Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1915-09-28

wa, Iowa. under the Act Of Congress Of
March 8, 1879.
Foreign representatives: Cone, nor-
enzen & Woodman, Mallers BUILDING.
Chicago; 225 Fifth Ave-, New YORK
City; Gumbel Bldg, Kansas City, Mo.
AMERICAS GREATEST CITY A
BANKRUPT.
A city, like an individual or private
corporation, can become bankrupt,
writes Senator William M. Bennett, OF
the eighteenth senate district of New
York state, In the October Strand mag
azine. Insolvency Is no more a re-
spector OF q government than 1t is OF
a person or an organization of any de
scription. Doubtless many persons
would be surprised to hear the state
ment made that the greatest city In
THE United States, the second city III
the world. is bankrupt. Yet such is
the startling fact.
New York City is bankrupt. This
city, in population larger than any
state In the union except the state OF
PENNSYLVANIA, and exceeding in popuia-
tion many of the smaller governments
of the world, has gross funded debt
of 81, 367. 100000 and an annual budget
Of $2Oo.OOo,0OO.
4. To show by way Of comparison the
magnitude of these items, the debt OF
the German empire in 1913 was about
$1,000, OOO, 900 and the annual interest
and amortization charges $55,000,OOO;
and the debt of Italy 81. 100000. the
debt of Japan ,3O0000.000 the debt
OF Austria-Hungary 100000. the
debt of the United States $1,02S.000 900
and in every instance the interest and
amortization charges were much less
than similar charges Of the city of New
York.
So far as the annual budget was con-
cerned, the total expenditures of the
city of New York were more than of
many of the governments of the world.
Norway spent but $36,0O0.0OO. Portugal
$4,000, 900, Spain S22O,00O000, Sweden
$7O.OO0,OOO, while the total expendi-
lures of the city of New York includ-
ing it's budget, were nearly 100000
900
The income Of the city of New York
IS derived mainly from direct tax on
real property, which will amount this
wear to over $16,00O,OO0. The balance
Of it's budget is derived from various
leases. water rents, Licenses, interest
on Investments of the sinking fund, in
terest on bank balances and many 9TH
er smaller items.
The real estate tax Is levied on an
Assessed valuation of sS,10O,00O,OOO. In
other words, that amount is what the
ground and buildings in New York
CITY have been estimated to be worth.
{, fhn iaf IF
petent real estate men, Is now largely
in excess of the real value of the city's
real estate. During the last year of
Mayor Lows administration, and dur
ing Mayor McClellan's administration
and that of Mayor Gaynor, several bill
lions were added to the assessed valu-
alton of the city, although in most
cases the increased assessments were
not warranted. While business was
good and real estate fourishing, prop
erty owners paid their taxes, without
murmuring, but now that the business
conditions are changed, there is Il de-
termined effort being made to have
assessments reduced to a proper valua-
ton. Last year $4,000 applications for
reduction in assessed tax valuations
were filed and many we're granted, but
many more are being made the subject
of court proceedings (by writs of Ger.
tiorari).
The sinking fund revenues of the
! city are also decreasing SO that within
q very short time the city will find it.
self In this position: Constantly in
creasing expenditures and constantly
decreasing assessed valuations and
sinking fund revenues. Consequently
the city is in the position of the en-
4 ploys who spends more than his in.
come. It is, therefore, clearly appar-
ent that unless radical measures are
taken in the interests of economy, the
B constitutional tax rate limit of two per
cent, exclusive of the debt service, will
soon be reached. Should this occur
and should the city not be able to pay
its obligations promptly when due,
receivership either at the hands Of the
legislature or of the courts is not un-
likely to ensue, and there are many ex-
cellept men in the city Of New York,
d good patriots, who feel that this would
q not be unwelcomed. The city of Mem.
a phis was once put in the hands Of re-
q ceivers by the legislature and several
smaller municipalities have been plac.
Il ed In receivers hand by the courts. In
4 August the city Of Nashville, Tenn,
was placed in the hands OF a receiver
II by the chancery court Of Tennessee.
n SUPPLIES TIED UP.
IN The English Swedish commission
(which has for two months been striv-
q ing to adjust the trade differences be-
3 tween the two countries, is no nearer
-