New-York tribune., 1909-10-21

q s,spcial methods and condition.
].
shortly after his election 10 Office. in
az the present Controller. in the course
= rublic address. explained that even
.,s his previous business training and
4. exceptional opportunities his Office
,s,-sed him for obtaining information
/. uss as much in the dark regarding
=. clty's financial position as the av-
-. tsNpayer. The existing method
= seeping the city's accounts" he said
,het time, serves only 10 conceal the
.rs method will be found 10 pre-
ant tlnse facts so that they viii be in
eligible 10 every one who can read if 1
A. nothing else during my term Of
lie
The controller spoke whereof he knew
! this frank declaration. made during
& is first year in Office careful exam
nation of the bookkeeping records, pub
fsled IN the annual reports of the Con-
-olsr for the last two years. and the
rsh accounts 81 the Chamberlain,
,Huted weekly in The City Record
hrm the beginning OF 1907 TO the pres
m lime. has enabled The Tribune TO
-s6 tho truth into those records, and
nsover some, at least. Of the facts
rich the Controller frankly admitted
arss wears ago we're concealed by the
rs,ing system Of keeping the city's ac-
runts.
BEGAN WITH CASH DEFICIT.
A lhe beginning OF the panic year OF
~ the city started in 10 transact bust
m with an actual debit balance OF
uh against the city treasury amount
i ixN s6.0S5, 7S7. instead OF the nominal
al balance of Sl0Ia5,5s5 shown by
n 0mtroller's charter report 20 have
/ hm q hand az the first Of the year
fnisnT came over as a cash balance
I'm ae preceding twelve months, but
fils with IL came over also warrants
hHa for expenditures in 1905 TO the
t-sunt Of Sc, ,206,056 which had 20 be
sput Of that cash balance during the
fiz days of 1901 In addition, there
asht 10 have been on hand in the city
uisury al the opening Of business in
~ s.. 1852, obtained from the sale
bonds that had not been transferred
hthe accounts for the purposes Of which
fsy had been sold, and 81 .93s. 495 of ex-
s taxes collected in 1906 Neither of
ere two latter amounts was legally
uslable for expenditure until 1907.
EXCESS ISSUES OF BONDS.
The same official report also demon
Ffsies thar there were outstanding at
n END OF 1907 SO. .T91. .696 Of revenue
nds issued in excess Of the limit per-
uiisd b. the provisions Of the city char
In his report for 1908 the Con-
foier admits S3.2S9.OeO OF this over
Hue Of revenue bonds during the pre-
sing twelve months. Upon all OF these
htos tho city is compelled 10 pay in
/ vest a. per cent per annum. for they
i not redeemable until November,
~ and November. 1910.
iae chambeTlain's cash accounts sup
many important details as to the
amer in Rhich the city's business was
anoed in 1907 that are not shown i'm
Controllers charter report These
~ accounts demonstrate that during
inst nine months Of the year s14,-
'-'ao5 Of receipts from the sale Of cor
'ae stock and assessment bonds and
Ia and trust revenues collected were
'eied and used TO redeem revenue
1 las Issued in anticipation Of the COL
1on o. the years taxes before a dol
those taxes was even due 10 be
& ee They also demonstrate that
1 ~ the same source S1OGS7. .S39 was
l ano used 10 redeem revenue bonds
-so IN anticipation Of tie collection
Naes ~ years prior 10 1907 in ex-
The tax collections during those
N thst were available for that pur-
IN all therefore. during the first
months u the year S24 ,34O. .172 was
'lsn from Mat are really permanent
q p'o'ement accounts and misappIiea
redemption OF revenue bonds
q sh after this tremendous draft
& ~ lheir receipts, permanent improve
accounts stili had 20 their credit
enc Of the nine months Ss979, $50.
CONTRACTS WERE voIDED
\ lle very time this extraordinary
4 s'on Of receipts was taking place
i Ohtroiier himself went on record TO
d 1la' There were ia his Office $4,000
q claims registered for payment out
q proceeds Of the sale of corporate
ana assessment bonds II WAS
liis time also that former Com
1oner q Public Works THOMPSON Of
ough Of Manhattan complained
n, Nspapers that he was unable 10
4 ,,. "sh money out Of the city's trust
4 T" psy paving contractors the .
! maintenance holdbacks due on
contracts performed years be-
= Vas likewise during this time
! -, employees were kept waiting for
B -. VfRore The Controller could raise
& - money - pay their salaries and
4 ~. covenants 10 pay were voided in
II, hos ~ contracts. and when con-
III. ioune it profitable 10 abandon
~, 'iacis they did 50. and applied
s.. uiis for InandamJs ordors com I
Payment o. The city u The
So CT aB 70 the tinfc Of abandon
*< l42I4AucQ an IAifa