New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-18
Controller Replies to Hy'
lan's Request for lnfor-
nation on Finances
Says Judge Is Misled
Expense Has Not Increased
Above Tammany Admins
trations, Declares Report


yesterday his response TO Mayor-elect
Hylan's request for information on the
state of the city's finances. On De
ccmbcr Judge Ilylan asked the Con-
troller TO tell him in what measure the
city funds would enable the incoming
administration TO carry out the prom
ises made in the Tammany platform
on which Judge Hylan was elected
Mayor. Controller PrenderGast's an
swer consists Of ten-page letter,
which goes into great detail.
The Controllers letter shows that
the city debt limit to-day is $35,106,-
zoo. OF that amount. however, all but
Sl.400,O00 is included in authorizations
already made by the Board Of Estimate,
but not yet reduced to contract form.
In other words, the Board Of Estimate
has allotted TO various public purposes
the bulk Of the city's possible borrow
+ ings. but these authorizations with the
single exception of 1894, 263 for rapid
transit. will not be legal charges
against the debt limit until contracts
are let and registered. With certain
restrictions provided by law under the
pay-as-you-so policy, adopted by the
Mitchell administration, the new Board
Of Estimate can rescind these au-
/ thorizations and spend the money as it
sees fit.
Can Increase Debt
The Controller estimates that the
/ debt-incurring power of the city VIII
be increased by the redemption OF
debt and sinking fund instruments and
from other sources, when the new
budget becomes effective on January J.,
+ 1918, by S3O.44S.909. This. added 10
the present debt limit, will give a total
available up to December 81, 1918, OF
SOS, J5,1l0. 800.
This large increase in the debt-in-
curing power does not, however. give
t the new Board Of Estimate as free
hand TO spend IS would appear. Judge
4 Hylan asked the Controller for state
ment Of the Public Service Commls-
sions requirements for subway con
struction. The Controller reported q
minimum for 1918 OF S15,550,5Si, with
further needs for 1913 or 1919 Of S.
F $4,000. making $23,73i.5S4 which
should be charged against the new
boards S65,00000O.
The Controller gives other charges 70
be expected in 1918 which, If all salts
/ fed, would reduce the S65,OOO,OOO to
remainder Of S2I14.00O. These charges
include S12OO0.O0O for schools already
authorized; S9.492O0O for the South
Brooklyn Marginal Railroad, already
reserved: 100000 for dock purposes,
of which 81 100000 is already author
lied; 100000 for various municipal
purposes, including those of the Bor-
ough Presidents offices, and S3.OOO,OOO
for the fund for park and street open
ings and the street Improvement fund'
Balance Is Small
"This exhibit shows" said the Con-
troller. chat there may be an unen-
numbered and uucommitted balance OF
debt-incurrlng power available on De
cember 81, 1918, of S21l4,325. This IS
a very narrow margin and one which
might very easily be wiped out by some
unforeseen or emergency demand upon
the city's resources. Considering the
ever advancing scale of prices and the
great risks which the very nature OF
the present time suggests, as for eX-
ample. a catastrophe such as that which
occurred recently at Halifax, II viii be
apparent that nothing more than the
programme outlined in these figures IS
possible, and its consumation is not
certain. Some Of the rapid transit au-
thorizations may be deferred until
1915"
Another means Of obtaining available
borrowing power, but in a restrictive
sense. would be, the Controller says,
TO dispose of city real estate not used
for the public purposes for which 1t
was designed. There would be some
thing over S19000,000 figuring on the
cost Of the property. This would IN
clude. however. the new courthouse
site. which cost the city Sll,6I9,64S,
/ and which. the Controller states. he is
/ advised must be used for courthouse
purposes unless there is legislative ac-
/ ton.
/ In discussing Judge Hylan's asser-
/ ton that the bonded debt of the city
showed "an increase in three and a
half years of S226.274,0l0, Collector
/ Prendergast pointed out that Judge
Hylan has been misled into including
in his figures for the city's debt S229,-
100000, which is not real debt at all, be-
Nauot IL III ltFti NaNf " w pau
The Controller added that even on the
basis of Judge Hylan's assumption as
to the city's debt. the four years Of
Mayor Mitchels administration showed
a S44.ss1 ,625 smaller increase than in
the McClellan-Met administration.
Kept Down Maintenance Costs
A for Judge Hylan's comment that
in the four years Of the present admin
istration the city spent "a truly stu
pendous total Of over S1,O0O,0OO,0O0, %
the Controller shows that the present
administration has kept down the adj
vance in operating and maintenance
costs.
Controller Prendergast set Judge IIy-
Ian straight in his apparent belief that
the eity's issues of short-time obliga-
lions should be added 10 the otherwise