Evening star., 1928-12-02
Treasury Advance Would Be
Repaid in rs Years Under
$3.50 Ratio.
COMMISSIONERS DRAW UP
BILL AUTHORIZING PLAN
Hope to Acquire Land at Once,
Avoiding Greater Expense
in Later Purchase.

A loan of at least $9.000,000 from
the Federal Treasury to acquire the
land in the triangular area on the
north side of Pennsylvania avenue be-
tween Third and Sixth streets, the site
recommended for the proposed munich
pal center, is now undergoing serious
consideration by the District Commits
sioners in connection with bill to au-
thorize the gigantic project they are
preparing for each introduction in Con-
gress.
The $9,000000, according to the
plans discussed would be advanced by
the Treasury for period of 25 years
with annual interest at per cent. 1t
would be repaid in annual installments
through appropriations carried in the
regular appropriation acts, but on the
basis of so per cent contribution by
the Federal and District governments
instead of from the general revenues.
Draft Nearly Completed.
The Federal Government, the Com
miSSionerS will hold in advocating this
financial arrangement. should partici-
pate equally with the District in this
development, not only because of the
fact that the project is part of the Fed
eral scheme for Identification of the
National Capital. but because the pres
ent District Building was built under
the $3.50 ratio principle, and the Dis
tricts equity in the present building
which 1t must yacate, amounted to so
per cent.
The draft of the bill authorizing the
development has been virtually COM
pleted m tentative form and as soon as
the Commissioners definitely decide on
a scheme for financing it, the measure
VIII be sent to the Bureau of the
Budget for consideration as required
by law. When the bureau passes on
the bill it will then be transmitted to
Congress.
Although it is admitted the loan
might necessitate a slight increase in
the existing tax rate of $1.70 on 500
OF assessed valuation on real estate and
personal tangible and intangible prop
erty, the Commissioners, it was said
feel that 1t is the only feasible plan
at present for acquisition of the land
at one time. Piecemeal purchase. it
was pointed out, probably would en-
nance the value of the property not
acquired and increase the ultimate
coast of the area.
Site Contains Six Acres.
The site it is proposed to purchase
IS bounded by Pennsylvania avenue on
the south, D street, Indiana avenue and
Louisiana avenue on the north. Third
street on the east and Sixth street on
the west. This area contains six
squares, the assessed value of which
/ CIIOnfIU in Of &c
trlct officials have estimated that it can
be purchased for approximately $4,000
100000.
The cost of the entire project. in
cludlng the land, has been estimated
at S35, 100000 by Municipal Architect
AlDert l.. Harris. His calculations
however, are based, on present dav
prices and existing labor wage scales.
and as 1t is planned to stretch the de-
Velopment over long period of wears.
the estimate, it is thought will vary
In accordance with price fluctuations.
acquisition of the property is the
| first step in the program and it is on
this feature that the Commissioners
are concentrating their attention. De-
tails concerning the buildings to be
| erected on the site, their cost and
method of financing, likely will be de-
layed pending congressional sanction.
Courts Building First.
1t has been tentatively decided. how
ever, that the firtS in the proposed
group OF buildings to be erected in the
munlclpal center should house the
various courts of the DisSrict-the
municipal. police and juvenile courts
which are now scattered in various
sections. An administrative building to
| replace the present District BuiIdiny
which the Commissioners believe will
be forced out of i. the lower Pennsyl-
vanla avenue triangle by the Federal
building program in about five years.
probably would be the second develop
ment in the area. Other buildings
would be erected as needs justified.
by borrowing $9,000,000 from the
United States Treasury, the District
government would not set a precedent
IN financial relations with the Federal
Government. District officials point ouC
that Congress once before authorized
the municipality to borrow from the
treasury to finance public improve
nentS IL was unable to purchase out of
yearly revenues derived from taxation
and other sources. That was in 1902
and, IN the eight years that followed
the District drew from the Treasury
approximately $4,500, 900 which was re-
paid with interest at 2 per cent a wear
IN the period between 1911 and 1915
the Federal Government participating
equally with the District in refIinding
the loan.
The District government at the time
the loan was authorized was operating
under tax rate of $1.50 applied on an
assessment OF two-thirds of full value.
Both the tax rate and the assessment
were liked by law, and the Commission
erS lacked the authority they now have
to alter the levy to meet Changing
conditions.
Action Regarded as Urgent.
An $18,O0O.OOO public Improvement
program, started in the early COS under
which the Federal and District govern
ments were directed to share the cost
equally. made the loan necessary when
the municipality found it impossible
to raise its $4,000. 600 quota on the then
infiexible tax rate. The improvements
financed by this loan included the
present District Building. which cost
nearly 50 900 900; the so-called Million
dollar" Bridge over Rock Greek at
Connecticut avenue, extension of the
sewerage system, and other necessary
improvements
With the rapid progress on the Fed
eral Governments building program
slowly forcing municipal activities out
of the lower Pennsylvania avenue tri-
angle, the Commissioners regard the
civic center development as urgent and
propose to give 1t priority on their leg
islative program for the session Of
Congress which convenes tomorrow.
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