New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-07
LEFT GAYNOR DEBT
Continued from nrst page.

of revenue bonds that were nCt paid
until 1899. This made the recipes avail
able for the redemption Of these bonds
2S.35s. 400 There we're redeemed q
revenue bonds issued in anticipation o.
the collection Of arrears Of taxes s65,-
575,6o0, so that s42, 217. 200 more was paid
out for the redemption than vas received
from the sale Of these securities in 1903
The source from which the money for
this purpose came is very evident. There
was s29, ,290 obtained from the sale Of
1903 revenue bonds, s6,807.892 came from
the forced surplus Of budget accounts
and s6,375,018 vas taken from the pro-
ceeds OF corpora te stock sales during the
year. Together these amounts make the
s42.217,2O0 used 10 redeem old revenue
bonds during the twelve months
The Tribune has already shown IN
series Of articles on Hidden Chapters n
City Finance" how the policy of chasing
the devil around 4 stump was pursued
bv the Mcclellan Metz administration in
1907 and 1908 in order 70 conceal the
real facts regarding the city's financial
position from the taxpayers. The story
told hy the official figures for last year
is only. another chapter in the same silly
game.
The plain truth is that the city IS
out some S40.000,000 OF accumulated
taxes levied upon personal estates and
special franchises Of corporations The
official figures given in the reports Of the
Controller show that Of the taxes levied
on lands and buildings since 1901 90
per cent has been collected During the
same period only 90 per cent Of personal
taxes and II per cent Of special fran
chise taxes have come into the city
treasury. Payments authorized in the
annual budgets for the cost Of admins
tering the city government include the
entire tax levy each year. Failure on the
part Of the city 10 collect SO per cent OF
special franchise and 40 per cent Of per
sonaI taxes levied during the years since
1901, all Of which Ievies were authorized
to be expended in the yearly budgets. has
brought about the present condition OF
the city's finances.
UNCOLLECTIBLE TAXES.
During that time millions Of dollars
each wear have been taken from corpor-
ate stock receipts and millions more have
been secured from the sale of revenue
bonds issued against taxes that are now
absolutely uncolIecuble-
In his first year in Office former Con-
troIIer Metz made a first move toward
getting rid of this revenue bond debt
incubus He got authority from the Leg
isIature 10 fund $50 900. 600 of these un-
collectibIe taxes of levies prior TO 1905.
While this method of meeting the an
uuaI inroads upon the city's revenues by
tax dodgers was wrong in principle. il
would al least have enabled the admin
istration 10 do some very necessary
financial housekeeping. But even this
method of Strengthening out the ciCy's
finances was not taken advantage OF BY
the last administration Only 100000
of The corporate stock authorized for that
purpose was issued The remainder.
sag OOo. zoe. still remains unused. with
the result that corporate stock moneys
authorized for other purposes and trust
funds have been used in q futile effort TO
reduce the outstan ding revenue bond
deht incurred in excess OF the colleCJ1ole
taxes out OF which il should be re-
deemed
sooner or later the question will have
~ he sauarely and honestly faced. or the
rirne will come when this large unse-
cIIred temporary Indebtedness will make
n imuossibIe for the city 10 dispose OF
its securities. Mayor Gaynor has taken
81 important first step in his instructions
- M new Board of Tax Com nisslonerS
that in future all tax assessments must
be fairly imposed, without fear OF favor.
But the heavier end or the task lies