The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-11-27
WHATSHALLBRoOKLYND
sHALL SIZE PAR DEBTS AND SAL
hRIES NOW DUE OR NOT9

Enu Oh EnCn ltuN SNV saw AFNtN
tho View LeVs. but can she no So This Tcnri
A critical point has at last been reached in
the financial condition of BROOKLYN, and this fact
has been forcibly illustrated by tho failure to
pay the November salarios.on tho day preceding
Thanksgiving, which had long been n prevail.
ing custom, and the defcrring,of such payments
fora week at least, II not for a longer period.
COMPTROLLER Palmer, in .vicwiof the near APP
proach of consolidation, declined to pay tho
| November salaries out of tho cash balance In
the treasury, representing the proceeds OF bond
sales or money paid into the treasury for special
purposes, and asked Corporation Counsel Burr
to carefully consider the whole iinatcial tNngle
and advise him as to what action should DO
taken. Yesterday Mr.. Burr furnished the Comp
troller with a v%oluminous opinion, in which he
reviews the state of Brooklyn's finances and
emphasizes tho serious situation which con
fronts that city In the closing month of its exist
ence as an independent municipality. Mr..
Burr regarded the matter as OF such gravity
that he advised that the payments OF salaries
and all other indebtedness be deferred for n
week Mt lcast, and that meanwhile Comptroller
Palmer consult with Comptroller-elect Golfer.
Mir. burr virtually admits that legal steps might
be taken to postpone the payments beyond the
brief period ho has specified. From tho infor-
nation he has received in his Investigation Of
the financial problem, Mr.. Burr declares: Tho
present condition of affairs Is not due to any
breach of trust or dishonesty on the part of any
city officials, nor are the'causes which have pro-
duced this result OF recent origin. 1t is, on the
contrary, wholly the result Of the system which
has been in operation for many years"
On Nov. l the balances TO the credit of the
various bond and special accounts aggregated
8 $685. 3l.57. This money was paid into the
city treasury for particular purposes as dis
1 --.snl. F--,. ..Int aFya1 ID tl. a,p.r,1 t,
levy. Thc'actuHl cash i'll the city treasury on
Nov. / was only S2,9o9, 273.51. The problem
which the financial officers of the city arc
called upon to solve is thus stated Ivy Mir. Burr:
"ln order that there may BE- oh hand the first
day of lanupry next actual cash In the trcasGfr
equal to tho credit balances OF the bond
and special accounts above referred to ]
am informed that unless some other method Of
relief can be, suggested it will he necessary from
now until January to cease making any pay-
ments ON account Of the city for current TX.
pcnscs for which provision was made N the
s s6%sIS pt tax Enid !pT GSt Of opd thS w am6un NJ W rais t@'f fRerel
hy, and TO save and accumulate ali payments
made TO the lily on account OF taxes aud assess
the same
Mr.. Burr then shows how for a period of
thirteen or fourteen years there has been u diff
ference, gradually increasing in amount, be-
twcen the balances 10 the credit Of the various
accounts, as kept In The books of the Comp
t~rollUr, aud the actual cash In the treasury. Tho
general fund account WAS credited each year
with the entire amount included in the annual
tax levy for The expenses of the government
upon the theory that all taxes would be fully
paid. Mr.. Burr shows how delusive this theory
was, since there were always arrears of taxes.
The actual cash balance in the treasury at the
close of each year has not been equal to the
credit balances of the bond and special aC-
counts. Owing, however, to the large Tux pay
monts In December there was always on Jan. l
an actual cash balance to the credit of the city
largely in excess of the balances to the credit
of the various bond and special accounts. The
city authorities toward the close of each year
have borrowed from the proceeds Of tho new
tax levy to pay the necessary obligations.
.'This was done upon the theory" Mr.. Burr
says. that before the close of the year all real
and personal taxes would be paid, and any
drafts made upon. moneys raised by the current
tax levy would in that way be made good.
That expectation never has bnen realized in the
past. and II is manifest that it VIII not be
Mr.. Burr says in answer to the Controllers
inquiry whether. in view of the consolidation of
Brooklyn with New York on Jan. /, it was his
duty to preserve inviolate all moneys collected
under the levy just made and which are payable
on and after Dec. Is and turn over the whole
amount of such collections to the financial oil
Gers of the city of New York on Jan. /. or
whether the old custom of drawing. on them
should be.followed:
"If the former Is your duty. then there seems
no alternative except for the city from this date
to cease making any payments for general ex-
p pew on ' hand iha and 20 add fei to it b S"T ctn" now oTi" and
the first day'of January next al moneys received
from tax collections other than taxes OF 1897, so
that the balances to the credit of bond and
special accounts on said first day OF January
may be made good by an amount Of cash in tho
treasury equal to such balances. This means
that from this date not n dollar can be paid for
cleaning or lighting streets, for cleaning sewers,
for repairs or supplies to public buildings, for
maintenance of lie police or fire departments,
or for salaries OF the city Employees
Mr.. Burr, however, says that he can find nc
legal enactment forbidding the use of any
moneys between now and Jan. l to the credit
OF the city TO pay current expenses. He adds;
notwithstanding that there may be no ex.
press prohibition of the statute, ii any injustice
should thereby be done to the present city OF
New York. or to any Of the munlcipalities
thereof, | would hesitate TO advise you to fol.
!, low the course pursued in previous years. But
=, rent expenses of the city of Brooklyn between
D this.datelnnd the first day of January next are
lawful and valid debts of;the city Of brooklyn. II
become lawful and valid debts OF tho city OF
New York, which it must pay and discharge. ct
but the situation Is a serious one, and action
on the part Of the city officials under the circum.
stances involves very great responsibility. l ad'
: the Comptroller. elect of the new city OF NewYork
o the exact situation and your proposed course
Of action respecting tho same. / also advise
you to give 10 both the widest publicity. This
i Is prc.eminently n case where the entire public
' ought TO be taken into your confidence, and
every fact in connection with tho situation
should he openly, fairly, and exactly stated
The present condition Is not one Of your cron
ton or for which you are responsible. Every
! citizen is interested in 1t and the proper treat
6 ment of it.. ! further advise you for tho period
of ono week to make no payments whatcvcr fol
!, current expenses out of The general fund.- nc
K count. This Will give ample opportunity fol
any person who deems the, plan proposed moi
Warranted in law or justified by the Circum
stances OF the case, to intervene by action OF
~ protest to prevent its execution.
'lf at the end of tho period named no nc
tion has been taken TO prevent 1t nor genera
protest made against it think you will be just!
fed in paying out OF the present cash balance
n on deposit to the credit of the city such Lawful
claims as arc presented for the, current OK
II renses thereof. and which are chargcablc L
General Fund" accounts; that out of III,
= moneys received during december, 1897, on nc
count Of the taxes Of 1907, and deposited TO III
general credit of the city. you will be justified
on the LIST day Of january next IN setting apar
nm amount puunl tn the credit balances Of TN