New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-27
VII.

No particular effort appears to have
heen made by the city administration to
limit the amount Of money obtained
from the sale of revenue bonds during
1905 TO the acaual requirements of the
budget As a consequence the records
show that there were outstanding at the
end Of the twelve months $50, SD, ,519 of
these bonds that had been issued during
the year in excess Of the limit permitted
under the provisions of the city charter.
Detailed figures compiled from the
cash accounts Of the Chamberlain and
from the charter report of the Controller
demonstrate that. of S43, ,241. 800 secured
from the sale of revenue bonds issued in
anticipation of the collection of the
years taxes. only SIS. .199. .324 was actual
II required 10 supply the deficiency be-
tween the amount of the years taxes
collected and the amount paid out upon
budget appropriations for the twelve
months. This left a surplus of S25,-
90 90 TO the credit of the years budget
alone, and all of this money was OBJ
tanned from the issue and sale of reve-
rue bonds issued against the taxes for
1908 in excess of the amount required
10 finance the budget Of that year
Arrears of taxes collected, the cash
balance that came over from the pre-
vious twelve months and $3.OOO,OO0 re-
ceived from the sale of the current
years revenue bonds TO supply dehcien-
cies in the collection of arrears of taxes
of 1908 made the receipts in 1903 avail
be for the payment of budget appro-
priations Of former years SO, 1921.
The amount actually expended for the
payment Of these appropriations was
only Sl1, ,7O1, T33, so that there was a sur
plus Of S11043.4S3 Of receipts over ex-
penditures SO far as this part of budget
accounts was concerned. There was paid
out S2Q,SS1 .o36 more for the redemption
Of revenue bonds issued against taxes
Of ley-ies prior to 1903 during that year
than there was received from the sale
Of the same kind OF bonds. The deficit
upon these revenue bond transactions
Was reduced to So, ,S37, ,553 by the sur
plus which came from the excess of re-
cejpts from arrears OF taxes and from
other sources over the amount paid out
in 1908 upon budget appropriations of
prior Years. The remaining deficit of
81 So BOB was taken from the surplus
receipts derived from the sale of the
current years revenue bonds in excess Of
requirements. Even after meeting this
demand there remained to the credit of
budget accounts at the end of the year
sl5.204. ID Of the money derived from
the sale Of revenue bonds against the
Years taxes in excess of the amount re-
quired to pay budget appropriations.
REASON FOR SURPLUS.
Tie reason for the accumulation of
this enormous surplus to the credit of
budget accounts in excess of the amount
required to finance the cost of city gov
frnmeut is made plain by an examina-
lien Of the ChamberIain's cash state
nrents Of the So. J.O42. .275 obtained from
thes illegal sale of the years revenue
bonds. s9,s37, ,553 was used to redeem
reyenue bonds issued in previous years
against arrears of tax levies prior TO
1905 in excess Of the tax collections and
ofher revenues available for their re-
demption. This left still to the credit
Of budget accounts S15.2O4, I'D of the
surplus receipts. But IL has been shown
IN a previous article dealing with trans
actions in revenue bonds in 1907 that
S6.001 .604 was taken from the surplus
receipts of permanent improvement ac-
counts during that year and used to re-
deem old revenue bonds. This amount
rad not been returned previously to the
accounts from which IL was taken in
1907 because the amount had never been
on hand. After refunding the amount
thus borrowed budget accounts emerged
ri the end OF the year with a balance
Of cash TO their credit Of $9,2o3,11s.
The major part Of the money required
10 finance permanent improvement ac-
counts during the year was obtained
from the sale Of $j00O0.000 Of corporate
stock and assessment bonds during the
month OF February. The excess of re-
ceipts over expenditures at the end of
the twelve months was SS. 49,. 1876. But
to tllis surplus should be added the So,
gGf .6O4 taken from these accounts in
1907 and used TO redeem Old revenue
bonds With this addition permanent
improvement accounts would finish the
year with cash balance TO their credit
of Sl4.734, $40.
METHOD OF SEGREGATION.
Following the same method employed
in the segregation Of the chamberlain's
cash accounts for 19o7-described' in de-
tail in a previous article-the weekly
cash statements for 1905 have also been
csrefuIly, tabuiated 10 produce an exact
counterpart Of the bookkeeping records
ia the charter report compiled from the
cash accounts.
The figures already quoted from the
charter report for the year indicate that
while there was ST,522,117 OF a cash
balance on hand in tine city treasury at
the beginning of 1905 warrants drawn
in the previous year were outstanding
against that balance 10 the extent OF
9s44.942. The distribution Of this casn
on hand among the various groups ot ac-