Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-03
CLEARING THE RU|NS|M|LL|ONS TO REPAY
Relief Corps Active in Flood Federal Share of District Debt
Stricken Austin. May Be Recalled.
MORE BODIES IN DEBRIS BIG BURDEN IN PROSPECT
Missing Alleged Purpose of Chairman John
Number Eghty-Six. of House District Committee.
MONEY FOR RELIEF WILL COME BEFORE CONGRESS
in Total Reimbursement
mately Contemplated.
Necessities. No Longer Half Half
Federal Share of District Debt
May Be Recalled.
BIG BURDEN IN PROSPECT
Alleged Purpose of Chairman John
son Of House District Committee.
WILL COME BEFORE CONGRESS
Total Reimbursement of Approx
mately $25, 900, 900 Contemplated.
No Longer Half and Half

The District government will be called
on to refund to the United States ap-
proximately $4,000, OOO-the amount ap-
propriated by the federal authorities tC
the present time toward the extinguish-
ment of the bonded debt of the District
il plan which is said to be under con
sideratfon by Representative Ben John
son. chairman Of the House District com
mittee. meets with the approval of Con
Sress.
That the plan has been given serious
consideration. following the collection by
MIR. Johnson of a vast amount of data
dealing with the Districts finances, and
that. in all proba bility, it will be pre-
sented to Congress at the coming ses-
sion, was the startling Information which
was given out today through an authori-
tative source.
Not only is the abolition of the halt
and half principle, by which tho federal
government contributes one-haf of the
annual appropriations made for he sup
port Of the District. to be recommended
to Congress, it is learned. but Mr.. John
son is said to be inclined to the belief
that there is neither reason nor equity
in the arrangement by which the federal
government pays one-half on the interest
and sinking fund of the bonded debt, and
may recommend to Congress that the
practice be abolished.
District to Bear Burden Alone.
If the suggestion should be made and
put into effect according to the plans
that are said to be under consideration
it would mean that the District not only
would have to pay back the amount al
ready advanced by the federal govern
ment, but would be required to eX-
tinguish the debt without further as
siStance.
The amount paid up to June "a. fS1O.
on the bonded debt was S42,OO7,I11-3O or
this sum Congress had appropriated one
half. The amount remaining to be paid,
exclusive of interest, before the debt can
be finally extinguished is $S. .SsS.2 200.
1t would thus appear that under the
plan suggested the District would be re-
quired 70 return to the federal govern
ment one-hah of the total amount paid
to date, which would be 81, ,O03. 1876. In
addition to this it would have to pay of
the remaining %. SSS, 200
The arrangement to be suggested for
refunding the advances, it is said. will
be that the money be turned back into
the federal Treasury at the rate Of
81. f.VOn,Gc0 4 year. Z.
The increased tax burden that this
would impose upon residents Of the Dis
trict. especially if the half and half prin-
ciple should be abolished and taxes
should have to be raised to meet the de-
ficiency. can be left to the imagination.
That no more serious question confront
ing taxpayers has arisen In the history Of
the District there can be little doubt.
Dates Back to Year 1878.
The bonded debt was created by the
act of 1878. 1t was learned today that.
as the result of the Investigation Of the
Districts affairs, which was conducted
by an expert accountant, alleged in
stances have been discovered showing
that the federal government made GER
tain advances to the District before the
act of 1873 went into effect. and that
these advances have not been repaid.
With the plan to have the money ap-
propriated toward the eXtinguishment OF
the bonded debt refund being considered,
it is alleged. the question of attempting to
collect money advanced before the act of
1878 went into effect also is being given
consideration. The amount to be refund
ed in this case. 1t Is learned. would be
approximately $1,OOO,OOO
1t is pointed out that when Congress
made these first advances the problem of
what kind Of a financial arrangement to
enter into with the District was under
consideration, and that when the act of
1878 was adopted prior obligations. con-
cerning the extinguishment of which there
We're no specific plans. were automatically
Cancelled
Chairman Johnson's Views.
Representative Johnson. on the other
hand. is said to hold to the belief that
the money should be paid to the federal
government by the District and that the
act of 1878 in no manner affected the OBJ
legations previously entered into.
One OF the serious features Of the entire
situation. as far as taxpayers Of the Dis
trict are concerned. is the fact that GER
tain officials of the Treasury Department
are understood to concur in the view that
the federal government should not be re-
quired 10 aid in paying off the bonded
debt OF the District. If this be true it
may have some effect upon Congress,
should the plan said to be under consid-
Grafton by Representative Johnson be
presented.
District officials, to say nothing of resi-
dents Of the District, have become thor
oughly aroused over the story published
yesterday in The Star to the effect that
there is a probability of movemen,
being set on foot in Congress this faI
to abolish the haif-and-half principle.
Several officials high up in the loca
government are convinced that a con
certed movement has been inauguratet
with this object in view. The question
has been the one topic of conversation
today in business and official circles.
Fixed Appropriation Of $2, ,oO0, 900.
1t is said that Representative johnson
favors a fixed appropriation or the Dis
| trict-an amount that may not exceed
| 81 600 900. II this be true and the Distric
committee chairman should recommend
the refunding Of the bonded debt Of th'
| District at the rate of 100000 a yea
the National Capital hereafter would re
ceive only about S1,OOO.OOO annually fo
| its support. whereas under the presen
| appropriations arrangement il receives IL
the neighborhood of $6,OOOOOO year.
To make up this difference would meaI
that taxes would have to be increased t.
the exorbitant point and doubtless woul'
check the growth of the city along TIL
lines on which ii is now being developed