Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-25
SiIas Strawn Says Leading
Corporations Have VoIun-
teered to Furnish Funds.
LOCAL GOVERNMENT GETS
WARNING ON EXPENSES
Politicians Must Agree to Program
Of Committee Before Cash
Is Given.
NV ths Associated press

BY the Associated Press.
CHICAGO, January 25.-Temporary
solution of Chicago's financial problem
was several steps nearer today.
The outstanding development was the
announcement by Silas H. Strawn,
chairman Of the citizens relief COM
mittee, that $4,000, 900 pool had been
pledged by business, industrial and rail-
road interests to loan money on tax
anticipation warrants.
However, the announcement was ac-
companied by an ultimatum that no
loans would be made until the public
officials agreed to cooperate in cutting
all possible expenses.
In the meantime, the city'S twice
vetoed budget of $55,314,947 became
effective, Mayor William Hale Thomp-
son failing to veto it before yesterdays
council session.
Tax TO Be Levied.
With the budget in effect the city's
taX-levying ordinance can be made
effective February 4. Then-if BUYERS
can be found-tax anticipation war
rants can be sold to pay employees who
have had no salary checks this month,
Mayor Thompson said he did not
veto the budget for the third time, be-
cause: Il do not desire to prevent city
employees from getting their pay and
thereby force them into the hands of
loan sharks. Should l again veto the
cuts made in the health, IRE, police and
street cleaning departments, the imme-
Qlate result might be chaos"
Immediately after voting the budget
into effect, the council adopted a reSo-
luton calling upon Gov. Louis L. En-
merson for special session of the
Legislature to solve Chicagos tax plight.
Gov. Enmerson was in Chicago, ad-
dressing the National Council of State
Legislature. He said he would not call
special session until q definite, de-
tailed program was outlined.
Old System Is Blamed.
Later, in an address, the governor
said the ''worn-out taxing system" in
Illinois was. to blame for the States
financial problems.
Yesterday was another payday for
$4,000 tcachers-but Board of ECiuca-
ton of1cials today were still seeking
money to meet the payroll.
The county board voted to pay back
SoAoA tCS VA EJVVV CtApIOyCS TAX
patton warrants of small denominations
to be cashed at neighborhod stores
and banks.
Added to the crisis was the announce
ment from trustees of the Chicago
sanitary district, that 1t must sell more
than 100000 worth of anticipation
warrants or default bond interest due
February /.
Meanwhile, the Strawn group today
awaited a reply to their offers of loans
Adds Warning Note.
Mr.. Strawn accompanied his commit
tees offer with q warning note
The pool is ready to operate" he
said. I'VE have the assurance of lead
ing corporations that they will come to
the front in this crisis. But we are
absolutely not going to turn over the
cash to the local governments to
Squander as they have in the past.
The present situation has been due
to long era of frenzied finance during
which, like China our local government
has had more Solicitude for what 1t can
borrow than for what 1t owes. Most OF
our politicians have been fiddling while
Rome burned.
The pool, as have said, is ready to
come to the rescue, but it will not move
a finger until the public officials duly
responsible for the local governments
agree to cooperate with the pools
managing committee to the end that all
governmental expenses may be subject
ed to rigid economy program"