New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-30
mitchell SHOWS
CITY ECONOMIES
Then Senator Brown Asks
About Snap Issue of
Revenue Bonds.

The Brown legislative committee,
which is Investigating city finances, re-
ceived a thorough course Of instruc-
tion yesterday in budget making
Mayor Mitchell was on the witness
stand most Of the day and reviewed
exhaustively the history and present
day methods of making up New York
S200,OO0,0OO budget
Senator Elon X. Brown, chairman OF
the committee, directed many pertinent
questions al the Mayor in regard 20 the
ways and means Of the Board of Estl-
mate in formulating the budget. and
intimated now ard then that there
might have been some madness and eX-
travagance in the methods of the city
officials. The Mayor insisted. however
that expenses had been reduced TO q
minimum as far as il was possible IN
the face Of the mandatory legislation
imposed upon the city from Albany.
Senator Brown created a stir among
the city officials present when he dc
clared that he had noticed in the min
utes of a meeting Of the Board of Esti-
mate that an issue of special revenue
bonds had been authorized with the
sanction of the Board Of Aldermen, and
when that body was not in session.
This appeared 10 be contrary 70 the
provisions of the city charter, requir-
ing q three-fourths vote Of approval by
the Board of Aldermen. He instanced
the matter evidently 20 show that the
city officials might have re5orted TO
snap methods TO exceed the $4,000, 0G0
limit for such appropriations as fixed
by the charter.
Mayor Mitchell resorted to hssty con
ferences with Controller Prendel CAST
and Commissioner of Accounts Wall
stein, who sat near him, and finally de
clared that the 100000 limit had
never been reached by the preser: ad-
ministration Senator Brown dropped
the subject without going into further
details. President McAneny, Of the
Board Of Aldermen, said after the
hearing that such action had never
been taken by the Board of Estimate
without the approval of the Board o.
Aldermen, unless II had been during
Civil War times.
In describing the budget methods the
Mayor said that the estimates OF the
various city departments for their
needs for the coming year were sup
posed TO be presented to the Board Of
Estimate by July 10. Most Of them
were not received until September or
October, he said, but there was good
reason for the hardness in sons de-
partments.
"The only serious offender in sub
hitting estimates is the Board Of Edu-
cation" the Mayor said. eve never
get their estimate until the last min
ute"
To show the economy practsed in
budget making now, the Mayor testified
that the percentage increase in the cost
of departments under the Board OF
Estimate and Apportionment from 1909
to 1916 was 1.6 per cent, while the
percentage increase in the population
Of the city from 1909 to 1915 was 81
per cent The issuing Of corporate
stock for so-called permanent improve
ments had formerly been much abused,
the Mayor said, but great care was
exercised now Ia deciding what i'm
pgovements were permanent. The wit
ness described the negotiations for the
SlOO,OOO,OOO loan from the city bank
ers in 1914 to meet the city's foreign
obligations, and outlined the "pay-as-
you-Co" policy adopted at that time.
NO other administration will be
bound By your plan remarked Senator
Brown.
mo- replied the mayor, DuI no
future administration will dare TO go
back TO the old haphazard system OF
city financing" o.,
Senator Brown asked the Mayor if
he aid not think the matter OF man
datory legislation should be sub
united 20 the people by a referendum
and let them decide whether they
wanted the control at Albany or IN
local hands. Mayor Mitchell said he
approved Of referendum as la las
resort. but that he hoped the commit
tee would be able to persuade me
LEGISLATURE 20 afford the needed reliet
I'm The meantime.