The sun., 1914-08-24
FINANCIAL JUGGLING
CHARGED TO MAYOR
Trying to Dodge Tax Rate Re-
sponsibility, Says City
Inquiry Bureau.
GOT SPECIAL LEGISLATION
Switching Of Corporate stock
Funds Highly Questionable.
Statement Asserts.

William Bullock director of tho Ru.
reau OF City Inquiry, made public y.s.
terday statement purportinr 10 slow
that the city IL from $4,000 o0o "a
S12,O0o,000 short In tax funds & au,e .,
'hnanc al Jugg Ing ev 10 he ex CT n,
special legislation. and practices AZ vari
ance with the simple rules Of upright and
straightforward financial management
| Tho bureaus statement charges that ,b.
tax rates for the last two years hay.
not accurately reflected the city's curr.,,
financial condition, which, barring nnan.
| cial Juggling. would necessitate an in.
| crease in tax rates OF from 10 To "a
points In all five boroughs unless IN.
sio on, get Is Gu fr m siO,0OO.OOo 10
l&l2o 0J,O0J b.iJw th ars tots,
| since he cook office A, B,illo,L
says. Mayor Mitchell has been planning
| 10 clrcumvent a financial predlcamen, n,
"hIch, II the city's hnaHcyS ar tu Da
| properly administered. makes Iuevitabla
| the ghest tax rates sire, G nsolIdati,n
| Ihe Mayor. however does not seem will.
ng TO inform the public of the true facts
| but rather aims to keep the tax rate,
| down by financing OF temporary eSp.di.
| ency and questionable regularity at
best"
His statement says that "unsuspect
ngly" bill was put through the state
| Legislature last spring amending section
| l76 OF tho city Charter at the bchost q,
| the Mayor and COmptrolcr. This meas.
| ure. he says, makes possible the usa O.,
| any surplus In the corporate stock fund,
the street Improvement fund and tina
| street and park opening fund-for IN,
| liquidation OF the city's indebtedn, 50 70
he funds and also authorizes transfer 70
| the general fund.
Mr.. Bullock asserts that plans of
financing without precedent in this cry
ire being made In opposition to the ivs
| borough presidents and Mr.. McAueuy
| he President Of tho Board OF Aldermen
| FOR the diversion OF the corporate stock
| FUNDS 10 create rates hctitiously low
| That IL. he saws II Is Intended to nav
interest on corporate stock bonds for tho
lext nifty years In order that the Mitchell
| administration may be saved from re-.
| possibility for tax rates increased from
| fl.7S to s1.90 In Manhattan from $l7I
sl.S9 in The onx from slso 10
Nl.s2 In Brooklyn. and from $3.50 q
| s2.02 In X cHmnnd.
THE tai budg { Increase" rhs HI.
reau OF CITY Inquiry asserts, for the ast
| wo years has been sl1.905.295. The cor
| psponding Increase I'm asscesrn .nfs has
OILY b''n $is5 293.o2. or only emo Ivh
% provide 33,35O,o00 out of bu lget
|
| ''1f the city therefore for he last two
years had been paying It's way from day
| TO day the taxpayers would have be
| compelled to pay upward OF slS.00O O0o
in addition to the millions they already
have poured into the city treasury.
THE reason why they have not been
subjected to higher taxes is because tho
general fund has been swollen beyond
| normal proportions. For several years q
| STAFF OF accountants In the Department NJ
| Finance has been transferring old bal
ances into the general fund. Balances
| running into the tens Of millions have
been unearthed from accounts dating back
more than forty years. The general fund
normally averages 1000, 900. In 1912
II totalled s30.97l,s07: in 1918. Sil.5sl,-
a9l, while the total for 1914. and already
applied against this years taxes, is s43,-
235.a35.
"The increase in the last two years
practically represents the old balances
dug up and transferred to the general
fund These balances took care OF the
budget Increases in 1913 and 1914. but no
such balances are available at present for
transfer and the reduction OF taxation
next year. On the contrary. more than
| $1,000 was transferred prematurely last
year. In order TO keep down this years
TAX rates.
THE present problem In tho biggest
Mayor Mitchell will face during his admin
lstration. The marking up OF forty-year-
old balances against current Indebtedness
vas a makeshift method OF financing
| which the Mayor now seeks to continue
the law passed for his administra ton last
spring being designed for further IN
fiaton OF the general fund against next
years tax rates"
A report made by the Comptroller 10
the Board OF Estimate on July 0, the state
ment says, shows that the city owes the
str ~ t,,nr 1axxtf f,,n
assessments up to December 81, 1918, and
that there In a surplus in the fund OF
sl3.o32, ,00S.22.
Under the new law" Mr.. BulioSk
points out. this surplus Is available for
payment OF the Indebtedness. But despite
10th tho law and the surplus, the Comp
troller on June last reported to tho
board that 1T is felt that hereafter the
city OF New York should fulfil it's obllga,
tons to the street Improvement fund
and recommended a corporate stock issue
OF sl39.527s4 to oover the city's indeb.
edness for the first three months OF ths
year.
"The board accepted the recommsnda-
tion and voted dhe Issue This action re-
! leased like sum In the funds surplus
for transfer to the general fund. so that
In effect corporate stock was Issued Tor
budget purposes"
Mr. Bullock's statement charges that
public Improvements have been held up
through the city on the pretence furnished
by the European war when the underly-
ing reason Is the acceptance OF a chance
to ease the way for release OF FUNDS
against the tax rate Increase. lie aiso
predicts that an attempt may be mace
next month to issue millions more In cor
porate stock TO pay a debt for when j
fund surplus already Is available
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TECAY Arm cOCJETY IN STRAITS