The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-08-09
CHAOS FEARED
IF $3.50 TAX
LIMIT HOLDS
Unpaid Teachers, School
Term of Five Months
or Less Forecast.
SEEK TO AVERT CRASH
City and Education Heads
Will Confer in Move
to Halt Breakdown.

Chaos in school city, civil city,
county and township government in
Marion county, with defaulted pay
rolls and huge deficits, was forecast
today by local officials, if the new
$3.50 tax limitation law is enforced.
Officials drew a picture of unpaid
school teachers and other school,
city and county employees, four or
five months of school, inability to
float temporary loans and other cir
cumstances resembling the bank
rupt condition of Chicago.
Further conferences were to be
held Immediately by heads of tho
school city and the civil city, seek
ing a way to prevent complete
governmental breakdown.
School board members, who will
meet tonight, have held several
conferences since the law was pro-
posed.
Would Cut School Term
eve have figured out that with
out relief by the county board we
can not run the schools longer than
four or five months" said Russell
Wilson, board president.
Taking into consideration the
$l00000,000 Center township as
sessed valuation reduction, it is Ger
tain that the school city will not be
entitled to more than a 50-cent
levy, if that much"
Wilson pointed out that teachers
contracts, providing for per cent
salary cut, already have been signed
and are in effect.
Operating the schools only four
Or five months, Wilson said, the
school city would be obliged to pay
teachers for the full ten-monthS
term, under their contracts.
One Ray of Hope
eve just will have to pay them
what we can and let them obtain
judgments against us for the rest,
or else issue scrip, as has been done
in Chicago" he said.
Strongest ray of hope of govern
mental heads lay in the provision of
the law authorizing the newly set
up county board of tax adjustment.
1t would be composed of the county
auditor, three county counclimen and
three persons to be named by the
circuit judge, to permit emergency
increases in the levy.
Temporary loans would be i'm
possible, because banks and indi-
vidualS would refuse to purchase
temporary loan certificates unless
there was definite assurance that
sufficient funds to retire the in
debtedness would be received from
taxes it was said.
1T is the most serious question
we ever have faced. With valua-
tons decreased 20 per cent, the
county is in danger of bankruptcy
this coming year." Timothy P.
Sexton, county treasurer, declared.
Sees 81 Tax Rate
Charles A. GroSsart, county au-
ditor, predicted that to meet obi
ACTIONS and balance the huge decline
in taxable property values, the
county tax rate should be 81 in
1888.
There has been so much tax eva
sion and delinquency in payment of
taxes that Marion county can not
possibly get along on a $3.50 tax
rate the treasurer said.
Officials predict at least IS cents
of the $3.50 rate will be necessary
to meet poor relief bills.
City councilmen met with Mayor
Reginald H. Sullivan Monday and
discussed substantial reductions in
the 1888 budget, but agreed that
it is impossible to act on the budget
inteIigently until the legislature
has adjourned.
Reaffirm Pay Slash
Decision to cut all city salaries
substantially, including those fixed
by statute, reached at a conference
of city officials last spring, was re-
affirmed
City officials were unable to fore
cast what steps would be taken to
comply with the $3.50 maximum
law.
Without relief. it was said, the
law probably would force the tenn
porary closing of several city de-
partmentS.
COP NAMED ASSAILANT