New-York tribune., 1922-12-16
Hylan Vows He
Prefers Jail to
Cutting Budget
Defies Bank Tax Ruling
That Takes $2O,OOO.OOO
From City and Says He
Won't Trim Pay Rolls
Can't Help 1t, Ayers Craig
Declares 1923 Estimate Of
Expenditures Is Now
S7.500,000 Over Limit

Mayor Iylan and other members %
the Board Of Estimate became defiant
yesterday when The question arose Of
cutting down future expenditures In
the city departments and reducing the
1929 and 1923 budgets 20 meet the
$4,000. 900 setback caused By the de-
eision Of the Court OF Appeals deelar-
ing Illegal the collection Of the tax
on national bank stock. The city now
finds itself compelled 70 refund about
fi2,0Oo.oO0 Of this tax. which already
has been collected and expended. as
we'll as a loss Of $1,000. 900 not yet
collected. and which formed a part Of
the revenues for the 1922 and 1928
budgets.
The punishment OF work in the
various departments 10 meet the new
obligation would mean the laying of
Of thousands Of day laborers, the
Comptroller pointed out.
Mayor Grows Defiant
II am not going TO vote TO take the
food out Of any mans mouth just
because the Court Of Appeals has made
decision" said Mayor HylGn.
Borough President Riegelmann Of
Brooklyn declared that Comptroller
CraiR's suggestion meant taking IS q
day "out Of the mouths OF city workers
on Christmas Day" lie said he had
funds. but was not goiag to give them
up at the expense Of the workmen. He
declared that the decision was that "of
some bank president
"well, II I've got TO 20 to jail for
voting So" said the Mayor, "l1l 90 70
Jail"
The Mayors remarks were loudly
Applauded by the audience IN the coun-
Gil Chamber.
The Mayor declared he was going 70
ask the Corporation Counsel TO go 70
the United States Supreme Court with
the case.
Craig Has No "Illuslons"
Don't have any illusions about that
said Comptroller Craig. TO 90 10
the Federal courts you must have a
Federal question involved. This deei-
sion Is confined 20 the state. II Con-
gress passes q bill permitting the state
TO tax national banks. making such
measure retroactive for 1920, 1921 and
1922. the State Of New York would
have 10 pass a retroactive bill and then
the Court Of Appeals could sustain the
Legislature. But IL you can picture
the bankers permitting such bill. you
have a fine picture OF bankers giving
money to the state"
"All we know" said the Mayor, us
that the bankers run the government
Of the United States"
Comptroller Craig submitted writ
ten statement 70 the board explaining
the situation caused by the Court Of
Anpeals decision. He said there
would be a dehcit Of s5,000.000 in the
1922 budget, In view Of the court de-
eision, which might be reduced 10 be-
tween sl,5O0,0oo and s2.oo0,o0o by rev
enues from miscellaneous sources not
foreseen when the budget was made
up. The other millions would have 70
be made up in next years budget, or
carried over until 1924 II possible.
Advises Economics
The only way he saw 10 get the re-
quired moneys, the Comptroller said
was TO shut OF the purchase Of sup
plies, postpone the making OF neees-
sary repairs. close down some OF the
public Offices and departments, or re-
duce them 10 part-time service. with
corresponding reduction In the eity's
liability for compensation for the in
cumbents whose time has been 50 re-
duced.
The Comptroller did not say what
Offices or departments he would sug-
9est closing down. As the matter now
stood, he explained. the 1928 budget
was in excess Of the city's taxable re-
sources within the constitutional tax
limit By about s7,500.000.
The Mayors attitude changed from
defiance 10 resignation. He said be
didn't see what could be done about II,
and that I'VE might as we'll close
down"
Mayor Hylan and the four Borough
Presidents then voted 10 meet existing
deficiencies in the 1922 budget
amounting 10 $4,000, by transferring
funds from their departments 20 meet
the budgetary requirements. Comp
troller Craig opposed the action taken
declaring that the sum was inadequate
because Of the Court Of Appeals
darfcfon