Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-23
Senate Group Impressed With
Arguments Presented by
District Officials.
COMMISSIONERS FAVOR
BILL MINUS INTEREST
Donovan Holds Government ShoL-d
Share Expense of Project
on 60-40 Basis.


the Federal Treasury to help the Dis
trict develop the Municipal Center has
been taken under advisement by the
Senate District committee, with indi-
cations that committee members were
impressed by the arguments presented
by District officials at the hearing yes
terday against placing an interest
charge on such loan
In a report read by District Auditor
D. j. Donovan, the Commissioners re-
ported favorably on the bill, except as
to the 312 per cent interest charge.
They opposed levying interest, on the
ground that the Municipal Center is as
much a National Capital improvement
as the Cramton park bill and more so
than the airport bill. The park and
airport bills both call for loans to the
District without interest.
Following up the testimony OF Dono-
van. Commissioner Reichelderfer told
the committee that, even II TINS loan
Is made to the District without IN
terest, the local tax rate is going up.
Believes in Pay as You Go.
At the outset of the meeting Senator
ZONES Republican, of washington said
he did not believe the committee
should act on the $15,000,000 loan at
this time, pointing out that ne olo
not know the attitude OF District peo-
who is chairman of the appropriations
committee, said he was believer IN
the pay-as-you-go principle, ana ue-
cidedly opposed to putting a proposal
of this kind on an appropriation Dill.
Chairman Capper explained that ne
drafted the bill as the result oil discus
sions in the District subcommittee nan
ding the local appropriation bill. Sem
ator Capper read from the approprla-
ton hearings the statement OF Senator
bingham. chairman of that subcommlt-
tee to the effect that as the Munlclpal
Center would be used by future genera
tons its cost should be spread over
period of years. Senator Bingham
statement pointed out that present tax
payers would have to go without SCHOOLS
streets and other needs II the Munlcl-
mai Center is met out of current reve-
nues.
Auditor Donovan reminded the COM
inittee that the District officials orig
inally asked for purchase OF only TWO
squares on the north side OF Pennsyl-
vania avenue for the Munlcipal Center
and that Congress enlarged 1t to four
enlares. He prefaced the report OF the
present Board of Commissioners on the
loan proposal with the statement that
the views of the Budget Bureau toward
the plan have not yet been received.
The report said the Commissioners do
not look with approval on the piling up
of a large debt, except for extraordinary
improvements.
Asks Commissioners Views.
Senator Copeland, Democrat, of New
York, asked If he understood the posi-
ton of the Commissioners to be that
they approve this loan, provided 1T Is
without interest. Donovan replied that
it depends on how rapidly the Munich
pal Center is to be developed. II the
center is to be developed In six or
eight years, he said then the District
needs the loan. If it is to be put on
for a longer time, the loan will not be
needed, he testified.
1T would be only fair for the United
States to participate definitely in the
Municipal Center development" Dono-
van declared, adding that the District
put up city Offices for much less than
this development will cost.
What would be fair proportion for
the United States?" Senator Capper in
quired.
Donovan replied that the existing
substantive law fixing the 60-40 ratio
between the District and Federal gov
ernments would be fair.
In support Of the plea Of the Com
missioners that no interest be charged
on a Municipal Center loan, Donovan
of District funds always on deposit in
the Federal Treasury, on which the Dis
trict does not receive interest. II this
money were deposited in banks, the
District could get interest on it, the
auditor said. After reading long list
of these monthly balances, Donovan
said:
U. S. Has Use Of Money.
During all these years the United
States has had the use of this money.
Now when there Is a chance for the
United States to loan the District a
little money, it could be done without
interest"
Senator Robson, Republican, of Ken
lucky estimated the monthly balances
of District funds in the Treasury, read
by Donovan, indicated an average OF
about 100000
When the auditor called attention to
the steady increase in the total of the
annual District appropriation bill since
the Federal Government began making
its share SO, 100000 lump sum in 1925,
Senator Capper observed that that
seems pretty hard on the District"
Engineer Commissioner Ladue con-
Cured In the views expressed by Com
missioner Reichelderfer and the auditor
Requests PostpOnement.
The Board of Trade, through its ex-
ecutive secretary, Robert j. Cottrell, re-
ouested a postponemen mt of the measure.
He said it represented departure from
the pay-as-you-go system, and that
more time was desired to study the plan
DIR. George C. Havenner said the Fed
Grafton of Citizens Associations and
the Citizens Advisory Council had APP
proved making the loan $25,000,0 900, but
without an interest charge. Asked by
committee members what he thought
the additional $l0,000,000 should be
used for, DR.. Havenner said the city
needs several new bridges and mum
Der of branch public libraries. He said
there is need for bridge across ROCK
Greek Park and one across Eastern
Branch at Massachus' It's avenue.
At the beginning of the meeting Sen
ator Jones suggested postoponement OF
q separate bill to raise the salaries OF ths
District Commissioners from $4,000 to
$4,000 a year. The Senator from
washington also urged careful consld.
Grafton be given another separate oil
introduced a few days ago to authorize
a S5O0,000 viaduct to eliminate the
Michigan avenue railroad grade cross
ing.
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