Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-18
fimary" Campaign Ends Tonight Mayor Opposed in Hon
HIGHER REALTY
TAXES FOR 1918
Discussion Is Taboo in City
Hall Until After No
vember Election
GAFFNEY IS OPTIMISTIC

| Betting on what the tax ON realty will
! be In 1918 Is favorlte pastme with nnan-
ciers familiar with the mudded condition
| OF municipal finances In the closing months
| of the second year ~ the Smith admins
! tratok All open discussion Of tax in
| crease ia taboo until after the "ffty-hfty'
| ticket OF the Organization has been put
! through, but quiet estimates are being
! made by members OF Councils Finance
| Committee. who will meet this month and
| try TO nnd s2,0O0o00 with which TO pay bills
incurred for the closing months OF the
! year.
Every municipal bureau and department.
| is now Engaged In preparing budgets for
! 1918, but first consideration will have TO
| be given ways and means of tiding over
| the government until January 7. william
McCloskey, Common Councilman from the
sixteenth Ward and one of the senior me,n-
bers Of the Finance Committee argued last
year I'm favor OF a thirty-fve-Ccut increase.
ss did also charles Srger, of the Seventh
Ward. The twenty-hNe-ccut rate finally
compromised upon has proved inadequate
| In view OF tho salary Increases and uneN-
pected expenditures INDUCED in by depart
mental heads without cpuncilman!c author
zatiou, 1t is now argued by nmauc.ers
familiar with 1919 demands Of departments
that another twentyhve-Jeut addition will
have to he made 80 the realty tax
Joseph T.. Gafuey. who For two years
has guided the dest'nes Of the Finance
Committee for Mayor smith is optimistic
In that he believes tho city will he able to
make a good hun ri the "pay-ss-you-so"
act without any increase In the tax rate
and without temporary loans mortgaging
the 1918 receipts IN advance. His views
are not shared. however by older members
Of the Finance Committee, who until after
! the election. are not likely to discuss tax
problems publicly.
SEE LARGE DEFICIT COMING
Declaring that the city Will close this
year with a deficit Of between $4,000 600
and $4,000 900 and that cost OF op.ratinp
| the municipal government will he at lapst
81 .000.0 900 greater In 1918 because Of sal
ary increases and increased cost OF mat.
rias of everyday Use, several members
! OF the committee are convinced that The
most important closing act of tho two
branches of Councils. as now cons itu,ed
will be increasing the taX rate Ir this
should occur 1t would make record I'm
| that histNry fails to show two heavy tax
increases authorized in successive wears nv
! the same Councils.
Before the tax rate muddle is taken I'm
| tho municipal 1nanccrs will receive con.
troller Walton's statement showing lust
| how much income can he derived under tho
| rate fixed for this year, and in connect ion
with this report is the plan to take the
| S552 900 that will he derived from an
, additional fve-cent payment to the city on
| every 1909 cubic feet Of gas sold nv the
United Gas Improvement for use for the
| relief of families OF soldiers and for the
| enterta ainment of troops that may pass
| through or be detailed to this city This
| fund the Evening Ledger advocated re-
turning 10 the users Of gas. but municipal
fnanclers opposed the scheme on the
ground that II was too badly needed for
governmental purposes
The action of Mayor Smith and Chair
man Gaffney in advocating the taking OF
more than 100000 for the support OF SOL
ders' dependents and placing the expen-
ditures of such vast sum in tho hands
Of councilmanic committee is taken by
many to be the onening move In q plan
TO blame any future tax increase on war
time needs and expenditures. This. II is
hoped, would give plausible pretext for
advancing the rate or in returning TO the
old plan OF borrowing money for thirty
years to pay for soap. lend pencils, etc
Certainly the need for the fund for cur
rent expenses is just as great as when
the agitation TO have 1t returned TO the
gas consumer was under way
Before election the counciimanc huan-
cters face situation which, although not
unusual i'm municipal finances, would stag
ger the heads of most private concerns.
1t is nothing more nor less than the need
TO find at least $4,000, 600 to pay bills till
the close OF the year. with only q small
surplus available the task would appear
neat 10 impossible. The s.. 900. 600 or more
needed is made up as follows: 100000
10 comply with directions OF the John C.
sures OF the former Phladelphian $1,000
900 TO meet salary demands not provided
Tor by previous appropriations at least
S3OO.OOO to pay for coal for the Water
Bureau, which is now being bought on the
donation plan: S2OO. 900 to pav interest
on loans already foated, and possibly more
to cover loans yet to be hoated; 100000
lor deficiency bills 100000 for the continu-
alton until January Of the war relief work
and possibly other items that have not
yet come TO light
MAY FLOAT TEMPORARY LOAN
This situation can be met in a number OF
ways, the most usual OF which is TO float
"A temporary loan of sl.200,000 to meet sal
airy needs and to provide for the most
pressing demands and to let the remainder
or the bills run over into 1918. Provision
however under tho johnson will. must be
made to take over the art treasures al
once or they will pass to the Metropolitan
Art Museum OF New York. The floating |
OF temporary loan is merely a make |
shift plan that in 10 way relieves the 1913 !
receipts OF the burden Of making up def |
citT. 1t merely postpones the day of reck- !
oninG for -four months and then automati- ,
cally becomes a charge on the revenues
for the new year.
The pay-ss-you-go act wss given full !
force and effect year ago when. il was
declared. the city would in the future live
within its income The present muddle is
NV ONltOHie OF the llGSl year WIN "A nlGnef
tax rate and with every effort extended to
keep down expenses. The first year how
ever hardly tells the story, as the fna nciers
to keep 1918 expenses within income at the
present taXcrate would have to pare depart
mental demands TO point where retrench-
ments would result that would leave the
departments unable to proceed with even the
most pressing perm Inent improvements for
which loan moneys are available. The de-
mands in the shaps of budgets that are
daily being presented to Chairman Gaffney,
OF the Finance Committee. are far in excess
OF the approximately $50. .O00, 900 that the
city was able TO provide this year with the
increased tax rate on realty.
In many cases demands for 1918 exceed
those for 1917, when departments asked for
a staggering total far In excess of any
hoped-for revenue returns. This is due in
part to increases in the police force and to
salary increases already authorized by Coun-
ellis for the closing months OF this year
That these demands GOULD not be met, even
II twenty-five cents were added TO the al
ready heavy burden OF tax on realty, Is ad-
mtted. When the fnanciers get down to
work after their summer recess every effort