The New York herald., 1921-08-14
CRAG-BR0WN CLASH
IS IMMINENT ONCITY'S
BANKRUPTCY DANGER
Comptroller Is Incensed by
Lawyers Charge That Debt
Limit Has Been Passed.
PENAL ACTION HINTED
Meyer Probe Counsel Sees
No Help From Mayor, but
Is Sure to Find Remedy.
ECONOMY is IMPERATIVE
Cost of Municipal Government
Must Be Reduced, Taxing
Limit Being at Peak.
PENAL ACTION HINTED
ECONOMY is IMPERATIVE

After going over the transcript of
last weeks testimony of Mayor Hylan
before the Meyer committee former
Senator Elon r. Brown, counsel for
the committee, stated yesterday that
he could find no information in the
knowledge impaired by the Mayor
about the city's affairs on which the
committee could base any solution of
the city's financial difficulties.
Senator Brown refused. however, to
accept the pessimistic view of the
Mayor that nothing could be done to
| reduce the city's expenditures and les
sen the burden of taxes upon its citi-
zens. On the contrary, he said, the
Meyer committee is certain it can be
done and is determined to accom-
plish it,
Mr.. Brown win call Comptroller
Charles l.. Craig to the stand Tuesday
ment regarding the handling of the
city's finances and give him an OPP
portunity to justify the Mayors oft
repeated assurance that Craig knows"
1t was understood yesterday not only
that Comptroller Craig at that time will
undertake to make good the conditions
upon which he is said to have been ac-
cepted by Tammany Hall for renomina-
tion-namely. keeping the Meyer COM
ittee off the neck OF Mayor Hylan by
failing to aid the committee in research
in the city's financial archives-but that
he is incensed over the charges made by
Senator Brown that under the Hylan-
Craig regime the city has been run
| 500, 100000 beyond its constitutional
debt limit and has been taxed illegally
to the extent of s24, 100000
Comptroller's Ire In Aroused.
1t was said that when Craig goes on
the stand he will characterize the SEN
ator's statement as a vicious attack upon
tho city's credit and, in event or the
failure OF Senator Brown to prove his
charge. may invoke the penal statute
which makes the spreading of false re-
ports regarding private and public finan-
cial institutions a misdemeanor.
1T Is expected also that the Comp
troller will call attention to the fact
that two days after Senator Brown made
his charge the city was able to sell
S22, 100000 worth OF short term securi-
ties at reasonable rate, citing that
circumstan noes as proof that the city's
credit has not been impaired by the ad-
ministration.
The Meyer committee headquarters
were closed yesterday for the week end
and a guard from the State Constabu-
larry at White Plains was placed In the
rooms TO protect the records and data OF
the committee.
Before leaving, Senator Brown issued
the following statement:
1T find there il q good deal OF a dis
position yet to look for permanent re-
suits in the preliminaries. The inquiry
has only just begun. 1t has been con-
fined down to this time to an examina-
ton OF the Mayor and to purely con-
structive considerations. The Mayors 8
attention was directed to four impor-
tant issues:
First Has the City incurred more
debt than 1t has right TO incur?
Second. Have the provisions for
the payment OF the debts through the
several sinking funds been used to
reduce the city's debt?
Third Has the city made higher
tax levy for city purposes than 1t has
a right to maker
Fourth: Can any savings be made
In the several departments by cut
ting out duplication Of service. and
by reducing either the cost of salaries
and expenses, or by reduction In
the number of employees?
Very Little Aid From Mayor.
while these are all obviously OF the
first Importance in laying the founda-
tion for an Improvement OF the city's
condition. / must confess that very little
aid has been given to the committee
thus far by the examination Of the
Mayor on any of them. His testimony
upon the subject has been published at
length. and It Is unnecessary for me to
comment upon Its effect or value upon
the questions raised. / have no hesita-
ton, however in saying that no solu-
ton as to any of them has thus far
been suggested. and I was unable to dis
cover from the Mayors testimony any
concrete Instances where the administra-
ton feels that expenses could be cur
tailed or prevented from mounting
higher than at present.
"Tne most important problem for the
city Of New York is TO make It's revenues
square with the expenses. The State and
Federal governments have both set an
example of economy. The city must
economize, for next years budget cannot
in any event be larger than this years
budget under constitutional limitations.
ct will be recalled that the admins
tration refrained from including In this
years budget s27.ooo.oo0 necessary TO
meet the charge for education. II the
budget rises another year, as the Mayor
predicts. the deficiency will be still
greater. II the tax levy. as believe, re-
stricted to the assessment roll OF the pre-
ceding year instead OF the current year.
there will be further shortage of over
| $40, 100000. This makes very bad
showing for the finances Of the city, in
dependently OF the suggestion as to tho
debt mourning power OF the city, which,
/ believe. has been exhausted. Whichever
view prevails In the end. II is clear that
the city Is at the end Of its rope.
"Thr debt of the CITY has never been