New-York tribune., 1909-10-24

$50 part of the opening ca balances
necessary to pay warrants drawn in 1906
and paid in the current year; 5000, ,12O,
proceeds Of corporate stock sold in 1907
to provide for deficiencies in the collec-
ton of arrears of taxes OF the levies
prior to 1905, deemed uncoIlectible on
January 1. 1905 and s., 10000 Of the
proceeds of the sale of revenue bonds
Of 1907 to provide for deficiencies in the
collection Of arrears Of taxes heretofore
levied and deemed uncollectible on jan
uary /. 1906 The same details show
that of the total payments made on
budget accounts during the twelve
months S11,279,569 was for budget ap-
propriations of former years. There
was, therefore, a surplus of receipts over
expenditures upon this portion Of budget
accounts Of S14,357, ,920
The records also demonstrate, however,
that there were sold SIG, ,3T6,210 Of rev.
enue bonds issued in anticipation Of the
collection Of arrears Of taxes and re-
deemed 81, ,921, ,27O Of the same kind of
bonds. The deficit in this transaction
was SOS, ,545, ,OG0. Of which 14,357,9 $40
was supplied by the surplus receipts
which, 1t has just been shown, were to
the credit of budget accounts Of former
years. OF the balance of the deficit Of
S14, ,1S7, ,139 there was taken from the
surplus receipts of the current years
budget accounts $S,185,535. while the re-
mainder, $6,OO1, Goa, was taken from the
receipts of other accounts in the city
treasury.
REVENUE BOND OVERISSUE.
1t has already been pointed out that
in issuing S3S,263,S00 Of 6 per cent rev.
enue bonds during tie last three months
Of the year, after the bulk of the taxes
had been received. II was evident that
the Controller had exceeded the legal
limit to which these bonds could be
issued and sold An examination OF the
records published in the official reports
Of the Controller shows that this over
issue at the end OF 1907 amounted to
$1o,791,6s6
The city charter permits the Controller
to obtain by the sale of revenue bonds
the money necessary to conduct the city
government from the first of the year,
when the expenditures authorized in the
budget begin, until the taxes are col
lected. during the last three months of
the year. These revenue bonds can be
issued only to the extent to which money
Is required for budget purposes, must not
exceed the amount Of the taxes due and
must be redeemed out of those taxes
when collected.
The records show that the Controller
obtained s107, 5s2, ,076 from the sale and
paid out s76, ,400,250 for the redemption
Of the years revenue bonds in 1907, so
that S31lS1,S26 were outstanding at the
end of the twelve months. The charter
report also furnishes the official informa-
ton that of the $101, ,947. .66S OF taxes on
account OF the 1907 levy s2S,727651 re-
mained unpaid at the end of the year
and that there were unexpended at the
same date ss,Ss2,2O3 of budget appropria-
tions payable out OF the taxes collected.
Consequently, the limit to which revenue
bonds should have been unpaid at the
end Of the year was $18,S45.44S. 1t has
been shown, however. that s31, 1885 OF
these bonds were outstanding and un-
paid. so that of the years revenue bonds
alone s12,336,378 were issued and sold
during the year in excess of the legal
limit.
LEGAL LIMIT FOR PRIOR YEARS.
The Board of Estimate in September.
1906, authorized the Controller TO issue
$4,000, 900 OF corporate stock to provide
for the amount deemed TO be uncollecti-
q . ,-fs -,
1905. In the budgets of 1907 and 1908
appropriations amounting to sS000.00O
were voted for deficiencies in the col
lection of taxes of the levies OF 1905 and
1906 In aIL therefore, s42,00O,0O0 was
urovided for uncollectible taxes levied
prior to 1907.
The total amount of taxes levied be-
fore 1907 that remained unpaid at the
end of that year was. according TO the
charter report $74,106.675. OF which
s42 900. 900 had been deemed uncolIecti-
ble and had been provided for by the
authorization of corporate stock and by
aupropriations voted in the budgets Of
1907 and 1908. There remained of un-
patd taxes Of levies prior to 1907 which
were regarded as collectible sS2.106,675.
The issue Of revenue bonds agatnst these
taxes, however, Is permitted only to the
extent that payments have been made on
account of budgets OF the various years
in excess of the amount actually received
from taxes and other revenues The
charter report indicates that there were
unexpended. on account OF budgets prior
10 1907, appropriations amounting to ST.
s97.7s3. SO that the limit 10 which reve-
n,,a bonds should have been outstanding
az the end OF 1907 against uncollested