"All the News That's Fit to Print!"
THE WEATHER
Fair today; Thursday, increasing cloudiness, probably local thunder showers afternoon or night.
For weather report see next to last page.
Fair today; Thursday, increasing cloudiness, probably local thunder showers afternoon or night.
For weather report see next to last page.
VOL. LXX....N0. 23,209.
NEW YORK, WEDNESDAY, / AUGUST 10, 1921.
NEW YORK, WEDNESDAY, / AUGUST 10, 1921.
Special Cable to The New York Times
WASHINGTON, Aug. 9. — President
Harding assumed control of the taxation
problem tonight and effected a compro-
mise between the estimates of Secretary
Mellon and the Republican leaders of
the House by which internal taxation
will be reduced about $600,000,000 and
the Republican platform pledges on re-
peal of the excess profits taxes and cuts
in income surtaxes and the transporta-
tion taxes will be fulfilled.
The conference, held at the White
House and attended by Secretary Mel-
lon, all the Republican members of the
Ways and Means Committee and Rep-
resentatives Mondell, Madden and Camp-
bell, reached these conclusions:
The total expenditures of the Govern-
ment in the next fiscal year wdll be
held down to $4,034,000,000.
The revenue bill, now being prepared,
wdll raise $3,075,000,000, instead of
$3,570,000,000, which is collected under
the present law'.
The bill will repeal the excess profits
taxes as of Jan. 1, 1921; reduce the in-
come surtaxes to 40 per cent, as of Jan.
1, 1921, and to 33 per cent, to take effect
Jan. 1, 1922.
Transportation taxes will be cut
half, to be effective in January,
and repealed in 1923.
The loss from the repeal of the excess
profits taxes will be made up in part
by Increasing the present 10 per cent.
tax on the net incomes of corporations
to 12Mi per cent, instead of to 15 per
cent., as originally planned.
Soft drink taxes will be repealed, as
well as a number of other so-called
nuisance taxes. The luxury tax, de-
tails of which were announced yester-
day, will be repealed.
There will be no new taxes except the
additional levy on corporations and an
adjustment of several miscellaneous
taxes. The details as to this adjust-
ment have not been worked out.
This program was made as a result
of President Harding's insistence on
economies and the carrying over of a
number of war “ hang over ” debts. It
represents a compromise between the
estimates of Secretary' Mellon and the
views of Republican House leaders. Ac-
cording to the President, who announced
the decision after the conference, it wdll
be necessary for the Government to pur-
sue the strictest economies during the
next fiscal year.
It was
egreed that the Revenue bill
would be reported to a Republican House conference by next Monday and taken up for consideration in the House shortly afterward. The bill, Republican Leader Mondell said, could be passed by the House and all other necessary measures disposed of by Aug. 20, at which time Congress plans to take an adjournment for from four to six weeks.
Indications are that the bill to authorize the
War Finance Corporation
to
raise money to meet the claims of the railroads will not be acted upon finally by Congress until after the recess, although every effort will be made to pass it in the House before adjournment.
It was possible to reduce the amount which the Revenue bill would carry and the total needs of the Government only by deciding upon carrying over some of the war debt and reducing the expenditures of the Government departments.
Securities that mature next year will be refunded into long-term notes.
The
war
saving
securities,
amounting
to
$100,000,000, the fund for the retirement of the Pittman act, certificates of $70,-000,000 and redemption of bonds and notes from estate taxes of $25,000,000 will not be paid out of the current revenues but by long-term notes.
In his estimates Secretary Mellon apportioned $450,000,000 next year to the War Department.
This was reduced to
$a50,000,000.
His estimates for the navy
were
$487,000,000,
$487,000,000.
which
was
cut
to
Secretary
Mellon's
mate
for the Shipping
Board
esti-
was
cut
in half.
He estimated
the needs of the
board at $200,000,000.
Mr.
Mellon
stated
the needs of the
ratiroads
for the next fiscal year
as
$545,206,204, and this was cut to $495,000,000.
It
may be
about
cut further if
necessary, the House leaders said.
The estimated appropriations for the departments for the next fiscal year were scaled down by about $330,000,000 and the public debt payments by about $170,000,000.
The Government in the next fiscal year,
according to the agreement reached tonight, must get along with $516,000,000 less than the estimate given by Secretary Mellon, recently presented to the Ways and Means Committee.
In
that statement he set forth the needs
LONDON, Aug. 9.— The House of Commons tonight by a vote of 237 to 62 passed the third reading of the Railway bill, which provides for the payment of £60,000,000 as compen- sation to the railways on the with- drawal of Government control this month and also for a new grouping of the railways for economic work- ing and for various other forms, eluding a settlement of the freight rate question and wages.
Henry P. Davison, of the firm of J. P.
Morgan & Co., Is seriously,
ill at his
country home, Peacock Point, Locust Valley, L. I., and is to undergo an operation, which may take place to-morrow.
At Mr. Davison's town home, 690 Park Avenue, It was said last night that Mr.
Davison's chief symptoms were severe headaches and sleeplessness, and that fear had developed that he was suffering from a growth which was affecting the brain.
His condition was
such,
it was
added, that it was possible
surg!cal
effort
at relief
would
take
place today.
This, It was explained.
would be decided
at a consultation of
four noted physicians, who were taken to the Long Island home by automobile last night.
It was understood that the
-peration would be performed in the Davison home.
The information last night confirmed reports that. Mr.
Davison for a long
time had been in bad health.
It was
sald further at his country home that a full statement as to his condition would be made at the Morgan offices today.
Only one of Mr. Davison's physicians could be reached
last night.
He was
Dr. Medwin Leale of 20 West Fiftieth Street, whose Summer home is at Glen Cove, not far from Mr. Davison's own.
Dr. Leale, who has been in attendance on Mr. Davison for many months, refused to explain the nature of Mr. Davison's illness, or to discuss the subject of an operation.
To a reporter for THE
NEW YORK TIMES, however, he made this formal statement:
" Mr. Davison's condition is entirely satisfactory. He is resting as comfortably tonight as could be expected under the circumstances."
It was learned that others in
at-
tendance upon Mr. Davison
were Dr.
Frederick Tilney of 22 West Sixty-third Street and Dr. Lewellyn Barker of Balti-more,
Professor
of
Clinical
Medi-
cine in Johns Hopkins Universtly.
Dr.
Liarvey Cushing of Boston, famous brain surgeon, was another mentioned,
but it
was denied that he had been summoned or would perform the operation.
Dr. Barker has been on his vacation in the Canadian woods for a month.
At
Mr. Davison's home It was said that Dr.
Barker was not expected
there until
today, but at the town home it was learned that he was one of the four physicians who had been taken to Long Island last night.
George Case,
an attorney and a fam-
Ily friend,
met reporters who called at
the Long Island home to inquire as to Mr. Davison's condition last night. Mr.
Case admitted that Mr. Davison had not been at the Morgan offices or able to attend to any other business for very many months-a year or more-but he was reticent as to the exact nature of the illness.
He denied that an operation had been ordered, but.
said
that
the
" future
course of treatment"
would be decided
today at the consultation in which Dr.
Barker would take a leading part.
He said that Mr. Davison was able to ramble about the spacious grounds at Locust Point, but when a request was made that a reporter be allowed to talk with him Mr. Case said that Mr. Davison had not been in a condition to be interviewed for many months.
Mr. Case disclosed that Mr. Davison had taken virtually no active part in af-feirs since he severed his connection with the Red Cross after having directed its work in Europe during the war.
It wag
this work, he belleved,
which had sapped
the financier's strength.
He is 56 years
old and has not been able to recuperate despite
a
long and careful
at the hands of specialists.
treatment
The engagement of daughter,
Miss
Mr.
Davison' g
Alice Davison, to Arte-
mug L. Gates, Yale ex-football star, was announced
yesterday
and it was re-
ported last night that its announcement
By EDWIN I,, JAMES
Special Cable to The New York Times
PARIS, Aug. 9.-The Entente will not be broken on account of Upper Silesia.
While little progress might appear on the face of today's procedure, nevertheless the experts of both sides are at work under instructions from their respective
Premiers, and,
although
final settlement cannot be said to have been reached or even
to be near yet
there are enough indications to assure that some sort of arrangement will be agreed upon.
It is altogether probable that when the ultimate outcome is recorded it will be found that Germany gets somewhat the better of Poland if
the matter is
considered on the basis that both claim the irtlustrial
region of Silesia.
The
principle that this
region is indivisible
is being dropped, and although Germany will probably get Gleiwitz, the heart of
IC,
the Poles will get more than the original British plan would have given them, but less than the original French plan allotted them.
As yet Ambassador Harvey has taken no part in the proceedings.
He has re-
mained in his corner seat and listened.
Nor has he seen fit to inform American correspondents of the proceedings.
He
has sent his secretary to tell them that he had nothing to say, and the American newspaper men have had to depend on British and French sources for practically all their news.
At this
morning's session
Premier
Lloyd George addressed the French in terms
which, if not matching the weather, were certainly frank.
He began by saying that Upper Silesia was one of the most menacing problems ever presented
to the Supreme
Council. He said he was most anxious to reach a conclusion, but that the Allies would be false to their responsi-billty if any one of them accepted a settlement which failed to command the respect of the world, because such a solution would lead to war later on.
The British Prime Minister expressed satisfaction at seeing the re-entry of the representative of the United States in the Allied Council, as well as his pleas ure at the continued presence of the Japanese envoy.
However, he said, the
Silesian problem was up to the powers who bore the responsibility of enforcing the decision-England, France and Italy.
England and Italy were in agreement, he said, but the French view was dif-ferent.
Mr. Lloyd George then declared
that, as much as he desired to compose existing ditferences, no settlement must be made at the expense of the majority of the Silesian population or of the directly Interested powers.
Silesia, he continued, had been Ger-manle for 700 years, which was longer than Normandy had belonged to France.
It
wes true
Silesia had belonged to
Austria until taker away by Frederick the Great, but even then it had belonged to Prussta for 177 years longer than Alsace-Lorraine had belonged to France before the Germans took it in 1871.
LONDON. Aug. 9.— A dispatch to The
London Times from Wellington, N.. Z
says that owing to the drastic prohibi-
tion regulations and other grievances of
the people of former German Samoa, a
petition has been prepared asking that
the Government of the island be trans-
ferred to Great Britain, according to Mr.
Lee, Minister of Foreign Affairs of New
Zealand, who has just returned from a
visit to Samoa. The mandate for Ger-
man Samoa was given to New Zealand
by the Peace Treaty.
The Samoans says Mr. Lee, are dis-
satisfied because they were not con-
sulted nor asked to sign the Peace
Treaty which disposed of their terri-
tory, although they signed in 1895 the
convention creating a German protec-
torate. They desire that Great Britain
appoint a Governor, leaving the admin-
istration of affairs to a Samoan chief,
aided by old white residents.
After Mr. Lee had explained the policy
of New Zealand with regard to the
islands, he says, the chiefs withdrew
their petition temporarily, but he is of
the opinion that they will present it
again. Mr. Lee regards the native dis-
satisfaction as an indirect result of dis-
content among the European settlers
due to prohibition.
WASHINGTON, Aug. 9.— Increases
in the retail cost of food are shown
in eleven out of the fourteen cities
included in the official tabulations
made public today by the Depart-
ment of Labor. Norfolk, Va., with
a decrease of 1 per cent. ; Dallas,
Tex., with a decline of one-tenth of
1 per cent., and St. Louis, where
prices remained unchanged, the ex-
ceptions.
The figures were made for the pe-
riod from June 15 to July 15, and
show increases of 6 per cent, in
Butte, Mont. ; 5 per cent, in Cleve-
land, Ohio, and Portland, Me. ; 3 per
cent, in Bridgeport, Conn. ; 2 per
cent, in Houston, Tex., Newark, N.
J., New York and Washington; 1
per cent, in Birmingham, Ala., and
Charleston, S. C., and two-tenths'Tf
1 per cent, in Cincinnati.
Special to the New York Times.
SPRINGFIELD, 11l.,
Aug. 9.-Gover-
nor Len Small was placed under arrest by Sheriff Henry Mester of Sangamon County at the Executive Mansion shortly after 5 o'clock this afternoon.
De-
spite the Governor's protests and those of his attorney, George B. Gillespie, he was forced to accompany the Sheriff to the Court House, where he furnished bonds of $50,000 as surety for his appearance before Judge Elbert S. Smith in the Sangamon County Court on the first Monday in September, to answer to three indictments charging him, when State
Treasurer, with embezzling half a million dollars of State funds, conspiracy to defraud the State of $2,000,-000 of the taxpayers' money and em-bezzling, jointly with Lieut.
Gov. Fred
E. Sterling and Vernon Curtis, $700,000
of Interest on public funds.
It is the first time in the history of Illinois that a Governor of the State has been arrested on a criminal charge while ir office.
The curtain was rung down on the farce, which has amused the entire nation ever since Governor Small's indictment on July 20, toward the end of what was the most farcial day of the Governor's whole game of hide and seek with the law.
From noon until 3:30 o'clock
Sheriff
Mester and a force of deputy sheriffs literally besieged
the State
House, guärding every entrance, waiting with the warrants for the Governor's arrest.
At the latter hour the Govenor
capitulated.
He had
not moved out
of his private office for lunch.
At 3:30 o'clock
Governor Small re-
quested the Sheriff to come to his office, asked him if he had the warrants and Invited him to arrest him.
Sheriff Mes-
ter refused, saying he had been advised by his attorneys not to take the Governor into custody while he was at his desk in the actual performance of his official duties.
Governor Small
then
informed the Sheriff he would be at the Executive Mansion at 5 o'clock.
Sheriff Mester, accompanied by his chief deputy, Ora Lemmon, drove to the mansion at 5:05 o'clock. Both were conducted to the library, where the Governor and Mr. Gillespie were wait-ing.
"Governor," said Sheriff
Mester, "I
am here with the warrants."
The Sheriff proceeded to read all three warrants.
When he had finished, he
said:
"Governor, you are under arrest."
"Very well,' replied the Governor.
"What shall I do?"
"You must go to the Court House with me and give a bond."
Mr. Gillespie produced a bond which already had been prepared and requested the Sheriff to accept it at the Man-sion.
Another bond had been drawn up at the Sheriff's office ready for the Governor's signature.
This bond required
the Governor to
furnish no securities
thest that his tod.
But Sheriff Mester
insisted
the Governor accompany
him back to the Court House and give
bond there.
The entire proceeding
occupied less
than
ten minutes.
Sheriff
Mester
emerged from the Mansion, followed by Senator John A. Wheeler of Springfield, one of the Governor's closest political allies.
Next came Deputy Lemmon and
a few paces behind him the Governor.
There was no smile on the Governor's face.
He appeared to be greatly wor-
ried.
As he put on his hat he glanced dejectedly at the crowd of newspaper men and
photographers
outside and
walked briskly to the Sheriff's car. The Court House was reached at 5:20.
A
lerge crowd already had gathered both inside and outside.
There was considerable argument over the bonds.
Mr. Gillespie refused to per-
mit the Governor to sign the bond which had been prepared, on the ground that it was illegal because it required no sureties. He insisted that Sheriff Mes-ter accept the bond which had been prepared at the mansion.
This the Sheriff refused to do until he had consulted with State's Attorney C.
F. Mortimer. Some minutes elapsed before the latter arrived.
" I regret exceedingly, Mr. Governor, that I have to meet you for the first time under these circumstances," the State's Attorney.
said
After more discussion, during which Mr. Mortimer insisted that the form of
bond
coune be repghtly changed, the bond
prepared
Governor
The policeman who " shot up" William Gallagher's underground cabaret at 711 Seventh Avenue early yesterday morning, putting a bullet into the thigh of William Fogarty, assistant manager, and throwing the patrons into a panic, as told in a late edition of yesterday's Times, was identified later in the day ns Patrolman John B. Fitzpatrick of the Charles Street Station.
It also came out that Fitzpatrick escaped after the shooting through the a'd of Detective James T. Greaney of the Third Inspection District. Greaney told a uniformed policeman who tried to arrest Fitzpatrick that he had him under arrest and was taking him to the station house.
Fitzpatrick, who was off
duty and in plain clothes, was hurried eway by Greaney and his identity might not have become known except that he was 80 badly hurt in the fight in the cabaret that he had to go to Knicker-bricker Hospital. Fitzpatrick was then arrested on a charge of felonious assault and suspended from the Police Depart-ment.
Acting Inspector Thomas Donohoe of the Third Inspection District, to whose sluff Greaney was attached, announced that he would make a thorough investi-ration of Greaney's conduct. The Inspector has recelved a statement from Pagrolman Hughes, on post near the scene of the shooting, that Greaney promised to take Fitzpatrick to the West 1 orty-seventh Street Station.
When Fitzpatrick and his three friends entered Gallagher's on the east side of Seventh Avenue, between Forty-sixth and Forty-seventh Streets, known as the Broadway Gardens, all four were in plain clothes.
Fitzpatrick was said to
have remarked that he would not let himself be gouged again. He and his companions had several drinks and rose to leave about 2:30 A. M. They were handed a check for $2.50-whether for the evenings' entertainment or for the last round has not been learned. Fitzpatrick jumped to his feet with a torrent of angry words.
The waiter in-
sisted on full payment. Fogarty rushed over to settle the dispute. A general mêlée followed, with fists,
chairs,
bottles and other handy missles. Then Fitzpatrick drew his police automatic and fired several shots. Fogarty fell to the floor with a bullet in his right thigh.
About the same time a bottle
crashed on the back of Fitzpatrick's head and somebody punched him squarely on the nose.
In the midst of the excitement Detectives Greaney and Gray tried to get Fitzpatrick away.
But somebody had
telephoned to the West Forty-seventh Street Station and Lieutenant Putz flashed the signal to Patrolman Hughes on post. Hughes ran down the steps Just in time to meet Greaney and Gray, in plain clothes, with Fitzpatrick beween them, coming up the stairs.
"Nobody can leave this place until I find out what has happened," Hughes said. "Who is this man and what has happened to him?"
Fitzpatrick was
bleeding profusely from.the nose and head.
Greaney
and Gray displayed their
shields. "We are policemen and have arrested this man," they said. " He is our prisoner and we'll take him to Roosevelt Hospital for treatment and then bring him around to the West Forty-seventh Street Station. You go in and tend to that man," pointing to Fogarty, writhing in pain on the floor.
That was the last seen of Fitzpatrick for several hours. In the meantime Hughes called an ambulance, and Dr.
Miller of Flower Hospital took Fogarty to Bellevue. The patrolman accompanied Fogarty to the hospital, then reported back to the West Forty-seventh Street Station, where he learned that the detectives had not showed up wite their supposed prisoner. No trace of the trio could be found until 5:30 A. M., when the La Salle Street Station was notified by Knickerbocker Hospital that Fitzpatrick had gone there for treatment.
Fitzpatrick was arrested at tho has. pital and
arraigned before Ma Show!
Peter J. Hatting in West Side Court on a charge of felonious assault.
The com-
plaint was made by Sergeant Chenu on Captain Donohoe's order, and adjourned on his request until Aug. 15.
Fitzpatrick's father
put up $2,500 bail
for him yesterday afternoon.
His rec-
ord showed he was 25 years old, single, living at 21 Convent Avenue,
and de-
nied drinking.
He served in the army
overseas and has
a fair record in the
Police
Department,
to which
he was
appointed on March 5, 1920. man's
suspension
was
The police-officially
nounced
by Commissioner
Enright In
special orders last night.
Friends of Fogarty said that he did not intend to make a complaint against Fitzpatrick, and there was a dispost-tion on the part of the management of Gallagher's to minimize the quarrel and avgid any trouble with the police.
No Trace of Polo Grounds Clubber.
The police failed yesterday to identify the two supposed police detectives who blackjacked James A. S. Carpenter of • 75 Sherman
A venue
at the Polo
The police failed yesterday to identify the two supposed police detectives who blackjacked James A. S. Carpenter of 75 Sherman Avenue at the Polo Grounds Monday afternoon, and then ran away. Carpenter called at Police Headquarters yesterday afternoon, and asked to see Chief Inspector William J. Lahey, who referred him to Inspector
Here are the charges against the Hylan Administration as sum- marized by former Senator Elon R. Brown, counsel to the Meyer inves- tigating committee, at yesterday's session:
I find that the apparent margin for additional authorizations on Jan. 1. 1918, was 118,419,000, and that was arrived at by deducting from the funded debt of the city, dock and rapid transit bonds lc-ss sinking fund amortization of 8102,031,000. That the financial authorities did not add to the debt as they should the excess of special revenue bonds over one-tenth of 1 per cent, of the valuation of real estate, as shown by the last assessment roll, and that tnev should have added $2,745,000. That the tax notes may be issued, not for one year, but for as many years as the city sees fit. and there is no provision for their exemption from the funded debt, and there- fore $4,604,000 should be added to the funded debt.
That it is expressly provided in the decision of the Court of Appeals in Levy vs. McClellan, that bonds that are in the sinking fund for the payment of bonds that az*e cxemp from the debt limit, are not to be credited or deducted from the bonded debt, and that the deduction as made was $12,390,000 less than the amount jf ruch bonds, and that after these corrections are made the debt limit was exceeded on Jan. 1, 1918, by $103,348,000 for all other purposes, municipal purposes, other than docks and rapid transit construction. That there was a margin of $117,- 000,000 for dock and rapid transit created subject to the debt limit, and that from that $117,000,000 must be deducted the other excess of $103,- 000,000, leaving at that time available fo. rapid transit and docks the sum of $14,000,000.
A similar statement for Jan. 1, 1919. with the same corrections, accord- ing to the figures existing at that date, with the classes of items being the same, show’s that* the debt limit for purposes other than docks and rapid transit was exceeded on Jan. 1, 1919, by $69,000,000, and there was a margin for rapid transit and docks of $51,000,000. That on Jan. 1, 1920, a corresponding statement shows that the debt limit was exceeded by $53,000,000 for other purposes than docks and rapid transit, and there was a margin of $67,000,000 for docks and rapid transit. On Jan. 1, 1921, in a corresponding statement, the debt limit for other purposes than docks and rapid transit wras exceeded by $120, there was available for rapid transit and docks $21,000,000. On July 1, with the same corrections or corresponding corrections, there was a margin on the tax limit of $20,000,000, and a margin for docks an'd rapid transit of $141,000,000.
Also that there is a question in relation to this margin, as to all other margins, which I have suggested, arising from contract obligations to com- plete dual contracts, under the decision of Lavy vs. McClellan; and I understand the city is under obligation to expend at least $40,000,000 more on the dual contracts.
While Tammany leaders played a waiting game yesterday regarding the selection of their borough, county and judiciary tickets-holding back until the Republicans had put forth their desig-nations—a movement was started by Fiorello LaGuardia, Aldermanic President and candidate for the Republican Mayoralty nomination; to place an independent city ticket in the field. This ticket would include Judge Reuben L.
Haskell of Brooklyn and former Senator William M. Bennett, also Republican Mayoralty candidates, the three candidates running for the offices of Mayor, Controller and President of the Board of Aldermen.
Following this, the Executive Committee of the New York County Republican Committee last night designated their county, borough and judiciary ticket as follows:
For Borough President - ERNEST F.
EILERT.
For District Attorney-JOHN KIRKLAND CLARK.
For Sheriff-JOHN 'S. SHEA.
For Register-HELEN VARICK BOSWELL.
For County Clerk-CHARLES NOVELLO.
For General Sessions Judges-JOSEPH F.
MULQUEEN, MAURICE KOENIG, JOHN HI.
ISELIN.
For City Court--WILLIAM H. CHOROSH and WILLIAM J. MILLARD.
Major LaGuardia offered the suggestion in telegrams to Judge Haskell and Mr. Bennett asking that a conference be held at the Hotel Netherland, Fifth Avenue and Fifty-ninth Street, today at 1 o'clock. Judge Haskell did not reply.
Mr. Bennett sent word to the Alder-manic president thot he was willing to
meet Mr. LaGuardia and “ aid in any
movement the object of which is to pre-
serve to the voters the right to say
who their candidates shall be.
Republican leaders admitted that a
Haskell-LaGuardia-Bennett city ticket
had dangerous possibilities for the ticket
headed by Henry H. Curran, but they
said there was little likelihood of the
three ” recalcitrants ” getting together.
"What proposal will you make if the conference is held?" Major LaGuardia was asked.
" Anything to beat the Miller com-bination?" he replied. "I believe the Miller combination is doing everything to retain Tammany in office."
"Would you accept the designation of Controller on the new ticket?" he was asked.
"We won't go Into that now," was the reply.
When it was pointed out that it would be obviously impossible for a ticket to be formed it all three candidates insisted on running for the office of Mayor, Mr. LaGuardia said:
" Nevertheless. I wouldn't worry about that."
Mr. LaGuardia was asked if it had
last Saturday with Richard Lawrence, Republican County Chairman of the Bronx, that he withdraw from the
Mayor Hylan, the first witness before
the Meyer committee yesterday, read a
long defense of his administration and
an attack on the motives behind the
creation of the Meyer committee.
There has been so much unintelli-
gent comment on the affairs of the City
of New York,” the Mayor read, “ that a
plain statement of pertinent facts is de-
sirable. It may bring about an accurate
understanding and a proper realization
of conditions, many inherited and some
arbitrarily imposed, with which the lo-
cal officials are powerless to contend. It
maj place responsibility with respect to
recent budgets and the present budget of
1921 where in honesty and truth it fair-
ly belongs.
The legislative resolution that fur-
nishes the scope of your committee's
powers contains some reckless assertions.
I say reckless because by the very re-
citals of the resolution the Legislature
admits its action is not founded upon
facts, but upon irresponsible, unfounded,
to use its own language, 'common re-
port. If the Legislature did not have
facts to set out in its recitals, andxyet
nevertheless desired to set an investiga-
tion afoot, common decency' required
that, when it authorized the desired in-
vestigation, it refrain from publishing
misleading and vicious statements re-
garding the chief city of the American
Continent.
"The six recitals, 'whereases' or bases of your legislative committee's resolution relate to four assertions. All are founded upon what is called in the resolution ' common report.' They are:
"1. (a) That the city's general financial status is 'in a perilous position.' (b) That
the revenue of the city is insufficient to meet the requirements of the pubiic schools and other municipal departments.'
"2. That such assumed financial condition is due in part to 'inefficiency, waste and corruption ' In the various city departments.
"3. That, because of alleged unstated practices, there is demoralization in the administration of various departments.
"4. That the alleged financial difficulties are due in part to duplications and defects in the city's charter, resulting in inefficiency and waste in administration."
"As to the assertion that the general financial status of the city is in a
' perilous condition,' this is not so.
"This Administration on Jan. 1, 1918, inherited from its predecessors a net funded debt of $1,031,269,039.55. During the intervening three years it has added $3,275,654.52 to the net funded debt, as compared with $132,300,435.34 added during the four years of the Mitchel Ad-ministration. These figures strikingly show where rests the responsibility for the creation of the net funded debt.
"
On March 1, 1921, the debt limit margin was $161,710,610. This margin can be still further increased by the addition (upon application to exempt them to the Appellate Division) of about $20,000,000 of dock funds, which are entitled to be exempted because they are
John F. Hylan, Mayor of New York
City wiis the first and only witness
yesterday in the first open hearing to be
held by the Meyer Investigating Commit-
tee in the Citv Hall.
The Mayor on taking the stand read
a long statement concerning the city’s
finances and defending his administra-
tion against the “ common reports ” on
which the Legislature based its Inves-
tigation. He blamed the Legislature it-
self for much of the financial burden
the city' is carrying.
Former Senator Elon R. Brown, coun-
sel for the committee, also made a state-
ment. He asserted that on Jan. 1 the
Hylan Administration had exceeded the
city debt limit by $120,000,000, and that
the Hylan Administration had violated
the law in concealing this excess of in-
debtedness in keeping municipal
counts.
As a witness the Mayor compelled Mr.
Brown to repeat and rephrase the ques-
tion. “ What is the City Sinking Fund?”
more than twenty times before
mitting himself to a definite reply.
Other elementary questions relating to
city government involved almost an
equal number of questions and answers.
Mayor Hylan pleaded with the counsel
to seek the information from Controller
Craig or from Duncan Maclnnes,
expert in the Controller's office.
Mayor offered Duncan Maclnnes as a
substitute for himself so many times
that later mention of his name invari-
ably caused laughter, and induced Sen-
ator Brown to say finally:
I will reach Duncan Maclnnes in
due time, but I. can't examine Duncan
Maclnnes at the same time that I do
you.”
If you had Duncan Maclnnes,
persisted the Mayor, “ he would dis-
prove every statement you have made
here on the finances.
On every subject the Mayor had ques-
tions read over and over again by the
stenographer, and then frequently pro-
fessed inability to understand it until
it had been couched in different phrase-
ology two or three times. When he did
answer finally, it was often after con-
sulting with an Examiner of the Board
of Estimate, who sat beside him or by
reading from a record which the Ex-
aminer handed to him.
Apparently abandoning the effort to
obtain information about the city's af-
fairs, the committee's lawyer finally
seemed to devote himself to carrying on
a sort of intelligence test, examining
the witness on general information,
reasoning power and ability to grasp
subjects.
The audience was composed largely of
political friends of the Mayor, who dis-
cussed admiringly his seemingly great
powers of evasion, while his non-ad-
mirars thought the Mayor was sincerely
perplexed and distressed by the demand®
made on his intellect.
The discussion which followed the
mention of an item of $32,500,000 makes
a characteristic specimen of the dia-
logue. The quotations are from the of-
ficial minutes.
“ Did they get that money unencum-
bered by any charge?” a ked Senator
Brown.
“Did they—.” and the Mayor stopped
and looked inquiringly at the Senator.
“Did they get that money unencum-
bered by any charge?” repeated the
Senator.“ I don't understand what you mean,
said the Mayor.
The lawyer took the Mayor back over some of the earlier ground and caused him to agree again that this item of $32,500,000 had been paid to the city.
"Now I ask you," continued the Sen-ator, "if it got the money free and clear or whether it was subjeet to any charge that reduced it?"
"Well," said the Mayor, "I don't get just what you mean by ' subject to any charge.' "
"Well," said the Senator, "if I pay you $10 subject to a mortgage for $2 that you have got to go and immediately pay, you don't get but $8, do you?"
"No," said the Mayor; "you only get $8, of course."
" That would seem to be quite a clear proposition? "
"Yes," said the Mayor.
"And within the range
clal dealings and mine?e, of your finan-
" Yes."
Mayor Hylan was on the stand all day.
As far as they went, the two sessions strongly confirmed the protestations of.
Counsel Elon R. Brown and Republican members of the Meyer committee that the inquiry would have no muckraking or vote-seeking character.
The hearing started in the Aldermanic Chamber before a large crowd.
consist.