Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-23
NEW YORK PLANS
EMPLOYMENT AID
LEGISLATURE to Meet to Pave
Way for Financial
Rehabilitation.
BY THOMAS COMPERE.

Special Dispatch to The Star.
NEW YORK, July 22.-The State
Legislature, summoned by Gov. Leh-
man at the urgent request Of Mayor
O'Brien, will meet in special session
on Wednesday for the purpose Of paw
| ing the way for the financial rehabili-
tation of the New York City govern
ment, thereby insuring the continuance
of unemployment relief activities which
have been threatened with collapse here
ond to be called in this State within
eight months, was made necessary be-
cause of the failure Of the city to de-
wise new revenues and the refusal Of
the Tammany controlled administration
to reduce expenses sufficiently to bal
ance the municipal budget.
In addition to raising taxes, either
Statewide or by making 1t legal for the
city to levy new revenues to care Tor
the 2l2,000 families now dependent on
it for relief funds, it is believed that the
Legislature will enact laws to strengthen
the public utility regulations and aid
the Public Service Commissions drive
for reduced gas and electric rates. 1t
is known that Gov. Lehman favors more
rigid regulation Of utilities, the current
this State having been started at his
direction.
Tax Issue Clear-Cut.
The lines in the tax raising issue are
clear cut, and taxes in New York City
undoubtedly will be raised, either by a
State levy or municipal action under
power authorized by the Legislature.
The city must have from $50 900 900 to
%N 6v,a fol
librium and meet the drain caused by
unemployment relief. The only alterna-
tive to the higher taxes is for the Tam
many officials to knife deeply into the
list Of job holders, as well as reduce ali
other forms of expenditures drastically.
Neither method Is appetiZing to Tam
many officials, since there will be a
mayoralty election this Fall. but they
believe the bsst way out Of bad pre-
dicament is to put the onus for the
increased taxes on the State.
Gov. Lehman. whose nomination was
opposed bitterly by Tammany last year,
Is adamant against increasing the State
taxes for the benefit of the cities, es-
pecially since the State now is in ex-
cellent financial condition, with pros
poets Of having surplus Of approx
mately $4,000, 900 at the end Of this
AlcCdl yCdl Al q VI 4otlAA1e ACCGCl W Vic
Board of Estimates, Gov. Lehman stat
ed bluntly that he would oppose
O'Brien's plan to increase the State
sales and stock transfer taxes, the
major part of which would be turned
over to cities for relief funds.
Contending that it was up to the New
York City government to put its own
house in order. and that the best way
to do that would be to reduce expenses,
Gov. Lehman held that the refund of
additional State funds to the cities
would breed more municipal extrava-
gance, since the electorate would not
hold the city officials to blame for a
rise in State taxes. However, OBrien
and his associates have been working
feverishly to line up cities throughout
the State. many Of which are Republic
uncontrolled, to support the State
tax plan. O'Brien Is making every ef-
fort to make his program attractive to
the Republicans, as well as Democrats.
and since many other municipalities in
the State are in embarrassing financial
circumstances, it is considered likely
that he will win great deal of sup
port.
Already IA cities have announced
that they will seek additional State
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