Evening star., 1953-02-10
Defense Plants Pinch
City Income, Mayors
Tell Eisenhower

President Eisenhower was adj
viSed by group of municipal Of
f1cialS today that military and
defense establishments around
the country are creating a f.
nancial problem, because they
are cutting down on tax reve-
aueS while, at the same time,
producing a demand for more
community services.
The President told the group
the situation does constitute a
problem and he agreed to have
Sherman Adams, his top assist
ant, meet with representatives
of the municipalities to see what
can be worked out.
The group that brought the
complaint represented the Amer
lean Municipal Association. It
was headed by Mayor William
B. Hartsf1eld of Atlanta, Ca,
president of the association;
Mayor John H. Hynes Of Boston,
vice president; Mayor A. E. Cobo
of Detroit, past president; Carl
H. ChatterS, executive director,
and Randy H. Hamilton, director
of the associations Washington
Office.
Statement Presented.
The statement presented to
Gen. Eisenhower referred to the
impact of defense activities on
local communities. It said:
Many local communities are
overrun by armed service in
stallations or defense plants.
Federal fiscal help has been given
to the schools in such areas, but
other local services such as police.
fire, health and water need aid
Just as badly.
1.-TWO other problems are re-
lated. The defense establish
ment is extending the amount
of property exempt from local
taxation. Many large defense
plants had been paying taxes for
many years until 1951-payment
has stopped without notice in
1852 and 1858. This throws
heavy burden on some places
none on others. This movement,
and exemption of other Federal
property from local taxes, needs
careful study. Some phases reed
immediate action"
Commission Backed.
The American Municipal AS
sociation, through its direct and
federated membership, says it
represents 10000 municipalities
from AZ States. The delegates
told Gen. Eisenhower that, with
respect to certain other Federal
city problems, it believes as fol-
lows:
l A commission on intergov-
ernmental Observation-Disclosures
officials want the commission,
the statement declared. For
years they have considered it
as the only solution to Federal
State-local problems.
2. Civil defenSe-Municipal Of
flcials are willing to assume their
share of responsibility. but they
believe civil defense is an integral
part of national defense and
cannot be properly considered
otherwise. Municipalities want
better Federal leadership.
Highway Problem.
8. Highway Construction-The
highway and traffic problem is
most urgent in the cities. Fed
eral funds collected from motor
vehicle users should be spent in
greater proportion on the Fed
eral-aid highway system, par
ticularly on the bottlenecks in
the cities.
4. Social Security-The asso-
citation believes that Federal old
age and survivors insurance
should be available to all mu-
nicipal employees who want to
come into the system.
S. Airport Construction and
Operation-The Federal interest
in a national system of airports
is strong enough to warrant con-
tinued encouragement of local
airport construction and opera
ton, according to a national
plan.
6. Tidelands-The association
"haS consistently taken the posi-
ton, over a long period of years."
that title to such lands and the
underlying natural resources
belongs to the States and local
governments. Legislation is
urged similar to the Holland bill,
adopted by the 82d Congress.
(~~a.~n:ee:AM@~e