New-York tribune., 1910-06-10
CONTROLLERS MEET HERE
National Association Discusses
Plans for City Accounts.
BOSTON MANS SUGGESTION
Keep Revenue and Borrowed
Money Accounts Separate
Tribune Plan Approved.

Speaking at the fifth annual convention of
the National Association of Controllers and
Accounting Officers. held yesterday at the
Hotel Astor. Harvey S. Chase. Auditor of
Boston. outlined the general plan for keep
ing accounts in controllers office so that
the revenue Of a city received from taxes
and other sources would show In a sep
arate account from borrowed money. His
ideas on this question were in line with
those recommended in The Tribune from
time 10 time to apply to conditions in this
city.
Borrowed money or bond issues should
90 to general public improvements" he
said. and the revenue annually Of city
should pay all the current running ex-
penses of the year. But what we con-
stantIy find is the fact that too many cities
do not pay all their debts from current
revenue. using borrowed funds to make up
deficiencies thus borrowing against the
future. which ordinarily might be expected
to have it's burden of debts without having
10 carry those Of past administrations.
Revenue should be made to pay all
municipal expenses. and should be kept in
a separate account to show that it accom-
plishes what il is intended to do. If the
people are not satisfied and want more
than the revenue will provide. then the
question should be put squarely up to them.
that they must consent to increasing the
taxes. or deficiency will result and grow
annually. These deficiencies are leading to
municipal bankruptcy"
LIE Grand Powers chief of the agrtcult-
uraI census. Washington. said: There
isn't a l0En or city or a private firm doing
business without proper accounting sys-
TENS that is free Of the danger Of drifting
toward bankruptcy. IF you stand for clear
cut keeping of accounts, so that they will
act as a check on the treasurer's honesty
and Of every officials efficiency. you will
raise the standard of the municipality
Several of the visiting city officials looked
with disfavor upon the investigation of city
finances by self-constituted investigators
and unofficial outside bodies on the general
ground that they produced complicated
accounts and lack of uniformity in man
aging the bookkeeping part of city finances.
A committee was appointed 10 provide a
preliminary organization for keeping mu-
nicipal accounts. proposed by Frank Smith.
general accountant In Controller Prender-
CASTS office. This plan provides that steps
shall be taken TO organize a system of
uniform municipal accounting, designed for
the best system OF management from WIFI
IN city offices. and doing away with the
necessity of calling in private accountants
or corporations TO DO the work
Some OF the delegates put themselves oil
record as being strongly against 'Junket-
ing trips by any city officials in which no
profitable results were produced. They
said that the public should be allowed TO
know what was done by such officials when
they visited conventions in other cities,
so as not TO let the public form the mis-
taken impression that when city officials
made such trips II was with the sole object
of recreation.
II was suggested that every member OF
the present convention make a report when
he returned home. showing what he had
ACCOMPLISHED, thereby securing public sup
port and approval.
This afternoon the visiting officials will
irsnect the Controllers Office, with a view
IN seeing how New York manages its
enances. and tonight they will dine at the
Hotel Astor. After tie business session
tomorrow they will pay a visit 10 Coney
Tslard and end the visit with a dinner there