New-York tribune., 1921-02-04

Budget in Three Years
Shows SIS Per Cent Gain,
Making 1921 Estimates
More Than 100 Millions
Pay-as-Y -You-(5o''
Policy Abandoned
System Used by Mitchell
Regime Whitfield Away;
State Inquiry Proposed

Out of 100000 inhabitants Of the
City of New York, only handful to-
day know the precise status of Father
Knickerbocker's pocketbook. A smoke
screen of secrecy surrounds the Comy
troller's Office and prevents the out
side observer from following currently
the citys financial operations.
Yet, after mere than three years of
the Hylan administration, which was
elected on platform promising rigid
economy, the following facts stand out
as a challenge:
The budget for 1921 is $105,051,-
541.69 higher than that of 1918, the
last budget of the Mitchell admins
tration. Including provision for the
schools, the disparity grows to $780,
100000, an increase of 55 per cent
in three years.
"Pay-as-You-Go'' System
While publicity has been shut off,
fundamental changes in the methods
of municipal financing have been in
tAounSCht iiNl AliS iGtIOSIcSSIOu GU
the days before the Mitchell admins
tration, when the city was approach
ing q financial crisis. At the advice
of experts, the Mitchell administra-
tion introduced the pay-as-you-go
system to avert ultimate bankruptcy.
During the recent period Of
dinmed publicity the gradual whit
t1ing away of the pay-as-you-go pol
icy has brought the city back to it's
former uncertain and critical finan-
cial status.
Matters have reached such>a stage
that $27,000,000 needed to keep the
schools open after the summer has
not been appropriated, and cannot
be unless the Legislature takes ac-
despite the attempt made last year
to make the city appear to be on
safer financial ground by increasing
real estate valuations approximately
4 $1,000, ,000,000. But even this, though
resulting in higher rents and put
ting an abnormal burden on realty,
has failed to provide funds absolute
ly essential to the schools.
The perplexine tangle has been made
all the more confusing by Comptroller
Craig's dispute with the Mayor and his
resignation as chairman of the Finance
and Budget Committee. The Comp
troller, irritated at the attitude of his
colleagues on the Board of Estim ate
declines personally to attend its ses-
sions, although he is the chief finan-
cial officer Of the city.
The maze Of politics which obscures
the finances If the city has led compe
tent observers to suggest the des.ra
bility Of an inquiry by the Legislature
Publicity Burean Abandoned
Under the administration of Ccmp-
troller Craig the policy of prompt
monthly publicity regarding the affairs
of the Finance Department has heer
abandoned. These public statements
which had been adopted by Comp+rol
ler Prendergast at the urgent demand
of outside civic bodies who insiTtec
that the city ought to prepare intelli.
gible reports or it's finances that Its
citizens could understand. have beer
discontinued.
Since the December, 1918, report
no subsequent monthly statement ha!
emerged from the Comptroller's Office
and likewise nc quarterly fina ncia
summaries. The financial summar.
for 1919, the non-technical decu,
ment that the layman can under
stand, has not yet been published. II
November, 1920. the summary for 1911
appeared. The Comptroller's office ha!
issued no debt statement since las
July.
Having departed from the reform'
practiced by the preceding administra
tion, Comptroller Craig condu:ts th'
department as private rather thar
a public Office. His Office has falleI
hopelessly behind in it's published rec
ords. Expert observers agree that IN
taxpayers of New York have nothing
but a blind faith in the integrity o
the Comptroller to assure them tina
the department is being properly con
Quoted. The black and white record i
not available.
The financial affairs of the city ar
veiled in mystery. Effort to learn tn
| full facts at the Comptroller's offic
proves unsatisfactory.
A representative of The Tribune, il
quest of data regarding the debt of tn
city at present, called upon Arthur J
| Philpin, Deputy Comptroller. TIL
Deputy Comptroller answered genera
| inquiries regarding the methods of mu
tcontiaued on page tcurs