Evening star., 1933-02-17
MAYORS IN SESSION
TO EVOLVE PLANS
FOR FEDERAL AID
Liberalization of Reconstruct
ton Finance Corporation
Act Sought.
FRANK MURPHY SOUNDS
KEYNOTE OF MEETING
Detroit City Head Calls Municipal
Problems Most Dis
tressing.

tressing.
Faced with a common financial
stringency due to the delinquent tax
problem, mayors and other officials
from principal cities Of the country met
here today to draw up program for
Federal aid that would be extended
by liberalizing the Reconstruction
Finance Corporation act to permit
them to obtain loans on their securi-
ties for which there is no private mar
ket.
The keynote of the meeting was
sounded by Mayor Frank Murphy of
Detroit, Who called the session, which
is being held with the assistance of the
American Municipal Association, at
the Mayflower Hotel
Probably never In the history of the
Government has the problem of cities
been so distressing as at present" Muir
ply said.
Sentiment Echoed.
This sentiment was echoed in turn
by Dan w. Hoan, mayor of Milwaukee;
James M. Curley, mayor of Boston;
Ray T. Miller, mayor of Cleveland; c.
Nelson Sparks, mayor of Akron; T.
Semmes Walmsley, mayor of New Or
leans; M. S. SzymcZak, controller of
the city of Chicago, and other speakers.
At the conclusion of the morning
session Resolutions Committee was
appointed under the leadership of May
or Curley to draw up set of principles
upon which final action will be taken
this afternoon by the conference in
preparation for their presentation to-
morrow to the Senate Banking and
Currency Committee.
Others on this committee are Mayor
Hoan, Mayor William A. Anderson of
Minneapolis, Mayor Miller, Mayor
Walmsley and Mayor Howard w. Jack
son of Baltimore.
The conference departed from its dis
cussion this morning long enough to
send q telegram to Mayor Cermak Of
Chicago expressing hope for his recov-
cry from the bullet wounds sustained
Wednesday night in the attack on
President-elect Roosevelt.
Seeks Utility Aid.
Along with the aid to municipalities
themselves, Murphy suggested that the
r. F. c. act also should be changed to
enable aid to municipality owned utili-
ties, irrespective of whether this aid
is for self f-lquidating projects or is
designed to increase employment, two
of the existing provisions for loans.
Detroit owns its water, light and street
railway systems.
At the outset of his speech. Mayor
Murphy said that probably never in
the history of the Government has the
problem Of the cities been so distressing
as at present" Continuing, he said 1t
is his opinion that all the municipalities
are effecting every possible economy,
but that Notwithstanding this, 1.-The
very structure of the municipal gov
ernment Is seriously threatened"
Principal factors in this condition, he
said, were the enormous debt con-
tracted when the value of the dollar
was far different than at present; the
increasing tax delinquency problem, and
the problem of meeting growing de-
mands for welfare relief.
Adding that the problem, so far as
solution Is concerned, Is becoming more
and more national one, he emphasized
that 1--WE must have plan and see that
it Is translated into action"
The Reconstruction Finance Corpora
ton, the Detroit mayor continued, was
created for the purpose of stabilizing
the country generally, but, he added,
thus far its resources have been ex-
tended in the main to private economic
units" The needs of municipal gov
ernments, Murphy asserted, should
come before those of private corporate
organizations
Murphy said that the Government
help should be extended with discrim-
ination" and this point also was en-
phasized by Clarence E. Wilcox, cor
poration counsel of Detroit, who fol-
lowed the mayor.
Wilcox, discussing the legal aspects
Of change in the law, said that where
the r. F. G. was asked for aid it
should have right to investigate the
extent to which the city applying had
effected economies and also to direct
where it believed other savings could
be made.
Wilcox said that the financial strin-
gency in Detroit was due to the inability
to get banks to take over their refund
ing bonds.
No Time for Default.
This is no time for great municipal
tiles to go into default If it is humanity
possible for the Government to prevent
1t, he emphasized.
Wilcox also urged that there be unity
OF action by the city officials present.
The early arrivals at the conference
included, along with Detroit contingent,
Mayor James M. Curley of Boston, with
a group of officials; Mayor T. Semmes
Walmsley of New Orleans, Maj. Dan
w. Hoan of Milwaukee and other
representatives from seaboard and
Middle Western cities From the Pacific
Coast the heads of several city govern
ments had wired their support Of any
movement undertaken here
Mayor Hoan, who followed Wilcox,
told his associates that we're here to
prevent catastrophe" Adding that
the credit of municipalities had been
exhausted, the Milwaukee mayor en-
phasized that "if one great municipality
goes into default, all of them will"
Mayor Curley discussed the growing
burden that cities generally are facing
for welfare relief, and declared that
though objections are raised in this
country to the dole system" that
actually the dole is in operation right
now, and he estimated that the cost
last year. based on Boston's experience,
was $1,000, 100000.
Mayor Miller Of Cleveland, former
Notre Dame foot ball star, suggested
that the conference consider asking
amendment of the Reconstruction
Finance Corporation act to permit the
municipalities to borrow on the basis
of their tax delinquencies, up to, per-
haps, so per cent of the total amount.
Miller took the stand that these de-
linquent taxes eventually will be paid,
and consequently constitute good Sc
curity.
Mayor Sparks of Akron said that
$4,000 people are being fed on public
charity there every day in the week.
Controller SzymcZak said that Mayor
Cermak had gone to ask President-elect
Roosevelt to use the influence of his
office to have the Reconstruction
Finance Corporation act uberalized,
when he was shot.