The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-16
DIRECT TAX DUE TO
ERROR, SAYS TRAVIS
Comptroller Admits Increase
in State Revenue Was Not
FOresecn.
CASH SURPLUS IN 1917

ALBANY, Dec. 15.-Eugenc VI. Travis.
state Comptroller, does not share the
expectancy OF Gov. Whitman that the
State is on the verge of a heavy direct
tax. approximating $4,000 900. This was
made plain tonight when the Comptroller
sent a communication to the Governor
and legislative leaders forecasting tho
possibility Of the State being relieved OF
a direct tax.
In his letter Comptroller Travis says
that only a small direct n will be
necessary next year and that perhaps
such IL tax may be entirely avoided" In
thus advising the Governor and other
state officials he is obeying the pro-
vision Of the State finance law which re-
quires him to- furnish such Information
to those responsible for the States
finances.
The Legislative leaders will look upon
the Travis statement AS a much roster
outlook IA the one given recently by
the Governor.
Concluding a tabulation of figures.
Comptroller Travis says that the esti-
mated deficiency for september 80, 1917,
based on existing laws, Is s2,3J1,s06.
but adds that with the favorable action
Of the Legislature there should be a sur
plus In the State treasury on September
80. 1917, of $4,2os,le3.
Governor Is silent.
Gov Whitman did not discuss the
statement tonight. but probably will do
80 in a day or two.
In his report Comptroller Travis says:
1T Is estimated that the aggregate eX-
p~enditures for the fiscal year ending
September 80. 1917. Will exceed the
revenues for the same period by about
100000 II the revenues from recon-
mendatlons are taken into consideration
but, in addition to the revenues, there
will be available a cash surplus at the
beginning OF that fiscal year Of probably
81 eos, 7O9.T9.
This cash surplus, resulting from the
operations of the treasury during tho
present nScal year. Is accounted FOR
principally by the transfer to the gem
eral fund OF $3.654.000 from the pro-
ceeds OF canal bonds to reimburse the
general fund for expenditures prior to
the authorization Of the bonds; by
the unexpected increase in revenues from
stock transfer stamps due to eNtraordi-
nary conditions caused by the European
war, and by the large Increase In rev.
enue from the secured debt tax law,
due partly to changes in the law, but
more especially to the attempt of the
Tax Commission OF New York city to
increaSc tho personal property assess
'~sfN "hA>h N' "te' uitip Vi
persons to oHain exemptions under
the secured debt tax law.
1T Is apparent that the condition OF
the state treasury at the close of the
present fiscal year will be much more
favorable than was anticipated by the
officials OF the state, including the
Comptroller. at the close of the las,
legislative session, when the srnount of
the direct tax for this year was fixed.
The estimate made at that time OF the
probable revenues Of the State took into
account every condition that could be
foreseen. and the change for the better
which has taken place is due to factors
In the financial situation which We
would not a been justified in as
Stunning to be possible
Mr.. Travis also says
while this is merely q tentative
financial programme, subject to revision
by the Governor and the Legislature.
the experience OF this office convinces
me that II Is a feasible and practicable
plan and ] earnestly IL 10
your thoughtful consideration. 1t indi-
Gates that It will be possible to have
the cash surplus n the direct revenues
meet nearly all. and perhaps all. Of the
requirements up to October !, 1917, there
by requiring only Il small direct tax
next year and possibly avoiding such a
tax entirely. There Is no need OF en-
phasizing the desirability OF escaping
the imposition Of such a general tax,