The Waterbury Democrat., 1941-03-11

MOot OL Ulle pTOpOSeQ GUY DOIlels issue of $2,000,000 for water supply Improvements would be used instead to cover up existing deficits by the city administration, 1t was charged last night by Edward Udelowitz in radio address over Station WATR. Only a very small fraction of the money would be used toward build- ing second pipe line and new dam. he said, and the rest would go for political purposes.
 Construction of a pipe line could be financed by a raise in the tax rate or by a special tax, declared Eddie, who contended that the city's tax rate has for years been dis honest.
 The reported surplus of over $400,000 in city operations for 1940 is a creation of the imagination, Eddie claimed, and instead the city operated at a loss for the year. If there was n surplus, he asked why was 1t necessary to borrow $l ,000 in temporary loan at the start of the year.
 Double Machine
 Eddie asserted that Republican agreement on the bond issue proves that the double machine" is func- tioning, and predicted that the COP. would nominate "an ap- proved set-up" to oppose Mayor Scully at the polls this fall.
 His address follows:
 The political writer of the Water- bury Democrat, in commenting on the hearing that will be held be- fore the finance committee of the General Assembly on Waterbury's bond bills next Wednesday said that 1t will be a very important hearing, one that will determine the fate of the city. heartily agree with the Democrats political reporter that 1t will be a very important hearing and that 1t will have a bearing on our future welfare. But whether we are in agreement beyond that, that is on the results of the hearing and the decision that will be made by the General Assembly, I am not certain. In my opinion, the pas sage of the bills will be detrimental to the city's interests. I would like to call your attention to the fact that the city has shown no-growth in population in the past twenty years No increase In taxable wealth and we have lost ground in regards to our industries, that is, many industries left the city and such new ones that came in did not make up for their loss. Several reasons can be ad- vanced for this condition. but the main reason is undoubtedly the fi- nancial policy that has been fol- lowed by local administrations the past twenty years. Briefly stated this policy has been to keep the city in debt up to It's ears, both in re- gards to funded indebtedness through continual bonding and by keeping up an unreasonably high floating indebtedness which is usu- ally covered by loans in anticipa- tion of taxes, collection of taxes before they are due and other such unsound financial practices. In fol- lowing this policy the past admins trationS have had the support of & small but powerful group of local manufacturers headed by the citys three largest industrial organiza- tions, for reasons best known to themselves. These policies and practices have served to keep any new substantial industries from locating here, have hindered build ing activities and have served to stunt the growth of the city. These practices have also served to bring about other bad practices, such as continual tampering with the tax rate, making reductions when in the rate when as a matter of politi- cal eXpediency when such reduc- tions were unwarranted by the city's financial condition and covering up the resulting stortages first by the aforementioned loans in anticipa- ton of taxes and later converting these loans into bond issues, either outright funding bonds or funding bonds disguised as im- provement bonds.
 Hearing Wednesday
 The results of the deliberations by the General Assembly on the city's bond issues that will come up for a hearing next Wednesday. will de- termine whether the city will con- tinue its slipshod financial prac- tjces or will turn new leaf and put its house in order. If the bills pass, 1t will mean two years more of the some practices that have prevailed the past twenty years. But on the other hand. if the General As- sembly turns thumbs down on those bonds, then the city can look for ward to an opportunity to rehabili- tate itself.
 Many of vol people, probably most cf you undoubtedly believe that the discussion over the band iSg.leS eanterx Ol,nnl the QuCy-