New-York tribune., 1913-07-14
FUSION CUTS DEBT BILL,
SAYS NORMAN HAPCOOD
Administration, Starting with
S6O,OOO,000 Handicap, De-
serves Praise, He Asserts.
TAMMANY REGIME LEGACY
Citizens Committee Chairman
Shows That This Item Has
Been Trimmed to $38, 0OO,-
O00-Interest Reduced.

| UOO-1IUClC Gov 4sOuoN
The success Of the fusion administration
in handling the city's finances Is the SUD-
ject Of an article made public last night
by the Citizens Municipal Committee
With headquarters at No. 200 Fifth ave-
nue. Norman Hapgood. chairman or tne
committee. is the author of the statement
which Is the first Of several discussing
fusion issues in the coming municipai
campaign to be made public from time 10
time.
The article calls attention to points III
administration in which the present con-
troller and his force have accomplished
great saving OF city money, following
Tammany regime In which the ONCE was
administered, IT is asserted, as a polltical
lob In the matter Of wipng out the
floating debt In outstanding revenue
bonds alone, which the former admins
tration left behind it. Mr.. Hapgood says
that the present officials deserve the nlgh-
est commentator.
The Tammany administration left as
legacy a floating debt Of S6O,00~ IN out
standing revenue bonds. consisting OF ar
rearaees and uncollectibie taxes" the ar
ticIe saws. There had been slothiul
practice Of letting these things drift alons
and accumulate. instead or clearing uP
the arrearages of each year by putt'hs
them i'm the next years tax levy VI
course. a political administration wou'u
prefer 10 preserve its popularity py Keep
ing such things out of the tax levy IN
stead of safeguarding the city oy Iore-
handed inancing.
"The fusion administration has oeen
vigorous in cutting down the hoauns
debt. II has not only not Increased tn's
floating debt but has reduced II from the
SO O1O 900 left 1t by Tammany TO S5s'oV'''''
with a continuation OF forehanded ad-
ministratlon II will be wiped out entirely
These and other excellent results have
been accomplished according 20 Mr. Hap
good. by the possession OF officials OF spe-
cialized training. In contradlstinction 10
this was the former regime, I'm regard 70
which Mr.. Hapgood saws:
The theory upon which John II. Nc
Cooey, the present Brooklyn Democratic
leader. was made the Deputy Controller
In charge OF financial matters was pre-
cissly the same as the theory upon which
although not lawyer and possessed OF
no special qualifications, he was after
ward made chief clerk to the Surrogate OF
Kings County. McCooey needed salary
from the public treasury while deVotlns
so much attention TO the Tammany inter
ests I'm Brooklyn Any old title Is good
enough so long as the salary Is sunlcleht
I'm place Of such an administration
where central control OF finances was al
most entirely lacking and chaos was near
at hand. the article asserts that to-day
ther. is complete central control, with
fun information daily as TO the assets and
fixed liabilities Of the city. one Result
has been saving OF several million uol-
lars in interest alone. according to the
article. which continues:
New York. like many other cities, had
long been I'm the habit OF paying It's cur
rent expenses out OF borrowed money
The money collected in taxes at the END
OF the year vas devoted To the payment
Of principal and interest upon revenue
bonds. and then more revenue bonds were
OF the following year.
The city's interest bill FOR revenue bor-
rowing had mounted 10 $4,000 in 1909
the last year of the previous Tammany
administration. With the increase IN
population the total amount OF the city's
current expenses was bound TO increase
and the interest rates were going up.
obviously. with the same system and the
same degree OF efficiency this interest
bill would increase.
TO this problem the fusion admins
tration applied brains. What was the re-
suit? In 1910. although the average in
terest rates were higher In the money
market and the amount borrowed on reve-
nuc bonds was greater than I'm 1893 the
interest bill dropped from $4,000 to VI
OooOoo. This was accomplished by Good
business judgment In taking advantage
Of market conditions.
when interest rates on short-time notes
we're low the city borrowed for eight
nine or ten months When the rates were
high II borrowed AS little as possible. and
later borrowed under more favorable
conditions TO pay off the high priced
loans
In 1911. the article continues. the city
interest bill dropped from 100000 to 81
$1,000 I'm addition, money was saved on
interest In one years trial amounting TO
81, 500 Ooo by system OF seml-annual tax
collections. Corporate stock issues FOR
permanent improvement, II is said. have
also been so managed as 10 yield re-
turn In savings