Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-10-09
OWES GOVERNMENT 1000, 900.

49, oSS4SGANAAGNA %Z13OVVsVo0'
The national capital is greatly agi-
tated over situation that has grown
out of the proposal of the democrats in
Congress to investigate the financial
arrangement that exists between the
federal government and the District OF
Columbia. This situation is OF interest
to the country at large inasmuc6 as the
question has arisen whether the Dis
trict is in debt to the government to the
extent of $21, 900, 900. Chairman Ben
johnson, OF the House District COM
mittee, says this debt exists, and he is
in favor OF forcing the District to pay
it. As a consequence the city's real
estate trust is in state OF panic that
borders on hysteria.
The United States government and
the District OF Columbia are in part
nership as far as paying the cost OF
the city government OF Washington is
concerned. The government pays half
this expense out of tho public treasury,
and the District pays the other half
from taxes and other revenues. Natu-
rally, the tax rate is exceedingly low,
but regardless OF this, rent ard prop
erty values in Washington are much
higher than in any other city OF the
size in the country. So high are rents,
and so highly prosperous, apparently,
are the real estate dealers, that the in
diyidual members OF Congress lately
have been showing very objection
able Ito the real estate mem disposition
to inquire into the manner in which
the District expenses are met.
The agitation came to a head after
Mr.. johnson was made chairman OF
the District committee. In line with
the democratic policy OF administering
the government economically, he at
once took hold OF the situation. lie
had not been investigating week be
fore he found out that the federal gov
ernment had loaned the District a sum
aggregating twenty one million dollars
and that this debt was still plling up
under the arrangement whereby the
government pays dollar for each dol
lar in taxes collected by the District.
He at once proposed that the accumu-
lated debt should be paid back, and
that the half and half" agreement
should cease.
The organic CLAW of the District,
Chairman Johnson says, clearly specl'
fies that the twenty-one. million was
loaned with the specific agreement that
it snould be paid back. Moreover,
he says the half and half" agreement
is without sufficient basis OF law, and
since it is working more to the benefit
of the real estate trust, and the wealthy
non-residents who own magnificent
social palaces there, than to the men
and women who work and pay rent, he
wants the law changed.
Mr.. Johnson's committee will meet
in November, when thorough inves'
tigation OF the whole subject will be
made. In the meantime the realty
barons are threatened with nervous
prostation, and the holders OF the gas
and traction franchises are but little
less frightened. The traction magnates,
especially, are worried. for they fear
tue next step will be an attack On their
vested rights. Under these rights the
street car systems OF Washington-there
are three OF them, owned largely by
the same men-have so arranged that
a resident OF the city has to pay at least
two, and in some instances as high as
eight fares if be desires to make trip
between certain points within the city