New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-04-14
WILL KEEP THE CHILDREN
Catholic Institutions Had De-
manded City Withdraw Them.
TROUBLE WITH CONTROLLER
1t Began with Removal of D. C..
Potter, and Had Reached Acute
Stage When Peace Came.

The trouble that began between the
I Catholic charities and Controller Prender
CAST. when D. c. Potter was dropped from
the Finance Department is about 10 be
settled. according 70 ex-Judge Morgan J.
, q Brfen, OF counsel for Archbishop Farley.
who. az head Of the diocese. is also head
or the catholic charities of this city. AT
| first the question was whether Potter
should be reinstated as chief OF the char
tiles bureau OF the Finance Department.
/ but the argument soon hroadened into an
examination by the Controller OF tho man
agement OF the Catholic charities and a
demand by him for supervision.
This led 10 an ultmatum by the mnn-
ayers OF the institutions that the children
placed in them by the city should be with
drawn by May l. When this acute stage
was reached a solution was found by the
bookkeepers, and IL IS now believed that
the trouble will be settled within the next
week or ten days and that the children
will remain where they are. while the city
will continue TO contribute 10 their support
as heretofore.
The trouble began with the dispute over
Potter" said ex-Judge OBrien last night,
''but 1t soon outgrew that question and be-
came one OF principle and the entire man
agement OF the Catholic institutions con-
Quoted by the sisters. When Controller
Prendergast began his examination OF the
institutions for tho purposes of his inquiry
into Potter's conduct OF his office he
claimed the right TO look into all the finan-
cia affairs OF the asylums.
That was something we could not allow.
We were willing TO concede the right OF
/ the city 70 supervise the spending OF every
dollar OF the citys money. but these in
situations are largely supported by private
l contributions. and We could not allow that
I the Controller had the right TO go into them
and demand TO know how the sisters had
used the money given 10 them by private
persons. We allowed the first examination,
so that the Controller could see how every
dollar had been expended up 70 this time.
This had 10 be done. there had been
/ no separation OF tho accounts by the sisters
| in their bookkeeping and we wanted the
! Controller TO see that there had been no
| irreguarity in the use of the city money.
We put our own accountants I'm at the
same time, and neither the Controller :
men nor ours have found a single thing
! OF WHICH 10 tOiibiob-
when II came 70 the claim OF MT.
Prendergast. however. that he had the
right 10 go in at any time and inquire
into the use Of the funds OF the institu-
| tons we refused IA a matter OF principie
| 10 allow the women who run these asylums
| 10 be treated in this way and we refused
| because they are in a large sense private
charities and not public institutions. AS
the appropriations by the Board Of Esti-
ma 70 are made about May l. We had 70 set
that date for the removal of the children
nlaced in our care by the city. for unless
the city renewed It's appropriations the en-
tire expense OF the support Of the children
would fall on us. and It was too much FOR
us 10 bear
AT this point the accountants found a
solution OF the problem. The experts We
had employed offered a plan by which the
/ accounts could be so kept as 10 show the
| expenditure of the city's money without the
necessity of an examination OF the work
carried on through private gifts. The Con
trolIer's accountants offered another plan
! At the same time. II is now only a Gues-
ton of which plan viii be adopted. For all
practical purposes the solution OF the diff
| fcuIty has been reached"
Mr.. OBrien said that there had not been
anv question over such institutions as the
Catholic Protectory. They. he said, were
so largely supported by public money that
il was considered proper for the Controller
10 demand the right 70 examine all or their
accounts. The whole controversy. he said
had been over the institutions run by the
Sisters The amount contributed 20 them
by the city varied from a small proportion
Of the entire cost 10 as high as 80 per cent
II had never been contended that the city
aid not have the right 70 supervise the ex-
penditure OF It's own money, but the Cath
ole church had denied the right of the city
! 10 question the use OF money received from
private sources.
ut finally came down 10 a question OF
bookkeeping" he added, and then the so
luton was found"
There is no Justification FOR the publca-
ton OF story that the city has been asked
70 find new homes for the 1900 orphans il
Catholic institutions" said Controller Prem.
dergast Yesterday. I'VE have received NJ
request TO that effect from Archbishop Far
lev or any one representing him.
The Controller said he did receive letter
from the Rev. Joseph A Schneider, Of 81
Joseph's orphan Asylum, saying that his
trustees objected TO the rules laid dowr
By the State Board Of Charities. and Il
they were 70 be carried out. they would
want 70 have the city orphans In their care
removed az soon as the State Board oil
| Charities might direct These rules, how
ever, have nothing whatever TO do with
the Controller II Is understood that the
board has appointed Thomas VI. Mulry, one
Of their number. 10 take up the matter with
the Rev Mr. Schneider. There is no mis-.
understanding between the managers OF ST
Josephs Asylum and myself" said the