National Affairs: New York v. New York

As shrilly described by New York City officials on various occasions in recent months, Governor Thomas E. Dewey is a “thwarted dictator” who, for “brazenly political” motives, imposed a “bizarre” fiscal program on the city, and then tried to “confuse the people” with “crocodile tears” and “slick half-truths.” These harsh words were really beamed, not at Dewey, but at New York City’s voters. A mayoralty election is due in November, and several city officials, including Mayor Vincent R. Impellitteri, are eagerly hopeful.

The shrill cries began when Mayor Impellitteri, faced with a $175 million deficit in his 1953-54 budget estimates, asked Dewey & Co. for 1) a bigger cut of state funds, 2) authority to levy more city taxes. (The state constitution requires the city to get state authorization for all new taxes and increases in old taxes.) Dewey turned down the requests, announced that he would “save the city from the catastrophic mismanagement of its own officials.” Nub of Dewey’s own program: let the city collect an additional $50 million in real-estate taxes, on condition that the city agree to set up an autonomous five-man transit authority (two members to be appointed by Dewey) to operate the city-owned subways and surface lines on a self-sustaining basis (i.e., increase the subway fare).

At that point, City Council President Rudolph Halley saw a fat political opportunity: New York straphangers are presumed to be exceedingly touchy about their 10¢ fare. A seasoned TV performer (Kefauver committee counsel), Halley went on TV with a plan of his own: reject the Dewey plan, balance the budget by strict economy—a hollow plan with which Politician Impellitteri had toyed. Impellitteri, without any plan of his own beyond a determination not to bring up the subject of the subway fare, denounced the scheme as “Halley’s folly.”

With the state controlling the city’s borrowing authority as well as its taxing authority, Impellitteri had to choose between 1) uncomfortable economies, and 2) the Dewey plan. Weighing the political liabilities of both courses, he chose the Dewey plan: his $1,528,812,795 budget for 1953-54, presented last week, provides for a transit authority. After all, if the transit authority raises the subway fare, Impellitteri can put the blame on Dewey.