Evening star., 1933-10-15
TWO STATES GET
0NEF0URTH0F AID
New York and California
Head List of Those Re.
ceiving U. S. Funds.
Continued From first Pase.)

I'D to this time. In the case Of loans
bv the r. F. c. for self -liauidating
construction projects, for example, the
procedure is for the r. F. c. 10 .pur-
chase securities Of the projects only as
the work progresses. and consequently,
recent reports OF the corporation show
than authorized for -liquidatii1g
projects.
In the case of California, the bulk
of the total sum shown for that State
in the accompanying table, is under
the heading of loans authorized by the
r. F. c. for self-Hquidating projects in
that State. In the case of New York
q large part-nearly haf-of the total
shown for the State, comes under the
heading Of non.Federal projects Hu-
thorized by the Public Works Admins
tration. On fon-Federal projects the
Federal grants are limited to 80 per
cent OF the cost of labor and materials
The Public Works Administration may
may make the grant without q loan
II the agency carrying on the project
has the 10 per cent on hand from some
other source The column in the table
showing non-Federal public works
projects does not undertake to separate
the portions that are leans as distin-
guished from grants, because IN par
ticular Instances an allotment may be
q grant, a loan, or combination OF
the two
Reason for Differences.
It would seem, therefore, that the
States leading the list in the table are
there largely because agencies in those
States having projects to be carried
out have gone further in borrowing un-
der the self -liquidating provision OF the
r. F. c.. and from the public works
fund.
The first column in the table (A)
shows loans to the States by the K
r. c. for unemployment relief out OF
the $500, ,OcO, 900 made available for that
construction act of 1899. The column
shows a total Of 1926, ITS, ,502.89 dis
bursed, but an r. F. C. report given out
after this table was prepared shows
S299, 1884, ,e99 has now been disbursed.
The District OF Columbia, which cam
not borrow money without specific au-
thority from Congress, did not share IN
this fund. Congress decided that the
States could reimburse the Federal Gov
ernment for these loans by having de.
ductions made from future Federal-aid
highway appropriations, beginning IN
1886. This method of reimbursement
will apply to all but about S29,000,000
of this money. the latter amount hav-
ing been leaned directly to cities rather
than to the state authorities, and is
to be repaid on terms made with those
municipalities.
The second column (B) shows the
grants made 10 the States ana the
District OF Columbia this year. up to
the end Of August, under the emergency
relief act of 1888. While the relief
funds In column A were loans In the
sense that they will be deducted from
future Federal appropriations to the
States for highway Improvement, the
funds in column B are outright grants.
Congress authorized S500000,000 for
distribution as relief grants in the 1888
law, and the table shows S150,135,478
distributed up to August 81. During
September this total was increased by
subsequent allotments, and it is esti-
mated that the entire fund will have
been exhausted by the end OF the COM
ing Winter. Half of this $500, 100000
was for distribution quarterly cup to Oc-
tober - at the rate OF 81 OF Federal
money for every SO of public money
spent for relief purposes in each juris-
diction in the preceding three months.
The other half was for distribution
without relation to previous expendi-
lures. The recently announced plan is
to use a great part of this balance IN
the direct purchase of agricultural prod
ucts for feeding and clothing the un-
employed.
Therefore, States that shared in the
r. F. c. relief loans Under the 1882 law
could count the pertien OF that money
spent during thFes-nqnth period IN
arriving at the amount Of their first
grants under the new law. Similarly,
the Federal grants made in any quar-.
terly period under the new law we're
figured as public money In arriving at
4 states Federal grant for the next
quarter.
Total for Relief Purposes.
The third column Co merely shows
the total for relief purposes under the
two relief laws up to August 81.
The fourth column CD shows the self
liuuidating projects, previously referred
to. These loans could be made to pub
lie or semi public agencies to carry on
public works authorized by Federal,
State or municipal law, or to private
corporations to carry out certain types
Of projects such as housing facilities,
the name implies, these project4 had
20 be Of q self-nquidatine character,
the r. r. G. law defining the time
limits and conditions OF repayment.
The figure for each State in this column
Is the total of all such projects au-
thorized in the State. In some cases 1t
represents or projects, in others 10
or IL undertakings.
This column covers approximately l50
Of these self -nquidating projects that
were authorized by the r. F. c.. from
nf fhiS
year, when this function of aiding con-
struction work passed into the hands
of the new Public Works Administra-
ton. The difference Is that the new
agency may make grants as well as
loans on these non-Federal under
takings.
The fifth column (E) is the amount
each Jurisdiction received as an out
right grant for highway construction
out Of the $4o0, ,ooo, 900 earfnarked for
that purpose in the $4,000, ,0o0,0 900 pub.
Lie works authorization In the recovery
act. An exact formula was laid down
by Congress for apportionirg this fund,
namely: Seven-eighths Of the highway
fund was allotted in accordance with
the Federal aid highway law Of 1921,
which requires consideration to be given
to the population, area and mileage OF
rural post roads in each State. The
remaining one-eighth was allotted on
the basis Of population alone.
Considering column (E) in relation
to (A), it will be seen that while the
States will have the relief loans in (A)
deducted from regular Federal aid high
way allotments beginning in 1885, they
are in the meantime receiving special
emergency highway grants to relieve
the Unemployment situation, and in
most cases these highway grants are
greater than the relief loans OF 1882
that will be deducted from regular high
way allotments In future years. Con-
rress allowed the District government
to share in this emergency Federal
hirhyay program. but the Capital City
has never shared in the regular Federal
aid highway allotments.
D~,Lya> nIo~Je A11nr finpS