The New York herald., 1921-08-17

peared TO be a great deal OF loud laugh
ter. Mr. Brown wanted to know why
the law was 50 bad.
Cuts Tax Bills, Adds 10 Debt.
"It takes money obtained for the pay
ment OF the city's debt and diverts 1t
TO cutting down the tax bills OF the ad-
ministration. No administration UP 10
Mayor Lows was able to get such a
bill passed. The only purpose then was
to send $500, 600 less In tax bills to
the taxpayers than should have been
sent.
That money should have been APP
piled to the payment of the city's debt
and we would have had S354,OOO,0OO
less debt to-day"
This transfer of funds has grown
steadily until in 1920 it was Ss2.5Oo,-
000?"
THAT is correct
That is the largest increase in the
history Of the city,"
Every year 1t is a little larger than
the preceding year"
with every prospect of it's being
greater in the years to come as long
as the old New York bonds are out
standing?"
THAT is correct"
Have you estimated the next In
crease?"
Il don't have to do that until next
February" Applause from the gallery.
But in your judgment it will be
larger?'
Il have no doubt about it; the only
doubt is as to the extent of the increase.
In the next eight years it will be much
larger" 1t was explained that In 1928
big sums of old city bonds would be
amortized
do you think the system of handling
the city's income as it now exists Is
scientific?'
Il do not, in some particulars, and !
refer particularly to this general bond
act"
And which has resulted in greatly
increasing the debt Of the city,
THAT has been one of the effects
And greatly increasing the burden oil
| taxation?"
1T has lifted restraints which would
| otherwise exist"
Necessary restraints?"
Some of them"
Does it do anything else wrong
Isn't that enoughY'
Mr.. Brown asked the Comptroller to
state what suggestions he would make
to relieve the situation. The Comp
troller said he proposed to reserve tna'
for the Charter Revision Commission
Just before recess for luncheon Mr
Brown asked the Comptroller IL ne
would prepare figures dealing with one
or two phases of the inquiry. The
| ComptroIer answered he supposed the
| recess for luncheon was for the pur-
pose of eating and he felt as much IKE
eating as members of the committee
Il would like to have you go to lunch
con with me-" Mr.. Brown said, but tne
Comptroller declined, saying he had ac-
cepted an invitation and was certain
his luncheon was to be paid for py
someone other than himself ana ne
didn't want to take chance.
The city's debt service in relation 70
ferries piers and other property was
covered in detail with the beginning OF
the afternoon session. Numerous bond
issues of various classes were taken up.
their character and purpose considered
and the funds traced. The Comptrolier
made long explanations of the several
classes of city securities.
'.The amount Of special revenue bonds
issued depends almost wholly upon legls-
lation." the Comptroller said. Tn 1920
the Legislature passed four or five dozen
bills affecting the city or counties with
in the city and requiring payments 70
be made, some in large amounts which
could only be met by the issuance Of
special revenue bonds borrowing money.
The Comptroller cited several such pllis'
Mr. Brown drew an admission that
there were salary and wage increases
and purchases and acquisitions by the
city not provided for In the budget ana
not covered by legislation.
salary increases Discussed.
THE increases in salaries amounted lo
MANY millions?" Mr.. Brown asked.
The Comptroller said there were Two
kinds Of increases. those for day labor
ers and other classes Of employees Inc
citv had to follow wage scale advances
10 hold its employees, he said
After showing the numerous issues OF
snecial revenue bonds (short notes) 10
cover various purposes, Mr. Brown
asked
"Do you think this Is healthy way
to finance the city,
"Niv answer IS that for two years
have asked the Legislature 70 advance
,ho date for the collection OF taxes so
We would not have to issue short term
paper. and each time the Senate mas
passed the bill, only 10 have II fade
away in the Assembly"
The city spends between s5,oOe,0Vo
and Sc 900, 900 a year in interest Tor