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NEW YORK, OCTOBER 30, 1915
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I FINANCIAL AND ADMINISTRATIVE REFORMS I
Assured By the New Constitution—Its Adoption Favored By
the Advisory Council of Real Estate Interests For Reasons Given
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THE Advisory Council of Real Estate
Interests came out unequivocally in
favor of the new constitution, in a state¬
ment issued yesterday by the executive
committee. It is said that in view of the
fact that State expenses will be increased
the defeat of the financial and adminis¬
trative reforms contained in the Consti¬
tutional amendments would well nigh ap¬
proach a calamity in so far as taxpayers
are individually concerned. A serious
responsibility has, the council says,
devolved on property owners to actively
work in their behalf of these reforms.
The statement further says:
"Twenty years ago there was no State
debt; today the State debt amounts to
$186,000,000, with an authorized debt of
$231,000,000. The county and municipal
debts of this State are the highest in
any State in the Union, and, if spread
over the acreage of Nevv York, would
amount to $48 per acre. The general
expenses of running the State have in¬
creased nearly 600 per cent, in thirty
years, while the population has increased
only 82 per cent. By the budget provis¬
ions of the new constitution it will be
possible to bring about a reduction in our
annual State expenditures.
No More "Pork Barrels."
"The entire form of budget procedure
has been revised so that the Governor
submit to the Legislature his budget, in¬
stead of the Legislature's preparing the
usual 'pork barrel' appropriation bill. In
this connection the constitution consoli¬
dates 152 separate departments, boards
and bureaus of the State into 17. Here
lias been devised a salutary process for
abolishing hundreds of unnecessary posi¬
tions. By discontinuing the payment of
salaries to a horde of superfluous public
servants, the present extravagant cost of
government would be greatly reduced.
"In order that the financial policy of
the State may be established on a sound
basis, issues of serial bonds ha^ve been
provided, to pay the public debt. By the
use of serial bonds instead of sinking
funds, much interest could be saved to
the State on its bond issues; for example,
if the bond issue of $27,000,000 to com¬
plete the canal can be made in the form
of serial bonds, the saving alone to the
State will be $10,000,000, while if the
present canal debt of $118,000,000 had
been issued in this form, there would
have been a saving in interest and prin¬
cipal of more than $46,000,000.
Refunding Bonds.
"The proposed constitution also gives
authority to refund the present sinking
fund State bonds with serial bonds. If
this authority is used, a saving of over
$30,000,000 can be effected. It is further
provided that the debts contracted for
an improvement shall not run beyond the
duration of the improvement; today there
are some $65,000,000 worth of 50-year
bonds, issued for highways, about 30 per
cent, of the proceeds of which has gone
into surface of liighways, the life of which
is less than five years. Thus $30,000,000
will go towards paying interest upon a
deiit forty-five years after all the benefit
of the debt has been wiped out.
ALL OR NONE.
â– pAILURE to separate the
amendments requires that the
main portion of the new consti¬
tution shall be accepted or rejected
as a whole. The Advisory Council
of Real Estate Interests says the
defeat of the offer of financial and
administrative reforms would come
near to being a calamity for tax¬
payers, and it is therefore urging
them to vote next Tuesday for the
adoption of the amendments as a
whole.
"It is also provided that the swollen
sinking funds of the state, towards which
taxpayers have contributed much more
than is needed, will be done away with,
and the moneys accumulating in these
funds will be distributed with due regard
for proper fiscal principles. No public
moneys may hereafter be appropriated
for any work until plans and estimates
of the cost are first filed by the Super¬
intendent of Public Works. This, in
itself, will do away with a source of
great abuse, for it is well known that the
State's money has been wasted on
bridges, buildings and other local im¬
provements which should have been paid
for by up-State counties.
The Bill of Rights.
The Bill of Rights clause provides for
condemnation proceedings to be carried
on under the supervision of the Supreme
Court. By this change the enormous
fees which have gone to condemnation
commissioners will be saved to the
State. An additional saving has been
made by abolishing the State census, for
hereafter future reapportionment must
be made on the basis of Federal census.
"One of the most perplexing difficulties
confronting property owners has been to
establish the responsibility of public
servants for unwise administration of
office. For the first time in tlie State's
history, responsible government has
been established by the short ballot,
making the Governor, Lieutenant Gover¬
nor, Comptroller and Attorney General
the only elective officers. The popular
practice among public ofticers of shifting
the responsibility for certain actions to
other officials, is thus absolutely pre¬
vented, and taxpayers will acquire an
advantage never before possessed.
Home Rule for Cities.
"A large measure of home rule for
cities of the Stale is also provided, so
that each city shall have the right to
organize and manage the departments of
city government and regulate compensa¬
tion and method of removal of all
city officers and employees; thus en¬
abling them to obtain what is just and
fair, both to themselves and taxpayers,
without the necessity of going to the
Legislature. If this amendment were
passed, the greatest obstacle towards
economy in the City of New York would
be removed. It would be impossible to
impose on the city all forms of manda¬
tory legislation. At the same time this
home rule provision would restrain the
city from devising any new sources of
ta.xation, without first consulting the
Legislature. In this respect, property
owners could not request a home rule
provision more to their own interests.
"Another matter of extreme import¬
ance is that which removes from the
Legislature consideration of local mat¬
ters in private claims, precluding the
passage of thousands of special bills af¬
fecting cities of the State, which to-day
create an entangled mass of legislation
frequently preventing efficiency in the
administration of local affairs. A de¬
sirable reform also, is that requiring each
house of the Legislature to publish a
complete journal of its proceedings, mak¬
ing it possible for taxpayers to follow
the debates from day to day. Probably
one of the most e.xpensive forms of gov¬
ernment in the State has been that of
county government. In the interests .of
economy the Legislature is authorized
by the new constitution to establish a
different form of government for these
counties, provided such action is ap¬
proved by the electors of the counties
affected. Through a revision of the Ju¬
diciary Article, delays and undue ex¬
pense in administration of justice have
been eliminated. Many of the courts
have been consolidated and a speedier
justice in private law suits will be
possible.
Tax Reform Offered.
"Probably the most important amend¬
ment is that relating to taxation, pro¬
viding that the power of taxation can
never be surrendered by the State and
calling a halt to the increasing exemp¬
tions from taxation, by requiring a two-
thirds vote of each house of the Leg¬
islature before any property can _ be
exempted from taxation. This article
confers on the Legislature power to re¬
organize the method and machinery of
assessment, so as to modernize taxation
throughout the State. The greatest
benefi't that can accrue from this article
is the equalization of taxes throughout
the State, preventng a 100 per cent as¬
sessment in New York City and a 15 per
cent, assessment up State.
"Hon. Morgan J. O'Brien, in advismg
the council to support the constitution,
states that the convention was in no wise
partisan, twelve amendments were unan¬
imously adopted; twelve more by a vote
of more than 10 to 1, and there is no
proposition offered to the people of the
Slate not adopted hy more than a vote of
more than 2 to 1. Because these amend¬
ments simplify the mechanism of gov¬
ernment, establish an orderly fiscal
system, so as to reduce the expense of
State administration, give the people
more direct control over State oflicers.
and provide for a more just system of
taxation, all property owners and tax¬
payers should unite in procuring their
adoption. This convention cost the State
over $1,200,000. It is doubtful whether
another could accomplish as many re¬
forms as instanced above."