Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-09-03
CITY WITHOUT AGENT
Takes All of Lawrence, Mass,
| Cash to Pay Employees.
TREASURY SCRAPED BARE
Question How This Weeks Bills
Will Be Met.
MAYOR CHARGES "FRAME-UP''
Declares He's Victim Of a Conspir-
acy by Politicians and
Financiers.
Special Dispatch to The Star.

Special Dispatch to The Star.
LAWRENCE, Mass, September 2.-This
city, with it's population of a hundred
thousand people, faces a crisis in its his
tory tonight, and no one can foretell what
the outcome will be. This afternoon the
city treasurer paid out every cent remain
ing in the treasury to the employees Of the
municipality. It required considerable
scraping on that individuals part to raise
enough funds to pay all the bills present.
ed, but he was finally successful.
At the present time the city is without
a cent, and the hundreds OF employees at
fected are wondering what will be done
for them next week. Mayor Cahill
thought that he had placed the city on its
feet after the famous meeting at the
statehouse some time ago, when a dele
CATION of bankers asked that committee
be appointed to direct the affairs OF the
municipality. In the event OF such a
commission being appointed. the state was
to lend the city 100000. to be paid In ten
yearly installments. The citizens Of the
city, however. were to lose the right to
vote, and Gov. Foss would not agree to
the proposition.
Mayor Cahill entered into negotiations
with a Boston bank. but he was notified
yesterday that the bank would not lend
the city any money.
Mayor Charges Conspiracy.
The mayor claims that he is being made
the victim Of conspiracy, in which lead
ing politicians and financiers figure.
In a statement issued today he said:
This affair is simply tangle, which
now believe to have been purposely en-
gineered in order to gain certain ends.
THE two-hundred- thousand-dollar tenn
porary loan, maturing in MAY, was pal
pably illegal; nevertheless, 1t was certlned
to by the trust company.
1.-THE loan Of 100000 was In anuctpa-
ton of taxes and should not have ma
tured until after the taxes sood began a Ito TO
in May crippled the treasury ana CON-
PEELED me to hold UP the June draft II
was paid out Of the treasury ana can py
every right be negotiated over again TO
mature at the proper time Wnen the
taxes are coming in.
TT will be remembered that the people
Of Lawrence were squeezed Oh Per
cent before I took office last year on
$4,000 loan for the Broadway paving
job.
Blocked by Bankers Committee.
I'm connection with present conditions
the people should know that the bankers
committee blocked the bonding OF the
1906 900 overdraft That money was paid
out Of the treasury in cold cash: $lzlOO0
Of 1t was overdrawn by the school depart
ment. and in all fairness it should be put
back In the treasury.
II they had q spark Of common decency
they would not have blocked tho bonding
OF the overdraft just because they were
not permitted to get $4,000 and three
years control Of the city for themselves.
/ shall ask three citizens Of integrity and
reputation to examine the public records
and accounts and to report the exact
financial condition of Lawrence"
City Treasurer Kelleher was able, by
'raking and scraping." to pay the weekly
pay roll OF approximately $4,000. due to-
day. Where next weeks salaries are
coming from he would not venture to pre-
dict. With the opening Of the schools
the weekly pay roll will be Increased
about $500.
expressed doubt today Of the ability OF
the city to pay the next few pay rolls
until taxes como In faster. At best tho
person could not see where the money
was coming from to pay the city's bills
for merchandise from tho June accounts,
which have been held up to the END OF
the year.
To his mind the resources would be
largely taken up In meeting the obliga-
tons that have been incurred In anttct-
patton Of taxes and the pay rolls