Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-02-05
Reasons for Federal Advance
to District
GIVEN TO HOUSE TODAY
MR.. BABCOCK SHOWS HOW CITY
SHOULD BE FINANCED.
Exhaustive Statement Regarding
Needed improvements - Burden
Should Run Over Term Of Years.

Chairman Babcock Of the House District
committee completed and filed the report
authorized by his committee in favor of
the $10C00,OO0 loan bill, In the House to-
day. The report is an exhaustive discus
sion of District finances. 1t presents the
business soundness Of the plan proposed
for carrying on the permanent improve
ments in the District, and shows the fall
lacy OF the keep out of debt" policy ad-
vocated by the opponents Of the measure.
The plan proposed, the report says Is not
new one, and the law on this subject
of February IL, 1901, is quoted to show this
fact, as well as the act of July 1, 1902.
These acts are as follows:
Act Approved February II, 1901.
THAT until and including June 80, 1902,
the Secretary of the Treasury is authorized
and directed to advance on the requistion
OF the Commissioners OF the District of Co
lumbia made in the manner now prescribed
by law, out of any moneys in the treasury
OF the United States not otherwise appro-
pr1ated, such sums as may be necessary
from time to time to meet the general ex-
penses OF said District as provided by Con-
gress, ana to reimburse the treasury for
the portion of said advances payable by
the District of Columbia out of the taxes
and revenues collected for the support of
the government thereof: Provided, That
noth1ng contained herein, nor in the act of
June q, 1900, entitled An act to regulate
the collection of taxes in the District of
Columbia shall be SO construed as to re-
qulre the United States to bear any part of
the cost OF street extensions, and all ad-
vances heretofore or hereafter made for
this purpose by the Secretary of the Treas
ury shall be repaid in full from the reve-
nues of the District of Columbia Provided.
That all advances made under this act and
under the said act of June 8. 19OO not reim-
bursed to the treasury of the United States
on or before June 80. 1902 shall be reim-
bursed to the treasury of the United States
out of the revenues of the District of Co.
lumbia beginning July 1, 1902, in four equal
annual 1nstallments, with interest at the
rate of 2 per centum per annum. except in
cases where the terms of the appropria ton
under which such advances are made shall
expressly provide for payment Jointly by
the United States and the District of CO.
lumbia.'
Act Approved July /, 1902.
"Sec. 8. That until and including June
80, 1908 the Secretary of the Treasury is
authorized and directed to advance on the
requisition Of the Commissioners of the
District of Columbia. made in the manner
new prescribed by law, out of any moneys
in the treasury Of the United States not
otherwise appropriated. such sums as may
be necessary from time to time to meet
the general expenses Of said District, as
provided by Congress, and to reimburse the
treasury for the portion Of said advances
payable by the District Of Columbia out of
the taxes and revenues collected for the
support of the government thereof: Pro-
vided, That nothing contained herein shall
be so construed as to require the United
States to bear any part Of the cost of street
extensions, and all advances heretofore or
hereafter made for this purpose by the Sec
retary Of the Treasury shall be repaid In
full from the revenues of the District of
Columbia: Provided That all advances
made under this act not reimbursed to the
treasury of the United States on or before
June 80, 1903, shall be reimbursed to said
treasury from time to time out Of the sur
plus revenues of the District of Columbia,
beginning July l, 1903. together with in
terest thereon at the rate of 2 per centum
per annum until SO reimbursed which re-
endorsement shall be made within three
years from said last named date"
Debt Of the District Of Columbia.
Mr.. Babcock then takes up a discussion
of the debt Of the District.
The funded debt Of the District Of Co.
lumbia on the 31st day of December, 1902,
amounted to $13,321, $50, which has been
reduced to $l2,s2Os5O since the first of
January by the payment Of $5O1 900 Of 365
bonds. This sum comprises $4,000 Of water
stock bonds, which are payable from the
water fund alone, and will be retired July
1, 1903. The residue Of $12, ,SO7, $50 consists
of 1856 bonds, which were issued under the
act of June 20, 1874 in payment of in
debtedness incurred by the board of pub
lie works.. These bonds have fifty years
to run and will mature August 1, 1924.
Their redemption is provided for by a sink
ing fund, for which annual appropriations
are made by Congress, payable jointly and
equally by the United States and the Dis
trict Of Columbia as part Of the expenses
Of the District of Columbia.
The funded debt at the beginning Of the
present form OF government, July /, 1873,
which amounted to $22, LOG, $50, has been
reduced to the extent Of $9.285. 800. leav-
ing stih due, as just stated. the net sum
for interest and sinking fund, which las
heretofore been 81 .213 947 81. has also be an
reduced, so that from July 1, 1903, it will
be but 1915, 40S per annum.
Unfunded Debt.
The unfunded debt, which represents the
sum advanced by the Treasury of the
United States. amounted on June 30, 1902,
to $.759. .242.46. 1t Is estimated that the
Indebtedness to the general government will
amount to 1901 .72615 at the end Of the
present fiscal year. The act Of July 1, 1902.
requires the District to pay one-third Of
tnl6 GmOuHI eAcu year, WIN interest at z
per cent on the principal which would ap-
proximate $671 ,943.23 annually.
Revenues Of the District.
The estimated revenues Of the District Of
Columbia for the fiscal year, 1903, are given
In detail as follows: Tax on real property,
s. 225 600: tax on personal property, $500 600:
licenses. $40 600; arrears of taxes, $50. 600:
miscellaneous. 100000; total $5.2150OO.
Increase in Revenues.
The total revenues Of the District for the
fiscal year ending June 30, 1902. were S.
61e, ,3aS.s2. The estimated revenues Of the
District for the fiscal year ending June 30,
1908. are IS. 23b. 900. or an increase under the
nsw system Of taxation Of t.ba1 611.1a
Per Capita Tax.
The estimated revenue Of the District of
Columbia from all sources. including real
estate. personal property licenses, etc. for
the current year 1903 is s., ,2l5 600. or $17.9s
per capita.
Tho. tax from the same sources in the
49,