Evening star., 1933-05-20
MORE CARE URGED
/ in CITY FINANCING
Investment Bankers Offer
/ Six-Point Program as
Economy Steps.
BY EDWARD C. STONE.


connection with municipal securities
municipal financing. The program was
adopted at the board of governors
Spring meeting at White Sulphur
Springs. Here are the six points:
/. Overlapping governments should
be consolidated because local taxing
and administrative units have become
too numerous for efficient operation
This condition has grown out of various
circumstances during our recent period
of expansion. The tendency toward re-
organization and consolidation Is show
ing itself in scme of our communities,
but 1t has not as yet accomplished suf-
I1cient results"
2. Municipal governments are indis-
pensable to the general welfare and
must be maintained at whatever odds.
Economies must be maintained and tax
levieS reduced where possible, but GER
tain taxes must be paid because the
municipality has been not only the
first line of defense against distress and
starvation, but certain taxes must be
paid if our health, lives and property
are to be safe. A closer understanding
and cooperation between officials and
taxpayers Is necessary.
More Frequent Bills Urged.
3. Tax bills should be sent out at
least quarterly and perhaps even
monthly. UnGer the present system
revenues begin to come in six months
to year after the relsted expenditures
begin. This necessitates short-term bor-
rowing. Other difficulties in the pres
ent system are too numerous and too
evident for enumeration. Spreading
the tax payments over the entire year
should overcome a large part of these
troubles. There are some obstacles in
connection with this program, of
course, but they are by no means in
superable. The annual saving in the
cost of tax-anticipation financing and
the satisfaction of operating on a cash
basis would justify the change"
4. More frequent tax collections
should provide quarterly or monthly
control of expenditures. Operation out
come; but any plan for improvement
in financial administration demands
that accounting methods be raised to
q higher level.
S. State supervisory control Of mu-
nicipal finances in event Of default is
recognized as a desirable method of
dealing with defaults, since municipal
corporations are creatures Of the State
and it is the duty of the State to
administer the finances OF its 5ubdivi-
sions in event of a breakdown in a
community's credit.
Must Catch Up on Taxes.
s. "It Is mandatory upon our States
and municipalities to find some methoS
of catching up with themselves on tax
delinquencies." Accommodations of past
due obligations are one of the most
serious threats to local government
credit. Tax levies should be reduced
where possible, but this year apparently
requires some sort of a levy over and
above operating expenses and debt
service This excess, as small as special
situations can stand, should be set up
as an additional asset to offset obliga-
tions which already existed because OF
these delinquencies."
The report was presented by E. Fleet
wood Dunstan, Bankers Trust Co., New
York, chairman, and is signed by 81
members of the committee.
In his quarterly letter to stockholders
President Frank L. Dame of the North
American Co. has this to say OF the
Potomac Electric Power Co.:
THE ninth consecutive annual reduc-
ton of the electric rates of Potomac
Electric Power Co. was put into effect
on February 20. Direct savings to Gus
toners for this year under the new
schedules will amount to approximately
s4O0 900 and indirect savings through
a decrease in street lighting charges to
about $150,000, an aggregate saving OF
S550,000 The reductions apply to oil
classes of service in the District OF
Columbia and adjacent territory.
"Hydro-electric power was received
in washington for the first time on
March 3, when the new 220, 0,000-volt
transmission line from Ellicott City, Md,
to the new Takoma Park substation was
placed in operation. Inter-connect1on
with the lines of the Consolidated Gas,
Electric Light & Power Co. OF Baltimore
now provides an outside source Of power
which supplements the Potomac sys-
TENS steam electric generating facilities
Work is progressing on the new
Buzzard Point plant, whcih upon COM
pletion of the first unit about the END
of. the year will add $4,000 kilowattS
capacity"
Local Dividends Due Soon.
The quarterly dividend of 134 per
cent on the common stock OF Washing
ton Railway & Electric Co. will be paid
on June / to stockholders OF record
June 18. The preferred dividend Is
due on the same date.
The recently declared dividend OF
81 a share on Lanston Monotype stock
will be paid on May 81 to stock OF rec
ord May IS.
The Potomac Electric Power dividend
ofI1k per cent on the 6 per cent pre-
ferred. and Is on the 51a per cent pre-
ferred are both due on June l to share
holders on May ID.
The payment dates on Peoples Drug
issues differ. The quarterly payment OF
$1621z on the preferred will be dis
burSed June Is to stock OF record June
/, while the 25-cent dividend on com
mon will be distributed July TO stocK
of record June 8.
International Business Machines Cor
poration, which has a plant in Wash
ington, has been designated the official
tiraekeeper of the Chicago Century OF
Progress Exposition and is now install
ing system of 200 large electric clocks
Throughout the grounds and exhibition
buildings, to insure uniformly correct
time within the inclosure of 424 acres
where the World Fair Is to be held for
five months.
To the same electric time circuit the
company is also connecting about 81
attendance and Job time recorders fol
the use OF the 5000 employees OF the
exposition. In addition, conceSsiona1res
and exhibitors will be permitted to in
stall in their own booths and exhibit
spaces electric clocks that may be con-
neeted with the power lines of the
time system.
Cleaned in Financial District.
Prof James H. Rogers Of Yale Uni
versity, an economic authority on gold
imitation and international relations, is
in the city to consult with Government
officials on these subjects, stopping at
the Mayflower.
Norman E. Towson, assistant treas
urer of the Washington Loan & Trust
Co, addressed the weekly meeting OF
the Business and Professional Women's
Club of Arlington County, Va. He dis
cussed the effects of recent national
legislation on business and the values
of securities and commodities. 1T Is
the velocity of circulation which more
than any other factor distinguishe;