Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-10
LAUDS JUDSON PLAN
Bill FavorabIy Reported to the
House.
PAYING THE DISTRICT DEBT
Chairman Smith Points Out the
Course of Prudence.
LOOKING TO THE FUTURE
Providing for Extraordinary I'm
provements-Change From
Practice of the Past.
PAYING THE DISTRICT DEB
LOOKING TO THE FUTURE

Practice Of the Past.
Representative Samuel w Smith OF
Michigan, chairman Of the House COM
mittee on the District Of Columbia. to-
day presented to the House the favor
able report Of the committee on the
bill embodying the Judson plan for the
payment of the debt Of the District and
for the financing of permanent i'm
provements.
The Course of Prudence.
"A prudent man with ample income, -
says Chairman Smith, will each year put
a part of it into some form Of permanent
investment. He will buy a home, now
and then bond, or lay up credit at the
bank. After a, few years time that
mans assets will be measured not entire
ly by the tangible property he has ac-
cumulated. The prudent habit that he
has formed will be no mean asset.
Prudence and foresight will reward
municipalities no less than individuals.
Washington has now, with the federal
contribution, most generous income
proportional to it's needs. Behind the
bill under consideration lies the simple
thought that a portion of this income
and no less than certain definite sum
each year, should in common prudence
be invested in some permanent form. In
the next twelve years, If this bill shall
become a law, we shan wipe out the
greater part of the Indebtedness of the
District, and at a cost Of some $2O,OOO,OOO
the permanent improvements will be &C
complished that are now generally ad-
dictates the Inauguration of such a plan
for the District of Columbia.
People Want Creditable Capital.
Justice to the people of the United
States outside Of the District, who con-
tribute so largely to its maintenance, de-
mands it as we'll. 1t is presumably to in
sure that the larger projects that are con-
templated in this bill shall be done with
view to making this creditable capital
city that the people away from mere
make their annual contribution. salts
faction of bare current necessities by
current public expenditures will not pro-
duce capital city such as the people at
large, in view of their contributions, have
right to demand, and yet, in our last
few appropriation acts, little has been
done except to care for current needs.
In the last year or two certainly the peo-
pie of the nation not resident in Wash
ington have received but little for their
very large contribution to the funds APP
prOpriated
Annual Increase of Revenue.
THE revenues of the District of Co
lumbia have been increasing rapidly at
the rate of about s250,OOO per annum;
thus the combined revenues have been
and are increasing at the rate of about
$JO0,G00 per annum Current needs, being
function of area and population. are
increasing at much less rapid rate than
are the means available. The debt is be-
ing rapidly paid off. The only thing that
is not being done at the present time is
to effect those permanent or extraordi-
nary improvements such as are essential
in the case of Washington.
These improvements can be made more
economically if made systematically. The
ample revenues eliminate any need for
the borrowing of money. 1t is only nee
eSSary to make a program of eXpendi-
be new legislation requiring for con-
sideration and appropriation the action
Of four or more committees of Congress
and the passage of separate act.
Design of the Bill.
1.-The bill is designed to carry out this
idea of establishing a program. AS the
result of the passage of this bill, $780,
10000 would become available for ex-
penditure on permanent or extraordi-
nary improvements within the next
twelve years. The gradual elimination
Of the debt is provided for, SO that
within twenty-five years no indebted
ness would remain. There is nothing
in this bill that would divert from the
funds annually available more than can
be spared for the purposes under con-
IAN ample amount will remain each
year for all current needs. This bill
has been forwarded to Congress by the
Commissioners of the District OF Coium-
bia, with their most favorable considera-
ton It Is very important that 1t should
become a law at this session of Congress,
in order that the halt in the making OF
permanent improvements may END be-
shall materially increase the cost of OBJ
tanning the land that will be required
for parks. etc.
The District Debt.
at the end of the last fiscal year
the debt of the District of Column
bia, considering the latter as made up
to two partners, the District proper and
the United States, included a bonded
debt of approximately $1O,OOO.OOO. The
District proper owed the other partner.
the Uniteu States. approximately, $4,000
900. Inasmuch as payments on account
of this $4.OOO.OOO, principal and interest,
will be deducted from the Districts fu-
ture contributions to the partnership fund,
perforce the contributions of the other
partner the Uniteo States, will be dimin-
isned accordingly.
THAT is to say, in the future, as the
District proper repays to the United
States this $4,O0O.O0O, with interest, the
total means available Of the partner
ship will be reduced by an amount
equivalent to $S.000,O00. with interest
at per cent. The financial condition
of the District, then, considered as
partnership, is precisely as II it owed
bonded debt of nearly $10,00O.000, bear
ing 365 per cent interest, and floating
debt of approximately 100000, bear
ing per cent interest.
I'm the last thirty years the debt has
been reduced from SO, 100000 to virtually
S1S,OOO,OOO. What is provided in the bill
is, therefore, great Improvement on
what has been done in the past as re-
CARDS the debt, for the bill contemplates
the complete extinction Of the debt In
twenty-five years or less.
due to payments on account of debt,
the combined resources of the partner
ship available for general purposes were.
in effect reduced in the estimates for
District expenditures submitted to Con-
gress for the fiscal year 1911 by. $9!o. 40S
{1.31 DS.