New-York tribune., 1911-11-22
SAYS IT IS NOT AN ECONOMY
Prendergast Points Out Cut
Saves the City Nothing


New Orleans Nov. I-Ccntrollor Prem
dorgast Of New York gave out the follow
ing statement tonight regarding the ro-
duction in the New Tork budget made hy
the Board Of Aldermen this afternoon.
According 10 figures submitted 10 me tie
budget for 1912 has been reduced .et,pt
Three-quarters Of this cUt, or 100000. r.
taken from the sum Of Sl0.0000l0 originally
included IN the budget 20 cover denclencles
I'm taxes. No one must be deceived Tor
minute with the idea that TINS means
reduction in the citys running expenses
II simply means that the payment OF this
large sum now owed by the city Will oe
deferred until next year. or later, ana IN
the meantime the city will have 70 continue
paving interest upon r.
In this connection II rs also signlncsnt
that there was deducted from the budGei
tJ0nGo0 for payment OF interest on revenue
bonds Did II occur 70 the Board or Alder,
men or whoever directed or supervisor
their work that In cutting down the item
for deficiencies IN taxes there was inlme-
distely imposed an added burden IN the
shane OF interest on revenue bondsP
To treat this very important matter m
this way simply means q return 10 the
baltiug and shifty methods heretofore en-
ployed by Tammanv administrations. IhtY
never had the courage 70 tace their rsspon
sibiIfties Those under their influence
haven't changed The charter distinctly
provides that there shall be included N
the budget OF each year Pm amount repre-
senting deficiencies in taxes accruing up
10 January preceding the making Of the
budget There had accumulated from l'N
10 January !. 1911. an unliquidated account
chargeable 10 deficiencies and taxes or
7 maintain that the taxes represented
bv this figure arc an uncolleCtable ana
should be Included in the budget Of i9l-
and that the provision Of the charter
covering this point is mandatory II was
this amount / reported to the Board OF
Estimate and 81 was included in the tenta-
tive budget on the day the budget was
cor,uIetsd some Of my associates urged
$40 600 600 In difference 10 their wishes
7 did not further oppose fhe action they
suggested The Mavor was present dur
ing the discussion, and by what was ap-
psrently the unanimous judgment Of the
members ~ the board the sum OF 5000.
nm was included IN the budget FOR 1912
There has accumulated from January J.
rqlf 40 September ~, 1911. q further def
cierc-. i'm. taxes II g. 10000 This means
totsl M 10 October of 81 00ooN0 By iu-
Guiding only sl00l00o ln the budget Of iqle
the citV will be carrying over an uniquf-
dated balance OF 81 10.eN. which viii never
din,inisE but. on the contrary. grow frou
firtber deficiencies during the coming wear
T., addition 10 this. IN must also be remnm-
ned that there are gtill Uuliquidated de-
Nciencies iu taxes amounting 30 EloDlniD
ro1resenting the balance of Tho accumuIa
t6u from consolidation 10 700.
When I became controller this account
-,ood Al S33 Gl0pN0 bur 10000 has been
f,rdsd through tho issue of corporate
.cL II has teer WF policr fp par on
ttis very old Indebtedness 8t the rate OF
a. 80 40 year through corporate stock
ilzues Even an thls rave ~ would require
re,e1 years for uE 20 hQuldite.