New-York tribune., 1922-03-20
Mavor's Abandonment of
'Pay-a,-Nou-Co' Policy
and Sinking Fund Plan
Blamed for Big Losses
Reirenc11n,cnt and
Economy ignored
City RunninSSlOO,O ,OOOin
Debt Daily, Committee
SAYS in Final Summary


Tie Meyer committee. in its report
or the finances Of New York Citv pre-
unted to .ac legislature and the
Charter Rev sion Commission vestcr-
day, Describes 81 condition of waste. ex-
,rayagsnce and acknowledgement. Tho
report Was drafted by Elon X. Brown.
counsel to the committee. 1t goes into
me intricseies of municipal finance
and shows how the cjty's revenue NAV
be increased by about $4,000 900 a
year The committee declares the
sinking funds serve anything but the
purpose intended and provide no Sc
,urity for the debt held by the public. "
The report condemns the abolition
Q. the "psy-as- you-go" policy by the
Hyan Administration and points out
he danger ir the enormous {loating
ssbt which involves issues and reissues
pf shorttcrw paper amounting TO
Seaooo0e00 annually. the interest
charges OF revenue bonds alone foot
me up s5,50o0Oo The practice of tax
NJ moneys from the sinking funds to
nay current expenses is strongly con-
iemned, and Comptroller Charles y.
Craigs diSapproval Of this method Of
financing in his testimony before the
committee. quoted.
In Debt 100000 Every Dav
The city has run in debt approx
mately 100000 day since the greater
tliy was incorprratcd,' ~ says the re-
aort. THE funded debt had fuctuated
slound the constitutional debt limit
tor ten years The tax rate has risen
until 1t has reached, if not passed. the
constitutional tax limit. All other
awful means Of raising funds to meet
ne eyer-rislng tide Of expenditures
having been exhausted, resort has been
hsdpwrous devices, including doubt
I'll llterrrotati0ns OF constitutional
hradens rot emplated at their
fIseinent; 60 statutory relief unsound
IN prlnclpal # not unconstitutional ,
Ike the gonorai ;rnd bond legislation:
70 Increasing and making permanent
th@ floating debt. which, in the eye of
The law, was intended 20 be small aud
temporary, aud to the use for current
eypenseS OF the ncome Of public utiii-
les. In Law and equity applicable to
he payment Of the princ'p and in
tres of bonded Indebtedness Incurred
n the construction Of such utilities.
lhesc proving Inadequate, the power
Of assessment has been resorted TO by
the city administration which controls
The Department Of Assessments and
Taxes until the assessment has reached
approximately 93 per cent of the actual
ialue, rate much higher than the rest
Of the state Like the other devices
pursued, this is nearly spent.
"lhe net debt Of the city as OF Dee
cmber 81. 1921. was S1,224475.34751. OF
which sl.t10, ,795. .691.5l was funded and
Sl1S679,650 floating debt represented
by revenue bonds. special revenue
oonds and taN notes The total net
debt as Of December 81. 1911. was $500.
S55l29.29, OF which s756.7l1.343.05 was
y .myndcd and S5264l.7s6.24 floating debt.
me present debt amounts to s2l7,64
per capita OF the ponulation.'
Funded Debt Basis Wrong
The report describes the unscientifc
arrangement Of the city's funded debt,
pointing out that S1G9, 100000 falls due
IN one year, while none at all natures
IT o'ner years. Revenues from docks,
1efrles and water rents are used for
current expenses. while the interest on
we ponds Is paid ont of the tax levy
1aer debt service This practice
was also condemned by Comptroller
Vlale' The report continues;
ihancial abuses in city manage
.oehf and the failure to correct or at
~'np' TO correct them all indicate an
,neuisposltlon to retrench or economic.
remedies are not hard to find; they
axe at hard hut not employed. EX-
senoltures and employment. made on a
"a. @ai naSls, have not been reduced. The
sla'e' the nation and all private bust
ssss sss nave made heavy cuts in their
Suqge'S, out the city has not. City off
10 !@'s "ltnout exception denied before
,ae committee the possibility of econo-
nseS IN any other way than the fall in
s,eeS ,.. OF commodities. and the expendi-
~. snow an unres trained growth.
.,I ,I'a curiosity could not exist in any
), MI 81 municipality III the state. or even
.n, .h CIT, with an informed public
.r"lon- Inc weight of taxes in the
sag run falls as heavily upon the poor
t,,p upon the rich. 1t is easier for the
.NgsFer to realize this when he pays
ass' 'eNes than for the tenant when he
~ r. MS rent or buys his groceries,
,;,, "' Vommittee emphasizes that the
~ e%ceedod the constitutional per
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