New-York tribune., 1911-12-22
REVIEWS CHARITY ISSUE
Prendergast Attacks Counsel OF
Catholic Institutions.
TRYING TO BECLOUD, HE SAYS
Grout Answers That Controversy
Revolves Around Free Ser
vices of the Sisters.

statement Yesterday regarding the COnt1o-
versv that has been going on between the
Catholic charitable institutions and the
city over the right of examiners i'm the
Finance Department to 20 over the books
of the institutions i'm which dependent chill
dren of the city are kept
Edward NJ. Grout. of counsel TO the Cath
Ole charities, said last night he was un-
willing To make a detailed reply offhand to
statement that Controller Prendergast
had spent three weeks i'm preparing.
Il will say. however" he continued. that
the whole controversy revolves around the
fact that the Sisters who are I'm charge Of
the Catholic Institutions give their SER
vices for nothing. while in the Jewish and
Protestant institutions all the work that is
performed 10y the Sisters I'm the Catholic
asylums must be paid for. II will he found
that all this large sum of money the Con-
troller talks about having been misapplied
can be accounted for in that way.
by the rules of their orders the Sisters
must give their services free. If they took
money for what they did. the rules of the
orders would require them To turn II back
into the general fund The Catholic chari-
ties make only the same charge for taking
care Of the children intrusted 10 them thdt
is made by the asylums Of the other de-
nominations and faiths. If a charge were
made for the work of the Sisters the money
would be turned into the order and the
same result would be reached I'm round
about way as is arrived at when the money
from the city is used for the purposes de-
cided on by the heads OF the orders
sbarpqg made nv
counsel for the institutions that investiga-
tors Of his department broke into closets
and desks of the institutions and asked i'm
pertinent questions of the Sisters and oth-
ers. He declared it to he the purpose of
at least one of the counsel TO becloud the
issue
The Controller referred to the investiea-
ton made in June, 1910 in regard TO the re-
lations existing between the man who had
been for some years head Of the division
Of charitable institutions in the Finance
Department and some OF the institutions.
He said he had information that steps had
been taken to raise a 5000 fund for this
man, adding:
The basis of the charge was voucher
dated January o. 1907 drawn upon the
accounts of ST Josephs Union. allied WIN
the Mission of the Immaculate Virgin ID
favor of the Rev NJ J. Fitzpatrick, for
special counsel fees, $500. ON the reverse
of this voucher il is stated:
This amount was our share % tn inn%
amounting II understand 10 500. Which
was to be raised by institutions 10 take
Rev. Or. Potter out Of his financial trounle :.
This check was cashed and amount elNel
10 tho Rev VI j. Fitzpatrick. VINO saw
that il reached the person for whom IL was
- INV "WILLIAM A. c. DOUGHERTY."
The superintendent and bookkeeper of the
Mission Of the Immaculate Virgin, the Con-
trcller said. testified before Raymond Is.
Fcsdick. Commissioner of Accounts that
they had always understood that the pay
nont i'm question was for Dr. Potter VINO
had been I'm the Finance Department
/ Father F'itzpatrick testified that a check
mad not been made payable 10 Dr Potter
direct because il was not thought advisable.
II was later decided that the fund for Dr
Potter was unwlsc and the money was not
given to him, according to the Church au-
thorties The Controller said:
Further than this, / have the written ad-
mission of the Rev. Father Fitzpatrick
that during DR. Potter's employment IN
this department he, Father FITZPATRICK; hau
out of his own funds discharged Juus
nIent held by Austin Nichols * Co.. against
DR.. Potter.
'rhe Controllers statement went on to
say:
An issue is made of the so-called private
records II should be known that 'htnS
Catholic institutions do not keep any prl-
yate records at all The question relates
10 one or two institutions only, In when
access has been denied In many OtheIs tile
Controllers representatives during the last
YEAR have been given freest access to those
so-callcd private records. There rs nothing
mysterious about them. They are req9lreu
by law TO be open to the lnspeCt'oII oi ,,ss
They consist of funds contributed lot III
sttritional purposes by private giVers. lhey
are called "private' in contradlStnctoh 10
those funds received from the puDllc treas
Gry.
Referring to recent statement OF Eu-
gene A. Philbin, Of counsel for the Cathohc
institutions. the Controller said:
# is stated that Messrs, Paterson Ieale
and Dennis the accountants retained by tlle
Church authorities. have made thelI repoi l.
and that they have not found a single IN
stance during the two or three years COW
ering their inquiry in which there mas ueTh
the slightest evidence OF tallure 10 dPpiS
u, operiy the moneys received from the Guy,
There is something i'm the report 10 Which
ur philbin does not call attention. 1t con
tains a drastic indictment OF the methods
"f Leeninp accounts in the Catholic instltu-
tions. ~. ,,,o,bods II,
Tho renort at the time ii was shown 10 me-
0Ctober %. 1911 is extremely severe O..
| should regard its publication as com
nlete vindication of my course IN lhslStlhs
nnon a thorough inquiry into the Duslhess
methods of these institutions
The Controller went on to cite number
~ instances Of what he considered unbusi-
nesslike methods. Referring TO the fact
that the rate paid to the institutions Tor
support Of dependent children was raised
from 81 to 81 p In 1906 on Dr. Poters rec
ommendation, the Controller went on:
think | have right. therefore, to ask
this question: Was IL proper 10 raise the
rate 10 g - on the plea that the institu-
tions were not able to care for the inmates
ON the allowed rate of s. when the inNesti-
CATION proves that they were doing ii for
81 or less and II does not appear that In
The case OF many Of the institutions the
advance represented a clear gift on the
part Of the city
am told that the Catholic institutions de-
veIop these surpluSes because they do not
ray salaries to the reverend sSterhOod as
generally or In such large sums as other
institutions do 10 their STATS.
The services Of the reverend Sisters are
represented as a contribution 10 the great
cause Of charity. and this is the splendid
motive that underes them But how is the
cItv the beneficiary Of these manifestations
of charity If the outlays saved by them are
=. a.. DETECTED bV the institutions 10 the