New-York tribune., 1919-03-10
Bill Asked to Put
Claims on City Up
TO Law Department
Good Government Bureau
Contends Power Now i'm
Controller Recently Has
Been Arbitrarily Used

The controversy incident to Control
Ter Cralg's course in the settlement Of
subway contractors claims has result
ed IN the recommendation Of bill at
Albany to vest the power Of settling
all claims against the city entirely in
the MUNICIPAL department of law. Will
lam Bullock, director of the Good Gov
ernment Bureau, makes the recon-
mendation, which would involve amend
ment Of section 149 of the city charter.
Mr. Bullock, in a letter to Senator
John b. Mullan, chairman Of the Sem
ate Committee on Cities, declares the
change is necessary to remove from
the charter one of it's few remaining
political relics. The letter, made pub
llc yesterday, adds:
II also recommend legislation TAX
ing from the said Controller the sole
power to appropriate the moneys need
ed for any claim settlement he may
make and that such power of appro-
priation be placed with the Board of
Estimate and Apportionment and the
Board of Aldermen, as in the case Of
other appropriations.
Power Arbitrarily Used
II make these recommendations for
certain specific reasons, briefly as fol-
lows:
THAT while heretofore it appears
the power to settle claims vested in
the Controller has not been arbitrarily
used, there is evidence that such pow
er recently has been arbitrarily used
and that the result of such arbitrary
use has been against the interest Of
the taxpayers of the city.
THAT the problem of the settlement
of claims against the city is actually
and in every way legal problem
That the City of New York has ap-
proprated upward Of $1OOO,0O0 for
this years maintenance of law de-
partment for the settlement of the
clty's legal problems, and the legal
problem of the settlement of claims
properly belongs for investigation and
adjustment to this law department.
THAT the Department of Finance
properly should be confined in it's work
and activity to the financial operations
OF the city or to the handling Of the
clty's sinking and other funds, its bond
issues, and the auditing and paying out
of all the city's money.
Audits Own Payments
THAT the Controller at present not
only finds it possible under the present
charter provisions arbitrarily to settle
claims, but also to appropriate and
pay out on his own responsibility the
money he allows on such claims.
That 1t is contrary to the plan and
purpose of American government to
empower any one man at will to ap-
proprate public funds and pay them
out on his own audit, and so add to the
public debt.
"The placing of this sweeping power
in any one individual, or any one public
officer, is contrary to the intent and
spirit Of the charter. Also, it appears
the practice Of the Department Of Fl
nance to do the legal work in connec-
ton with claims is opposed to the aim
and spirit of those who originally
drafted and enacted the charter"
Intercontinental Claim Cited
Mr.. Bullock further declares this
anachronsm of the charter permits an
unwarranted play of the spirit of
favorltism, and then proceeds to detail
alleged facts in relation to settlement
Of subway claims by Mr.. Craig, which,
he said, had been brought to light by
the Good Government Bureau. He ais O
submitted with the letter to Senator
Mullan bureau report regarding the
lntercontinental Construction Company
claim. Regarding this, his letter,
which charges that Craig's action was
"cloaked with secrecy" continues:
"The corporation claimed Sl,O38.-
101.7S on account of a contract for con-
struction of a section of the Eastern
Parkway subway, in the Borough of
Brooklyn.
"Controller Craig has made partial
settlement of the claim for $328,0OO in
the face of advice from the Public Ser
vice Commission that payment or set
tlement in excess of $4,000 would be
"a gift of the taxpayers money!"
Mr.. Bullock then goes on to say the
Controller has reserved items for fut-
ure settlement amounting to S59,-
079.50 indicating final payment to the
corporation Of a total of 1887 ,079 so,
and adds:
"The Controller left the Public Ser
vice Commission in ignorance for four
weeks of the existence of the said
claim. 1t was only by accident the
Public Service Commission learned the
bare fact Of the existence of the claim.
The Controller has not informed the
commission to this day Of the settle
ment he has made of this claim, based
on one of the commissions own con-
tracts"