The Waterbury Democrat., 1946-03-29

state of absolute financial chaos" He referred to the Community Clubs and the suit Of Attorney John Cassidy and p other prop erty owners.
 . Attorney Fitzgerald charged that the drastic consequences which would follow successful prosecution of the Community Clubs case would be felt by none more keen ly than by those who by their fi- nancial contributions, have unwit- tingly and in good faith made pos bible the institution and mainten- ance of that action
 Chaos Could Result
 He said that if the two remain ing Superior Court actions were won by the plaintiffs the city would be left in a chaos about the mid de of next month.
 The special attorney said the city would then be unable to meet It's daily payroll of about $l0,0O0, that it would be unable to pay its credi- tors, that 1t would have to cancel or default upon all of its out standing contracts and commit ments, and that it would be forced to suspend its municipal services and function.
 It would be required. he said, ito resort to the pathetically in- effectual effort involved in the issue of scrip to the few who might be gracious enough to honor it."
 Want Successor to Hear
 Shortly before the statements of counsel for both sides in the news paper suit were read, Judge Fal- lotti ruled that Judge Edward J. Quinlan, who will begin term here next Tuesday, should hear all matters pertaining to the revalu- ation suits.
 In accordance with that ruling, the jurist put over. a hearing in the request of Cassidy and his CO., ulaintiffs for an order requiring the city to show cause why tenn porary injunction should not be issued against its retaining tax col- lection.
 Judge Pallotti pointed out that the superior court tax suits will be determined in the end by Judge Quinlan. who will preside here until the end of June. He said: Tt would seem more logical that he start at the beginning and go right through.
 MctiOn Is Improper Corporation Counsel Maurice T. Kealey claimed the Cassidy motion was improperly on todays short calendar docket. since the case was not returnable to court until next Tuesday. The jurist indicated he took that claim. as well as ether factors, into cognizance in ruling that the hearing should be post poned.
 Attacks Justified
 Tn approving the request of At- torney Upson for permission to withdraw the suit. Judge Pallotti commented that there was justifica- ton in attacking a tax rate which would produce more funds than are necessary to meet expenses.
 He pointed to @the fundamental rule" that cities can not tax prop erty to obtain surpluses. He said municipalities must impose only enough taxes to meet expenses and set aside a certain amount for cap- ital improvements.
 Judge Pallotti commented that the tax litigation has stirred up public interest in the city'S finances, and was therefore beneficial. The new Grand List figures, as of March 1. were read by Attorney up- son as follows: real property Of in dlyl6ual SiO8, ,36i GOT; real property of corporations. s53,l60,4SS persona al property, s55.i99 ,908.
 Would Produce More
 Attorney Upson pointed out that the tax rate of 28.75 mills was based on an estimate by the Board of Finance that the Grand List would be 2i5 million dollars, but that the Grand List later was oe- termined to be 232 million dollars Tt was obvious" he said, that the application Of the tax rate Of 2S.7o mills to a Grand List of 232 million dollars would produce more revenue than would be the case were the rate to be applied to a Grand Lis! Of 2i5 million dollars.
 "rhe plaintiffs felt" he said. "that lt was wrong in principle for the de- fendant city to obtain more tag funds than was reasonably neces- sary to meet its budsstaTy require nients.S
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