The New York herald., 1921-08-17
Comptroller Tells Meyer In
quirers New YOrk's Finan-
cial System Is UnsOund,
Unhealthy and Bad.
INTEREST LOSS MILLIONS
Blames Republican Legislature
for Plight, Explains the
Use of Revenues and
Fiscal Resources.

New York's financial system is ''un-
sound, unhealthy" and full of holes,
but the State Legislature is to blame,
Comptroller Craig told the Meyer In
vestigating Committee yesterday in
full days defence of the Tammany
administration of municipal affairs
for the last four years.
The city's debt burden has in
creased since 1903 by $354,000, 900,
which has been diverted from sink
lng funds into general current ex-
penses. That was possible under
terms of an "indefensible act passed
by the Legislature and under the op-
Grafton of which the Hylan admins
tration, Mr.. Craig testified, trans
ferred S32,500,000 of sinking funds
III 1920 to keep down the tax rate.
That is the Tammany answer to
the charge that the extravaganza and
waste of the Hylan administration
have brought the municipality to its
financial crisis. The Comptroller re-
peated it many times-it was his slo-
gan. 1t will be the the Hylan slogan
through the coming campaign. The
defence of the administration now
seeking reelection as outlined yester-
day by the Comptroller is in effect
this.
I'VE admit there are leaks and that
our financial system is bad but blame
the Republican Legislature"
BIames General Fund Act.
Throughout his examination the
Comptroller insisted that the general
fund act of 1903 authorizing the
transfer of sinking fund money to
payment OF running expenses was in
large part responsible for the city's
Indebtedness. Yet that law cannot
be repealed, he said, because the
city's finances have been put into
a condition which cannot be changed
even If the law were repealed. The
Comptroller held out no hope for re-
ducing expenses and tax rates until
city bonds begin to mature few
years hence.
"You voted for the bill" the Comp
troller told ex-senator Brown. The
former majority leader of the Senate
even returned from a vacation to vote
for the measure, Mr.. Craig remarked.
The record showed it, he added with
a smile.
DO you mean to say there Is a
legislative record that / returned from
a vacation to vote for that bill?" Mr..
Brown asked, evidently taken aback.
The Comptroller meant just what he
said.
You don't claim that I returned
purposely to vote for that bill, do
you?" Mr.. Brown asked.
Il would not suggest you would
run away from the bill" the Comp
troller said. Mr.. Brown agreed finally
that the law had been bad in prac-
tice.
Unauestionably it was the Comp
troIler's day in the morning. Con,
trasted with the Mayors bad showing
on the witness stand, during which
he admitted frankly knowing little
about the city's financial condition,
Mr.. Craig was brilliant witness.
Crair the Reverse Of Hylnn.
The Comptroller knew city finances
fully as well as, IL not better than. Mr.,
Brown. Where Hylan had evaded
Craig shot out figures and facts fast
enough to make a statistician's head
swim.
You don't mean just that or 10
you know just what you mean were
common questions asked b. MT. Stais
when Mr.. Brown put a complex aues-
ton regarding city finances. Let me
understand what you want TO kno"
and I will give II to you the Comp
troller said indulgently several times
and once Mr. fsrown. apparently some
what exasperated by this attitude. ns-
marked. "The Comptroller doesn't have
to ask anybody
You arc doing ms we'll as could be
expected with this complicated question
In the short time you have had to PIE.
pare" the Comptroller said another
time. and Mr.. Brown retorted by asking
whether the time given the study had
been so short. Mr.. Brown was stu
diously polite throughout; MFR. Craig not
quite so obviously polite. There were
irSny good natured clashes. but none OF
the fireworks expected
One OF tho surprising features of the
days struggle through the mass of hig
figures and complicated questions was
tns fact that neither MIR. Brown nor the
Comptroller made any mention OF the
quarter billion dollars which appears to
have dropped out of the city's ledgers
he Meyer committee claims the city Is
KO.00o.00o over its debt limit. Ths
centsnwsd on FVth Pogo.