Evening star., 1933-07-30
NEW YORK STARTS
DEPRESSION FIGHT
Federal and State Units
Function With Momentum
and Cooperation. ..
LEGISLATURE TO MEET
Many Pressing Problems to Be Con-
sidered, Including Utilities,
Relief and Liquor Control.
BY THOMAS COMPERE.

Special Dispatch to The Star.
NEW YORK, July 29.-while the
Legislature convened in extraordinary
session this week for the consideration
OF a multitude of pressing problems,
including provisions for the financial
relief Of municipalities, the passage Of
more stringent public utility regula-
tiors, laws for relief OF the home mort
gage situation and liquor control
measure, various Federal and State
units created to combat the depression
began to function here with greater
momentum and coordination.
The Federal Home Owners Loan
Corporation. under the direction Of
Vincent Daley, and Gov Lehmxn's
Home and Farm Mortgage Advisory
Committee, of which Lucius R. East
man Is chairman, now are functioning,
as Is the States first minimum wage
board. Wifred H. Winans, newly ap-
pointed director Of the National Re-
employment Service for New York
State. also has started mapping plans
for the employing Of workers on prof.
ects to be financed from funds Of the
$4,000, 600, 600 Federal public works pro-
gram. Also, the appointment of Ed
ward ]. Flynn, Secretary of State of
New York and personal friend of Presi-
dent Roosevelt. as regional adminiStIa-
tor of the public works fund in New
York, New Jersey and Pennsylvania, has
given rise to the belief that there will
be as little delay as possible in the
launching Of gigantic projects through
out this area, thereby re-employing
many thousands of men during the
next few months.
Long Session Seen.
Because of the complexity Of the
problems faced by the legislators it is
believed that the special session will
be long and unusually important one.
In his opening address Gov. Lehman
bluntly thrust New York City's finan-
cial troubles back to the doorstep of
Tammany. He maintained that he
would oppose stringently any move to
double the State retail sales and stock
transfer taxes and return most of the
new revenues to cities for use in unem-
ployment relief Mayor O'Brien and
his associates in petitioning for the spe-
cial session had urged the rise in State
taxes for the benefit of municipalities,
especially New York City, which must
raise at least SAL ,000, 900 In new taxes
to preserve its credit and continue un-
employment relief activities.
The Governor proposed the passage
Of law which would permit any mu-
n1cipality in the State to levy addi-
tional municipal taxes for relief work
during a period of emergency. Such
problems. he held, should be met by
the municipalities and not the State.
This makes 1t clear that the Tammany.
controlled officials in New York City
will have to take the onus for jacking
up municipal taxes unless they can con-
Summate a makeShift alliance with up-
State Republicans and override the
Governor. 1t IS believed here that such
move would fail, since Republican
leaders have announced that Tammany
could welter in its own financial morass.
Since a mayoralty election will be
held In November. Tammany is placed
in an embarrassing position. which
promises to become more acute daily.
Either way they 60, Tammany officials
are going to lose votes. If the relief
work crumbles O'Brien's chances will
be dimmed considerably and If the city
raises municipal taxes heavy protest
vote will 60 to the opposition candidate.
The only easy way out for Tammany
apparently has been blocked by the
Governors opposition.
Refuses Tammany Demands.
OOV. Lehman, In a0QlClOQ TO refusing
to accede to Tammany's demands, went
long step in another direction by urg-
ing the Legislature to grant him wide
powers to control economics in munich
palities. His plan is for the passage Of
general legislation authorizing the
Governor, in the event of a default on
the part of any county, town, city, vii
lage or special improvement district, to
set up financial agent or agents, with
authority to limit any expenditure Of
public funds by such municipality, or
the incurring Of any debt by It," This
would increase the Governors powers
vastly, giving him virtually dictatorial
powers over municipalities which could
not meet their obligations.
As soon as the municipal financing
legislation IS cleared q measure for the
control Of liquor and wines will be con-
sidered. It IS known that Gov. Lehman
wants provision for the control Of the
liquor traffic made at this session, so
that 1t will be unnecessary to call the
Legislature when the eighteenth amend
ment IS repealed. 1t Is believed that
liquor control will be placed under the
State Alcoholic Beverage Control Board.