Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-17
Senate Hearings on D. c. Bill
Show Auditor Warns Against
Increasing Expenses.
WANTS LOAN FOR CENTER,
BUT WITHOUT INTEREST
Official Tells Subcommittee Share
of Government Out of Proper
ton in $42, 900, 900.

A million dollar lump sum is
not an equitable contribution by the
Federal Government toward a District
appropriation bill as large as the one
now pending in Congress, District
Auditor Daniel j. Donovan told the
Senate subcommittee considering the
bill, it was revealed today when Chair
man Bingham made public the hearings
that have been in progress during recent
weeks.
The hearings also show that the plan
embodied in Senator Capper's bill to
have the Federal Government loan the
District $l5,000,000 for development OF
the municipal center project, to be
repaid 1000, 900 a year with 312 per
cent interest. originated during the con-
Sideration of the appropriation bill and
was fully discussed there.
It was while discussing the advisable
ity of making such a loan in order to
ease the burden of meeting this large
development out OF current revenues
during the next few years that Maj.
Donovan called attention TO the in
adequacy of the 100000 as Uncle
Sans contribution toward an appro-
priation bill totaling $42 100000, ex-
elusive of trusts and special funds.
FavOrs Loan to District.
The auditor was favorably disposed
toward the idea of obtaining loan for
the municipal center, but did not be-
lieve that the District should be re-
quired to pay interest on this advance,
while no interest is to be required on
similar loans for park extension under
the Cramton bill. nor under the loan
for establishing an airport.
During the hearings Senator Bing-
ham expressed the belief that there Is
a difference between the building OF a
municipal center and the park and air
port DEVELOPMENTS. He pointed out to-
day that the park extension and the
airport will be adjunctS of the city as
a National Capital, while the municipal
center will be entirely for local munich
pal purposes.
with the hearings completed, the Dis
trict subcommittee of the Senate appro-
priations group is in executive session
today, considering what changes are to
be made in the text of the bill as 1t
passed the House. The subcommittee
has given no intimation of its decision
on any proposed amendments and It's
action will not be made known until the
bill is reported.
Facing Tax Increase.
Pointing out that the pending bill for
the coming IL months, together with
the police and fire salary increase bill,
will use I'D the last of the city's surplus
and predicting that the annual budget
will grow, Maj. Donovan said that In
1892 the Commissioners will face the
necessity of raising the tax rate to $l!90
or more if the Federal contributions re-
main unchanged. He said a tax rate
of ST. 80 would be needed for the COM
ing year If it were not for the remain
ing surplus. Discussing the outlook Tor
the next few years, Auditor Donovan
testified as follows:
with the enactment Of this 1881
bill into law, al 1.-The surplus revenues
of the District of Columbia which have
been accommodating for several years
past will be entirely exhausted. Begin
ming with the fiscal year 1882, the
District will be wholly dependent on
current revenues in preparing the an
nual budget. At the beginning OF the
fiscal year 1929 the District had surplus
revenues of about $6,000,000 over and
above the $4,000, 900 cash fund required
to be maintained for operating capital.
At the beginning of the current fiscal
year, 1890, the surplus revenues
amounted to about $5,000000. All the
surplus revenues will be wiped out with
the enactment of the 1881 appropria-
ton bill and the passage of leglsla-
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