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University Library 1994.STATE OF NEW YORK
EXECUTIVE CHAMBER
STATEMENT
OF
Governor Alfred E. Smith
TO THE
People of the State of New York on Appropriation Bills
Approved by Him and Estimate of the Revenues
of the State for Fiscal Year Beginning July 1,
1919, Submitted to Him by the
State Comptroller
JUNE 4, 1919
ALBANY
.r. B. LYON COMPANY, PRINTERS
1919STATE OF NEW YORK
Executive Chamber
June 4, 1919.
To the People of the State of New York:
At the end of the thirty day bill period I promised to make a
detailed statement to the people of this State of all appropria-
tion bills signed by me; and what the money is to be used for.
I will endeavor to write it in such a way as to have it thoroughly
understood by the plain man on the street.
My experience has taught me that financial statements are
issued in such form that it requires accountants or bookkeepers of
no mean ability to be able to properly comprehend them.
The Legislature presented to me appropriation bills amounting
to $100,273,899.04. I vetoed bills to the amount of $4,705,595.86
and I approved bills to the total of $95,538,303.18, as compared
with appropriations of last year totalling ‘;$81,525,270.31, an
increase of $14;013,032.87.
This, upon its face, looks like an enormous increase in the cost
of Government. The fact is that $6,266,532.65 charged against
the appropriations of this year, should have been made last year.
In other words, when the Legislature of 1918 was making pro-
vision for the cost of Government for the fiscal year beginning
July 1, 1918, its appropriations were short $6,266,532.65;
in other words, 1918 appropriations should have totaled
$87,791,802.96.
In 1918, the total appropriations for the fixed charges of the
Government were $55,048,836.45; in 1919, the fixed charges are
$54,827,198.47, a decrease in the actual fixed overhead charges
of the Government of $221,637.98. “Fixed charges” are items
that occur year after year, such as the salary of the Governor,
the salaries of the State Officers, the Judges, the Members of the
Legislature, all of the State employees, and such other expenses
as occur annually and must, therefore, be regarded as fixed
expenses of running the Government.
[3]4
Inasmuch as I believe that this document will receive wide-
spread publicity, particularly among State officials, I will take this
opportunity to call the attention of the departments of the Govern-
ment to the abuses that grow out of exceeding appropriations. Not
only are the people deceived as to the actual cost of Government
by deficiency appropriations, but the departments are prevented
from making a showing that would be to their own credit.
Taking my own office as an example:	The entire budgetary
appropriations of this year show an increase of $47,276.39 over
last year, whereas, the fact is, that the Executive Department
will be run cheaper next year because of the elimination of
unnecessary positions, the increased amount showing deficiency
appropriations from last year of $11,225.60' and $40,000.00 for
carrying out the provisions of the so-called “ Moreland Act.”
The next large item of expense is Construction and Repairs to
State Property. Comprehended in this are all the properties of
the State from the Capitol down to the smallest piece of real estate
that the State owns and located all over the State, including
Hospitals for the Insane, Institutions for the Feeble-Minded,
prisons and various charitable activities of the State.
Much of the Repairs and Construction provided for this year
was needed last year, but I would make no criticism of the last
administration for not making full appropriations to this par-
ticular account, for the reason that the country was at war and
the Federal Government requested that men and materials be not
diverted from the purposes of the Government except in grave
necessity.
In 1918, $5,814,050.40 was appropriated for Construction,
Repairs and Betterments to State property. In 1919, $8,175,320.30
was appropriated, being an increase of $2,361,269.90:.
Of the sum of $8,175,320.30 for Construction, Repairs and
Betterments, I approved appropriations for the Hospitals for the
Insane of $1,979,411.62; appropriations for the Charitable Institu-
tions of $1,144,103.43, which included appropriations for the
institutions for the feeble-minded charges of the State to the
amount of $897,100.00 and appropriations for the new prisons
at -Sing Sing and Wingdale amounting to $1,100,000.00.
While these amounts are very large, they merely take
care of construction work for this year and will have to be5
supplemented year after year with additional appropriations
to meet the needs of the State in its hospitals, charitable institu-
tions and prisons.
Under the classification of Construction, Repairs and Better-
ments are a large number of what might properly be called “ local
improvements ”; the cleaning out of creeks, the mending of dikes,
the rebuilding of walls and the strengthening of bridges. I have
accepted such of these items as the State was obligated to finish
because of previous appropriations. I refused to accept any new
work of this nature not on State property or not connected with
the canal system of the State, on the ground that they are local
improvements and should be paid for by the localities benefited.
The State system of appropriations of this nature is antiquated,
unbusiness-like and wasteful to the last degree. There has never
been any estimate made of the probable cost of the improvement;
no State authority is consulted about it; the bills have been put
through the Legislature year after year by the members repre-
senting the localities to be benefited. They invariably make
them for less than the improvement will eventually cost in order
to expedite their passage. The State begins every calendar year
with no comprehensive, understandable program of public improve-
ment. I have discussed this matter at length with the Superin-
tendent of Public Works and the State Engineer and Surveyor
and will deal with it in my next annual message to the Legislature.
Another recurring charge to the State is the debt service. It
increases every year as additional bonds of the State are issued,
the increase this year over last being $11,533.31.
The appropriations of 1918 did not reflect any extraordinary
charges on the State because of war conditions. Appropriations
for the Food Commission, the Council of Defense and the Adjutant
General’s office having been made in 1917, the money was avail-
able last year, but this year’s appropriation bill reflects some
extraordinary expenses, due to post-war conditions, as well as new
activities that the State was obliged to enter into.
There should properly be added to the deficiencies of last year
the bills to purchase the Greenbush bridge and the Troy bridge
over the Hudson river. Both of these bridges will cost the State
this year, $1,730,000.00. As far back as 1917, the Legislature
fixed the policy by legislative enactment, that these bridges were6
to be part of the State Highway System, but failed to make any
appropriation. The Legislature also allowed the year of 1918 to
pass without appropriation. I have taken up the burden this year
with the belief that the State is obligated to their purchase and
good business sense dictates that the obligation be discharged.
For Hew York State’s share of the initial appropriation for
the Hew York-Hew Jersey tunnel, there was appropriated
$1,000,000.00.
When I entered office on the first of January, I found the good
road contracts throughout the State had fallen down because of war
conditions. While this had been known for sometime, no effort
was made to relieve the situation. Accordingly, there had to be
appropriated this year, $3,000,000.00 in order that these con-
tracts may be carried to a successful conclusion and that the great
highway system of the State be completed.
While on the same subject, in order to meet an allotment of
money from the Federal Government for the construction of roads,
the State was obliged to appropriate $575,000.00.
During last season, proceeding on the theory that the canals
were in the control of the Federal Government, no effort was made
by the State itself to get the benefit of that great inland water-way.
It remained practically idle while the railroads of the State were
experiencing the worst congestion of freight known in our history.
In order that the people may get some benefit from the canal
there was appropriated this year $200,000.00 to be used as a
revolving fund for the purpose of paying the charges for the
towing of boats.
This account involves no expense to the State, as the money
will be returned in the form of fees from the boat owners, but
it is necessary for the State to supply the fund in the first
instance, in order that the service may be rendered.
For years, no attempt has been made to add to the industries
carried on in our prisons. One of the complaints that I made
during the campaign, was that the prisoners were kept in idle-
ness.. Following out my suggestion, there was appropriated
$75,000.00 for the purchase of the necessary machinery to manu-
facture in the prisons the number plates for automobiles. They
have heretofore been purchased by the State from private manu-7
facturers at an annual cost of $150,000.00. I am informed that
the last lot was manufactured in the State of Illinois.
Early in my term, it was brought to my attention that a pest
had come into the State known as “ The European Corn-borer ”
and was working havoc with the com fields in the Mohawk valley.
For its suppression and elimination, there was immediately appro-
priated $75,000.00.
During the campaign, I spoke at great length upon the necessity
for liberal appropriations to the Department of Education.
Accordingly, I signed a bill increasing the State’s allotment to
the common schools for teachers’ salaries, carrying an appropria-
tion of $5,300,000.00.
Early this year, I conferred with the Regents of the University
on the question of adult illiteracy in this State. Following our
conference, they had a bill prepared carrying an appropriation of
$100,000.00 for the instruction of illiterates which I approved.
I accepted a bill of $30,'000.00 to provide for scholarships for
soldiers and sailors who took part in the great war.
During the war, women found their way into new lines of
industry at such a rapid rate that the creation of a Bureau of
Women in Industry in the Industrial Commission was considered
essential. I signed a bill for $10,900.00 for its continuance.
When Congress adjourned without acting upon the big financial
bills, the Federal Labor Bureaus were threatened at the very time
that we needed them most. Nothing was left for the State to do
but. come to their aid. For their continuance, I accepted bills
aggregating $233,633.34.
During the campaign, I spoke about what I deemed to be the
evil of the direct settlement clause in the Workmen’s Compensa-
tion Act. I appointed a Commissioner under the so-called
u Moreland Act ” and his preliminary report showed abuses to
so great an extent that the Legislature, by unanimous vote, agreed
to a remedy, and it will cost $72,000.00 for additional help in
the Commission to carry it out, and I believe it is worth it. The
Workmen’s Compensation Act means nothing for the millions
that it costs industry in the State unless it is properly administered.
The sum of $50,000.00 was appropriated for the Excise Depart-
ment for rebates on liquor tax certificates where the traffic was8
suspended on the request of the United States Government or
under the provisions of the statutes because the premises were in
the vicinity of camps or cantonments.
To the Attorney-General there was appropriated $50,000.00 for
the purpose of upholding the 80 cent gas rate for New York City.
To the Comptroller there was appropriated $300,000.00 for
administering the new income tax law.
To the Secretary of State for the administration of the new
motor vehicle laws, there was appropriated $126,040.00
Tor a great many years, it was customary to pass the appropria-
tion bill making provision for the support of the Government
during the closing days of the Legislature. It, therefore, became
what is known as a thirty day bill and was in the hands of the
Governor for investigation and examination for a period of
thirty days.
By a change in procedure to conform with the provisions of
Chapter 130 of the Laws of 1916, the Legislature passed the appro-
priation bill at a time during the Session, which made it a ten
day bill, or, in other words, the Governor would have only ten days
to examine its provisions, but to compensate for the loss of time
given to the Governor to consider it, there was created what is
known as “The Governor’s Budget Bureau,” and department
heads were required to make requests in the Fall of the year to that
Bureau. This enabled attaches of that Bureau to be familiar with
every provision of the bill. It likewise gave the Governor some
control over proposed items, in that his opinion as to the advisa-
bility of increasing salaries or adding new places could be obtained
through medium of his Budget Bureau before the introduction
of the bill.
When I came into office on the first of January, I found that
the Budget Bureau was out of business; its chief having been
transferred to the State Council of Defense for the purpose of
auditing their accounts, and no examination was made of the
estimates submitted. Because of this situation, I was allowed
a period of ten days in which to pass upon a bill carrying upwards
of $57,000,000.00. In the time given, and by working night and
day, a careful study was made of the bill, and I struck from it
all additional places that I believed to be unnecessary. I was9
unable to take them all out, because in spots the bill was so
drawn that the new places were coupled up with a large number
of existing positions, and I would have been forced, in order to
reject the new one, to strike them all from the bill.
I was confronted by the same situation with regard to salary
increases. Some of the salary increases I regarded as excessive,
but as I have no power, under the Constitution, to reduce an item,
I would have to strike it entirely from the bill. I conferred with
the legislative leaders and asked that I be permitted to veto the
items and requested them to resubmit them to me at what we could
all agree would be a reasonable increase; this they refused to do,
and I was forced into the position of either accepting the salary
increase or crippling the department by separating the employee
from it entirely, and in many cases, they were Chiefs of Bureaus,
and men who were charged with a great deal of responsibility
in the management of the department.
Statement of Appeopeiations
Increase
Fixed charges for support of
government, July 1, 1918 to
June 30, 1919..............$55,048,836 45	..........................
Fixed charges for support of
government, July 1, 1919 to
June 30, 1920........................... .$54,827,198 47 $*221,637 98
Deficiency in appropriations of
1918 ....................... .............. 6,266,532 65 ..............
Construction, repairs and real
estate, July 1, 1918 to June
30, 1919 .................. 5,814,050 40 ..............................
Construction, repairs and real
estate, July JL, 1919 to June
30, 1920 .................................. 8,175,320 30 2,361,269 90
Debt service, July 1, 1918 to
June 30, 1919 .............. 13,330,145 11	............................
Debt service, July 1, 1919 to
June 30, 1920.............................. 13,341,678 42	11,538 31
New Activities:
Chap. 642 Greenbush bridge................ $910,000 00
643 Troy bridge .................... 820,000 00
178 New York and New Jersey Tunnel. 1,000,000 00
Denotes decrease.10
Statement of Appropriations (Continued)
New Activities (Continued):
459 Highway war contracts.............$3, 000, 000 00
163 Federal aid ...................... 575,000 00
264 Canal towing..............•....... 200,000 00
236 Manufacture of number plates.....	75,000 00
17 Elimination of European corn-borer. 75,000 00
645 Teachers’ salaries................ 5,300,000 00
617 Instruction of illiterates........ 100,000 00
606	Soldiers’ scholarships .......... 30,000 00
85 Bureau of women in industry_______	10, 900 00
155 Federal labor bureaus.................. 50,000	00
591 Federal labor bureaus................  183,633	34
629 Agreements in workmen’s compen-
sation ..................................... 72,000	00
578 Rebates in liquor tax.................. 50,000	00
491 Fixing of gas rates...................  50,000	00
627 Income tax administration......... 300, 000 00
619 Motor vehicle registration............  96,000	00
465 Motor vehicle operators................ 20,000	00
607	Rochester office, Secretary of State.	10,040	00
$12,927,573 34
In the above statement, I have accounted in detail for all of
the appropriation bills that I signed this year, and I stand
squarely upon the statement that among the bills totaling nearly
$5,000,000.00 that I disapproved, not one single activity of the
State was interfered with or no necessary appropriation was
allowed to go by the Board; while on the other hand, every dollar
of money represented in the total appropriation bills of 1919
accepted by me, is, in my opinion, absolutely necessary for the
proper conduct of the business of the State.
I am entirely unwilling that I make a record in office of low
appropriations at the expense of the efficiency of the Government
of the State. If I understand aright the attitude of the public,
they are not against increased appropriations for the purposes of
Government, but they will not tolerate the waste of public funds.
I will do what lies in my power to make every dollar appro-
priated bring a dollar’s worth of return to the State.
(Signed) ALFRED E. SMITH.11
Estimate of Revenues Submitted by the Comptroller
The State Comptroller estimates the revenues of the State
for the fiscal year ending June 30, 1920, will'be $98,682,0/69.00,
and that the cash balance that will be available on July 1, 1919,
will be $2,827,873.00), or a total resource to meet the budget
appropriations of $101,509,942.00. The Comptroller’s estimate
is made up of the following revenues: Direct tax $13,752,069.00,
Income tax (State share) $20,000,000.00,, Business corporation
tax $18,000,000.00, Other corporation taxes $12,000,'000.00,
Organization of corporations $1,000',000.00, Transfers (Inherit-
ance tax) $15,0i00,000.00, Stock transfer (stamp tax) $6,200,-
000.00, Mortgage tax $1,000,000.00, Motor vehicle $4,200,-
000.00 and Miscellaneous receipts $7,530,000.00.