The New York herald., 1922-03-20

as-you-go" policy enacted in 1916 and
the repeal of the general fund bond
legislation we're the outstanding rec
concentrations in the final report of
the Meyer committee to the Charter
Revision Committee, made public to-
day.
The committee also advocates as 4
result of its exhaustive inquiry into
the affairs of the ofty government last
year change in the tax dates from
May / and November ] to January /
and July l, and has prepared a bill to
be enacted into law for that purpose.
The Comptroller of the city of New
York is to act as custodian of the
funds heretofore placed in the sink
ing funds. and such receipts are 10 be
applied to pay interest of the city debt,
and the income derived from revenue
producing properties is to be applied
to the debt fund created for the ac-
quisition of such properties.
The city administration is held re-
sponsiblc by the committee Tor having
exceeded the constitutional debt limit in
each year since 1918. and in addition. it
is pointed out that the debt mourning
power of the city on January /. 1922,
was $13.645.964, and not S133,645,964, as
claimed by the Comptroller. The report
recalls the long drawn out controversy
between Mr.. Craig and Elon r. Brown,
counsel TO the committee. over the pro-
priety of exempting the s120,000.00o of
dock and rapd transit bonds. which the
Comptroller claimed was permissible.
Finds Financial Abuses.
Attention is called to the extrava-
gancc in expenditures in running tho
city's business and the failure Of the
administration to adhere TO its platform
OF economy Is severely criticised.
Financial abuses in city manage
ment." says the report, land the failure
To correct or attempt TO correct them all
Indicate an indisposition to rctrench or
economize. Remedies are not hard TO
find they are at hand but not employed.
Expenditures and employment, made on
a war basis, have not been reduced.
THE State, the nation and all private
businesses have made heavy cuts In
their budgets. but the city has not. City
officials without exception denied before
the committee the possibility of economies
in any other way than the fall in price
of commodities. and the expenditures
show an unrcstrained growth. The
weight OF taxes in the long run falls as
heavily rnon the poor as upon the RICH
Il is easier for the taxpayer to realize
this when he pays his taxes than for
the tenant when he pays his rent or
buys his groceries
The committee recommends the re-
drafting and reenactment of section 10,
article s, of the State Constitution, which
limits the tax levy to per cent. of the
assessed valuation OF real and personal
property.
"Since its adoption In 1894" the re-
port states. ut has been amended five
times by the insertion OF clauses OF
exemption and exception, principally to
meet temporary emergencies In city
fnaEces The result Is a hodge podge.
The section now covers many unrelated
matters. and instead OF being a consti-
tutional guide Is a labyrinth OF words
and provisions in which the reader Is
lost II serves as often to foster viola
tions or sound finance as to prevent
them"
Hoard to Control Finances.
The committee repeats It's earlier
finance be constituted to control the
citys expenditures. ~ redistribution OF
powers among existing officials and
boards will be more of the same thing,
and without effect" 1t adds.
In advocating the advancement OF the
tax dates the committee asserts that the
city Is thrown into the short term money
market for s142.00o.O0o twice year.
and quotes the Comptroller as placing
the responsibility for a financial crisis
in the city upon the Legislature.
"The failure to pass that BILL" he
said before the committee, results in
outstanding obligations at sum FAR in
excess OF what the money market Is In
a condition to stand in normal times"
The average floating debt OF the city
for the first half OF 1921 was computed
BY the committee 10 be approximately
s20f.f91. 900. Carrying this debt as q
floating debt is a source OF great loss
the committee comments.
Adds 100000 Daily 10 Debt.
A general survey OF the administra-
tion OF the city's finances is made in
the following portion OF the report
The city has run in debt approxi-
mateIy 100000 day since the greater
city was Incorporated. The funded debt
debt limit for ten years. The tax rate
has risen until 1t has reached. II not
passed. the constitutional tax limit. All
other means OF raising funds to meet
the ever rising tide of expenditures hav-
ing been exhausted. resort has been had
to various devices. including doubtful
interpretations Of constitutional iimita-
tions not contemplated at their enact
ment.
These devices proving inadequate the
power OF assessment has been resorted
10 by the city administration. which
controls the department of taxes and
assessments, until the assessment has
reached approximately "a per cent OF
the actual value, a rate much higher
than the rest OF the State Like the
other devices pursued this is nearly OK
hausted."
Referring 10 the management OF the
sinking funds, the document says:
"'rhe sinking funds furnish no security
for the debt held by the public. That
debt must be paid by taxation. The
sinking fund securities could be disposed
of II a market could he found and the
proceeds applied, but that has been an