Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-19
Concerning pankruptcy.

Those who are responsible in any way for
the Districts present financial condition
may naturally shrink from its description
rs of threatened temporary bankruptcy.
But that description Is accurate. and no eff
fective remedy can be applied unless and
until the case is canddly diagnosed.
During the fiscal year for which appro-
priations this winter are provided, Congress
has directed street extensions to the
amount Of two million dollars to be paid
Gin violation of the organic act and against
the Districts protest. exclusively from the
tax contribution of the individual property
owners. The total of the Districts tax
fund for the year will be between three and
four million dollars. About half million
of this amount is pledged to interest and
sinking fund charges in connection with the
municipal debt The machinery of the city's
administration cannot stop. The obligations
incurred in maintaining police, f1remen.
public schools, &c, cannot be avoided
Over three-quarters of million from the
local taxpayers contribution will be re-
quired for schools alone The entire amount
of local revenues. before the deduction of
two millions. is hardly large enough to meet
the estimates of necessary current eX-
penses. The fixed and unavoidable eXpen-
dtures for the year are much larger than
the revenues. and the resulting threatened
condition is one of temporary insolvency.
The national advance proposed by the
Commissioners is commendable in every
respect. The local deficiency. created by the
action of Congress. must be met in some
way, and the method suggested is the
very best that could be devised Not only
should the District be rescued from this
predicament by such an advance. but, if it
he 70
ought to adopt a similar method of meet
ing the cost of great local improvements
like the completion of the sewer system
which to be most effective must be quickly
finished in their entirety. Advances from
the national treasury, even bearing inter-
est, repaid from the local funds as condi-
tions permit. are preferable in many re-
spectS to District bond issues.
The District is not relieved of all threat
of insolvency by the present national adj
vance. OF the two millions to be paid for
street extensions one million is extorted
from the local taxpayers in violation of
the organic act. The precedent of national
participation in suburban street ex-
ter sion which springs from successive ex-
tersion laws will, If followed impose other
millions to an indefinite amount exclusive
ly on the local taxpayers If the individual
taxpayers of the District are to be called
upon solely at their own expense to extend
and develop the magnificent plan of the
national capital beyond Boundary street
they will certainly end in genuine, perma-
nent and irretrievable bankruptcy.
Elsewhere in The Star is printed a dis
cussion in detail of the inevitable and dis
astrous results of adherence by Congress
to the theory that it win compel the grand
and expensive street plan of the national
capital to be extended over the District
but that the nation will bear no part of
the cost.
Is the new Washington beyond Boundary
street TO be repudiated by the nation? Is
the violation of the organic act. involved In
the street extensions already authorized, to
be carried through to the bitter end? Are
future street extensions to proceed on the
same outraseously unjust and disaster
threatening lines?