New-York tribune., 1909-12-18

statement fixes the net bonded debt. based
upon the Court of Appeals decision at
s57l ,07O, ,343 The same lack of detailed in
formati characterizes the statement of
the contract land, judgment and open
order liabilities which the decision of the
court states must be added to the net
bonded debt thus ascertained. In this
wholly inconclusive manner the Controller
finds that the city had borrowing margin
of s69, 015,176 on November l last.
ONE ELEMENT NOT CONSIDERED.
There is an element of debt which is not
included in the statement at all, though
the evidence given by the Controllers Off
cials before the Cassidy investigating COM
mittee would seem to indicate clearly that
it should be considered. In 1906 the Board
of Estimate authorized the issue of S36,-
O00000 of corporate stock for wtping out
uncollectible taxes of levies prior 10 1905.
OF this amount only 100000 has been
issued. In his examination under oath be
fore the Cassidy committee Frank Smith,
chief bookkeeper of the Finance Depart
ment, gave the following evidence upon
the question as TO whether or not this
amount should be included in computing
the legal borrowing margin:
Q.-Mr. Smith. this amount OF $5.C0Vo
of unissued corporate stock authorized by
the Board of Estimate 10 meet Deficiencies
in uncolected taxes has never oeen con-
sidered by you III estimating the city eX-
listing Indebtedness as liability? A.-No'
sir, il has not.
sum which the Board of Estimate has rec
ognized as deficiency in the approprla-
ton accounts of previous yeas? Alt
has.
Q.-And a sum which has been obtained
from other funds which must some day
be reimbursed? A.-That is true.
O-SO that in fact. there is 4 necessity
of reimbursing some funds TO the extent
of this 33.OOO.U00 or thereabouts? A--That
Q.@Has any effort been made to deter
mine what funds they are which must De
so reimbursed because Of these eXpendl-
tures? A.-There is an attempt being made
nov 10 find out.
Off you feel permitted TO express an
opinion, Mr.. Smith. what IS your opinion
as TO whether or not this item ought 10
be considered as a liza bilty of the city, A
I consider 1t should be considered as q
The question Of including this amount in
computing the citys legal borrowing
margin was not dealt with by the Court OF
Appeals but if the opinion of the Con-
troller's bookkeeper given under oath Is OF
any importance, this s33,000Oo0 should be
deducted from the S69015,176 which the
Controllers statement gives as the city S
borrowing margin as on November / last
making it S36,Ol5.176 at that date.
The Controller said last night. however
that this 100000 should not be deducted
now, but only that portion of the bonds
actually issued The rest was an ''uncol-
Iectible asset" though in fact it is debt
for II represents money taken from city
funds. which must be replaced.
Within the last six weeks it Is known
that contracts to the amount of So, 500 ON
| have been certified 10 by the Controller, in
cluding S5,SG0OOO for the construction OF
/ the Fourth avenue subway in Brooklyn
/ This would leave the borrowing margin al
the present time at s13,215176, including the
S33. .OO0, eco as a debt, without taking into
] consideration SIS. .735 $50 of authorization
! subsequently made which the Controller
has announced he intends to act upon be
/ fore leaving Office. If this is done it seem:
/ OBVIOUS that the margin allowed under the
/ decision of the Court of Appeals will no
| only be wiped out, but considerably ex-
! ceeded.