Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-17

ton increasing salaries Of policemen
and f1remen.
ut is our experience that annual
budgets do not go down; they increase
year by year. For example, the 1880
appropriations amounted to 100000
more than the 1929 appropriations.
Forecasts Larger Budget.
"'The bill before this committee car
ries appropriations for 100000 more
than the 1880 appropriations. That, 1t
appears, is bound to be the case. Our
needs are growing; the demands on
our revenues are increasing, and Tor
1892 the very strong probability Is that
we shall have to submit budget that
will be several million dollars higher
than the present one. That additional
amount Of money, under existing law,
will have to be met out OF current rev.
enueS, and this means an increase III
taxes.
IF the present budget had to be
financed entirely out of current rev.
enues 1t would mean tax rate OF Sl.9O,
against our present tax rates OF Sl,7O,
and if there be included the increase
in policemen and firemen'S salaries we
would have to have 81 tax rate 10
carry this bill 1t may not be necessary
to GO above $1T0, because we will be
in 1882 the surplus revenue will be
gone and the Commissioners Will be
confronted with the necessity OF raising
the tax rates to $1.90 or more, unless
Congress agrees to and appropriates q
larger amount than the present lump
sum of 100000 as the Federal par
ticipation in District appropriations.
II do not believe the present So
| 900 900 is an equitable participation by
the United States in appropriations
| totaling Sac, 600 900, exclusive of ap-
! preparations payable from the gaso-
| line tax fund and the water fund. The
| So, 600, 600 lump sum contribution COM
menced with the fiscal year 1925. On
| the basis of the total appropriations
at that time, this sum represented a
| more equitable participation by the
| United States in District appropria-
| lions than Is the case now, when the
very material increase in total appro-
| priationS is taken into consideration.
| For the fiscal year 1925, the divisible
! appropriations (Which excludes those
paid from the gas tax funds, the water
| funds and from special and trust
funds amounted to $31, l63 600. Ol
this amount the contribution OF the
United States was 1888 per cent. ano
allowing credit for miscellaneous rev.
enues released to the District OF CO.
lumbia, 3O.87 per cent. For the flsca
year 1881, the bill pending before this
committee provides for approximately
S42 000, 900 in appropriations, exclusive
of gas and water funds. and trust ano
special fund items.
ais Per Cent Of Total.
"The contribution of 100000 900 by
the United States is 21.5 per cent OF this
total. and giving the United states
credit for the release OF miscellaneous
revenues to the District, the lump sun
represents GAS per cent of proposed
1881 appropriations. If the test Of
equitable contributions by the United
States is to be determined on the basl:
of the proportion that the lump sun
contribution represented to the total ap'
preparations in 1925, it must be obviou:
that the amount of the lump sum doe:
not meet the test when set up agains
the amount of the District bill for 1881
which carries $4,000, 900 more lin di'
visible appropriations) than the appro'
priationS for 1925"
At this point, Senator Bingham tolc
the auditor he was wondering whether
it would not be possible to arrange tc
borrow from the Federal Government
the money needed for the municipal
center and pay such interest as the
Federal Government would have to pay
for the money and provide for spread
ing this payment over period OF
years"
Senator Bingham asked whether ad-
ditional legislation separate from the
appropriation bill would be needed
The auditor expressed the belief II
would require legislation.
Later, the auditor submitted a pro-
posed amendment to be added to the
item in the appropriation bill for con-
tinuing the purchase of land for the
municipal center, in compliance with
the suggestion Senator Bingham hac
made.
This amendment would provide for /;
loan of So. 200 900, which is the amour
the House Appropriated toward con
tinuing the municipal center proiec
during the coming fiscal year. The bill
which Senator Capper introduced yes
terday would call for loan of SIS, 900,
900, to cover not only purchase of thu
remainder of the municipal center area
but also the first two buildings.
Against Paying Interest.
After he had presented the suggested
amendment to make the 100000 loan
Maj. Donovan explained:
TT will be noted that the abovt
amendment, proposed an interest charg,
to be paid by the District on the uS'
of this 5000, 900. For the reasons
which 1 will indicate in moment,
do not believe that the District SHOULD
be required to pay interest on THU
money.
Should your committee decide tina
any loans made to the District by thu
Treasury in connection with the de,
velopment of the municipal center prof.
ect should be considered on the sam,
basis as the bills now pending in Con
gress for the acquisition of park lane
and for the establishment of an air.
port, which propose reimburSementS Il
be made to the United States out O
the revenues of the District of Column.
bia over period of years without AM
interest charge, it Is suggested that The
foregoing ans ndment be modified BY
striking out the words with interest a.
the rate of 81 per cent per annum OF
annual balances"
The hearings show that the Interest
rate of 3la per cent was fixed as the
result of information given informally
to the auditor by the Treasury Depart.
ment.
You will recall" Donovan told Sen.
ator Bingham. that the Cramton Parl
bill spreads the reimbursementS over 6
period of 10 years and does not require
interest to be paid by the District Of
Columbia; and l believe the airport bill
makes the reimbursement period IL
years and does not require the District
to pay interest
THAT is true" Senator Bingham re-
piled. THE difference there is thai
both of those measures are measures
which concern the National Capital as
National Capital"
AdOrnments to Capital.
"Is not that also true, Senator, con-
corning the development of the foul