New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-25

ne,,ng the financial panic Of 1907 the
o.-.-oller declared that the city had no
mc,sy 70 pay s5O.OOo.0oo Of contractors
- and former Commissioner of
80, Works Thompson of the Borough
:, Manhattan stated in the newspapers
,bs, he was unable to get enough out OF
she trust funds 10 pay maintenance
,,,,5tscls on old paving contracts. At
,,,s very time there should have been
3, ,he citv treasury, according TO the
chamberlain. s33,319,452 available to
nee. these claims Most of the money,
however. had been misapphed and used
o. redeem revenue bonds. although the
,axas mt Of which these bonds were
legally redeemable had not yet been col
lected
These facts are not revealed by the
Controllers charter report, but are to
be found in transcripts OF the city's
cash accounts published each week by
the Chamberlain in The City Record"
These cash statements show every re-
ceipt and every expenditure of the city
treasury in the same manner as a ner-
Giants cash book shows the income and
ostgo Of his business. each year. They
pnstitute. therefore, the basic figures
apon which the whole cash records of
lie city are founded. and consequently
supply the most reliable data available
ior ascertaining the exact method by
- ad-
ministered The fact that they are
Published from week to week as trans
actions are being carried on practically
Irecludes the possibility of readjustment
later on. The Controllers charter re-
port, on the other hand. is made up at
The end of the year. and does not dis
close the actual process by which the
eity's finances have been administered.
EOW RECEIPTS WERE DIVERTED.
The Tribune has tabulated the in
formation secured from the Chamber
aims cash statements for 1907. The
tables given below show that during the
first three months OF the year the city
treasury received on budget account, in
cluding the cash balance that came over
from the previous year. S39, ,532, ,275.
while the expenditures on account of
budget appropriations were S45.9S1, ,6S4.
TIE deficiency Of S6,449.410 was sup
piied by money taken from trust funds
and from the proceeds Of the sale Of
corporate stock and assessment bonds.
The money thus diverted was used to
pay the current administrative cost Of
city government.
During the second quarter budget ac-
counts received S44, SOS. .926 and paid out
s7"'oo4.S23- This made it possible for
those accounts 10 refund a part of the
money taken during the first period If
uree months from trust funds and the
proceeds Of the sale % corporate stock
ana assessment bonds There still re-
NAMED however. Of the amount so taken
S7'D5o.8OI To be refunded.
IN the third quarter budget accounts
paio out %l9704. S64 more than they took
IN. Again the receipts Of trust funds
ana The proceeds of the sale Of corporate
H'OcK and assessment bonds were drawn
Upon TO make up the deficiency. making
ne total amount so taken during the
Hihe months S24,34O,172. II was at this
very time that contractors who had
O4slins against the city payable from
Hlese very funds were vainly clamoring
'Oi their money. In spite of the large
'i'o-nt diverted, the records show that
e'ese permanent Improvement accounts
.'a1 4 cash balance TO their credit of
ei.283GS5 50 that there ought to have
Oeen available at the end Of the third
eusrter Of the year S2J.G39.257 TO pay
GAINS registered against permanent i'm
HoFement accounts.
HOW MONEY WAS OBTAINED.
although the records demonstrate thst
e1ilng the FIRST niae months OF the year
s<7'S4oi72 was taken from the receipts
- i'ermanent Improvement accounts and
sssd Tor the purposes of budget accounts,
I" Is evident. also that budget accounts
"'fe in bad shape II was just about
N-is time that city employees were kept
"aiung for -1eeks before they could get
@''f salaries end wages The taxes be-
tsh t. come in during the early part of
we last quarter of the year. This made
" possible for the Controller TO DO
little refunding CITY officials were
baid. aud some Of the more pressing
Gains against permanent Improvement
accounts were Hquidated But tax col
"etions were not large enough TO enable
the Controller 10 do all the refuc ling
mat Was Necessary and meet the charges
!" city government IS well
i was at this juneture Of affairs that
ihe hsnhsag firm Of ]. p. Morgan & Co.