The evening world., 1915-02-13
REALTY CALLS ON
PEOPLE TO SAVE
r. CITY FINANCES
Rising Taxes Hit Municipal
Bonds, Savings Banks and
Insurance Assets.
MUST HALT HUGE COST.
Wage-Eamers Big Losers as
Outlays Pass Safety Limit
.and Cut Into Capital.
HALT HUGE COST.

land Cut Into Capital.
.Rssa estate leaders are ursing the
peopae 10 make . personal study Of
city finances.
Good old Father Knicksrbockse ~
become daxziing spendthrift. Now
he must stop and get back 10 hard.
sober senss or plunge into incalcula-.
BILE ruin. -@
Greater New York. under the direc-
ton Of its politicians. has been pour
Ing out millions upon millions Of the
taxpayer money. Its public I'M
provements and utilities. like its sky
sorapers. have become the wonder Of
the world. It has spent and spent
until Il IL q marvellous place to live
In. but II has been spending far more
than its legitimate Income. II 10
making big inroads into Its capital
account. And such operations. II not
checked, have only one ending
ruptcy.
Realty interests feel that they are
in duty bound to arouse New Yorkers
to this peril. because real estate pays
ss per cent. Of all money raised by
taxation. They admit that the Issue
In absolutely under the control Of pol
itics and that they a. GLASS form q
minority Of the electorate. but they
declare that the danger menaces AL
OF the people. irrespective Of class or
politics,
The people a. q whole pay the costs
Of government. They pay It through
higher prices for living Necessities.
Practically out Of their earnings each
year must be taken enough to meet
the rising costs Of government before
they can have anything for them.
selves.
New York City's debt has been in
creased by more than $1,000. go 900
since 1855. Before the city's currsnt
running expenses are considered the
people must contribute over @S2.0oo.o 900
year to pay interest CHARGES on its
bonded debt. which has been piled uD
a. q result Of past extravaganza. For
total yearly outlays they must con-
tribute over S2so. 900. 900. This Is S+s .
year for every man. woman and child
$50 for the average family Of four
persons. The annual cost has been
rising steadily every year. In 1900 the
budget was Sso,77s.ooo. while the isls
A,,A=~t a. NtQo mn OOn
REALTY FALL HITS CITY BONDS,
BANKS, INSURANCE COMPANIES.
The drain upon real estate has be-
come 90 great that even the poll
ticians are alarmed. They are seeking
new sources Of revenue. the Mayors
COMMITTEES on Taxation having
recommended several schemes re-
Gently. Real estate - forced to pay
lilS. .o00. 900 q year to the budget funds
and the weight of the burden has be-
gun to depreciats IL market values
seriously. Transactions at auction
and private sale prove that average
market prices are we'll below the
valuation assessed on the city tax
books.
A the city's borrowing capacity II
fixed by law at 10 per cent. OF its
assessed realty valuations. which the
law also says must represent current
market prices, II 10 apparent that the
citys debt capacity 10 being dimin-
ished. But tho city has issued bonds
to practically its full debt limit under
| the inflated valuations on the tax
rolls. This opens the dangerous ques-
tion whether the city has run into
debt already beyond Its legal right.
In addition, the falling realty values
| threaten not only h wide field Of pri-
vate Investments and collateral, but
also every wage-earner who has =
| savings bank account or life insur-
ance policy, because the savings bank
| and life Insurance companies have
been the largest lenders on real es-
tate mortgages. A big fall In realty
values endangers the collateral be-
hind such loans.
PEOPLE MUST ACT TO STOP
HUGE PUelic OUTLAWS.
| Real estate leaders say It Is time
| for the people to realize these facts
| and act without delay. They must
stop the huge outpouring Of public
money.