New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-18
Comptroller Demands a
Showdown on Allega-
ton City Debt Limit
Has Been Exceeded
INTERESTS Accused
Of Seeking g Bonds
Surplus From Revenue
Producing Enterprises
Not Used to Cut Debt

Comptroller Charles L. Craig. star
witness before the Meyer Legislative
Committee investigating the Hvlan ad
mlnlstration. heatedly demanded a
snow down by the committee counsel.
Elon K. Brown, yesterday concerning
Mr. Browns charges that the citv had
exceeded its constitutional tax limit
by S22,000,00O and it's debt incurrjnp
power of $12O.ooo,Ooo
Craig several days ago had issued a
statement purporting to show that the
city was S137, 100000 within its debt
limit. When the session was about to
close without the matter having been
touched upon, the Comptroller rose to
his feet and, pounding on a desk be-
fore him, insisted that the question be
settled at once, or at the latest this
morning. His demand was greeted with
applause from friends on the floor and
in the gallery of the hearing chamber.
Craig Accuses "Interests"
The outburst was preceded by a
charge of Mr.. Craig's that there was a
concerted effort on the part of certain
w all Street interests to force the citv
to issue long term tax exempt bonds
in bad market and so compel the mu-
nlcipality to pay high rates of interest.
ut was put to US very cold and very
strong" he remarked, adding, however.
that he had been able to resist the
move.
Mr.. Brown spent much of the time
yesterday trying to show that the sink
ing funds of the city were not func-
tlonlng to reduce the municipality's
debts, for which they were created,
but were used in fact as a reservoir
from which large sums were extracted
for the payment of the city's running
expenses. He intimated, also, that
many of the securities in these funds
had deprecated, although they were
recorded at their face value.
In demanding that the question of
the city's having exceeded its consti-
up without delay, Mr. Craig said
"Scnator, | would like to make one
particular request Of you: that is that
you so arrange your papers for to-
morrow morning that we can dispose
of the question Of the debt margin of
the City Of New York and whether
there is any illegality in the tax levy
of 1921 by reason of its being within
or outside of the per cent limit. 1t
has been several days since you have
expressed your views very strongly to
the effect that the city was over
board on it's debt margin, and | think
that the time has arrived when that
subject ought to be decided.'
"YOu aro or,iorc n N, oko ron11y ~
that ?" Mr.. Brown replied.
Mr.. Craig replied:
IL am anxious to have you submit
whatever proofs you have in regard to
that question, and I will submit what
| have in regard to it, and | think
that ought to be done tomorrow morn
ing"
Comments on Applause
When this remark was greeted with
some applause, Mr.. Brown commented:
81 see you have friends present.
"I hope | have some on the commit
tee Craig retorted.
II had no idea OF closing the exami-
nation without taking up those two
subjects went on Mr.. Brown.
"That is a subject that ought not to
views have been given wide public cur
rency, and | have refraincd from max
ing any public statement because
think it is a thing that ought to be
had out right here believe the time
has come when that question should be
settled, and settled concIusively, and
think it could be done within an hour
tomorrow morning, and | hope you
VIII do it."
Mr.. Brown answered: "I will be
prompt about it, | don't know as
shall change my order of examination.
will give it considerati on
Mr.. Brown pressed Mr.. Craig to tell
al. he knew about the alleged move to
squeeze the city on the long term bond
proposition, but Craig refused to dis
close the names of any persons in
volved Asked if he had not referred
to the matter as conspiracy the
day before. the Comptroller said he
thought he used the words propaganda
or agitation.
"Therc is undoubtedly a concerted
effort to that end he testified. He
said at first that the sources from
which it came were largely inferen-
tial.
"Besides," he added, Il think it
would be contrary to the public inter
est to state who think was concerned
in that propaganda"
"W ould you mind telling US how
this propaganda manifested itself ?"
asked Mr.. Brown.
at manifested itself. among other