF
considering all authorizations Of corporate
stock as Obligations 81 the city. whether
contract was registered against them or
not. the Controller says that for all prac-
teal purposes only the unroservcd mar
gin which was sl6579 63i 81. should be con-
sidered as representing the debt limit on
| the date in question.
Tho remainder has been pledged for and
is now available for contract for the fol-
| lowing general purposes:
For rapid transit expenditures 21o3,-
679 q, for dock improvements, $40 81. 2iS IS.
Of which :3.7s2 503 ST has been specifically
authorized. leaving S6.s5s.7ii 50 of unre-
served margin for new authorization for
dock Improvement, and for various other
municipal purposes t22.o49 ls7 70.
Speaking Of the increase in debt incur
ring power during the year the Controller
=, said:
Although we started on January OF
this year with an unreserved margin OF
debt mourning power of 3I6,5I9,s3+ Of, this
VIII not be the limit of our available debt
mourning power during the current year.
"On March the Department Of Taxes
and Assessments will make It's annual re-
port, showing the assessed valuation OF
fNf /
though we have no definite figures AT this
time, ! believe that am justified I'm
saving that there will he a sufficient in
crease I'm the assessed valuation of taxa
bic real estate to add approximately SILL
Ooo. 900 TO our debt mourning power.
From the sinking fund revenues there
will also be made available additions to
our borrowing capacity Of 100000.
II have already explained that II Is
possible TO roscind at least 100000 from
the existing authorizations OF corporate
stock
The total Of these items. added to the
debt mourning power on January !, would
give us total OF s35.579sSi Of, which
would be available during this year for
any purposes the Board OF Estimate and
Apportionmcnt may determine.
I'm addition TO this We are now ready
TO ask the Appellate Division Of the su-
preme Court to exempt further amount
of self-sustaining rapid transit bonds in
the sum OF 81. 600. 900 -
This last amount will be available. OF
course, for rapid transit purposes only.
but this would give US an available total
. m
judgment should be ample FOR advancing
such new plans as are essentially neces-
sary."
In addition TO the debt mourning power
OF ISL 1913. 7i9 s., there existed on the first
of the year commitments, consisting or
land and contract liability which had al
ready been charged against the citys
debt limit, amounting 10 sl4S,4H. ~ ~.
The total OF these two amounts. the
Controller said. represented the amount
which the city could legally borrow upon
It's bonds or other evidences OF Indebted
ness before It's legal borrowing power
within the constitutional debt limit was
exhausted.
The Controller said he would soon ask
the approval OF the Board OF Estimate OF
. bill calculated 10 lessen the great addi-
lions being made to the bonded indebted
ness Of the city. The plan PROVIDES that
instead Of the issuance periodically OF
long term bonds corporate notes be issued
70 be redeemed IN succeeding tax ievies
during a period Of ten years. lie ngures
that on principal and interest s'S'W"O
would he saved by this plan in the Dor
rowing Of 100000 for ten years.
The Controller Informed the Mayor OF
the steps being taken to reconcile and
bring up TO date old accounts, so that
they can be written of the books or the
moneys turned into their proper funds.