The Minneapolis journal., 1902-01-01
Crisis Reached in Affairs at
Superior.
COMMON WAGES UNPAID
President of First National Outline.
- Startling Policy.
ADVISES AGAINST TAx-PAYING
Boom Days and the Free
bOoting of Years.
Special to The Journal,

Special to The Journal
Superior, Wis, JAM LIT is so unusual
| for the chief officers OF the leading fnan-
cial institution of an important munich
pality to advise the Reputation Of the
city's debt that the letter addressed this
week to President William B. Banks Of the
! First National bank of this city, to the
| Taxpayers League, is remarkable.
Mr.. Banks says In his letter, which he
asks the league to print:
The condition of our city is simply mon
strous deplorable and an eyesore both at
| home and abroad, while our local business is
! in disgustingly low ratio as based on our
population. 1t is preposterous to suppose that
| we can continue as as5municipality under
present conditions, and hope for any material
growth in business. population or values:
| A business man in kescondition' would go
through bankruptcy and commence anew; the
! municipality, though it cannot go through
| bankruptcy must take steps to accomplish
| the same end. The timeShas come to do this,
| the four essential features to accomplish
| which are the lessened expenses, lstoppage OF
| illegalities and waste, reimbursement OF debt
and economical administration all four con-
! dtions must be carried out: any three of
them will not do. am unalterably opposed
to the payment of any more taxes till the
authorities the taxpayers and6the bondhold-
! ers can come to some agreement
Mr.. Banks followed this letter by 8
notice to the city to withdraw the de.
posits 1t had in the bank. and tos.do sc
at the earliest possible moment.
ii Behind With Employer.
Superior has not paid the wages of Its
l
and public officials, for several months, but
day or two ago attempted. to settle by
giving interest bearing orders on the
treasury. These the banks refused te
cash. even at discount, and they arc
of no value. It is expeesed that next week
the city council Will aattempt to inject
| some good into these. orders by making
them receivable for taxes at their face
but if nobody pays taxesS5sthis additional
| value is auestionahg Numerous large
| Industrial enterpris h that have been as;
sessed at higher hgnr7s than they be-
| lieved right, have applied to the courts
| and in every instance have secured re-
| auction in assessments, these reductions
| running in some cases to SO per cent OF
| the total assessment. In order to make g
| valuation that would permit a sufficiently
high tax to keep the city going, the as.
| sessments had been raised to figures thai
| the local courts unhesitatingly vetoed
Mr.. Banks idea is that,some, of the extra
and unnecessary officials in the city car
be starved out and forced to quit by the
| continued cessation of salaries.
| There is city debt Of between $4 900 ,OO(
and IS 1000, 900 and interest payments have
not been made for some time; numerous
| suits are now pending, brought by bond
holders in the east who want their money
Doomed and Robbed.
These deplorable conditions are the re-
suit of two causes. First, the boom OF
| ten years ago, when the city allowed it
| self to get into an enormous debt for To-
| cal Improvements, and when bonuses were
| freely given by large local corporations
| closely associated with the municipality
| for bringing in manufacturing enterprises
which are now mostly idle and in ruins
Second, wholesale robbery for years by as
! graceless a set of scoundrels as ever went
| unpunished. No matter which party has
| been in power, this robbery has been con-
stant, and both city and county have suf-
| fered impartially. The citizens are now
reused, and are forming a taxpayers
league. Numerous arrests have just beer
made, and others are pending, and the
! plundering seems about to end.
/ It is too late, however, to prevent 9
| serious crisis in the affairs Of the MUM
| cipality, and those who, like President
! Banks, advocate a "readjustment of the
debit or who say what they mean, an6
talk direct reputation, are an important
element in the community.
| 1t is little curious that Duluth, now
prosperous and growing rapidly, passed
through this same difficulty after the
boom of the early 70's, but came out of ii
| successfully, and ultimately paid off all
the debt 1t for some years repudiated.