New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-17
City Loses Millions i'm In.
terest in Year by Tenn
porary Relief Notes,
Meyer Counsel Is Told
354 Million Fund
Used for Expenses
Transfer From Sinking
Funds for Current Paw
ments Began i'm 1908

The specific information concerning
the financial affairs of the city, which
the Meyer Legislative Committee was
unsuccessful in getting from Mayor
Hylan was obtained in fulsome measure
yesterday from Comptroller Charles L.
Craig.
The Comptroller, as the star witness
in the committees investigation of the
Hylan administration, overwhelmed
Elon r. Brown, The committees coun-
sci, with statistics, figures, statements,
reports and ordinances, forcing the
examiner time and again to plead for
assistance in unravcling the bewilder-
ing maze of figures.
Debt Situation Unchanged
Nothing developed from this avail
anche of arithmetical information, how
ever, that cast the faintest beam of
light on the charge by Mr. Brown that
the city had exceeded its debt mourning
powers by s120,0OO,OOO and the counter
statement Of the Comptroller, denying
this, and Offering that the city was
$137 100000 within the limit Of its
borrowing power. What had happened
to the S257 100000 involved in the
divergent views of the two men is
still problem.
The examination of the Comptroller
did reveal, however, two important
points in connection with the city $
financial system. The first was that
since 1903 the sum of S354,O00,000,
which had been placed in various sink
ing funds for the reduction of the
city's debts, had been transferred and
used to pay the municipalities current
expenses.
The second disclosure was that
through the practice of issuing various
kinds of temporary Indebtedness notes
the city loses in interest this year
about $5,50O,0OO.
Mr.. Craig and Mr.. Brown agreed that
both practices constituted bad finance
and were fundam entally unsound, the
Comptroller holding howeveri that
nothing could be done to remedy the
matter under existing legislation
Evasion Of Tax Limit
1t was pointed out that the first
point referred to practically was effect
ed to get around the per cent tax
limit, devoting moneys Of the sinking
fund to purposes that should have been
provided for by taxation. Mr.. Craig
said that the practice was legalized by
the general fund bond act OF 1903, the
passage Of which, he testified, was OBJ
tanned by Mayor Seth Low to enable
his administration to keep down the
tax charge. The transfers now have
risen to such a figure, he said, that he
doubted any legislation will be much
good to overcome the evil results. As
a result, he cdntended, many debts
practically will never be paid.
Asked for some suggestions in the
way of proposed legislation to help
remedy the situation, Mr. Craig re-
fused TO make any, saying he was a
member Of the charter revision COM
mittee and was saving his ideas for
the meeting of the committee in No
vember.
These were among the rare CLEANS
of information that bobbed up in the
course of the six-hour discussion on
numbers between the Comptroller and
the committee counsel. Mr.. Craig an
pearcd on the stand with endless books
and folios Of figures and reports Only
once did he stand on the excuse that
he did not carry these figures in his
head Totals, interests and principals
streamed forth with complex techni-
calltles so last that Mr.. Brown on
many occasions was compelled to re-
mark
Just minute, please. Won't you
explain that to me so that | can un-
derstand it. You know | am new at
this"
Bits of Humor at Inquiry
At other times Mr. Brown would
apologize for his ignorance of certain
things and plead with Craig in soft
tones to bear with him indulgently.
LET us be entirely friendly" he would
say, adding that he desired to avoid
all appearances Of controversy.
Despite the highly technical nature
Of the testimony and it's general dull
ness, the spectators found things to
Continued on nAae foarl