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TO THE COMMON COUNCIL OF THE CITY <br />SOUTH BEND, INDIANA* <br />Gentlemen: <br />This message I am about to deliver to you is in answer to the partial <br />report of a special committee on City Expenses, which report was submitted <br />to the Common Council by said committee last Monday evening April 18; 19.32, <br />and a copy of which was transmitted to me on the following day,.' <br />Last fall when tax delinquencies were found to be on the rise and it <br />became apparent that the taxpayers of south Bend could no longer meet the <br />expenses of a municipal government operating on a -1929 prosperity plane,. <br />I placed in motion a movement for the retrenchment of all city expenditures. <br />At that time I promised that the situation would be met by reductions in <br />operating costs and not through borrowing. All department heads of the <br />civil city were called upon to submit proposals for reductions in their <br />departments, the combined total of which was to equal at least $100,000.'This <br />goal was met and when the announcement was made that the department heads had <br />successfully met the immediate situation :` I informed them, and the general <br />public= that they would be called u on to make additional cuts to meet,n <br />estimated deficit of approximately 12OO'OOOe' for the balance of 1932. This <br />deficit of ,$200,000.' was estimated on the basis of tax delinquencies <br />It is to the credit of these men that we have met the situation without <br />embarrassment to the city or impairment of its credit. <br />I said at that time I would not demand a reduction of salaries or wages <br />except as a last resort. This statement of mine was based upon the trend <br />of public thought at the time.' Since theme however, the industrial and <br />financial life blood of our city has steadily grown more congested and it is <br />t #at industry and financial interests are using the reduction of salaries <br />and wages as a last report. <br />I have kept in close touch with the probable income of the city and <br />now believe if we intend to keep the cityts finances in a condition that <br />will prevent embarrassment and maintain it as an example of careful and <br />judicious administration, we, too, must follow the trend of the times and do <br />those things that will enable the city to continue free from embarrassment: <br />In advocating thAs policy to the Economy Committee, it was intended <br />that every expenditure be reduced to an absolute minimum and salary reductions <br />be made to stand the balance of the burden whatever it may be *'' <br />The question involved, of which should be first — cuts in expenditures <br />or cuts in salaries, is solely a matter of sequence as the need of both is <br />becoming apparent.` <br />The merits of the plan to cul all expenditures first and tape up the <br />balance of needed reductions by making ousts in salaries and wages is a <br />matter which our administrative departments have given such consideration, <br />however, in view of the Councilts position as a representative body of the <br />people and the administrationts need_ of its cooperation in making <br />reductions of salaries, wages and expenditures, I will.defer to the Council <br />Judgment in this matter.' = -- <br />0 <br />• <br />