Evening star., 1933-11-07
.F|NANC|ERS WATCH /
ELECTION CLOSELY
Fate of Many State and City
Bond Issues Rests With
Voters Today.
BY CHARLES F. SPEARE.

Special Dispatch TO The Star
NEW YORK, November THE Wall
Street interest In today's election, aside
from the New York City contest, is
more closely bound up with its finan-
cial implications than with its polit-
ical effects. 1t concerns the fate of
numerous State and city bond issues
that are to be voted on and the atti-
tude that the electorate in various
parts OF the country will take on the
question Of turning privately owned
public utilities over to municipal man
agement
In the aggregate bond issues of
$500, 900, 900 are part of the ballot to
be cast today. This is twice the amount
placed before the voters a year ago.
Naturally the largest items in the list
are those covering relief for the unem-
ployed. Part of these are for relief of
q direct character, and others are for
projects that will provide relief through
the work developed by these projects.
A significant feature of the bond is
sues is the absence this year OF any
important highway proposals. Ev1-
IDENTIFY the taxpayers of the country
feel that road building has been over
done, and that one of the causes con-
tributing to high taxes on real estate
is the eXtravagant manner IN whlcn
highways have been projected, nvolV-
ing a large annual debt service.
Have Had Favored Status.
Until recently highway bonds had a
preferred market over other munlclpal
issues, as they were being reduced py
the taxes on gasoline. School bonoS,
at the same time. were at a dlScount;
I,atterly there has been an increased
flow of highway issues into the invest
ment market. xa
The approval of voters Of the bond
issues on today's tickets does not, IN
every case, insure their fiotatlon. some
of them depend on favorable action py
The Public Works Administration.
The fate of the public utilities in such
large centers as San Francisco, Cincin-
natl. Salt Lake City, Camden, N. j., and
Akron and Youngstown, Ohio, is IN the
hands of the voters today. Conf1icting
emotions will sway them in making
their decision for or against taking the
electric light and power or water COM
paries from private control and placing
them under municipal administrator.
There has not been year since they
became a leading factor in the indus
trial life of the country when the pub
lie utilities have been so unpopular as
they are now. The reasons for this are
well known-overexploitation OF holding
company securities, the insult episode
and the feeling that rates have not been
adjusted to the falling prices OF other
commodities
Higher Taxes Feared.
This feeling impels the demand for
municipal ownership. On the other
hand, the taxpayer, while at heart hos
tile to his local electric light and power
or water company, realizes that In order
to assume control of the utility it will
be necessary to increase the bonded
debt Of his community. This means a
higher tax rate. Just now increased
taxes are anathema to him. The prob
ability of higher taxes has been used
to good advantage by the utility COM
panies In developing their campaign
arguments. The effectiveness of it, in
the election forecasts, has been quite
generally accepted.
Later In the year there will be other
special elections in the Tennessee VAL
ley to settle the question Of public own
ership, which Birmingham last month
So definitely decided. There also are
questions Of bomb issues to be put be-
fore the voters next month. The largest
Of these Is the 100000 proposal Of
the State of California to be voted the
week before Christmas.
Copyright, 1933)