The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-13
S U B W A Y
FARE RISE
IS limited
Rumor City Govt Has
Agreed to 7 Cent Fare
After Next Election
More Cuts in Wages
of School Teachers
Being Prepared

NEW YORK, June 12-At the open
hearings held today at the City Hall
on the proposed 100000 auto taxes
and the taxes on bridges and various
city departmental services, the opposi-
ton was so great, that it was openly
rumored that the city will turn to a
Q cent increase in subway fare and
further cuts in the wages of city en-
ployees to raise the required amounts
Traction Stock Rise in Wall Street.
1t is openly said that the city gov
eminent, dominated by Tammany, is
pledged to increase subway fares i'm
mediately after the coming elections
in November This has not been de-
MED. The report is strengthened by
the fact that the published coirespon-
dence between the mayor and the
bankers mentions two letters, while
the mayor has made public only one
letter. What the contents of the I'M
published letter are, has not been dis
closed.
In response to these developments
traction shares we're strong on the
Wall Street stock exchanges.
To Meet Bankers Loans
The city has proposed new taxes on
autos equal to the state taxes, 25
cent toll on the East River bridges, a
5 cent tax on all taxi rides, and mis-
cellaneous taxes on building, etc. The
total to be raised is $4,000, 900.
oft III -
fulfill the guarantee 10 the delega
ton of Wall Street bankers who hold
over s236,00o,0oo of loans which fell
due June 10, and which were extended
the other day until December 10. The
bankers are headed by Winthrop AL
drich, financial agent Of the Rookie
fellers, and Frank Polk, a Morgan
agent. -s-
The city is paying the bankers an
eXorbitsntly high interest rate of So
per cent The prevailing rates are
about 2 per cent.
The difference costs the city over
s6,0oo,000, or over $l,o00,000 month
till the next payment falls due.
Despite the extension by the bank
ers, the budget crisis will be even
greater on December 10, when the i'm
mediately collectible loans of the city
will total $43o,OOO,Oo0.
To meet the interest payment to
the bankers and to guarantee the
loans of the bankers, the City gov
eminent has been cutting relief to
the bone. The expenditures for vel
fare, and hospital services have also
been drastically cut.
Demanding Wage Cuts.
The realty interest who oppose the
auto taxes are openly demanding
more cuts, in the salaries of the
teachers. The strategy of the City
Administration is, obviously, to make
it appear as if the continuance of
relief and the avoidance of the re-
sented auto tax will depend upon the
teachers taking another wage cut.
The city government is attempting
to line up the population against the
teachers in the Citys schools. These
developments are foreshadoWed by
the expulsion actions of the Board
of Education against militant teach
ers, and by suspension proceedings
of the A r. of L. local OF Teachers
against militants.
The city administration has re-
fused to accept any suggestion that
the SURPRISES Of bank and insurance
companies be cut. The suggestion
that stock sales be taxed was also
rejected. The city is determined
that the masses must pay the loans
DO the bankers.