New-York tribune., 1909-10-21

LEADING DEALERS AND PLACES.
sued in excess Of the limit permitted
by the provisions of the city charter.
The Chamberlain's cash accounts
show that part Of the money secured
from this huge overissue of revenue
bonds was used TO make up the deficit
of S12.242. 1S1 in the cash balance that
came over from 1907. There was also
diverted from revenues raised TO meet
expenditures Of the current year S9.SS1.-
5o3. which was used to redeem revenue
bonds issued in anticipation Of the col
lection of taxes Of former years. Upon
S25sOOO,OCO of this Overissue Of rev.
enue bonds the city is still paying inter
est at q per cent per annum. for the
bonds are not redeemable until NOyem-
Der, 1909. and November. 1910.
A SOLVENT CASH BALANCE.
With money obtained from the sale
of revenue bonds issued in excess Of
the charter limit the city began to
transact business at the beginning of
the present year with So. .45S in the
city treasury. This money came over
as a cash balance from the preceding
twelve months But along with II came
over also warrants issued for expendi-
lures in 1908 amounting to S11.OO1. $50.
which had TO be paid out of that balance
during the first days of the present year.
In addition. there ought to have been
on hand in the city treasury at the
opening of business in 1909 S2,S54. AS.
obtained from the sale of bonds that
had not been transferred TO the ac-
counts for the purposes OF which they
had been sold. and S6.21o.SO9 of excise
taxes collected in 1908. Neither Of these
two latter amounts was legally avail
able for expenditure until the present
year. After providing for all demands.
there still remained to the credit Of the
city treasury at the first Of the year
a cash balance Of S3, $50. rs.
The Chamberlain's cash counts de-
monstrate that s15.2O4. I'D 21 OF the cash
balance that came over on January I,
1909. from the preceding year was to
the credit of budget accounts. and S.
IS2, I36 was to the credit of permanent
improvements accounts. But In 1907.
S6,O42,2Sd Of the receipts OF this latter
group of accounts were diverted and
used 20 redeem revenue bonds. II this
amount was refunded the division of the
cash balance would stand S14,775O33
to the credit of permanent improvement
accounts. and s9.162.4 424 to the credit
of budget accounts.
CASH TO PAY CLAIMS
There ought to have been on hand in
the city treasury on September IS last.
according to the cash statements printed
In ''The City Record" by the Chamber
lain, S23.O15. 800. A segregation of the
cash receipts and expenditures from the
beginning OF the year shows that perma-
nent Improvement accounts should have
had to their credit on September IS last
$50. So. .9S3. and budget accounts a deficit
of S7,S37.671. This demonstrates that
again during the present year the re-
ceipts of permanent Improvement ac-
counts have been diverted and used TO
redeem revenue bonds in advance of the
receipts from taxes.
And yet. with S24, ,S1O,6s6 to the credit
Of permanent improvement accounts and
available for expenditure on September
is last, according to the officially pub
lished records. The Tribune is credibly
informed that practically no claims for
work performed under contracts payable
from these accounts. and passed upon
been registered for payment since the
end OF June last. There are apprOxi-
mately S2O.OOO.OOO Of these claims all
duly audited and recommended for pay
ment that have not been registered be-
cause the Controller says the city has
no money available to pay them
HEAVY INTEREST CHARGES.
The increase in the burden of interest
charges imposed upon the taxpayers be-
cause of the issue at the end of 1907 and
the beginning Of 1903 OF S65. 600, 900 of
revenue bonds bearing interest at per
cent per annum for one, two and three
year terms is indicated by the startling
increase in the amount paid out for in
terest upon revenue bonds during 1905
The payments for the same purpose dur
ing the present year are bound TO be
even larger In 1907 there was paid for
interest upon revenue bonds $780,. $40:
in 1908 the amount so paid had increased
10 $3.50. .403. Much of this interest was
paid upon revenue bonds that the rec
Ords demonstrate were Issued in excess
of the limit permitted under the pro-
visions of the city charter.
The facts and conditions here given
with regard to the methods by which
the city's finances have been admin
istered during the last three years are
derived from an exhaustive /investiga-
tion made by The Tribune into the pub
lished records In dealing with the an
nual receipts and expenditures OF the
city treasury The Tribune has sought to
draw a clear line of demarcatiOn between
the amounts received for and expended
upon permanent improvement. assess
ment, special and trust accounts on the
one hand and the amounts received for
and expended upon the administration
of the city government on the other
The financial statements of receipts and
expenditures given in the Controllers re-
ports during the years since cOnsOlida-
tiOn have been SEGREGATED with this pur-