The New York herald., 1921-08-19
$254,OOO,OOO APART
ON CITY DEBT LIMIT
Continued from First PG0e.

the latter said IL was his view as law
yer.
"But you have charged Off for all pur-
poses the s117.00O.oOo passed upon by
the court, haven't you?'
mo. only to docks and subways."
There is the difference between US |;
whether or not that sum became exempt
like water bonds. / say not. and you
say yes"
$117. .000.0 900 should be taken out sec
ond time" the Comptroller said.
Mr.. Craig went over all OF Mr.
Browns allegations as set forth in the
two days examination and picked them
to pieces. He was allowed to make as
full statement as he wished.
The Comptroller took the lead from
Brown almost at the outset of the morn
ing session. when the question involved
In the application of the 2 per cent tax
levy came up. The constitution restricts
the { US levy to 2 per cent. on real
estate. Brown has contended that the
Hylan administration applied this rule
to the 1921 assessment rolls instead Of
the year preceding" rolls, as the law
requires, and by so doing had raised
more money than could be obtained
legally. The 1921 assessment was larger
than that In 1920.
II think where you make your error
Is in this, Senator" the Comptroller
said. You assumed that when the De-
partment of Taxes sent the assessment
roll to the Board of Aldermen on March
I, as required by the charter. that they
had something further to do with 1t +;
that the roll wac In some way incom-
plete. Tha. Is incorrect. That roll, as
fur q. ha ~ of To Ia
cerned. Is absolutely correct and final.
1T does not seem to me there is ar.y
foundation whatever for the suggestion
that the taxes for 1921 should be levied
or could be levied upon any other roll
than that delivered by the Department
of Taxes last prior to the time of the
levy. which is March l, or that the limi-
tation of the amount of the tax to be
levied could be any other than that of
the last roll delivered to the Aldermen"
The Comptroller explained that the
amount of money 20 be raised Is deter
mined by the budget and traced step by
step the proceedings of the city govern
ment in fixing the levy.
Has there ever been a case in the
history of the city when the levy for city
purposes has exceeded per cent. on
the roll of the preceding year?" Mr..
Brown asked.
There never could be such a case"
This Is matter of legal opinion and
argument isn't it?"
mo. / don't think it admits OF any
argument. haven't particle of doubt
about it. If had. there wouldn't have
been any tax levy. The question was
not raised whether the assessment was
on last years roll or this years. The
only question raised was whether the
short term Indebtedness and its interest
for current purposes should be included
within the 2 per cent"
Every question involved In the tax
levy was discussed and passed upon by
the Board of Estimate. the Comptroller
said. There was never any question
that the 1921 assessment roll should pre-
vail, Mr.. Craig said. Inasmuch as the
roll was In reality completed the Octo-
Der preceding its presentation to the
Aldermen, there was not room for de-
batting that the list used for computing
the tax was the right one. the Comp
troller held. Mr.. Craig kept firing ques-
tions until Mr.. Brown wanted to know
whether he was under cross-examination.
Mr.. Brown contended that the city
officials had employed every means pos
sible to avoid constitutional limitations
imposed by law upon the levying of
taxes, but admitted that the issues In
volved were technical and legal. He
made lengthy argument reviewing his
contentious. and added:
II have not made these suggestions
with view to attacking the credit Of
the city or cri2pling the city.
Practically every device has been re-
sorted to in order TO increase the taxing
capacity of the city In evasion of the
constitutional provisions and in evasion
of the debt limitations. and / regret 1t is
my conviction that / have given the
true interpretations" Mr.. Brown con-
tinued.
"I am not sure what the courts will
decide. but I am sure 1t is a very serious
question where the reason seems con-
elusive that the tax limit is on the as
sessment roll of the preceding year and
not of the current year. New York has
been skirting the edge of the debt limit
ever since she has existed, and It be.
comes an important matter to know
what the tax limit is"
The Comptroller's contention was
purely technical evasion. Mr.. Brown in
sisted, inasmuch as the process OF pre-
pairing the assessment rolls took a long
time. while the expenses of the city kept
on Just the same. Again Senator Brown
admitted 1t was a question for the courts
to determine.
The committee had intended to recall
Mayor Hylan to the stand to-day. but
Mr.. Hylan sent word he had been un-
able to arrange his engagements so he
could appear. and the hearing was adj
journed to next Friday. The Mayor will
be called at that time and the Comp
troller will return to clear up Few