The New York herald., 1922-12-16
Comptroller Explains How
Upsetting Bank Tax Has
Set Municipality Back.
HYLAN TALKS DEFIANTLY
Says He Will Go to Jail Before
Letting Court of Appeals
'Starve' Employees.

Comptroller Craig in explaining TO
the Board of Estimate yesterday what
effect the Court of Appeals decision
exempting national banks from pay
city budget. said that as a result there
is an unexpected deficit Of between
s1,5o0,oOo and 100000 in the gen.
eral fund this year.
There should have been balance Of
100000 to carry over into 1928, but
now there will be r shortage Of about
s7,500,000 next year. The 1923 budget
is now that much in excess Of the
city's constitutional tax limit, asserted
the Comptroller.
The board was about TO vote the
transfer of s7s4.ooo between depart
ments to meet deficiencies in the 1922
budget. Mr.. Craig said this would
not be enough. and suggested closing
down the city's offices or running
them on half time until January /.
This suggestion provoked loud pro-
test. Mayor Hylan especially was in
dignant. saying
I'm not going to vote to take the
food out of any mans mouth Just be-
cause the Court OF Appeals has made
decision. I'll go to jail first"
The Board OF Estimate chamber in
City Hall was filled and the Mayors
remark was cheered.
Use Only Available Money.
zone fact I should make clear" the
Comptroller said. II will not dlsburse
moneys that havo not actually been
made available for disbursement by
taxes lawfully levied and collcctible and
from the resources of the general fund
actually available for disbursement.
Disbursements against the ls22 budget
will cease when the resources therefor
are exhausted"
"Well. then as I see it." the Mayor
said. IF the Legislature keeps on pass
ing mandatory legislation and the Court
of Appeals continues TO make decisions
which practically take the burden from
banking and corporate interests and
place II on the people-the little home
owners-we might just as Well close
down"
The Mayor and the five borough presi-
dents voted to transfer the $4,000. Mr..
Craig voted against II. Murray HUI
bert, President OF the Board Of Alder
men. did not vote.
81 don't see what can be DONE the
Mayor continued, referring to the uncon-
stitutional bank tax. This money must
come out OF the pockets OF the taxpayers
of this city and the banking interests
are relieved from IT, But am glad II Is
presented here so the public will know
that we have s34.00o.0 900 to s40,000,00o
of mandatory legislation In the budget
This year that must be paid year by
wear; now II we are going 70 have this
additional s5,000.000 and millions more
appearing until the end Of time, l pity
the poor taxpayer"
wants Boroughs 10 Help.
Comptroller Craig insisted that the
borough presidents could make up
s2.50O.oO by pooling their unexpected
balances and postponing or eliminating
work that can be done next year.
"If you closed the Police and Fire
Departments for the rest OF the year.
replied Edward Riegelmann, president
Of Brooklyn, you couldn't raise that
money Now you want US TO take 80
a day out Of the mouths OF day laborers
on Christmas Eve"
That's unfair" said Craig.
81 have funds" said Reigelmann,
but I'm not going TO give them up at
the cost OF workmen."
81 am going to ask the Cooperation
Counsel TO go to the United states
courts with this case" said Mr.. Hylan.
Don't have any Illusions. about that"
said Mr. craig. ITO go TO the Federal
court you must have r. case involving
a Federal question. This decision is
confined 10 this s,9te.'
1--WE all know said tho Mayor, that
the bankers rrn the Government Of the
United Stass.'
This closed the discussion. leaving tho
Comptroller TO make good his threat to
shut dJwn on disbursements as soon as
the c,ty reaches It's 1922 budget limit.
The board awarded the contract for
n shaft OF tho Brooklyn Staten Island
freight and passenger tunnel TO Patrick
McC;owan. 80 East rorty-second street.
for Sf94.b3S.75.
The transit Commissions s70.O00,OoO
Eirhth avenue subway plan will be con-
sidered az public hearing Of the board
next Friday.