New-York tribune., 1911-12-06
100000 OFF BUDGET
WON'T CUT TAX RATE
Borouuh President MCAneny
Predicts 1t Will Cause In.
crease Instead.
NO SCIENTIFIC STUDY FUNDS
Controller Prendergast Hopes to
Enlist Private Capital for the
Pursuit of This Impor-
tant Work.

Pursuit OF ThlS lmpor-
tant Work.
Following the approval yesterday by
Mayor Gaynor OF all except $4,000 OF
the SS,151 ,193 excisions from the bud
get for 1912 by the Board OF Aldermen,
Borough President McAneny pointed
out that the cuts would not mean a
decrease in the tax rate, but would re-
suit in an increase.
Controller Prendergast said that If no
other way could be found to get the
money necessary for scientific study Of
future budgets, which was one of the
appropria tions cut out, an attempt
would be made to get the necessary
funds for that purpose from private
sources. I'VE need money to enable us
TO get information on which TO base
scientific budget" he declared and we
will find a way to get it
In a long message sent to the Board
Of Aldermen yesterday the Mayor ex-
planned why he had disregarded the re-
quests Of all the members OF the Board
Of Estimate except himself and Bor-
ough President Connolly, for a restora-
ton TO the budget Of the item or
S22O,OOO for budgetary studies. also
why he approved of other cuts made.
Tho Mayors Letter.
In approving the excision from the
budget of S7,452, ,264 s. set down to meet
a so-called deficiency in the collection
Of special revenue taxes, the Mayor
wrote
There is no such deficiency. An apparent
deficiency of that amount IS created py
bookkeeping method established IN Nm, Lne
Finance Department before the present
Controller took office. Under this methoG
certain moneys actually paid inlo the
general fund Of the city BY the pupllc ser
vice corporations, and which the law re-
quires shall be credited on their fran
chise taxes in part payment thereon, eacn
year, have been accumulated year after
year as deficiency. In brief, TINS So
called deficiency has arisen ss tolloWs; toll',s
Each year the franchises OF the pubic
service corporations are valued FOR taxa
tior by the State Tax Commissioners, ana
then the regular city tax IS cast thereon
to all property in the city. But Section ~.
OF the tax law then requires that each cor
poration shall be credited on the tax so
cast against It with the sums which II has
raid in during the preceding year 10 the
city which were lin the nature Of a tax.
leaving only the balance 10 be PAID by
such corporation. Such payments IN the
nature of tax are those which were I'M
posed on the corporation when its fran
chise was granted TO II, or atterWard such
as an annual percentage on its gross earn
ings, fees or tolls for crossing our bridges
license fees and the like. The said Section
4s Of the tax law expressly requires that
these corporations be given credit for these
payments on their tax bills, and that they
Pay only the balance.
Franchise Tax Discharged.
In that way their franchise tax is fully
discharged instead of any part Of IL going
unpaid and creating a deficiency. But by
the said bookkeeping method established in
the Controllers office several wears ago
these payments, actually made 10 the city,
and which have TO be credited on the tax
bills, are set down as a deficiency The
Controller has discussed this matter with
me and we all see that there is actually
no deficiency. To chahrge this large sum
as a deficiency is only 10 make our budget
each year look larger than it is in fact,
and subject II to unjust condemnation.
There may be some difficulty in setting
the matter right but ! have no doubt that
the Controller will adopt a method. ! sup
pose all that is necessary is 10 credit this
false book deficiency with the equal amount
OF money which has actually been paid into
the general fund in the way which I have
already described, and which has TO be
credited on the franchise tax as part pay
nent as the said statute requires.
The Mayor also approved Of the ex-
cision Of S1,9S2, ,175 SO set down for
deficiency in the collection of personal
taxes. on the ground that it was not
known what such deficiency would be.
In approving the excision Of the
amount for the budgetary studies the
Mayor declared that the Board Of Es-
partments or 10 say how they should
be run. THE government OF this city"
he declared, is not what is called a
government by commission through
the Beard OF Estimate and Apportion-
ment"
The items restored 10 the budget by
the Mayors veto OF the action Of the
Board OF Aldermen were S21 600 for
yatrolmen's salaries in the Tenement
House Department, and also $4,000 for
special expenses Of the Municipal Civil
Service Commission.
Cuts Won't Decrease Tax Rate.
Borough President McAneny's state
rent is in part:
The so-called "cuts" made by the Mayor
and the Board OF Aldermen will not de-
crease the tax rate In the slightest degree.
On the contrary, as result OF the action
lower Following the course taken in the
preparation OF previous budgets, and the
practice OF the Finance Department, the
arrears of tax deficiency on January ], 1911,
Vas estimated al sl227l, 900 The Board of
Estinnate following the precedent of A year
ago. included ten millions OF this IN the
budget, leaving the remaining S-'IVDGO nor
vet oficially pronounced uncollecuble. In
adopting the Mayors suggestion that the
tier, of 81 $4,000 representing the deficiency
in the collection OF special franchise taxes,
be not included In the oudget. put deducted
from the general fund revenues, the alder
1nen have merely switched this item from
one side OF the account 10 the otner. There
is iust that much less In the general FUND
for the reduction or taXauoh, ana conse-
ouentiy, so far as this item is concerned.
~ ,aI rate will not be affected one way
or the other. But the aldermen IN making
This transfer, included the entlre amount OF
srrears from other sources IN the budget,
tn.tead of leaving part Of this 10 be dis
charged in succeeding years, as the Board
~ Estimate had proposed Ihey have
taken out N.S0co OF the Aroourt so,,s ot uncot-
n-;s rourt order will PROBABLY nut them back
e. g., otber words. they have added either the
ir,ira ~ T. baIance OF $4,000 to the amount TO
ba paid from taxation in 1912. or II the per.
.e,eI oe taT account does stay out, at least
soIi1i ~ "a a., .xcxse ~ the figure the Board OF
Estin,ate had proposed. The tax rate will
Io IN nv as many points as either OF these
hsuIeb ,ba Wavor has said. It is "a matter OF
LcAotteening'" whichever view is regarded
to,,o ,hs aldermen claimed II as reduction
~ "a xstIon. and do not tind any correc-
ZION OF that impression IN the Mayor mes