CBS Evening News for Thursday, Aug 21, 1975
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(Studio) Report on how New York City debt grew.
REPORTER: Roger Mudd
(NYC) New York City owes $12 billion. [Executive Vice President Morgan Guaranty Trust Frank SMEAL - explains default.] [New York comptroller Harrison J. GOLDIN - says can no longer keep borrowing money.] Just paying interest on loans due will cost $1.3 billion this year Vice President Nelson Rockefeller, ex-New York government and 3 mayors New York City operated under deficit financing. [GOLDIN - says pols. delighted in the solutions that weren't solutions at all. Banks, business community, and public pleased with arrangement.] Municipal labor unions turned into political force. [Columbia University School of Bus. Prof. Raymond HORTON - says civil service unions became important electoral force. Mayor in electoral trouble used collective bargaining as form of patronage.] Incrd. fringe benefits, pensions and premium pay won by unions. New York City police get $15,250 with $7670 fringe benefits. Chicago police get $15,888 with $3171 fringe benefits. 338,000 city workers in NYC. Pay and benefit scales up 129%. [Labor mediator Theodore KHEEL - cites migrations of poor to New York City and moderates to suburbs.] 1.5 million blacks and Puerto Ricans moved to New York City between 1950-70. 1.5 million whites moved to suburbs. In 5 years, 320,000 jobs moved to suburbs. [GOLDIN - explains loss of tax revenues.] [KHEEL - says New York City is center of greatest and wealthiest region in world. Legal New York City is obsolete.]
REPORTER: Robert Schakne