New-York tribune., 1909-10-29

AutocraIic control of the expenditure
of more than SG000n0000 a year has
constituted the Controller Of New York
= 1eritehle financial car The charter.
II IS scarcely necessary 10 say. never
contemplated the exercise Of any such
authority Y the city's chief financial
officer. The powers so Usurped are the
o,.tcome # the methods by which the
cty's finances are being administered,
and are in violation, not only Of the
clear intent. nut Of the specific wording
cf the charter as well.
As 2 result Of reprehensible practices
which have steadily grown in recent
years tie Controller is able. by means
Of s mere bookkeeping entry. to provide
money or refuse TO provide money for
practically any expenditure within the
wide range Of those authorized To be
made in the budget for the carrying on
Of the city government or those spe-
cifcaIly authorized under contract for
permanent improvements
The most pernicious of these practices
that have been grated on to the citys
financial system is commonly known as
and disbursing every dollar of the reve-
rues Of the city treasury each year
I-nder this method all receipts accruing
from whatever source are paid into a
common fund and disbursed without any
regard 10 the purposes for which the
money is authorized. AS expenditures
become necessary the Controller. or those
who assist him in administering the
city's business decide whether there Is
in this general pot sufficient money in
,beir Judgment TO warrant the making
NJ = bookkeeping entry nomnaIly trans
ferring to specific accounts an amount
large enough to permit the registering OF
claims legally payable out of them II
8: IS decided by the Controller or his as
sistants. on the other hand, that in their
Judgment the city cannot spare the
money due to be paid out through any
one Of hundreds Of these specific ac-
counts. the claim is not registered for
uavment. on the ground that there IS no
raonev available for the purpose
The facility which this practice affords
sor the exercise of the most unjust
fsvoritism is obvious. It also offers
sulenJid OPPORTUNITIES for petty graft by
city officials who are, SO 10 speak, eogs IN
The wheels of the machine by which
clafms are audited. recommended for
payment and finally paid. Bat The
Tribune has already shown from It's
analysis Of the receipts and expenditures
of the city treasury for the last three
years that the general pot practice
has had far more serious results.
WHAT THE PRACTICE HAS DONE.
II has demonstrated that millions Of
dollars received from the sale Of cor
l,oralte stock and assessment bonds for
permanent improvements have been di-
xerted from the only purposes for which
they were legally available and used to
redeem revenue bonds upon which
money had been obtained in previous
Years for city government in excess Of
the taxes collected 10 redeem them. 1t
has proved that in 1907, when contract
ors we're forced into bankruptcy because
they could not get money due them on
claims payable out Of permanent I'M
provement accounts, there ought 10
have been III the city treasury to the
Ui
10 nay the claims that were defaulted
II has shown that because Of the same
wrongful diversion of these receipts the
city conpelIed contractors to accept left
over corporate stock bonds from sale Of
those securities TO the public in lieu Of
cash for their claims. and that these
,onds were peddled in Wall Street and
sold Al from 10 TO - per cent below
their par value, 10 the great impairment
Of the city's credit at the very time that
!, ought 10 have been upheld. II has
slgo poinfed out that, so extensive was
the diversion Of the receipts Of perma-
neut IMPROVEMENT accounts. the city was
unable to fnd money which belonged 10
contractors upon paving contracts per-
formed years before. and which was held
In trust as "A guarantee for faithful per
fornaDcs Of maintenance work. II has
made plain that the city lost at that
time hundreds Of thousands Of dollars
by tie abandonment of contracts be
cause covenants 10 pay were Toided by
the city. although the records show that
there ought To- nave been funds ia the