New-York tribune., 1874-10-15

necessary refer TO the adnlnlstratlVe netho'T VI
era they projected themselves far Deyonu .o
date on which assumed direction OF the FINANCE Do
parrueut and because momentum OF the legislative
i1buery OF that epoch felt long after the men eheny
responsible for II have been swept from power ~"
Impossible fully to understand the causes wheh nave
contributed growth Of the funded DEBT duiDs ne
Last three years without referring the financial pocy
which prevailed between January 1862 and september
1871. Tue Investigating Committee Of which MI Boom
was chairman reported the increase OF the puDc dep'
as exhibited by bonds for this period as follows;
The debt shown by bonds aud stocks Jan l. leb9 oq "a
The eb on jan T. $50 les saans - os5 "a 5s
Showing for he 1859 o.''.''-' - "a 30 09
showing an increase or year 1870 2Sjs59 5{
ag az neTear o The mouths Of 1871 259595S 81
increase in years oa months of'.'''' oo''''' "
Tn submitting this statement the Investigating Com
mittee called attention in the following language 10 he
vast amount Of unlquidated claims then exising'
whose existence has been studionsy ignored oy hose
seeking misrepresent the true causes oil tue
of the debt: No one tell the amount OF claims IN
the Board OF Public Works and in other departments
the sum Of those in the Controllers office some OF tDeh
are jus others calling for the most rigid scrutiny II
the latter are presented they should be fought out IN
the courts" That the Committee considered these
claims under their proper aspect viz as an element IN
the liabilities OF the city, may be inferred from their
expressed apprehension that the gradual liquidation OF
legal claims then outstanding would SVEN the amount
of the bonded debt s2O0OO0OO within the then en-
suing year us72) The holders Of real and pretended
claims against the city, for work done or supplies FUR
aished in 1871 and previous years, have multiplied with
a rapdity OF which the Committee could have formed
no conception and yet the strict and thorough system
of audit which these old claims have been subected
has kept far much within the limit OF $OoOoO
allowed by the Committee. very large NUMBER OF
them still outstanding and unhquidated ana are
being continually pressed in the courts and elsewhere IN
A. of arpha hava
Treasury. They and have been presented under
all shapes and forms for all conceivable objects ana
PURPOSES and for every variety or amount between tue
most trihing aud slOOO,O00. Only small proper
ton OF this monstrous legacy OF corruption ana ms
government free from evidence Of the most inge-
nously and dabolically contrived frauds For three
years the mionheade hydra has been struggling to
force the doors Of the Treasury 1t has bought brbed
and brought to aid by the offer OF division OF pros
in case success the fraud the craft ana the greed
of the most interruptions lawyers. legislators, ana
potters IN the community. 1t has tainted the press
dictated political nominations retained certain
seryiceabe officials in office. and oDstructed the
deyelopment of reformed methods OF government.
For three years it has my duty to oppose 1t IN all
s shapes and all its manifold tnrnings OF this struggle
may speak more fully in another letter, but despair
Of being able TO convey anything but an inadequate ea
OF It's intensity how its maintenance against many
dscouraging obstacles has tried every muscle ana
strained
will be sufficiently served by showing the relation De'
tween the floating uniqudated Indebtedness which ex
,sted when took office, and the growth OF the bonded
debt since that In treating OF the Liabilities OF the
CITY il has the habit 10 overlook that very import
ant division Of them, which did not appear under the
form of bonds. l do not find in any report, or
statement OF municipal finances for quarter
of century past any trustworthy data in reference 10
what may called the floating unliqudated debt OF the
city in fact there Is scarcely alusion to It, For
reasons already Indicated 1t Is impossible even now 10
state with any degree OF correctness the amount OK u
paid liabilities by which the city was wholly or partly
bound at the of accession TO office In some de
partments record whatever was kept OF these ooga
ons and the only evidence Of them is carried about IN
various forms Of certified accounts in the pockets OF
claimants. ready to be produced when things are
fixed for their successful delivery That portion oi
them which part of the bonded debt is now
aver susceptibe of accurate enumeration, and below
will DE found the amount converted up to Sept l. 1874
DIVISION OF THE UNLIQUIDATED DEBT.
divide the unliquidated debt existing as charge
against the city Sept l6, l5l and since con'eeu
into bonded debt under five heads.
First The departmental existing at that dare
chiefly due to the fact that while taxation had in 1871
been xed at the rate OF per cent expenditure th
been contracted at .h r'o , wnon IS nrdv have met
These consisted of payros long overdue OF oVerui
unon departmenta bank and trust accounts; OF Dlls
for work or supplies left TO accumulate during 1871 and
pre- yous years. Reinforced experience mas snoWn W
An enormous OF fictitious claims, created tnrouk
tine deliberate connvance of heads OF departments
thieyish tradesmen sub0rdinates On account VI
these outstanding the city mas pho durnk w
last three years the of 81 T.97624G a. ana the
debt has increased by that amount, wllhout an
addition being made TO what was In 1871 the actua uDo
| OF the city, -....a,or
Second II will be remembered that on my accession
10 Office the cash balance in the treasury was DaIe
sufficient provide for the interest on tne city anu
county bonds which were then nearly due lne s taA.
had not begun 10 come In the Board OF super ,
had In fact not authorized the tax levy many nshu "
of city employees of all grades were reuuceu W
great straits for want OF their which In most
long overdue. To prevent deadlock IN the en.ire
! large sums of money had 10 be borrowed from oanxs
and capitalists such slender security as the city
could offer. BY means Of such timely assstAnoo
city tided very much more perious ciy,s
the community is aware Of and as Affairs grsdua
pesumed accustomed these temporary oau
were finally adjusted. One Of the methods employ ou
for purpose the issue OF part OF the
six psr cent gold bonds payable in IDOL la tns "sJ
| tue funded debt WAS Increased 10 the amount y.
g. though regards the debt the prooeeo
was merely conversion and not In any sonse addltion'
Third: Subsequent Investigation has shown tnAs ~
September, 1871 the City OF New had. In conon
with the of the State incurred Liability Tor oer
large deficiencies IN the STATE Sinking Fund when ns
been growing during one or two previous yesra 10 ~
quota Of such deficiency ehargoablc upon tns cny n s
necesitated addition to its bonded debt or a.
Tho creation 0f that deficiency was due 70 tue ssns
kind OF methods under which the city had poou -
shamefuliy plundered. and was partly ne worA ., S
4 AlrtI Tn