J------\     REAL    ESTATE





B U I LD E R S







Vol. CII.





NEW YORK, OCTOBER 12, 1918





No. 15





Predict No Increase in Tax Rate for This Year

Budget of $6,300,000 Over  1918   May   Be   Covered  If  Half  of
Increase in Tentative  Assessments  Holds





THE city's tentative budget for 1919 shows an in-
crease of $6,300,000 over the budget for the pres-
ent year, according to figures made pul:)Iic by
Comptroller Charles L. Craig. Despite this increase,
Mr, Craig said the indications are that the tax rate for
next year will be lower than this year.

The Controller's statement follows:

In spite of decreases in the expenditures of numerous
cit}^ departments the tentative budget for 1919 shows
an increase of $6,300,000 over the final budget of 1918.
These increases are due entirely to emergencies arising
from the war. About $2,300,000 is due to the main-
tenance of a special police force to protect the CatskiII
aquedûct, bridges, and similar structures against alien
enemies. Necessities for the Health Department, hos-
pitals, charitable and other institutions required an in-
crease of approximately $1,000,000 due to the high cost
of food, drugs, and like supplies. The salaries of the
men in the Police and Fire Departments were increased
$150, while the salaries of all city employes receiving
$1,800 or less were increased $100, and employes of the
Street Cleaning Department have received substantially
the same increase. These increases were made neces-
sary by the high cost of living brought on by the war,
and aggregate about $4,000,000. Altogether the com-
pensation of about 60,000 employes was aíîected by
these increases.

An increase of $360,000 was allowcd to the Dock
Department for dredging in order to fit the port for
war purposes. The great increase in wages of skilled
and unskilled labor by reason of competition of war
mdustries required additional appropriations amount-
ing to more than $3,000,000. The unparalleled severity
of the weather last winter increased the cost of snow
removal, so that, with the added cost of disposing of
refuse,  the  requirement  for  the   Street   Cleaning  De-





partment is nearly $2,500,000 greatcr than last year.

War prices for coal, paving, and like materials and
sup])Iies have required increased appropriations of fully
$800,000. Long delayed and necessary repairs to ferry-
boats, public buildings, structures, and equipment re-
quired additional moneys amounting to more than
$500,000. An increase of $950,000 for the Board of
Elections has been made necessary by extending the
franchise to women. Unprofitable subways add $1,-
200,000 to last year's losses of ,$5,700,000 in interest on
the city's investment in the dual system.

A great part of the foregoing increases are ofíset by
the saving in the more economical administration of
the various city departments. In many instances these
departments, in spite of the increase in salaries, show
a decrease appropriation from  1918.

In other words. a more economical and efficient ad-
ministratiun has greatly reduced and held down what
ctherwise would have been an extraordinary increase
in the budget due to war causes. Moreover, thousands
iif employes from the various city departments serving
in the army and navy are carried on the city pay-roll
and their families regularly receive their salary under
the Fenner law. In spite of the increase in the budget,
the indications are that the tax-rate for next year will
be lower than in 1918.

Hearings on the budget will be held in the City Hall
on October 15 and 16 and October 23 and 24.

In anticipation of the budget hearings Edward P. Doyle,
chairnian of the Budget Committee of the Real Estate
Board, has prepared the following statement:

"The harm done to the City of New York by sentimen-

talists, social reformers and professional settlement work-

ers of a certain type, during the past twenty-five years

cannot be measured by increased taxes or by the excess of

(Continued on page 420)





By LAURENCE McGUIRE,
President of the Real Estate Board.





WE had confidently expected an increase of at
least $20,000,000 in the budget over last year,
and of course are relieved to find that the addi-
tional amount is so much smaller than was anticipated,
The ComptroIIer has itemized the increases and called
attenliion to the decreases in expenditures.

What is apparent is that the Administration seems
to have done considerablc in the way of cutting down
routine expenses, largely, it is probable, by not replac-
ing employes who have dropped out of the service of
the city and by economy in other directions. Of course
the impossibility of new construction and repair work,
made difficult because of war measures, has aided in
keeping down the total expenditures.

From ComptroIIer Craig's statement it seems prob-





Committee of the Real Estate Board, excepting those
requiring legislation, have been approved. The ten-
tative increased valuations of real and pcrsonal prop-
erty amount to $745,000,000. If one-half of this in-
crease is sustained thcre will be no increase in the tax
rate over last year. In almost any event it seems prob-
able that the tax rate for 1919 will not be more than
a few points higher than the rate of 1918. As the real
estate interests had looked forward to an increase of
twenty-three points this is gratifying.

The Budget Committee of the Board of Estimate is
entitled to credit for having accomplished what must
have been extremel}- difficult when the cost of every-
thing, including mandatory increases of salaries, has
advanced so greatly,    Of coursc, thc budget is as yet only





able that many of the recommendations of the Budget     tentative.