Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 96, no. 2485: Articles]: October 30, 1915

Text version:

A^yo NEW YORK, OCTOBER 30, 1915 |iillllllilllllllllllllH^^^^^^^ I j 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 iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 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. ■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."