The New York herald., 1921-09-26


for n special purpose before the normal
debt mourning power for all purposes
was exhausted. It could not reserve It's
normal debt incurring power and ex-
haust the increase for a special purpose.
II Is like attempting to consume the
residue or remainder before consuming
the major part, or taking a journey
from New York to San Francisco and
running first from Denver to Salt Lake
City. The debt mourning power Is one
power. both before and after It's in
crease, and its exhaustion proceeds as
debt Is incurred.
''1he normal limit may be reached by
Indebtedness for any purpose including
docks and rapid transit. and when
reached the extraordinary limit or in
creased debt incurring power can be
'availed of for docks and rapid transit
only If its extraordinary or Increased
debt incurrtng power be so exercised. It
will be at the expense of the debt in
curing power for every purpose, and
the Limitation 30 created will remain
until the debt is reduced below the nor
NAL constitutional debt limitation.
over Debt Line on and On.
"The conclusion is. that the city has
time for ten years. BY reason Of the
billion dollar increase In the assessment
1t now has a margin of $1,000, 900,
which may be increased in the several
ways suggested In this paper. II the
conclusion here reached Is ignored. the
city will exercise debt mourning powr
OF s137. 900, 900, which with present de-
mands on the treasury is not likely to
last through another calendar year.
There Is no limit to the exhaustion of
the city's credit except the constitu-
tion.
"The argument that the city was en-
abled by this constitutional provision
TO add to Its debt by an unproductive In
vestment without suffering a limitation
OF its debt mourning power is not only
in conflict with the specific amendment
made In 1909, but with the general scope
and purpose of the constitutional pre-
visions limiting the indebtedness of
cities. 1t Is against the spirit of the
constitution, destructive of the limita-
tions 1t imposes for the protection not
only of the city but of the State. and
has been conceived along lines too COM
mon In the city Of New York of finding
some way to get the money without re-
gard to consequences
Dealing with the question Of what
basis for the tax levy each year Mr..
Brown contends that the plain meaning
Of the Constitution Is that the assess
ment rolls must of necessity be those
of the preceding and not the current
year.
Assessment rolls are not completed
until the tax Is extended and the extern
sion Is not completed until the warrant
is signed fixing the levy" Brown states.
'The Board OF Aldermen may change
the extension OF the tax until the war
rant is made. The word assessment
clearly means the completed assessment
and not the uncompleted one sub
mitted to theAlmermen at about the time
the tax levy is fixed.
IF the reference in the Constitution
Is not to the assessment rolls of the
prior year the following situation might
arise:
THE city might levy two taxes In the
same year--one before and one after
the levying of the State and county taxes
for that year.
Situation Would he 'Intclcrable.
1T Is intolerable that a tax levy by
the city should ever. in any contingency.
depend for its validity upon an assess
ment for State or county taxes made
after such city tax was levied The
levy OF the first city tax in such n case
would have a constitutional limit in the
assessment for State or county taxes for
the preceding year. and the later levy
would have a constitutional limitation
based on the same year.
1T is equally intolerabie that such a
limit on the first levy during the year
by the city should be a different and
other limit than the limit on a second
levy by the city in the same year, made
after the State and county taxes were
levied for that year: or that the limit
should be one figure for part OF the year
and another figure for another part of
the same year.
1T cannot be that the trainers Of hte
Constitution intended to make the lim,-
tation of per cent. In the aggregate in
any one year depend upon the statutory
calender for levyiung taxes OF that year
or upon levy OF State or county taxes
during the year."
The city officials have to be advised
of the limit OF the city's capacity to
incur expense within the per cent. re-
striction during the period prior to the
assessment. Inasmuch as the city's ex-
penditures for which the taxes provide
are going on for three months before
able that the budget could be made up
without reference to that limitation, Mr.
Brown states. Yet that is what is done
wheh the assessment rolls for the cur
rent year are taken for that years tax
levy.
Mr.. Brown reviewed at some length