Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-12
MONEY FOR DISTRICT
Mr.. Gardner Makes Statement
in House.
PROVIDING FOR FUTURE
Points Out Several Ways of Increas-
ing the Revenue.
RAISE IN RATE OF TAXATION
Chairman of Subcommittee of Ap-
preparations Committee Says As
sessment Here Is Low.
PROVIDING FOR FUTURE
RAISE IN RATE OF TAXATION

The District of Columbia appropr alton
bill was the order of business in the
House Of Representatives today. Prelini-
nary to the consideration of the meas
ure. under the five-nnute rule. Repre-
sentative Gardner Of Michigan, Chairman
of the District of Columbia subcommittee
of the appropriations committee, who has
been making d comprehensive study Of
local finances. submitted the following
statement concerning the three or possibly
four ways by which the current and fu
ture financial conditions may be provided:
"The committee on appropriations. in
framing the bill for the expenses of the
District of Columbia for the fiscal year
| ending June 80. 1910, were confronted by
a financial situation present and prospect
! i've that we feel ought to be presented 10
| the House
The estimates of the Commissioners
! for ensuing fiscal year, eXcluS We of
! the water department, aggregate Sl6,OoG,-
935.J2. The estimated revenues of the
District amount to $6,096,41O A like sum
| being provided out of the United States
| Treasury makes the sum total of the rev.
! enues for the next fiscal year ST. l92940.
| 1t will thus appear that the estimates of
the Commissioners exceed the resources
by nearly $4.00o,O00.
Would Increase Unfunded Debt.
This would necessarily increase the un-
| funded debt by much is the differ
ence between the income and the outgo.
| The unfunded debt of the District July
next, and which is payable wholly from
the revenues of the District. amounts to
ST. 1884, 262. The law requires that, begin
ming with payment of this debt the 1st
of July. 1909. the whole sum shall be paid
within the five succeeding years, with in
| terest at per cent On all unpaid bal
ances. This unfunded debt arises from
advances made by the government of the
United States during the last eight years
to the District of Columbia to enable it
to carry on and I'm large measure COM
plete certain important and in the main
greatly needed public improvements of a
permanent character Among these may
be mentioned the sewage disposal plant.
at cost of over five millions of dollars;
the filtration plant. at nearly three and
one-half millions; the District building. at
81, 500, 600: railway terminals and the eim-
fnation of grades and grade crossings.
1875. 600; new Union station, 81 SOC. 600:
| highway bridge across the Potomac with
| the approaches thereto 81. 10000; the
Connecticut avenue bridge, 1856 900; Ana
costa bridge. $469, 900; Massa chusetts ave-
nue. bridge $337. 900; Piney branch bridge.
$4,000. and the District Hospital. $2O5. 600.
making total of ST., ,262. .257.
| In addition to the unfunded debt there
is a funded debt, the bonds for which
were authorized in 1874 to run for fifty
| years. The time will expire August 1,
1924. July 1. 1873, this debt was 500, lO6.-
$50. July 1, 1908, it had been reduced to
$40. Ill, 100. In other words, there will be
| within two millions as much to pay dur
| ing the next fifteen years as the District
has paid in the last thirty years and in
| addition the unfunded debt Of 81, 1S4, 600.
| The funded debt bears a rate of .:i65 and
the unfunded of per cent per annum.
Three or Four Plans.
| There are three possibly four, ways by
| which the current and future financial
conditions may be met or provided for.
"The first is to segregate the money
| raised by the District and the federal gov
| ernment into two funds, one of which
shall be used for ordinary current ex-
penses and the other for improvements Of
| a permanent nature. In order that the
present generation may not be unduly
| burdened and that other generations.
| which will share equally with this in the
! benefits enjoyed, may bear part OF the
burden they impose, it is proposed either
| to issue a new series of longtime bonds
| or to continue indefinitely advances from
| the national Treasury.
| 'It may be said that this plan, in a
general way, has the Endorsement of the
Commissioners. with the apparent ap-
proval and support OF a goodly repre-
sentation of the business men and of
the civic associations in the different
sections of the District
| 1.-The second method is to raise the
per cent of valuation Of the property to
| be assessed both real and personal, or
to raise the rate of taxation upon the
present valuation.
Tax Rate Here Low.
Methods of valuation and per cent
of taxation vary SO much in different
cities that any comparison based upon
either or both is mot of much practical
value; but there Is a method Of compari-
son which is fairly just and accurate, viz,
the amount of money raised and expended
Iper capita.
| when it is borne in mind that the Dis
1trfct of Columbia exercises Substantially the
functions of the state. the county ana
the municipality ii is easily within the
truth to say that the rate of taxation
is lower in Washington. d. c., than in
any city of like size and privileges any
where in the United States. Indeed, near
ly every city in the same class Is higher
per capita for purely local municipal
expenses leaving out the state and county
| taxes than is Washington for all three
combined. So well is this understood and
appreciated locally that this point is made
and sent broadcast by interested parties
| i'm this city to induce people of means
| i'm various states of the Union to re-
move to Washington desirable place
| of residence with low ldAdtlon-
Below Requirement of Law.
while the organic act requires that
the real estate shall be assessed at not
| less than two-thirds its true value, it Is
| believed that comparison of the as
sessed valuation with the consideration
actually received where sales have been
made will show that such assessed yalua-
| ton will not exceed 4J per cent of the
| true value. 1t may be said that house.
| hold goods to the value of thousand dol
lars are exempt from taxation. 1t will be
| seen that a reasonable raise either In rate
| or values would not work great hard
ship on the property owners of the city.
Were this done the revenues from the
District would be materially increased
and the government of the United States
would give a proportionate advance and
SO provide the means with which to pay
the current expenses and make such i'm
provements OF permanent nature as the
| city shall require.
"The third course left open is to follow
| the law as laid down in the organic act.
which provides that all estimates made
| by the Commissioners of the District OF