New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-24
CHURCH INVOLVED IN
HEARING ON CHARTER
Eugene A. PhiIbin and E. M.
GrOut Defend Catholic
Charity Methods.
RIGHT TO AUDIT DISCUSSED
Prendergast and Mitchel's S Probe
of Institutions Recalled
Fosdick's Report May
Yet Become Public.

Fosdick Report May
Yet Become Public.
Discussion Of the chapter on the De-
partment Of Charities at the hearing on
the proposed new city charter by the
joint legislative committee Yesterday
afternoon was allowed 10 drift into d
rather bitter controversy a TO the pro-
priety of the methods used by special
committees Of the Board Of Estimate in
investigating the relations Of Catholic
charitable institutions 10 the city.
Assemblyman Foley, who was presid-
ing allowed il to go on until an excited
citizen jumped up and cried: Il protest.
This has degenerated into an acrimoni-
Gus discussion between the Bureau of
Municipal Research and the Catholic
ChiFch / came to hear discussion Of
the chart r"
Chairman Foley whacked his gsyel
vigorously and when order had been
restored Eugene A. Philbin. who with
Edward VI. Grout represented the
Archbishop Of New York. and Henry
Bruere Of the Bureau of Municipal Re
search, who had been having a little de-
bate all TO themselves had taken their
seats and the incident was ended.
The man who stopped he discussion
refused to give his name. Il am only
a private citizen, he said. and do not
court notoriety"
Prior 10 this the old controversy be-
tween the Catholic Church and Con-
troller Prendergast over the right Of the
Finance Department 10 investigate the
financial condition Of private institu-
uons and the allegations that were made
70 the effect that A fund had been
started among the Catholic institutions
for former attach6 Of the Finance De-
partment were gone over. This fund
had been suggested. but never raised.
Raymond 3. Fosdick. Commissioner Of
Accounts. made an Investigate ton Of this
story, but his report was never made
public by Mayor Gaynor.
Prendergsst 70 Publish Facts.
Or. William II Allen OF the Bureau
of Municipal Research. declared that
Controller Prendergast knew the facts Of
this investigation. and would probs bly,
make them public on his return from
Europe. although even the legislative
committee may not be able to get the
report from the Mayor
Mr.. Bruere was arguing against the
section Of the charter which would ex-
empt from the audit of the Controll1r r
the bills Of private charitable institu-
uons for services rendered 10 wards Of
the city. He declared that this was a
vital poln,t and that the Controller
should be allowed 10 examine the ac-
counts of the institutions in order 10
discover whether the moneys they got
from the city were used in the care Of
the city's wards or for paying of in
terest on mortgages and Other private
purposes.
Assemblyman Hoey read what he
declared to be an order from Controller
Prendergast and President Mitchell of
the Board of Aldermen, comprising a
special committee of the Board Of Esti-
mate to investigate the relations Of
charitable institutions TO the city. II
was directed 10 one Of the committed $
examiners and told him TO make an ex-
animation Of all accounts and check
books and to report all unexplained OF
suspicious items as, for example, Items
TOR special counsel fees, missionary
masses. conscience funds, etc.
Net Sure Order Was Genuine.
Mr.. Bruere was asked if he thought
il was right 10 20 so far in rhe investi-
cations Of the city He said he was not
sure that the alleged order was genuine.
and he would not be able 10 lind out
about il until the return Of Controller
Prendergast and President Mitchell
from Europe. Il should exempt mission
ary and conscience funds" he added.
and [ do not believe that the Controller
ever issued an order of that kind"
commissioner Drummond broke in 10
say that he ought 10 be able to verify
it. as he had access to. the Controllers
office
Mr. Bruere went on 10 say that the
investigation had been begun because
rhe attention Of the Controller had been
called to a check drawn by the treas
urer Of a private institution upon one
of its funds collected for charitable
work. The check purported to have been
drawn for counsel fees" but con-
tanned a statement on the back that it
was for a fund that was being raised
for man then connected with the
Finance Department re continued:
This money was supposed 10 be drawn
tor special counsel fees out Of the funds of
a charitable institution and IL was testified
10 bv a person Of good standing and re-
sponsibility that 10 was used 10 help pub
lic officer who had intimate relations 20
these Institutions out of his financial
straits
Why It Was Investigated.
That was subsequently denied by that
ogirer and bv the person who was sup
,,'sed ia be the Intermediary. but ~ was
conceived 10 be proper by President Mitchell
.rd b,. counsel Prendergast and by their
.'asociafes i'm the BCard Of Estimate and
t....,r,iorr,eut that an inquiry should be