Evening star., 1932-08-11
New Ruling by McCarI Affects
Much Federal Work
Now Under Way.
WARNING is GIVEN
TO LIMIT EXPENSES
Decision Will Not Clear Up All
Questions Due to Arise in
Construction Program.

Danger that the Federal building
program of the Government not only
in this city, but throughout the coun-
try would be seriously crippled by the
10 per cent cut ordered by the economy
act was averted today by Controller
General McCarl in a reaching de-
cision to the Secretary of the Treasury
McCaTl held that section 800 of the
economy act with its 10 per cent cut,
will not be held to require reduction
in appropriations heretofore made or au-
thorized to be made when on June 80,
1892, the plans and specifications for
a building had been completed and ap-
proved and a contract let for construc-
ton of the substructure thereof.
June 80 is the effective cate of the
economy act.
Work to Go Forward.
This was interpreted to mean that
most of the construction to mean that
can 20 forward without taking the
penalty of 10 per cent cut, but it will
mean that certain buildings, including
probably the new Federal Commissions
Building at Sixth street and Pennsyl-
vania avenue, will have to be curtailed
SO as to be built for 80 per cent of
the original limit Of cost.
McCarl warned, however, that in fin
ishing the buildings which are already
started. the spirit Of the economy law
should be carried out "administra-
lively" In other words, he told the
Treasury to build as economically as
possible
Section $40 of the economy act IS
short, but to the point, in demanding
large savings in the public building
program, and many buildings must sus-
fer under It's provisions. The section
reads as follows:
Text Of Section.
Authorizations heretofore granted by
law for the construction of public build
ings and public improvements, whether
an appropriation therefor has or
has not been made, are hereby amended
to provide for a reduction OF 10 per
centum of the limit of cost as fixed in
such authorization as to projects where
no contract for the construction has
been made.
"As to such projects where contract
has been made at a cost less than that
upon which the authorization was
based, such cost shall not, unless au-
thcrized by the President, be increased
by eny changes or additions not essen
tial for the completion Of the project as
originally planned"
With danger that this provision might
tie up a great number Of partially COM
pleted projects, cause redesign of others,
and much delay In the Government
building program, the Treasury asked
McCarl for decision.
Can Define Policy.
McCarTs reply is believed to have
far fhp VTTcn Tn
define its policy now on all building
projects on its list, to 60 forward with
those which are approved by the Nc
Carl decision, and arrange TO make 10
per cent reductions in the others TO
which McCarl says the economy cut OF
10 per cent does apply.
Many intricate questions are expect
ed to arise in the administration OF
this phase of the law, even with the
McCarl decision. Some buildings, no
doubt, will be on the border line. 1t
appeared today, however, that among
the new structures under way here In
Washington which could be carried
forward with administrative" economy
are the Department OF Labor, Govern
ment Auditorium, Interstate Commerce
Commission, Post ONCE Department
Department of Justice, Archives, De-
partment of Agriculture extensible
building, Public Health headquarters
and probably the central heating plant
all under Jurisdiction of the Treasury
Department. There probably are other
new structures under other Federal
jurisdictions here which would fall un-
der the same category, for instance,
the nearly completed House ONCE
Building, the Supreme Court of the
United States and Botanical Garden.
In the case of the new laboratory
buildings for the Public Health Serv-
ice, however, no contract has yet
been let.