Evening star., 1933-07-16
SHARP TAX RAISE
. NEW YORK AIM TO
! SAVE RELIEF WORK
City Officials Concentrate on
Legislation That Would
Avoid Delay.
BY THOMAS COMPERE,
oerfal Diepatnl to Ty,a Co,

Special Dispatch to The Star
n IEW YORK, July 15.-In con
M centrating here this wee
V on program for tn
raising of additional reve
nueS, city officials formulated
plan for special session of tn
State Legislature for the purpoS,
OF raising taxes sharply to preven
a complete breakdown in tn,
municipalities relief activities ant
to eliminate any undue delay il
the spending of more than $780,.
100000 for public works under thu
provisions of the national recov.
cry act.
The city has been lettering or
the brink of a financial precipict
Tor several months, the crisis be-
coming so acute this week that
the July appropriation for the
212,000 families dependent on the
city for relief funds had to be de-
ferred temporarily. Since this
situation also was threatening to
delay the public works program
indefinitely, because the city
must raise 80 per cent of the
money to be expended before US
ing the Federal funds, Mayor
O'Brien turned to Gov. Lehman
for aid, urging that the Legisla-
ture be called.
The Governor assured the
mayor that he would issue a call
for special session if city off,
cials made formal request for it.
On Thursday the board of esti-
mate adopted a resolution re-
queStlng Gov. Lehman to issue
this call, and it now appears vir-
tually certain that the Legisla-
ture will meet soon to raise taxes.
Tax Money for Cities.
Under the mayors plan a large part
of the money received from the proposed
neW taxes, which include doubling of
fhe per cent retail sales taX and -ais-
ing Of the stock transfer levy, would be
furned over to the cities Since a num-
per of upstate cities, controlled by Re-
Publlcans. also are having difficulties in
keeping their relief funds replenished.
is believed that some of the Repub-
lean leaders will support O'BrienS pro-
Gram.
Strong opposition undoubtedly will
prise against the proposed new taxes,
Especially from merchants, mank of
whom are against the sales tax pro-
posal, and civic LADDERS, who are of the
opinion that the Tammany -cGatroHed
government should reduce expenses
Father than seek new revenues. However,
IT is considered likely that when the
legislature meets the main features of
DBrien's plan will be approved. This,
while adding an additional burden on
Every taxpayer in the State, would be
b long step toward restoring the city'S
credit. With millions of dollars in new
revenue coming into the citys treasury,
he bankers undoubtedly would accept
| he municipal bonds, clearing the way
For the public works program and in
Surfing adequate funds for relief.
City officials believe this crisis is the
fliniaX of its unemployment relief prob
lem. because the number of persons
being re-employed is increasing beyond
the expectations of even the most opti-
fniStic. Concrete proof of this is the
hgures released this week by Elmer F..
Andrews. State Industrial Commits
eioner. showing that factory employ
|ment in New York has increased for
the third consecutive month, and that
1t now is 6.8 per cent above the total at
this time last year and pay rolls are SO
per cent higher.
Relief Demands Drop.
Contrary to the usual seasonal trend,
factory employment advanced 4 per cent
and wages ST per cent from May IS to
June Is. Also for the first time since
the Fall of 1929 there has been a de-
crease recently in the number of men
accommodated nightly at the Municipal
Lodging House and its two annexes. In
recent nights more than 600 of the in
stitutions 4,524 beds have been unoc-
cupied.
Like the tail of a swiftly ascending
kite retail prices here are following in
the wake of the rapidly advancing COM
modities and raw materials. resulting
Continued on Seventh Page.)