TheNEW YORK DIVISION BULLETIN - MARCH, 2003 Bulletin New York Division, Electric Railroaders’ Association Vol. 46, No. 3 March, 2003 The Bulletin FINANCING THE INDEPENDENT SUBWAY Published by the New On March 20, 1933, seventy years ago, the transit bonds of the amount of $300 million in York Division, Electric Railroaders’ IND was extended a short distance from Jay excess of the City’s normal borrowing capac- Association, Street to Bergen Street. The IND expanded ity, or ‘debt limit,’ was submitted by the Legis- Incorporated, PO Box rapidly to 59.26 route miles and 196.86 track lature for referendum vote by the electorate 3001, New York, New miles in 1945. Finding the money to pay for of the State, and it was adopted. A tremen- York 10008-3001. this huge construction project was not easy. dous increase in new buildings between The Board of Transportation’s report for the 1922 and 1928, with great increase in total five years ending June 30, 1945 explains taxable valuation, also aided the financial For general inquiries, contact us at how the city was able to finance, construct, program by making it possible for the City to
[email protected]. and eventually operate the IND. Excerpts are issue four-year bonds and speedily pay off as follows: and retire $156 million of the City debt con- Editorial Staff: “In 1924, the Legislature enacted a law cre- tracted for the enterprise. All of the Independ- ating the Board of Transportation of the City ent System has been completed except two Editor-in-Chief: of New York as the agency for the admini- short sections which were deferred when the Bernard Linder stration of the powers prescribed in the Rapid financial depression that began in 1929 News Editor: Randy Glucksman Transit Act, the members to be appointed by drove the market price of City bonds below Contributing Editors: the Mayor of the City.