The New York herald., 1921-08-18
CRAIG FIGHTS BROWN.
TO-DAY TOSHOW CITY
is INSIDE DEBT Limit.
Comptroller Accepts Chal-
lenge Of Lawyer Who
Charged Quarter Bill
ion Excess.
DEBATE WILL BE HOT
Propaganda by Wall st. to
\ Force Long Term City
Bond Issues Alleged
by Craig.
HIS SYSTEM IS DEFENDED
Assures Investigators in Long
Session of Prodding That
1921 Levy Is Within 2
P. c. Set by Law.
HIS SYSTEM is DEFENDED

Comptroll ,r Craig ended his second
day before the Meyer committee yes
terday by challenging Elon r. Brown,
senior counsel, to showdown when
the session reconvenes to day on the
charge that New York has gone far
beyond its debt limit In violation of
the constitution and Is now "over-
board" financially.
Mr.. Brown accepted the issue, and
II will be fought out to-day. The two
sides are full quarter billion of dol
lars apart on the question Of the
city's credit. The Comptroller de-
clared he was ready to prove the
committee was all wrong.
Mr.. Brown had called for an ad-
1ournment for the day and the Sena-
tors and Assemblymen were prepar-
ing to leave when the Comptroller
shot out his challenge and suddenly
placed the committee on the defen-
sive.
Only a few minutes before the
Comptroller reused some of the COM
mitteemen who had been put to sleep
by the overdose of statistics and fig
ures by declaring that Wall street had
conducted an organized propaganda
to compel the city to issue a large
amount of long term bonds, which
would be tax exempt, to the great det-
riment of the city. He had resisted
the pressure. he said, and would con-
tinue to do so as long as he remained
In Office.
Comptroller Denies Charges.
Throughout his testimony the
Comptroller defended and explained
the city's financial system and con.
tinued placing blame for defects on
the State Legislature. Certain prac-
tices, he said, were bad but unavoid-
able. He defended the sinking fund
system at great length, and said 1t
had been of much service in carrying
the city through bad financial mar
ket.
just at the close OF this line of ques-
tioning, ex-senator Brown rose and
said he had an engagement of years
standing and wished to end the hear
ing earlier than usual. Senator Meyer
pounded his gavel. Everybody woke
up and then Comptroller Craig said:
Before you adjourn I want to re-
quest of you. Senator Brown, that you
so arrange your papers for tomorrow
morning that we can dispose of the
question of the debt margin of the
city and whether there is any illegality
in the tax levy of 1921 by reason or
its being within or outside of the 2
per cent. limit.
1T has been several days since you
strongly to the effect that the city was
overheard on its debt margin. and
think that the time has arrived when
that subject ought to be decided"
"You are anxious TO make reply TO
that?" Mr.. Brown asked.
All set TOT MOrninH.
II am anxious to have you submit
whatever proofs you have In regard to
that question. and will submit what
have in regard TO that, and think that
ought to be done tomorrow morning"
There was great applause from the
audience.
Il see you have friends present" Mr..
Brown remarked.
II hope / have some on the commit
tee"
II had no idea Of closing the exami-
nation without taking up those two sub
jects you MENTION Mr.. Brown said.
That ought not to be delayed. Your
Views have been given Wide public cur
rency, and have rcfrained from making
any public statement, because think II
fs a thing that ought to be had out right
here. But believe the time has come
when the question should be settled. and
settled concusiyely. and think 1t could
be done within an hour tomorrow morn
Ing and hope you win do IT,"
Il win be prompt about il. | will
give II consideration
Going into the temporary debt OF the
city. shortly before adjournment Sem
ator Brown said his attention had been
called to statement made by the
Comptroller that there had been a con-
spiracy TO compel the city to issue long
term bonds at high rate in a bad
market. He asked Mr.. Craig about IL.
n did not say conspiracy. said
propaganda or agitation. There Is un-
questionaby concerted effort to that
end"
s-rrom what source did Il Gomez"
II would rather not express my infer
ence / think ii would be contrary to
public interest TO state what think was
concerned in that propa ganda thought
we would gain by waiting for the bond
issue. and up 70 the present we have"
How cid this propaganda manifest
itself7"
Among other ways In the newspa-
continutd on Fourth Page.