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Real estate record and builders' guide: v. 85, no. 2191: March 12, 1910

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March 12, 191O RECORD AND GUIDE 533 _ KTABUSHED^ MABf^H 3lVr^ 1866. .DeA^cD P F^l EsTAit. SuiLDff/o ArcKitectiji^e .KouseUold DECaF^JTlorf, Bi;snfess Affo Themes ofGeiJer&I IKtej^esi., PRICE PER YEAR IN ADVANCE BIGHT DOLLARS Communications should be addressed tO ' C. W. SWEET Published EVerg Saturdap By THE RECORD AND GUIDE CO. President, CLINTQi^l W. SWEET Treasurer, F, W. DODGE Vice-Pres. Sc Genl. Mgr., H. W. DESMOND Secretary, F. T. MILLER Noa. 11 to 15 East 24tli Street, New York City (Telepbone, Madison Square. 4430 to 4433.) "Entered at the Post Office at New York, N. Y.. lis scond-elass matter." Copyriglitecl. 1910, by Tlie Record Se Guide Co. Vol, LXXXV. MARCH 12, 1910. Xo, 2191. IT cannot be said that the Comptroller's report upon the financial condition of the city makes altogether pleasant reading. There is nothing new in the announcement that the city has been issuing revenue bonds against uncollect¬ ible taxes; but the enormous aggregate involved by this vicious method of financing—amounting as it does to almost $50,000,000—is enough to disconcert the most loyal be¬ liever in the essential security of New York municipal obli¬ gations. The only consolation is that the mere exposure . of such methods should be sufficient to prevent their repe¬ tition. There is every chance that during the next few years the Comptroller and the Board of Estimate will co¬ operate to place the whole municipal financial system upon a sound basis—one, which will conform to the most approved methods of accounting, and which will in its published form give the taxpayer and the stockholder real and full information as to the actual financial condition of the city. But the bill for past errors still remains to be paid, and it will be a heavy one. The Comptroller proposes to wipe out about $10,000,000 of this illicit borrowing by means of mis¬ cellaneous existing credits on the city's books, and to pay the rest ofE by the issue of about $5,000,000 worth of permanent obligations every year. This method of settling the account will doubtless be most acceptable to taxpayers, but it can hardly be considered an example of thoroughly sound financing. The plain fact is that of late years the city has borrowed a great many million dollars to pay run¬ ning expenses, and that the taxpayers have profited to that extent, because of these vicious methods. It is now pro- tposed to fund four-fifths of this sum and make it a charge upon the future credit of the city. Doubtless it is necessary that the cost should be measurably distributed in this way; but surely it would not be unreasonable to appro¬ priate a couple of million dollars every year out of revenue for the purpose of lessening the ultimate burden. Living taxpayers have profited by this borrowing against uncollect¬ ible taxes, and they should be made to pay a larger propor¬ tion of the bill. The amount of such an item in each yearly budget would naturally depend upon its effect upon the current tax rate; but if the city has any margin at all, that margin should assuredly be used to pay as much as possible of the costs of the vicious financial methods of the past. AS AN offset to the enormous liability which the city has incurred in order to pay running expenses, the Comp¬ troller has made one promise of the utmost importajiee. He anticipates that ahout 112,000,000 can he saved out of the budget for the current fiscal year. If this anticipation proves to be true, it should do a great deal to improve the credit of the city and to quiet the appreheusions of the taxpayers. By far the most discouraging aspect of the city's finances has been the steady enormous and apparently irresistible increase in the yearly budget. During a period in which the assessed valuation of real estate has been growing with unprecedented rapidity the city's expenditures have increased still more rapidly, and if this tendency had continued un¬ checked, a day was fast approacliing when the burden in taxation would be equivalent to the confiscation of real estate values. Until recently a taxpayer might well have dispaired of the establishment of any effectual check. Hon¬ est and well-meaning men had served as Mayor and Comp¬ troller for eight years, but they had done absolutely noth¬ ing in the direction of economy. The taxpayer realized that there was an enormous amount of waste—that the city was paying for a great deal of labor and material which it did not receive. But it seemed impossible to arouse any interest among responsible officials in the elimination of this extravagance. Not until the present administration came into power were any means adopted to cut out the waste; and it is not too much to say that the future financial stability of New York depends in a large measure upon the succbss of these measures. If they are as successful as the Comptroller anticipates—^that is, if $12,000,000 can be saved out of the current budget—the administration will have rendered to the city the greatest benefit in its power. Whenever the actual expenditures of New York can be economized so that the city will receive somewhere near five dollars' worth for every five dollars it spends, there need he no apprehension about the future financial condition of New York. Real estate can and will bear with ease all the burdens imposed upon it by the most radical and expensive projects of civil and social amelioration, provided only the money is econom¬ ically spent. The Record and Guide sincerely trusts conse¬ quently that the Comptroller has not overestimated the sav¬ ing which can be made in the current budget, and it believes that if so large a sum can be saved out of existing appro¬ priations, still greater economies may be expected as soon as the city's' methods of buying materials and services can be thoroughly reorganized. THE promise is made that the contract for the Broadway- Lexington avenue subway will he let before June 1, und, doubtless, many hundreds of thousands of New York¬ ers will be delighted at the news. The Broadway-Lexington avenue route, whatever its defects, will assuredly meet the most serious existing deficiency in the rapid transit system of Manhattan. But the Public Service Commission should understand that public opinion will not be satisfied witli the letting of this contract. It has been apparent for some time that no reason for any further delay existed in respect to this particular transit improvement and at the present time the interest in it of a great many New Yorkers will consist in their desire to get it out of the way, so that the road will be cleared for additional subways. Ever since the Public Service Commission took office the Broadway-Lexington ave¬ nue route has blocked the path of far more useful and eom- pi'ehensive plans of subway extension. No arguments have availed to shake the commission in their allegiance to this subway, and it has long been evident that protests were merely a waste of time. Nothing in the way of well balanced transit development was possible, uutil after this route had been disposed of. The really interesting question has been of late, will the city officials be able subsequently to reach an agreement with the Interborough Company? Will the letting of the contract for the Broadway-Lexington ave¬ nue route be followed by extensions up Madison and down Seventh avenues? Whether that question will be answered in the affirmative still remains wholly doubtful. There are intimations in the newspapers of amicable interviews be¬ tween the redoubtable Mr. Shonts and his equally belligerent adversary, the head of the Public Service Commission, There are even rumors that the representatives of a large banking house, interested in subway construction, has had an encour¬ aging interview with the Mayor. But these reports must not be taken too seriously. Many times have we heard their like before and yet they proved in the end to signify noth¬ ing. Until proved to the contrary, it must be considered as axiomatic that President Shonts and Chairman Willcox are hostile in temperament, and will disagree with each other until the crack o' doom. We expect nothing from them. Our hopes are concentrated in Mayor Gaynor. Perhaps he can find a way to permit the extension of the existing sub¬ way on terms fair both to the city and the Interborough Company. THE final stage in the reconstruction of the Grand Central Station is approaching. During the current year the existing waiting-room will be demolished and the improve¬ ments in Forty-second street and Depew place actually be¬ gun. These improvements will not only give the New York .Central a terminal of wholly unrivaled area and capacity, but they will be of considerable general benefit to the city of New York. The greatest single benefit will result from the opening up of a new thoroughfare. Under the plan of the company roadways connecting lower and upper Park avenue will swing around both sides of .the station and traffic will be able to move freely along the whole length