The New York herald., 1875-12-08
THE SENATE COMMITTEE.
Economical Views of Corporation
Counsel Whitney.
CITY MONEY sQUANDERED
Diving Into the District Courts
Where the Fees Go.

The Senate Investigating Committee met yesterday
at the Fifth Avenue Hotel Senator Booth in the chair
William G. Whitney Corporation Counsel. was tho
first witness called He testified that he held The
above Office since the 9th Of last August he was coun
sci for all the departmentsbut the Health Department
and made special assignments OF counsel for tho
Police Department and the Department Of Buildings;
the appropriation proper for clerks and assistants for
the present year $50, 600; his own salary was
$4,000 and there was also an appropriation
of $780, 900 for Contingencies; when he came
into Office lie found that the whole appropriation for
contingencies had been exhausted on account Of the
liabilities incurred by his predecessors, but nearly all
the other appropriations remained The Bureau Of the
Public Administrator is under the control Of the Cor
poration Counsel but there dispute whether
the Bureau OF Personal Taxes is or Is not. II
created by special law in 1867 and the charter Of
1878 did not include it in the offices placed under tho
control OF the Corporation Counsel 1t is inserted In
the Law Department, and II may appoint an attorney
for the collection OF personal taxes. The appropriation
for the Public Administrators Office Is 000for salaries
and 81 600 for contingencies In the Corporation At
torneys Office it $4,000 for salaries and 81 900 for
contingencies In consultation with tho Mayor and
Board Of Apportonment II was decided to reduce the
appropriation for the present year $4,000 but that
was taken altogether from the contingent fund
MI DaYenporL-DO you eAcrClSe ContrO over special
counsel assigned TO different Departmental
Mr. Whitney-No, l do not They make reports
when I specially call on them. There 5000 suits
pending, some of them running back for years.
Mr. Davenport-Mr Whitney the committee would
like to hear from you in regard to your oce and the
claims against the city, how they might be improved
and the city saved money!
Mr. Whitney-In answer to your question would
say that there has been great deal of useless litigation
for want OF proper system. Tho Comptroller and
agree that the Law department ought at all times to be
tn tinn ngifh audit fftnu
bureau OF the Finance Department Is the place where
claims against the city government are, in the first
instance, investigated; and, at the time that they arc
investigated there should be there lawyer represent
ing the Law Department to assist in the investigation,
pass upon legal questions suggest modes Of inves-
tigaton add inquiry, and cooperate with the Finance
Department. so that when claim is passed upon in
the first instance il shall be decided having in view
both the facts and the law applicable thereto Then II
1t is decided TO be Illegal claim, when it comes into
the Law Department should be contested TO the end
but ii il is legal claim, IL should be paid compro-
missed without litigation and the expense attending it,
Mr. Davenport-lt Is your idea that an assistant
from your Office should be
Mr. Whitney-ln cooperation and consultation with
such bureau
Mr. Davonport-Not specially attached to itP
Mr. Whitney-No, not specially attached to 1t; |
think that very competent man ought to be assigned
by the Law Department to the Comprolers office, and
/ intend at an early day to employ such person to
represent the office in the Finance Department. this
plan is concurred in by the Comptroller; often when
to trial or is approaching trial we find upon
investigation, that by OF some law having been
overlooked, some principle OF law not having been
known to the auditing bureau or the facts not having
been accurately investigated the case cannot be won
by the city, and are obliged to into court and be
beaten, or consent to settlement or dispose Of it
the best way we cam there has been great deal OF
this involving great expense to the city and think
ought to be stopped; think there IS one little thing
which would bo OF rat benefit to the city il IL could be
done; great difficulty that the Law Department
counters Is in enforcing the provisions Of the charter
which provide that department shall incur liability
without previous appropriation and the
INCREASE
comes mainly from the fact that the various depart
mens make expenditures In excess of their appropra
TONS although the charter distinctly provides that IT
shall not be done Now, the Law Department sets up
the defence that the appropriation for the payment OF
the claim is exhausted, but is at great disadvantage
in maintaining the defence on account Of the shape
that the takes under the existing law When the
gets into court 1t appears that when the liability
was incurred there money to the credit Of the ap
preparation in the Comptroler's ofce-enough to pay
it-ahough the department which ncurs the liability
has prior TO ncurrng this liability incurred others suf
hcIen to exhaust all the appropriation; and, although
these prior liabilities come along in due time and take
all the money, still the courts hold that, there having
been money in the treasury at the time the liability
was incurred sufficient to pay the claim,
the defence is not good and these pco-
pie paid out OF the appropriation for judgments,
and the debt of the city Increased so much. 1t Is
really in violation of the law, because the charter has
enacted what purported TO be system by which
there should be some limitation upon the power of
the various executive departments to contract liabi-
ties for which the city Is responsible Now IL there
could be any system by which the various depart
ments should be obliged to register their liabilities
al the time that they were made, that per-
sons dealing with the city should get a specific lien
upon fund then it could be known at all times just
how much money was exhausted and the Law Depart
mont could enforce the provisions of the law. At
present undertaking to enforce this provision OF tho
charter are in the unfortunate position OF under
taking to maintain what looks like an unconscionable
defence trying to twin on the execution as lawyers
cali IT, The supplies having been furnished the city
the work done whatever II may be, of course the lean
ing the Judiciary very much in favor Of the claim
any individual case But system were provided
by which with diligence could get specific lien
upon fund by means Of system under which the
executive departments were required to register
their various liabilities when they were made, then
there would be equity in favor of a man who
tacted with the city time when the registered liza
btes showed that the fund out Of which he should be
paid was exhausted
Mr. John H. wheeler President OF the Board OF Com
missoners of Taxes and Assessments called to the
stand and Mr.. Wheeler said he came into
Office on the 9th Of May, 1875 there were two other
Commissioners, Charles H. Andrews and John II. Hay
ward He asked US to the amount or arrears OF
personal taxes and the amount OF assessablo property
He could not tell the exact amount then, but would
send statement TO the committee giving the required
information. The amount of the appropriation for the
present year Is $l29,S0O; salaries OF nlty clerks,
S10s 400; seven assessors, $1,000, and contingent
fund 600 and for 1876 the appropriation will be
duced SIS 600 In 1872 the appropriation $24S 600
made II $l47,400; the principal reduction made by
the present board was In the matter OF salaries; two
deputies; two deputies were reduced from So, 600
year So 900 each twelve from 81, 600 to 81, 400
thrce from $4,000 to $4,000 and the assessors from
S. 900 SO 600; the amount of taxes appropriated for
State purposes he could not give.
Mr. Davenport-Do you think three Commissioners
OF Taxes are necessaryH Do you not think one man
would be sufficient to take charge of that bureauS
Mr. Whoeler-No, sir think there is enough work
for three; two at the least.
Mr. Davonport-Do you not think II would be advisa-
BILE place the Bureau Of Taxes and Assessment under
tho charge Of the Comptroller9
Mr. Whecler-No sir do not think II advisable.
John II. Whittemore, Clerk OF the Third District
Court the next witness. He testified that there
two assistant clerks, stenographer two attend
ants and an interpreter; also janor attached to tho
court He did not think that the court could well be
run with less attaches. The amount claimed on the
payroll for tho present month was 81, 924 90; the
amount allowed was ST. $40 eS The clerks OF the DIS
rict Court receive their pay under special voucher
The Board Of Apportonmen reduced the rate OF salary
and there is suit pending TO recover the balances
the Judges salary placed the payroll at the rate
of $40, 900 year.
Mr.. Davenport-I believe that the present clerks
a. ,I LIl.Ala nldnr