New-York tribune., 1920-05-16
Craig Charges
BerOlzhei1ner
With Default
Comptroller Declares the
Chamberlain Neglected
to Collect City's Part
of State School Fund
Tells Corporation Counsel
Alleges $4,000 Interest
Was Lost Through Delay;
Notifies Bond Companies

COnpCrOller CnarlcS L.. Craig unCOV-
cred cescrve battery yesterday in his
siege 1pon the Office of the City Cham
berlain and threw few hot shot into
the camp of his political enemies.
When the smoke had cleared it ap-
peared that the Comptroller had done
little damage except to increase the
animosity of Mayor Hylan and City
Chamberlain Berolzheimer
In letter to Corporation Counsel
John P. O'Brien the Comptroller charged
the City Chamberlain with "default and
neglect" in collecting the city's part of
the state school funds. He alleged that
Mr.. Berolzhei inner owed the city $4,000
in interest, which should be duly col
lected by the Law Department, and he
notified the four bonding companies on
the bond of the City Chamberlain in
order that they might "take such steps
as are appropriate"
Mayor Hylan declined to comment on
the Comptroller's latest attack. Cor
Mayor at the City Hall after the police
parade, also refused to comment. City
Chamberlain Berolzheimer denounced
the action of the Comptroller as an
other attempt "to stir up trouble" and
declared that "a lunacy commission
ought to investigate that fellow"
Letters Explain
In his letter to Corporation Counsel
O'Brien the Comptroller said:
81 hand you herewith copy of let
ter addressed by me to Philip Berolz-
heimer, Chamberlain of the City of
New York, under date of May 5, 1920
and also copy Of letter addressed to
each of the sureties upon his bond
May 15 1920, and ] hereby request
that you take the appropriate action
to enforce the liability Of the said
Berolzheiner and his suretics for the
loss suffered by the City Of New York
by reason Of his default and neglect
Any further information that you may
require l shall be glad to furnish.
shall also be glad to have verified any
pleadlngs, affidavits or other papers or
site"
The letter Of the Comptroller to the
United States Fidelity and Guaranty
Company, the American Surety Com
pany, the National Surety Company and
the Globe Indemnity Company, the
four companies on the $500, 600 bond
required of the amberlain, further
explained the matter. The letter fol-
lows:
"Notce is hereby given to you as
sureties upon the bond of Philip Berolz-
heimer, Chamberlain of the City Of New
York, of the neglect and default of the
said Berolzhcimer in the performance
by him of the statutory duty of apply
ing for and receiving one-half of the
school moneys apportioned by the Com
missioner of Education of the State
of New York and payable on or before
March 1, 1920. The said sum so tc
have been demanded and received al
such time is approximately two million
land five hundred thousand dollars ($2,-
100000, no part of which has yet beer
demanded or received, as l am in
formed, and the loss of interest by rea-
son of which to the present time
amounts approximately to upward OF
thirty-two thousand dollars ($32 2OOO).
"You are also notified that by reason
Of the default and neglect Of the saS7
Philip BerolZhcimer, as chamberlain
to demand and receive payment of like
moneys to the amount of approximate
ly one million and three hundred
thousand dollars ($1,30000), paymen
of which it was his duty to demand ano
receive on March /, 1919, such
sum was not received until May 23
1919, and the City of New York suf
fered loss amounting to the interes
thereon for such period of approxi
mately eighteen thousand dollar,
! ($l8,000), or a total loss for 1919 ant
lars ($50,000).
by a letter dated May 5, 1920,
directed the attention of the sait
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