davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-01-06
Governor Mers First Message the New York LEGISLATURE

upon extravagant debt making, and
am far from thinking that it is unwise.
Before any project is undertaken it
should be necessary to count the cost
and to provide for its financing. I'm
doubtedly that may delay some projects
and prevent others from being under
taken, but it will also prevent bank
ruptcy. We must now finish the
projects to which the state has thus
been committed, and the demands upon
the treasury make it imperative that
only such amounts be appropriated
therefor this year as con economically
be spent during the year. l earnestly
recommend that no new authorizations
be made unless provision for financing
them be made at the same time. That
may prevent undertakings which seem
desirable, but no purpose, however de-
sirable, can justify resort to expedients
which are sure to entail train of
evil consequences.
apart from the burget requests, the
Superintendent Of Public Works has
submitted items totaling $2o,375,5o0
for bridges over canals which have
been condemned, for completing the
canal terminals and for canal damage
claims. These are matters which may
appropriately be submitted to the peo-
New-York tribune., 1921-01-06

pie in a single proposal. They all in
volve capital outlay in connection
with the completion Of the canal. They
are proper subject, for bond issue and
should not be financed out Of current
revenues. The state now has so much
embarked in the canal enterprise that
1t must complete it, to the end that its
maximum of usefulness may be devel-
oped, or, at least, demonstrated, as
speedily as possible. The estimates for
terminals upon which the last proposal
was submitted to the people fell short
of requirements because of unantici-
pated increases in cost. 1t should new
be possible accurately to estimate the
cost of completion. / recommend that
such estimates be made and that pro-
posal based thereon be submitted to the
people at the next election.
Returning now to the buget, 1t will
be useful to note the principal in
creases requested not already adverted
to. They may be classified as follows:
Personal service ............ $b,3777s3.So
Maintenance and operation.. 8.Sb0117.6
l)chciencies .-...-... ..oo4.S I.U1
construction ............. 34.eoo 0lS.S1
Highways and bridges. S.SG9, 10000
Total. @5s.74s.ls3.4o
New-York tribune., 1921-01-06
Economy and Efficiency
Demanded by Governor
No New Jobs, No Salary Raises, His Rule;
Wants Merger of Many Departments
ALBANY Jan 5-The full tert of Governor Mlers mes
sage deliuered to the Legislature today follo1s

government must set the example and
must encourage private thrift by prsc-
ticing the most rigid public economy.
l know of no policy which the state
can adopt which will better promote
the general welfare than that.
We have, then, $140,000,000 in
round numbers which may be spent
during the coming fiscal year without
should be to reduce expenditures be-
low that amount, but in no event
should appropriation bills be passed
which will require the raising of addi-
tional revenue. To avoid that there
must be the closest cooperation be-
tween the Legislature and the Exeeu-
tive. l recommend, however, that the
motor vehicle tax be increased to pro-
vide all the revenue needed for high
way maintenance. The motor traffic
makes such maintenance necessary and
should bear the expense of it,
II shall transmit the total amount
OF appropriations desired by each state
department as required by Section 2e
of the legi.latit. law without detailed
comment.
The requesSed appropriations as
committee total $2o1 S44,2s2.4a TSst rat
does not include the amount needed
TOR interest on and amortization Of
the bonds approved by the people on
November Q for the soldiers and sail
@ ors' bonus. which. if the whole $45,-
100000 authorized be issued, will
amount to $4,050,0O0. When we con-
sider that numerous requests for other
appropriations are always made during
the Legislative session, the size of the
nf
THE requests filed last year at this
period totaled $141 1924 ,691 go, and the
appropriations at both sessions of the
Legislst9rc, signed by the Governor
sotaIed $l45, ,2l9,9O6.60, including $780,
$4,000 for teachers salaries. not in-
cluded among the requests filed at the
sion
"The startling gross and per capita
increase IN the cost of the state gov
hbited by the FOLLOWING tahia.
New-York tribune., 1921-01-06
tanned in the assessment Of one tax Is
often useful in the assessment of

tanned in the assessment Of one tax is
often useful in the assessment of
others.
"The present method of assessing
inheritance taxes is unduly expensive.
The ratio of cost for the last four
years has been as follows: 1877, Ass
per cent; 1913, 5.26 per cent: 1919, 473
per cent; 1920, S.3l per cent. The
relatively low rate in 1920 was due to
few estates. The percentage of cost
has been too high and has always been
too high. and that has been due to cum
berscme and expensive methods and to
system which has admitted of nbuse
Of political patronage. The expense.
for the most part, is deducted from the
tax before it is paid into the State
Treasury. with the result that there
has practically been no check upon it,
the Comptroller, the auditing officer,
being the one charged with the ad-
ministration of the law. The cost Of
collecting that tax the last fiscal yesr
was more than S750.000. but the budget
disclosed appropriations of less than
$4,000 for that work.
Due to the method of assessment,
it is necessary to employ in the larger
counties appraisers and attorneys, the
latter on a fee basis. and the custom
has grown to make special designation
in the case Of large estates. I know
that very. large part of that work is
! wholly perfunctory and could as we'll
be done by a clerk in the department.
ut has been thought in the past that
some such method is necessary to pre-
vent estates from escaping taxation in
whole or in part. I am satisfied that.
if ever sound, that reason no longer
exists. The state now has too many
ways of checking estates, which ex-
perience has proved to be eficacious,
tain that cumbersome and expensive
method.
II recommend that the entire method
Of assessment and collection be re-
vised, that the local appraisers and
attorneys be entirely eliminat ID. that
the tax be assessed by transfer tax
bureau of the State Tax Department.
with jurisdiction in the Surrogates'
courts to review the assessment in
case of complaints, the state to be
represented on such review by the At
should, Of course, provide that no
order should be made by the Surrogate
settling the accounts Of personal rep
resentatives of decedents without the
production of a receipt for the pay
ment Of the tax, and proper penalties
should be imposed for delays in pay
ment.
Million Dollars Can BE Saved
By Merging Tax Agencies
zone million dollars is a conservative
estimate Of the saving that can be eX-
pected by a consolidation Of the fore
going tax agencies, and, in my judg-
ment, efficiency and convenience Of tax
payers also will be promoted.
should these Activities be placed and
how should it be organized?
"There is one controlling reason
which, in my judgment, requires that
all tax activities tie grouped in single
tax department, and that is the neces-
sity of a proper correlation Of our sys-
TENS and methods Of taxation so as
New-York tribune., 1921-01-06

more equitabIy to distribute the tax
burdens. Our tax system Is patch
work, which has grown without ade-
quate consideration of the relations Of
different classes of persons or Of prop
erty. Seventy per cent of the taxes,
state and local, is contributed by real
property, which is now paying on the
average 80 per cent of its gross income
in taxes. That situation discourages
land owning and aggravates the rent
and housing problems in our conges.ed
centers.
"As an illustration of how our tax
system has developed, so-l property,
which twenty years ago WAS assessed
at less than half value, is low assessed
at nearly and in many places quite full
value, but the rate of taxes on other
species of property has during those
twenty years remained unchanged. 1t
is, therefore, important to bring unde.
one head not merely the administra-
ton of the indirect tax laws above re-
ferred to, but the administration of our
entire tax system, to the end that it
may be properly correlated, not only
in matters of administration but IN
matters of substance as we'll. A state
tax department charged with the ad-
ministration of all tax laws is thus
plainly suggested.
"The only other office naturally to
be considered is that of the Comp
troller's office. However, the Comp
troller is primarily an auditing officer
and, in my judgment, an auditing office
should not be converted into a great
administrative office. The Comptroller
should undoubtedly audit both revenues
and expenditures. l think he should
audit the books of all departments, and
should be given broad powers of ex-
animation for the purpose, of audit
with administration. In place of the
Comptroller investing the sinking
fund moneys, they should be invested
by some other official, subject to his
audit Instead Of his selling the bonds
of the state, they should be sold BY
some other official, subject to his audit
The State Treasurer might properly
be given those duties. subject to the
audit of the Comptroller.
Recommends Abolition
OF Present Tax Commission
"Should the Tax Department be
commissioner? I think experience has
demonstrated that commission is
suited for quasi-judicial or Legislative
functions, but not for administrative
work. l recommend, therefore, the
abolition of the present Tax Commits
sion and the creation of a single
headed tax department., and the trans
ference to it Of all tax matters with
which the state deals. The detail of
organization l shall not attempt to
outline. There should undoubtedly be
in the department or attached to it
board of equalization and review, with
no powers of administration whatever,
but with power to exercise such quasi
judicial functions in connection with
tax matters as may be appropriate to
refer to such board.
II also recommend that the Governor
be empowered to appoint commission
to examine into our methods Of taxa
ton and report to the next Legislature
plan of revision.
New-York tribune., 1921-01-06

fcrent parts of the state, part of which
could be eliminated. Office equipment
could be saved and Office forces could
be reduced by distributing the peak
loads throughout the year so as to
utilize the same force, in part at least,
in different collections For example,
the automobile plates now costing a
large sum to distribute could, with but
small additional expense, be distrib-
uted by the force in the Income Tax
Bureau. through the same Offices now
maintained for thes collection of that
tax. Moreover, the information OBJ
New-York tribune., 1921-01-06
One 1ar Department Should Collect
Revenues N0,v Paid to EieI,t Bureaus

ITO assess and collect the principal
indirect revenues Of the state, the cor
poration tax. the personal income tax,
the inheritance tax. the automobile
license fees, the stock transfer tax and
the mortgage tax, the state maintains
eight bureaus distributed through
three departments, the Tax Depart
mcnt, the Comptrollcr's Office and the
office of the Secretary of State En-
cheney, economy and convenience of
taxpayers would all be promoted by
uniting those under one head. Scpa-
rate Offices are now maintained in dif-
New-York tribune., 1921-01-06

1T is inevitable that with that ex-
pansion there has been a corresponding
ACCUMULATION Of overlapping and d.
plication, of obsolete methods and Of
comparatively useless work. Customs
and practices. once developed in public
business seldom change, however obso-
lete or inefficient they may become.
We must address ourselves to the task
OF elimination of waste effort, Of obso-
lete customs and practices and the sub
stitution of modern business methods.
The heads Of departments should be
able to tell US how that can be done
without injury to the service, but they
are bound to survey the problem from q
different angle. They are not con-
fronted with the task of apportioninY
the available funds among all the
statc's activities; instead they are
bound to magnify their own work, and
the more competent they are the more
they are imbued with it's Importance.
We are confronted with the task of de-
termining relative Importance and of
eliminating the least important. More
over, department heads are subject to
strong influences within the depart
ments which oppose change.
New-York tribune., 1921-01-06

Tota, estimated RESOURCES sI4ass,sa
4 doubt that sufficient allowance
has been made in those estimates for
changing economic conditions. which
may unfavorably affect the revenues
The small item Of 100000, liquor tax.
should be eliminated from the esti-
mate, If the Legislature adopts the
recommendation which shall later
make TO repeal the present liquor tax
law, thus sbolishing the Excise De-
parrtment. and to pass simple act to
enforce the Eighteenth Amendment
Of the Federal Constitution, conform
able to the act Of Congress on the
subject and enforceable by peace Of
ficers as other laws are enforced. Con
sidering the uses for which LIQUOR NAV
row lawfully be sold, the small
amount OF revenue from that source
and the expense of collection, it does
not appear to be either expedent or
wise to continue that tax. There are
should expect to yield less than the
estimate. At any rate. it will allow
only small factor Of safety to put
the maximum Of appropriations per
mitted by the estimated resources at
sl4o,00o,oo0. Even that sum will prac-
,tically exhaust the surplus, and IL
maintained the following year will
tneh require additional taxation.
Aims TO Reduce and More
Equally Distribute Tax Burden
1--WE should strive 10 reduce and
more equally distribute the burdens of
taxation, but frat Of all we must stop
the tendency Of recent years to in
crease these burdens. Unnecessary,
unwise and burdensome taxation, local,
rtats and national, il, in my judgment,
one Of the chief causes Of present
economic conditions, from which the
least able 70 bear them will suffer
most. We have sufered from imitation,
some OF 1t unneccssary and artificial.
We are now suffering in part from
tendency arti6cially 70 debate, where
~ sound economic conditions will only
be restored by the Gradual retirement
OF debts, both public and private, from
savings. Production, indu,try. econo-
my and thrift are essential to tho 10.
luton s1 our sconomic problems. The
New-York tribune., 1921-01-06

Many factors account for the in
crease, the largest single one undoubt-
edly being the new functions and nc-
tivities undertaken by the state. The
time has now come to make survey
of the states activities with the view
of eliminating those whose results do
not appear to be commensurate with
their cost. If it be granted, as I as
sert, that the greatest good to all the
people of the state will result from es-
tablishing the practice both in govern
ment and in private life Of living with
in our means, it necessarily follows that
we should eliminate those activities
which are least essential, the least pro-
ductive of good.
"The following is an approximation
of what may be termed fixed charges:
New-York tribune., 1921-01-06

activities which result in new agen-
clcs, either in existing departments or
new departments. A new regrouping
of agencies or transference from one
department to another will not alone
effect economies. The greatest increase
in administrative expense has been in
few large departments which have
grown from the addition of new activi-
ties, and from the knowledge already
possessed | under rtake to say that
survey of those departments will dis
close that the activities in none are
properly correlated
"Reference is commonly made to the
lsf state departments as evidence of
government deprayity. But the state
ment is grossly misleading. To secure
that number it is necessary to count
every institution with its local board,
every park, monument or historical
commission. The total amount of ap-
preparations for such commissions is
relatively insignificant No practical
economy would result from such con-
solidation. but the state would sacri-
fice the interest and attention Of those
who now serve on such commissions
without pay.
There is no point in cons solidating
merely for the sake of reducing num-
bers
There is, however, much overlap
ping and duplication of effort, which
can and should be eliminated Greater
ei7clency and economy can be secured
by uniting and properly correlating
certain activities.
The plan of organization of some
departments is unsound. That can be
corrected.
New-York tribune., 1921-01-06
Present State Debt and
Authorized Bond Issues

present State Debt and
Authorized Bond Issues
Capital expenditures for the year
ending June so, 1920, we're SIG, $685.
22a.s2. as compared with $l7,o7e,-
1920 for the preceding fiscal year
The total state debt, both funded
md ten Iorary, on June 30, 1920. was
238,SS0,U7.33. The sinking funds
amounted to s69.499 ,47522, leaving a
net debt of s169 ,36O,542ll, a reAuc-
ton Of S5,0e4,982.03 below the preced-
ing year. There are yet to be issued
under authorizations SIC 100000 Of
bonds. conss g of 5000 900 Sol
di"rs' and sailors bonus bonds, S6.SO0,-
o0e for barge canal terminal, $50 .0OO:-
600 for highway improvements, and
10000 900 for extension of the State
Forest Preserve.
"On the assumption that the present
revenue laws will continue in force
and that the law lcvyng tax of 80
mills for school teachers salaries will
be re-enacted, the resources Of the
state. available for the general BUDGET
Tor the fiscal year commencing july /.
192l, as estimated by the Comptroller.
arc as follows:
ESTIMATED REVENUE 1s2r..as
New-York tribune., 1921-01-06
Big Reductions in Expenses
Will Not Impair Efficiency

"The Legislature will be compelled
this year, as it has been in the part,
to make approximations without the aid
OF that careful survey Of departmental
work which is requisite Some mistakes
Will no doubt be made, though, Of
course, care will be exercised not 20
hamper any essential activity of the
state. The briefcst survey Of the
growth of appropriations for the last
twenty years convinces me that great
reductions can be made without inter
fering with the efficient administration
of the public business. That growth is
shown by the folle wing table:
New-York tribune., 1921-01-06
Consultations May Require
Changes in Constitution

The practical question is, shall we
correct those errors by statute where
that can be done, or shall we continue
them until the constitution can be
amended, assuming the people will
adopt the plan, which in substance
they rejected in 1915, when submitted
as part of a proposed new state con-
stitution.
II think the present emergency is
such that obvious errors should be
corrected as speedily as possible. That
course will not prevent this Leeis-
lature from submitting to the people
at the next election one of the three
proposals passed by the last Legisla-
ture, if it shall deem it wise to do So.
Ihe advantage of statutory change
is tnat we can proceed with caution.
making such changes as experience
shall demonstrate to be in the public
interest. have little patience with
the argument that the Legislature can
not be trusted to make such changes.
Under our scheme of government the
remedy for legislative or administra-
tive abuses must ultimately rest with
the people, who will usually get quail
lty of service commensurate with their
own discharge Of public duty.
IL know Of but one important consoli
datlon which can be done only by con-
stltutlonal amendment. that Of the
State Engineer, Superintendent of Pub
lie Works and Commissioner of High
ways. The reason for that is that
there is now too much, not too little
IN the constitution. If | could legally
do so would now effect practical
consolidation Of those departments.
pending constitutional amendment,
by appointing the State Engineer Su-
perintendert Of Public Works and
Commissioner of Highways. But | am
advised BY counsel that the acceptar ce
by him of either Of the other offices
would ipso facto vacate his Office as
State Engineer. 1t appears to me that
economy and efficiency can be pro
noted by uniting those departments
under one head, and | recommend at
least the submis ssion Of an amendment
of the constitution to make that
possible
81 recommend that all of the enci
neering work of the state outside of
the Highway Department be done by
the State Engineers Office. and that all
Of the legal work be done by the At
torney Generals Office and that other
departmental appropriations for such
services be discontinued.
New-York tribune., 1921-01-06
No Salary Increases, and No New Jobs
Are First Items in Economy Policy

cies s4,572,274.sS are for fixed charges
and contributions. Those will have to
be met.
"L am satisfied that waste results
from the present highly segregated
method of appropriations. A distinc-
tion should be made between the bud
get and the bill. The budget should
be itemized in as much detail as pos
sible, but of course it is impossible to
foresee year in advance the require.
ments with exact nicely. Some items
will be too large, others too small. But
If appropriations can only be used for
specified line items, the tendency is ia
use it all for the specified purpose,
though less might suffice. with the re-
suit that there are avoidablc expendi-
lures for some items and deficiencies
in others. There should be some fexi-
bility allowed the department head In
NIT their maximum utility. And I rec
ommend that lump appropriations be
made for maintenance, operation, re-
pairs and the like, except for printing,
travelling expense and communication,
which should be itemized. 1t may be
difficult for the Legislature to know
exactly what items of the requests to
cut. 1t will not be so difficult to cut
totals, if lump sums are appropriated,
ductions can thus be made and that
necessity, the mother of invention, will
teach department heads how to get
along on lessened appropriations, if al
lowed the fexibility which lump ap-
preparations will afford The greatest
increases in the cost of government
have occurred since the highly segre-
gated form Of appropriations was
adopted, an instructive illustration of
the difference between practice and
theory.
"Of course, the foregoing observa-
tlons 40 not apply to personal service.
AS to that, | have this observation to
make: Appropriations should be made
Tor the position, not for the incumbent.
and there should be greater effort at
uniformity in all positions of like grade
IN the state service. That does not mean
that the lower salaries should be in
creased. | have no doubt that care.
1ul survey will disclose many salaries
too high for the duties performed. or
indeed the abilities Of the incumbents.
Such situation inevitably results from
the practice of fix1ng salaries for indi-
viduals, necessarily Influenced by per-
sonal or political consde rations. Such
survey as | suggest cannot be made
IN time for the prt sent session, but we
can at least stop further increases until
one can be made. | am not suggesting
niggardly policy BY eliminating tho
useless positions the state can pay the
incumbents Of the others what they de-
serve.
New-York tribune., 1921-01-06

Excess OF receipts over ex-
"The following is a statement Of the
operations for general budget purposes
for the year ending June 80, 1921, as
estimated: