New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-28
VIII.

since the end of June in the present
year there have been practically no
claims for work done under contract
mon permanent improvements registered
yor rayment by the Controllers Office.
The reason given is that there has been
no money available for that purpose.
For more than two months a small army
n contractors have vainly sought pay
rsnt Of something like S20.000.O00 due
upon claims that have been audited and
recommended for payment by the au-
ditors Of tho Finance Department
An analysis of the cash accounts of
the Chamberlain for the eight months
and three weeks Of the current year to
September Is demonstrates that there
ought Il have been in the city treasury
On that date $50 ST.. $50 to the credit of
permanent Improvement accounts out of
which these contractors claims are pay
able But the same official records show
that sT.796977 Of this money has been
diverted and used during the last two
months 10 pay the cost Of the city gov
eminent. There remained, however, a
balance of S23O15,312 in the city treas
Try a. that date, all Of which was legally
ssailabie 10 pay claims against perma-
neHt Improvement accounts, for praCti-
cslly every dollar OF this money was the
proceeds from The sale early in June Of
ssno0hoo0 Of corporate stock and as
sessment bonds.
SAME THING TWO YEARS AGO.
During the latter part of 1907 and the
earlier months Of 1905 dozens of con-
tracting firms engaged upon permanent
Improvement works for the city went
into bankruptcy because they could not
get the money due them upon contracts.
others we're compelled 10 accept cor
porste stock bonds left over from public
sales Of those securities in 1907 in lieu of
cash for their claims. For months after
ward these bonds were peddled about
Wall street and were disposed of by
needy contractors at from 10 10 - per
cent below par value. Hundreds of con-
tracts in which the city had made good
bargains were voided because the city
defaulted payment Of amounts legally
due under them. Paving contractors re-
fused to perform maintenance work
compulsory under the terms Of their con-
tracts entered into years before because
the, we're unable TO get the ; per cent
hold-backs retained by the city in trust
from the full contract price of the work
done years before.
The failure Of the city TWO years ago
to meet it's current obligations was at
iributed 20 the effect Of the financial
panic and TO the fact that it could not
dispose Of its corporate stock and as
s. ssment bonds. The Tribune has
proved from the officially published rec
oros that the real reason was due to tn
ETosscst kind Of financial mismanage-
msnt and TO the diversion of the pro-
oeeds from the sale Of corporate stock
and assessment bonds. IT has been de
rnonstra1ed that there ought 10 have
been in the city treasury at the very
time contractors were going bankrupt
because they could not get money due
them from the city S24.340 172 to the
credit Of the accounts from which their
claims were payable.
HISTORY REPEATS ITSELF
An exactly similar condition seems %
TFEkSli 81 lile HDIEsFI1L i4lAir Roliit lAtiS
IS no financial panic this year. The city
has been able TO dispose Of all the cor
porate stock and assessment bonds Of
fered for sale easily and at good pre-
niums. Money for budget purposes has
been secured upon revenue bonds bear
ing interest at as low rate as per cent
per anuum. Yet there are Approximately
S2O.OpOOG0 of contractors claims that
the Controller has steadily refused to
register for payment since June last on
the ground that there was no money
available. while tho Chamberlain's cash
statements show that there MAS on hand
four weeks ago S23.O15.312, every dollar
of which ought 10 have been available
for the payment of these claims.
There was on hand in the city treasury
at the close Of business in 1908 cash
balance that came over from the pre-
ceding twelve months amounting to $23,-
49, ass. according 10 the Controllers
charter report for that year. Against
this balance there were outstanding Sill
0I $50 Of warrants drawn for eXpendi-
tIras IN 1908 that had 20 be paid ont Of
the cash balance IN the beginning Of the
present year. IN addition there ought 20
haze been on hand s., ,5S4,S1 Of the pro-
oeeds from the sale of corporal stock
bonds in 1908 that had not been trans
ferred TO the accounts for the purpose Of
hich the bonds we're sold at the end
OF that year: $269,GE; of the proceeds
from the sale of special revenue bonds
ths; likewise had not been transferred 10
the accounts for the purpose pf which
the bonds were sold. and $1,2lo.@UJ "t
ezcise taxes oollecIed during the pre-
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