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The Huntsville Daily Times
The Huntsville Daily Times
Contributed by klstacy_home

Description: May Get City Out Of A Hole - Chicago Financiers Make Up $50,000,000 Pool For Temporary Relief

Date: January 26 1930

Newspaper published in: Huntsville, AL

Source: Library

Page/Column: Section 2, Page 2, Column 4

Chicago Financiers Make Up $50,000,000 Pool For Temporary Relief
CHICAGO, Jan. 25 (AP) Temporary solution of Chicagos financial problem was several steps nearer today.
The outstanding development was the announcement by Silas h. Strawn, chairman of the Citizens relief committee, that a $50,000,000 pool had been pledged by business, industrial and railroad interests to loan money on tax anticipation warrants.
However, the announcement was accompanied by an ultimatum that no loans would be made until public officials agreed to co-operate in cutting all possible expenses.
In the meantime, citys twice vetoed budget of $55,314,947 became effective Mayor William Hale Thompson failing to veto it before yesterdays council session.
With the budget in effect the citys tax-levying ordinance can be made effective February 5. Then if buyers can be found tax anticipation warrants can be sold to pay employees who have had no salary checks this month.
Mayor Thompson said he did not veto the budget for the third time, because: I do not desire to prevent city employees from getting their pay and thereby force them into the hands of loan sharks. Should I again vote the cuts made in the health, fire, police and street cleaning departments, the immediate result might be chaos.
Immediately after voting the budget into effect, the council adopted a resolution calling upon Gov. Louis L. Emmerson for a special session of the legislature to solve Chicagos tax plight.
Gov. Emmerson was in Chicago, addressing the national council of state legislature. He said he would not call a special session until a definite, detailed program was outlined.
Later, in an address, the governor said the worn-out taxing system in Illinois was to blame for the states financial problems.
Yesterday was another pay day for 13,200 teachers but board of education officials today were still seeking money to meet the payroll.
The county board voted to pay back salaries of 4,000 employees in tax anticipation warrants of small denominations to be cashed at neighborhood stores and banks.
Added to the crisis was the announcement from trustees of the Chicago sanitary district, that it must sell more than $500,000 worth of anticipation warrants or default bond interest due Feb. 1.
Meanwhile, the Strawn group today awaited a reply to their offer of loans.

Submitted: 03/07/10

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