The New York herald., 1921-08-16
CRAIG SAYS CITY HAS
1877 MILLIONS CREDIT
Will Tell Meyer Committee
To-day Finances Are Not
S120, 100000 in Hole.
MAC INNES GETS BUSY
Officials Seek Way to Pun
ish PrObers for 'Circulat-
ing False Rumors.'
MAC INNES GETS BUSY
INDEBTEDNESS IN LIMIT
Comptroller to Be on Witness
Stand Two Days - Hirsh-
field i'm New Attack.

Comptroller Craig will take the wit
ness stand to-day before the Meyer
Committee III City Hall prepared 10
prove that the city has a credit margin
of s137.4a1,7l0 instead of being $780,
100000 in the hole, as charged by Elon
r. Brown, counsel 10 the investigators.
This lit le difference of S257.491.710 In
the city's pocket money Is still to be
explained.
Anxious TO prove that Mr.. Brown is
all wrong in his attacks on the financial
management of the city, officials did not
walt for the Meyer Committee to "call
Duncan Machines" expert iii the Comp
troller's office. as Mayor Hylan SO often
admonished the investigators to do last
week. Instead. Mr.. Machines took
charge of getting out ponderous and
detailed statement designed to dsprove
all OF Mr.. Browns statements and con-
clusons.
Moreover the city officials were study
ing the Penal Code in their effort TO
find whether they could make some sort
Of legal protest against the Commit
tees proceedings. They gave attention TO
Section 926. which provides punishment
for the circulation of false rumors re-
garding the citys stocks bonds and
public funds, and Section 952, which
forbids publishing false statements con-
cerning the securities of corporations
Regard Threat as Joke.
Members OF the Meyer Committee re-
gard this threat as joke. Senator
Meyer said the committee would not be
frightened by such a move. II remains
TO be proven whether the Comptroller or
Mr.. Brown is right and in either event
the committee Is said 10 be well within
its rights in seeking information on the
subject The city officials however. APP
pear TO be in something Of panic as a
result of this first attack. and it would
not surprise the committee If some kind
Of legal action were undertaken purely
as 4 defensive measure In an effort to
offse. the damage already done.
According 10 the Finance Depart
ments statement, the total debt incur
ring power of the city within the debt
limit. based on 10 per cent. OF the asses !.
sed valuation Of real estate. Is s997.-
2as.5l040. The city's total indebtedness
within tho debt limit. the Comptroller
states. IL $3.50. sos, 1896. The difference.
or $l37 9l.110.5t, Is what the Comp
troller says is now available to be spent
any way the Board Of Estimate directs.
In his statement the Comptroller put
down s2a,j76. $50 as tho city's contract
liability for various municipal purposes.
Members Of the Meyer Committee who
looked over the statement said that
amount could not include all the out
standing Indebtedness. In the testimony
last week it was brought out that
$40 900, 900 or more will have to be
paid by the city TO subway contractors
for war time losses. No provision is
made for that.
Under the heading open market
orders the statement allows s100. 900
liability. and In the opinion Of the
Meyer Committees Investigators that
sum Is "only drop in the bucket when
all the city's market orders are taken
into accounting.
HirshfieId Attacks Meyer.
The exempt funded debt. including
transit and dock bonds outside the
debt limit is put down at s334.226.1T4
Specific authorization for various mu-
nicipal purposes against which no con-
tract ors other liability was registered
on June 80 last included s17,4a2.fO4 for
education and s1e.222.S10 for other pur-
poses.
The committees most interesting ses.
sion so far is expected to-day when the
committee and Mr.. Craig fight out this
issue Mr. Craig will be on the wit
ness stand to-day and tomorrow
David Hirshfield Commissioner oi
Accounts, who has been unable to break
into tho fight between the committe,
and Hylan since public hearings started
saw an opening yesterday. which wa
an off day. He gave out a long state,
ment attacking Senator Meyers posi-.
tion on several bills in tho Legislature
When Meyer was an Assemblyman
Hirshfied charged, he fathcred a bill
amending Section 1916 OF the Genera
Business law. providing for a sixty-on,
per cent. increase in the cost of han.
ding grain at elevators. That was II
1918. Hlrshfield states he is prepared
TO conduct m investigation which viii
show that this added cost was tackec
on TO every loaf OF bread sold IN New
York and Is one of the big factors iT