New-York tribune., 1911-12-10
CONTROLLER INSISTS
ON CHARITIES AUDIT
Rules of Estimate Board for the
1912 Budget Reopen Dispute
with Institutions.
CATHOLIC BODIES PROTEST
prendergast Says Different
Manner of Handling Child De-
tendency Problem Might
Come as a Blessing"

p,les laid down by the Board OF Esu-
,ate 70 govern the payment OF city
o,ov 70 charitable institutions under
the 1912 budget have resulted In re-
orening Of the controversy over the
-. of controller Prendergast to In
eroct the books Of the Catholic institu-
tiOns.
recently Edward NJ. Grout, Morgan ].
o,prien Eugene A. Philbin and Michael
y McGoldrick, representing the organ
t,od Catholic charitable institutions Of
tho CITY. wrote to the Controller protest
inc against any insistence upon certain
80 the requirements laid down, and add
"a that they would "be unable to re-
ceive dependents of the city if such re-
o,,irements are made a condition for the
,eceipt of moneys as compensation for
The care and education and maintenance
Of such dependents"
Mention is made of a letter TO the
Controller written under authority OF
the Most Rev. Archbishop and the Right
Rey Bishop" under date Of March l6, TO
which no reply has ever been received
and il was stated that the right of the
authorities to make thorough inquiry
.as 10 the correctness Of bills rendered
nv institutions against the city. and as
10 the proper administration of all af-
fairs concerning the moral, mental and
nbvslcal care Of the wards Of the city
committed to these institutions is not
questioned for a moment"
II was declared. however. that the city
would not be permitted 10 inquire into
the affairs Of Catholic institutions not
connected with the performance of the
duty assumed by them in relation TO
such dependents" nor to inquire into
money received from private charitable
sources
They argued that in caring for the
citv's dependent children they entered
only into a contract TO render certain
service and that beyond a proper audit
OF their bills the Controller had no right
20 investigate their books.
The Controller in his reply said that
the city had no desire to look into the
accounts Of funds maintained for strict
" religious purposes, but that it had the
right TO know in just what way the
money received from the city was used.
Counsel for the institutions stood on
an opinion rendered to- Charities Com
missioner Drummond by the Corporation
Counsel, TO which the Controller replied
in part:
You call my attention 10 an opinion OF
the Corporation Counsel, from which YOU
say II clearly appears that the institutions
are not the recipients of any subsidy or
benefaCtiOns from the city, but that the
moneys were paid TO them under con-
uactual relation of obligation.
case Passed Up for Opinion"
You know as well as I do that this opin-
ION is based on a case framed for the
made 10 fit into the case, without be-
leye the proper study OF the facts in
volved In the broad question at issue or
respect 10 the provisions of the charter.
! have referred that opinion to lawyers
well competent, l believe, 10 judge OF Its
value. and they deny it's force and applica-
ton.
The Controller said ne was loath to be-
neve that the Catholic institutions were
serious in saying they would refuse to
longer care for the city's dependent chill
dren In case what he believed to be bust
ness rules were insisted upon, but inti-
mated that the city would be glad TO find
another way of caring for them should
it become necessary. He said:
observe with regret your intimatior
that if the rules for 1912 are insisted upon
the Church authorities whom you represent
will be unable 10 receive dependents Of the
city. In view Of the great charitable pur-
pose which undeTlieS the institutions caring
for the dependent children, II is incOnceiv-
able that your words are 10 be literally In
tcrpretcd.
! respectfully deprecate the suggestion
you have made. involving so radical
change especially as your protest seems tC
rest principally upon one item OF the rules
WMch. feel assured Is susceptible or
thorough understanding between the insu
tuuons and the Department OF Finance.
II seems 10 be the philosophy of govern
ment that We tolerate certain policies be
cause they have developed and are 10 6
great extent relied upon for the execution
II public work II does not always follow
that these policies are the very best tina
could Doe devised or secured under the prac
tcdl conditions that surround us.
/ do not entertain the belief that the in
sutuuonal system which we have been fol
lowing is the only method answering ou
public necessities. on the contrary, / know
that 20 a certain extent in this community
and very generally in other communities
other methods are followed with equal. Il
not greater. gain to the welfare OF the de
pendents
Change Might Be a Blessing"
Consequently IL from the disputes which
nave arisen between the institutions yoJ
represent and this department. there should
arise the necessity for a different manner
Of haullng the Child dependencY problem