New-York tribune., 1910-03-08
WILL HELP THE CITY
SAYS CONTROLLER OF
STATEMENT.
Praises The Tribune for It's
Work-Apmoval of Prem
dergast's Plans.

dergast's Plans.
Speaking of the publication of his fnan-
cial statement in The Tribune yesterday
! Controller Prendergast said: Il appreciate
the way in which The Tribune gave public
! ity to my statement ] also wish TO COM
mend the able way in which YOU analyzed
| it, / am sure that the wide publicity given
to the entire report will be of great advan-
tage 10 the city as we'll as to investors in
| city securities"
! Controller Prendergast's statement aroused
attention and much interest among bust
ness men and other interests in the finan-
cial condition of the city yesterday.
Allan Robinson. president of the Allied
Real Estate Interests said Controller
! Prendergast Is to be congratulated on the
frank and clear statement he has made on
/ the city's finances, and The Tribune is TO
be congratulated in that it was able months
ago TO point out the defects in the city's
financial transactions which require cor
rection
The question that Immediately arises in
ones mind is: Who has been benefiting
from concealng the true facts to the
/ city's finances Certainly not the taxpay-
ers. for they are now called upon to pay
! taxes on a fifteen point rise this year. Was
hit the late administration. which desired
10 be retained In power. was 1t financial
/ interests who preferred q high rate of in
/ terest on temporary certificates to q low
rate Of interest on corporate stock? 1t is no
wonder that the city's credit has been
DANA ged and that per cent bonds are
selling to-day between 9S and 90 and below
the price which bonds of other cities in
the United States are selling in the open
market
"A huge floating debt, the exact proper
tions of which no one but the late Con-
troller and his confidants knew, has been
/ hanging over this city for years. ] believe
that now the matter has been clearly set
| forth and the size and character Of this
temporary debt have been disclosed. the
| effect will be favorable on the market for
! New York City securities.
Duty to Uphold Administration.
1T is now incumbent upon every citi-
zen having the interest Of New York at
heart 10 uphold the Mayor and the Con-
/ troller in their efforts to improve the
credit of the city. If the Controllers plan
! for specifying the purposes for which the
I
/ is carried out 1t will form a precedent
! which would make ii impossible for city
officials in the future to divert public funds
/ from the particular purposes to which they
should be applied. as has been done in the
past Private corporations, if they are
properly conducted, do not raise money on
the sale Of securities and then appropriate
the proceeds for some other purpose than
was announced in the advertisement Of
sale Public officials should maintain the
same high standard, and if they will not
do so OF their own volition, then they
should be compelled to do so by law.
II doubt if the Controller has the legal
right TO wipe out any portion of the deficit
due TO uncollectible taxes of former years
by appropriations authorized in future
budgets AS l understand the law, II spe-
cificaIly states that this deficit must be
wiped out by an issue of corporate stock.
! If 1 am right in this regard it simply
means that the taxpayers will have to
bear the additional burden in the shape
| of an increase in the interest charges upon
the funded debt instead of being COM
PEELED to make up the shortage out of the
tax revenues through appropriations in the
annual budgets
/ Edgar J. Levey, president Of the Title
! Insurance Company and former Deputy
Controller, said:
/ Controller Prendergast has faced diff
cult situation frankly and honestly, and
deserves 10 be congratulated. The fact
that this situation was not so faced by
the preceding administration is the best
evidence that 1t was no easy task
Should Fund Debt Quickly.
while I fully appreciate the difficulties
! I
that l was a little disappointed at the
/ length of time it is proposed TO take TO
extinguish that part of the city's temporary
/ debt which it is now officially admitted is
! outstanding against taxes that cannot be
collected This debt should be funded at
! the earliest possible moment, and l hope
that conditions will be such that it will
/ be possible to get rid Of it at a much great
er rate than $50oh.000 a year
The statement that the Controller is
/ seriously considering plan 10 do away
with the selling Of corporate stock under
the blanket designation of various mu-
nicipa purposes is move in the right
direction. That custom should never have
/ been introduced. and the quicker it is done
away with the better for the credit of the
city"
The Controller IS to be congratulated
for the fun and frank statement he has
given the public regarding the citys finan-
cial position, said Andrew Mills, president
of the Dry Dock Savings Bank. 1T was
the right thing TO do from every standpoint
Not only will il give the taxpayers conf
dence in the good intentions of the Con-
troller but II will certainly strengthen the
credit of the city.
personally, / was glad TO read that the
Controller is seriously considering a plan
TO do away with the custom of selling the
city's corporate stock under the blanket
designation of various municipal pur-
poses Such a change, making more spe-
cifc the purposes for which the money is
borrowed before the sale OF the bonds,
would be welcomed by those who invest
their money in city securities. and would
also be a guarantee that the proceeds would
not be used in the future, as they have in
the past, for purposes other than the pur-
poses for which the bonds were sold.
I'm fact I consider the whole attitude of
the present administration dist.nc: credit
10 the city. 1t gives good promise of n
great change for the better in the admins
uation Of the citys affairs. a change which
IS bound 10 do a very great deal Of food."
Henry BruAre. director of the Bureau
Of Municipal Research. praised Controller
Prendergast fOr issuing his statement ON
the funds in the city treasury and IN under
accumulated through uncolectible taxes