Central to the bankers’ plan is a 50 percent increase in the city’s flat-rate income tax—from 1 percent to 1.5 percent. The tax increase will be on the ballot in a city referendum to be held February 27.

Just after midnight on December 16, the city of Cleveland defaulted on $15.5 million worth of loans from the city’s banks. This was the first default of a major American city since the Great Depression.

Following the default last month, Kucinich said that 3,500—more than a third—of the city’s work force would be laid off. In further negotiations with the banks and the city council, these massive layoffs were postponed pending the outcome of the tax referendum.

A second measure on the ballot in the special February election will be a vote on whether or not the city should sell the Municipal Light Company. This facility, however, doesn’t generate any power and hasn’t for years. It merely buys power from CEI [Cleveland Electric Illuminating Company] and other sources and distributes it.

The issue is a bogus one, however. The utility rates are regulated by the state’s Public Utilities Commission. The PUC will allow the rates to go as high as they think they can get away with—or lower them if they are forced to by mass pressure—whether Muny Light is run by the city or absorbed by CEI.  
 
January 11, 1953
An open Jew-baiter is one of Senator Joseph McCarthy’s richest backers. Eugene M. Biggers, one of the Texas oil kings pouring funds into McCarthy’s war chest, told a Milwaukee Journal reporter: “This country is in great danger and Joe is about the only one that knows it.” Much of the trouble, Biggers added, is that “there are too many Jews in Washington.”

This is part of the additional information on the big money behind McCarthy presented in the Jan. 2 Labor, organ of the Railway Brotherhoods. Basing itself on recent Milwaukee Journal material, Labor helps to fill out the picture of the sinister figures subsidizing America’s No. 1 fascist.

“I don’t worry about Russia,” Biggers said. “We could shut them up in 48 hours. Just give ‘em an ultimatum.” The real “danger” to America, he claimed, “is being swallowed up by liberalism, socialism or whatever you want to call it.” He added, “The Republicans are all through unless they embrace McCarthyism completely.”

Listed as one of McCarthy’s earliest supporters is H.R. Culien, Houston oil man, who has accumulated several hundred million dollars. In 1952 he made the biggest contribution reported by McCarthy’s Wisconsin campaign club.

Two other big McCarthy backers are oil men Clint Murchison and H.L. Hunt.

Austin Hancock, Dallas insurance executive, has set up the American Heritage Protective Association, which he uses to boost McCarthy for president.

Just a “lunatic fringe”?  
 
 
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