Evening star., 1932-10-09
DEFENDS HIS CITY
AGAINST CRITICISM
Mayor Hoan of Milwaukee
Replies to Statements Con-
tanned in Recent Article.

A defense Of Milwaukee's financial
situation is made by Mayor Dahiel w
Hoan in a letter to The Star comment
ing on an article on the city's financial
condition which appeared in The Sun
day Star of September 18.
The story. according to Mayor Hoan
was the result of "innuendoes emanat-
ing from the Milwaukee Real Estate
Board which is conducting cut costs
campaign through a so-called Tax
payers Advisory Council"
The story said that Milwaukee faced
4 shortage of S6000,000 in the municipal
treasury at the close of the current cal
endar year, that the salaries CT city
employees had been cut 10 per cent. that
school teachers had been threatened
with similar reduction and that the
city was in the throes of militant tax
payers revolt.
Minimizes City's Critics.
"The present alleged taxpayers re-
volt" Mayer Hoan writes, lis merely
an effort on the part of diSgruntled
group of tax delinquent subdivision pro-
moters to detract attention from their
responsibility for the fact that Mil
waukee'S present tax burden is millions
ct dollars beyond what it would be were
1t not for their pernicious activity OF
inactivity, past and present"
With respect to the condition Of the
municipal treasury, Mayor Hoan said
Milwaukee always faces a shortage
about this time of the year. Every
year almost without exception" he de-
clared, the city has had to borrow
money from banks in anticipation OF
taxes. In 1929, the last year of pros
perity,' Milwaukee had to borrow S4,-
000,00 Today we actually have more
cash in our treasury than year ago.
Our salary schedule" the mayor
continued, has been kept intact and
the 10 per cent voluntary donation now
in effect is being used to provide tenn
porary work for the unemployed In
two-week shifts. thus relieving the
county Of the burden of providing poor
relief to that extent.
Relief Long Established.
Poor relief has been a county func-
tion since 1854. Instead of the county
aiding the city. as stated, the city has
spent each year, for the past two years
over 81 100000 to provide jobs and re-
lieve the strain on the county"
The Stars article also stated that
petitions bearing thousands of sigma
lures had been filed with the city clerk
demanding enactment by the common
council of a charter ordinance cutting
the city budget for the coming year by
approximately s5,000,000, and reducing
the tax rate by So on each 81 900 OF
assessed valuation. In answer to this,
Mayor Hoan writes:
The petitions demanding enactment
of a charter ordinance for a reduction
of taxes were circulated by the real
estate promoters. They were headed
simply: Petition for lower taxes, not
specifying what economies were to be
made to effect reduction without
crippling the citys services and finances
Anyone in these days can be induced
to sign a petition for lower taxes. but
no one wants to be deprived Of the
many municipal services and benefits
for which taxes are collected.
Court Victory Asserted.
milwaukee has emerged victorious
from litigation started by downtown
property owners, charging that assess
ments were excessive. The court 0eld
the assessments were fair and equitable
and dismissed the action"
In defense Of Milwaukee's practice OF
using bond funds held in the treasury
for projects not yet started. or in prog
ress of construction, to pay for the
operation of the city government until
taxes are collected, Mayor Hoan said
results in a saving of more than $780,
900 a year. 1T would be foolish" he
declared. Ito keep these funds intact
and borrow from banks at a high rate