New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05


bonds issued against the lines. 1t will
receive part, growing part, before
that time. But the annual loss will sit
on Father knickerbocker's neck like
an old man Of the sea Also, since the
PETERBOROUGH sees no prospect of max
lrg profit beyond the payments to
the city and since it's own returns are
paid before the city gets a red cent
there is 10 stimulus to the INTERIOR
envy. grim prospect for the TAX,
payer.
City's Unused Borrowing
Power Is Now $25,OOo,OOO
The cty's borrowing power. within
the constitutional limit is now about
sixty million dollars, thirty-tivc mill
ION OF which have been appropriated
but not spent in past years, for various
purposes; eleven millions for schools.
two and half for docks. ten millions
Tor the Brooklyn marginal railroad.
mus about twenty-five millions, after
Il year of strict selfdenial in the
sapctionmg Of obligations by the
Board OF Estimate, leman unencum-
bered and another ten to fifteen mill
IONS might be transferred If the mar
gina! railroad and other projects were
abandoned We're all their requests
immediately granted the Public Ser
wee Commission would more than ey
naust the borrowing power now free
and leave the other city services in
beggary
As the commission is responsible
solely ior rapid transit, it is not
greatly concerned about the calls of
the other city services for permanent
improvements; but the Board of EST
mate AYERS that the judicious allot-
merit OF the margin OF the city's bor-
rowing power among all the city SER
ices and the essential limitation Of
the tax levy compel restriction Of al
lowances for rapid transit 1t is quite
unlikely that the board will approve.
al present. anything beyond the com
ileflon Of lines which have been
started. Especially as the matter is
complicated by tie little affair Of
VA Neglected Item Of Ten and &
Hay Million Dollars
Under the rapid transit act the
expenses OF the commission for super
El@llg the construction and operation
OF the lines shall be included in the
cost of construction and paid by bonds
! ISSUED to the account Of construction.
But year b. year these expenses have
been paid out of taxes, and before the
ciiy can reimburse its tax account bv
issuing bonds the commission must
lequisltion the Board of Estimate for
me bonds. AS this involves. primar-
ny, sayS the commission "the fiscal
Poilcy OF the city, the commission has
rot rcqasitioned corporate stock for
this purpose) until the city shall have
SeNpIessed its desire that this should
be done. The Controller accuses the
commiss:cn OF having tried to cover III,
this ten and a half millions.
"nen the corporate stock is issued
lor THIS tidy sum the tax budget will
DC relieved by that amount and the
borro"ng power Of the city reduced
by Shat amount. The commission is
anxious not TO have the borrowing
power reduced, because it requires
every dollar tic city can raise. The
board OF Estimate is eager to relieve
the tax budget and ten and half mill
IONS would be gorgeous windfall.
Hcnce mutual recrimnations 1t is
PLAIN that. under the law, the relief
Of the tax budget is in order
ViI-Hhot Amouat Institutes Pan
for Subvoys?
During the year 1912 states the
commission. "intercst on city invest
ments in lines under operation will
amount to $6S74 600" and must be paid
by appropriations from the general
funds or by inclusion in the tax lew
which will raise the tax rate several
points. BY ordering steel cars at va
rlous places the commission explains
that 1t has compelled investments and
proposes to compel further investments
by the operating companies. thus in
creasing and prolonoing deficits" for
the city to pay out of taxes
This is fact of interest to rent
payers, now that the stoppage of build
ing has caused rising rents and the
assumption of building and consequent
check on rents is delayed by every
Flll-Annuol Expenses of the Pub
Hc Sorr" admission
After conferenc. With the Board of
Estimate the commission on December
last made requisition upon the board
for Sl.999,OO0 for its expenses in 1919.
IN the form adopted in previous wears
accompanying the requsition with 2
letter of explanation, but no temized
budget. Declaring that this commune
cation contained mass of irrelevant
and lmpertinent statements and at
tacks unon the Board of Estimate" the
Controller procured the rejection of
the requisition and the exRunging of
the letter from the records.action of
almost uneXampled severity between
two public bodies and calculated to
cause strained relations The commits
sion had relied upon precedent and
upon the readiness with which the Con-
troller's representative at the commits
sions offices can get all detailed in
formation desired. But a recent change
in the law permits the Board of Esti- +.
mate to prime the commissions bud
get and to demand. therefore, an item
lied budget. On the 10th of December
the commission forwarded all details.
IX-Chorges and Counter Charges
Of Delay and Improper action
Contractors charge that the commits
sion failed to furnish plans, etc, as
required by their contracts, thereby
forcing contractors to protract the
prosecution of their work into the war
period and to incur heavy increase of
costs. The Controller says that the
contractors in some cases are right and
that the city is liable for substantial
damages. Commissioner Whitney coun-
tiers by asserting that the delays. even
when they did occur. through the unset
caused by legislative inquiry. did not
hinder the work of the contractors. and
that the Controller is not justified in
considering settlement by himself of
contractors claims for damages. This