New-York tribune., 1921-04-01
City Gets Cash
ToPay Bills by
SOS to Banks
Sells S15,OOO,OOO More
Short-Term Notes After
Assurance From ALBANY
OF Law to Speed Taxes
Officials Clash ON Action
BerOlzheimer Attacks Finan.
cial Methods of Craig
and Draws Sharp Retort

The possibility of the city having to
defer or default on the payment of its
current obligations, due to the failure
to obtain sufficient money on the SAT-
100000 of short-term paper offered by
the Comptroller on Wednesday, led
Comptroller Craig yesterday to send
out S calls to Albany and to vari-.
Gus local banks to meet the emergency.
After day of unusual activities the
Comptroller announced last night that
he had secured sufficient funds to meet
all the heavy obligations due to-day, the
first day of the month, and had assur-
ances from Albany that Legislation to
prevent recurrence of a similar situ-
alton in the future would be passed
without further delay.
The Comptroller said he had dis
posed of approximately SIS, 100000
Of short-term notes yesterday at 6 per
cent. This is in addition to the s21,-
100000 of bids accepted on Wednesday,
which would clear up everything for
this week, he said.
From what / understand 20 be the
legislative situation,' said Comptroller
Craig. at is the disposition cs the re-
sponsiblc leaders to see that the two
bills, one for the advancing of the pay
nent of taxes for the second l4lf of
the year from November l to July
and the other for the abolition of the
City Chambe erlains office, will be
passed without any further delay.
expect to conclude arrangements before
the end of the week to obtain all the
money that will be required until these
measures have taken full effect. After
that we will have no difiiculty."
Rushesv Appeal to Governor
Early in the day the Comptroller
sent telegram to Governor Miller re-
qnesting him to send an emergency
message to the Legislature for the
passage of the tax and Chamberlains
bills. He also sent special messen-
ger to Albany with his message to the
Governor. In his telegram to Governor
Miller the Comptroller declared that,
unless these measures became law
without moments delay, there is no
certainty that the city will be able to
finance its current expenditures"
The Comptroller explained that it
would be an easy matter to borrow
money IN the market on shOrt-term
paper at per cent, the maximum rate
of interest he has fixed for the city to
pay, whe n the banks and other lenders
were assured that the tax money
would come in on July l and that they
could get it at that time. He declared
that the advancement of the tax pay
ment would take the city out Of the
market for at least 500, 600 of bor-
rowed money on which it would have
to pay interest on long-term bonds. He
pointed out that. if the tax law passed,
approximately Sal 100000 OF taxes
would be payable on July /, of which
| about S12O. 900 900 would be Immediate
| ly available.
The Comptrollers policy of. financ-
| ing the city on short-term loans, how
| ever, came in for severe criticism from
i certain bankers, and particularly from
City Chamberlain Philip Berolzheimer,
yesterday. The Chamberlain charged
the Comptroller with bad faith in try
ing to borrow money for the city, de-
iylaring that he-the Comptroller
didn't really want to get it, but was
irving to use the credit Of the City Of
New York to further the interest Of his
own pet measure at Albany.
The Chamberlain also made public q
letter he sent to Corporation Counsel
John P. O'Brien under date of March
"a last, seeking an opinion as te
whether the Board or Estimate or any
other city authority had the power to
compel the Comptroller to change MS
mode of financing and borrow on lone
| rusd