Evening star., 1927-12-22
PLAN
SEEN ON FLOOD AID
Reid Proposal for Federal
Bonded indebtedness
Is Studied.

COMPROMISE plans for flood control
legislation are in the air. The bill
introduced by Representative Reid or
Illinois. chairman of the committee
ON flood control, accompanied by Mr..
Reid's explanation, has brought about
3 feeling that the administration's 8
ideas as expressed by President Cool
idge in his message are subject to
adaptation to local circumstances.
President Coolidge feels, for ex-
annie. that the 80 per cent cost TO
the Federal Government and 20 per
cent to be borne by the States is
most generous, but when advised that
the States feel the purchase of land
to be used as spillways may produce
a burden, he has made it clear that
the States are better able TO Judge
the cost Of lands than is the Federal
Government.
In other words, the President is
afraid that il an announcement is
made that the Federal Government
will bear all the cost, then lands will
suddenly shoot up in price and the.
cost will be far out of line. He thinks
that States, on the other hand, be-
cause of the exercise of the taxing
power, will not permit land prices to
soar, or rather that any substantial
increase in land values will permit in
creased taxation to bear the cost OF
Federal construction.
Awaits Details.
Mr.. Coolidge is expecting to receive
further details on the exact way in
which the lands can be purchased, and
it would not be surprising II when
the question OF financing the trans
action developed, the Federal Gov
ernment might agree to lend the
money to the States involved. Some
thing OF this kind is suggested by
Representative Reid in the following
excerpt from his statement:
Taking into consideration the fact
that many of the land owners are
poor and have large families to clothe
and feed, that the land is taxed to
the limit for drainage and general
taxes in addition TO the 1evee taxes,
and Is heavily mortgaged and that
there are no money crops being raised,
it is easy to see that local interests
cannot be depended upon to provide
any money. If any one really believes
that reclama tion is involved in this
problem, then it is his duty to spon-
sor q plan to provide the funds for the
levee districts which they are unable
to provide for themselves, and conse-
quently as a part of a. reclamation
plan there should be a provision that
the United States Government create
q new levee district, buy the capital
stock and bonds in order to finance It,
and give longtime payments, justified
by the prospects of returns from the
benefits added by the flood protection
works"
Plan Seen Feasible.
The foregoing financial plan may
yet come out of the whole thing. espe-
cially as a bonded indebtedness at a.
low rate of interest can better be han
died at this time by the Federal Gov
ernment than by the States, whose
Legislatures must meet and the whole
question OF local taxation tnreshed
out before appropriations can be made
available.
While Mr.. Reid's argument to have
the Federal Government bear the en-
tire cost has many adherents in Con.
gress, the administration liz not vet
ready to go that far. That is why
plans providing for easier
but with the ultimate re.
sponsibility for cooperation on the
part Of the States, will form a new
basis for discussion with the tendency
to alleviate more and more the bur-
dens on the States in the next five
years or more. during which they will
need every resource at their comma nd
to restore their economic power. ID. l..
Copyright. 1927,