The Bridgeport times and evening farmer., 1919-02-07
NEW YORK HAS
 HEAVY DEBT
Bowling Draws Gloomy Pic ture of Real Estate Con-
 dition in City.

exceeded it's constituti tional limit, Rob- ] ert E. Bowling, prominent New York real estate operator, told the Assem- bly, Committee. yesterday afternoon, the outstanding funded debt of the city, he said, was nearer 20 per cent. than 10 per cent. of the assessed valuation of it's taxable realty that the Constitution permits.
 The members of the committee sat Up in amazement when MT. Bowling spoke. He said that the violation of the constitutional prohibition against reckless piling up of public debts had been made possible by arbitrary and criminal boosting of real estate valua- tions iR the city for purposes of taxa ton.
 Within the last few days" said MT. Bowling, T have been offered property assessed at $1 ,150, 1000 for $400,O00, and I will give you the ad- dress of the property If you want me to. That is merely by way of il- frustrating how this arbitrary boosting of values has worked
 The thing began with Mayor Gay nor. He wanted to complete a cer- tain portion of the subway system and found that the city could not, within the debt limit, secure the money that was needed for the purpose. Mayor Gaynor is dead, and I hate to say fl, but what he did cannot possibly be defended. Without the slightest at tempt at concealment he issued per emptory orders to the municipal Tax Commissioners to increase real estate assessments already made by S650,- G0O,00O to enable the city to borrow $65, 5,000,000 more than it had a right to borrow. No other mayor could have done that and got away with it and, as told Mayor Hylan some lit tie time ago, if any other mayor tried to, we will do our best to have him removed"
 MT. Bowling was speaking in favor of two bills introduced by Assembly man Henry Sesselberg of Richmond. One limits the taxation on real estate in New York city to 2 per cent. The present tax rate in New York Is from $2.36 to $40 on each $10O of valua- ton. The other bill does away with ! the indebtedness exemption in the personal property tax law.
 At the opening of the hearing, As sistant Corporation Counsel Edward J. McGoIdrtck, told the committee that the New York city authorities were preparing a series of measures dealing with taxation and would like to have action on the Sesselberg bills deferred until all could be considered together. Mayor Hylan and Con troller Craig are both opposed to a real estate tax rate fixed by law, but l it Is understood that the Sesselberg | bills will be passed and sent to May or Hylan for his approval.
 MT. Bowling urged that that course | be adopted. He said that William | R. Hearst who is a member of the | committee appointed by Mayor Hylan 1 to devise a scheme for raising new revenues, had warned him against having the Sesselberg bills presented to the Legislature.
 Send the bill down to the mayor and see whether he has the nerve to veto it." said MT. Bowling. Tt is up to him. He says he believes in l the principle embodied in this bill but does not see where the money | with which to run the government of the city is to come from If you make | it a law"
 MT. Bowling said that the lawnak- CTS should not permit the mayors ap- pre11enstons to determ them from en- acting the Sesselberg bills.
 'T.he only way to limit the expen- ditures of the city" he continues, 'Is | by curtailing the power of taxation straint on the Board of Estimate il will make no diereffnce what other
 taxes you may provide. If New York
 cdty should get s50,OO0,000 out of the proposed new state income tax i
 would make no difference. They would just spend that much more an(
 charge up the rest against real es
 tate''
 MT. Bowling grew a gloomy picture
 of the condition of the mortgage
 market in New York, due, he said
 almost entirely to the fear of con
 stantly rising tax rates
 '+Dhe savings banks and insurance
 companies have their safes filled witl
 mortgages on which they cannot col
 lee :" he said. 'If the banks tried tt
 collect they would go to the wall
 Unless you do something to correc , the situation you will mot, as now
 have a few people coming here ant speaking with great reastraant befor'
 you, but you will have 8 furious mol marching on the capital to make cla | morora demand for iIstfce''