New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-17

Controller Prendergast has earned the
! gratitude of the taxpayers in the remark
able degree of success which has at
tended the introduction of sound and
conservative methods into the manage
ment of the eity's finances during the
first three months of the present year.
The statement of receipts and expendi-
lures of the city treasury, prepared by
The Tribune from the city's cash ac-
counts and published in another column.
shows a, decrease of s21 .Sf4.sS7 in the
amount of money required TO finance the
city government. and consequent SAY
ing of $40! 600 in interest charges alone,
during the first three months of 1910 as
compared with the corresponding period
Of 1909 If an equally good showing IS
maintained for the remaining three
quarters of the year the Controller will
have accomplished Il saving -of nearly
81 100000 in interest charges upon
money borrowed upon revenue bonds for
budget purposes.
The comparative figures giving the re-
ceipts and expenditures of the accounts
covering the administration of the city
government for the first quarter of each
of the years since 1907 are convincing
| evidence that the creditabie showing
made in the present year il in no way
! accidental. but is the direct result. of the
/ introduction of sound, businesslilxe meth
j obs into the alana cement of the city's
! finandsS...f' It IS also significant that, al
though the authorized budget commit
! h.
| than the budget commitments of 1909,
l the expenditures during the first three
months OF the present year upon budget
appropriations were less by S3,9s5,3S1
than the expenditures for the same pur-
pose during the first three months Of
/ last year.
In q series of articles published in
October last The Tribune demonstrated
that the practice of selling corporate
stock bonds under the Blanket designa-
! ton of various municipal purposes to-
gether with the general pot custom of
receiving and. :dtshursing city treasury
moneys. had completely destroyed the
correct balance of accounts, and that the
| borrowing of money upon re- 2nue bonds
against taxes that had been declared I'M
collectible had resulted III a huge fem
poraFy debt, part of which had been
! liquidated by the diversion of corporate
/ stock-proeeeds: 1t also pointed out that
consequent inapregident and heavy Dor
rowings upon revenue bonds had resulted
! in piling up enormous interest charges
year after year that were seriously in
| juring the eitys credit.
| One of Controller Prendergast's early
official acts was to issue a clear and
/ frank statement of the amount of money
which had been diverted from corporate
stock proceeds and used to redeem rev
enue bonds representing money borrowed
upon the credit of taxes that had been
| declared uncollectible That statement
verified almest TO a dollar the facts pre-
viously published in The Tribune IN his
statement the Controller unequiyocally
/ said that this practice must cease and
announced his intention of funding that
part of the citys temporary debt repre-
scented by money borrowed against taxes
! that were uncOllectible. In announcing
! his first sale of corporate stock bonds
the Controller not only kept his promise
to begin at once the funding of the ex-
cessiYe outstanding temporary debt, but
abolished the custom of selling corporate
stock under the blanket designation of
various municipal purposes. This of
necessity carried with if the abolition If
the general pot practice of receiving
and disbursing the receipts of the city
| treasury.
The first fruits of the reorganization
Of the city's finances by the present Con-
troller are shown ia the operation of the
accounts covering the administration of
city government, because those accounts
naturally reflect the change of methods
more quickly than the accounts covering
permanent improvements financed from
the proceeds of the sale of corporate
stock. Time will show the extent TO
which the Controllers reorganization
viii benefieially affect the entire admins
tration of the eity's finances.