Evening star., 1933-01-29
HOUSE D. c. GROUP
TO BEGIN WORK ON
BILL FOR S40,0)0,o)D
Proposal to Increase Tax on
IntangibIes for Relief
Included.
DEFICIENCY BILL READY
TO GO TO WHITE HOUSE
$685., 900 Fund Is Provided for Aid
First Six Months This Year.
Signatures Awaited.

With deficiency bill carrying $685..
600 for immediate unemployment re-
lief in the District ready to go to the
White House, the House Subcommittee
on District Appropriations tomorrow
will takeup the S40,000,000 District ap-
preparation bill and with it proposal
that the tax on intangibles be in
creased to provide for future relief
needs.
The deficiency measure, which pro-
vdes S625, 900 for relief work during the
first six months of this year, was
passed by the Senate yesterday after
noon. The House had acted favorably
on it Friday Since there are no
amendments, the bill will be sent to
President Hoover after it is signed to-
morrow by Speaker Garner and Vice
,, President Curtis
1t was understood an attempt will
be made during consideration of the
$40 100000 appropriation measure to
write in $500, 900 as the Federal con-
tribution to support of the National
Capital instead of the S7,775,000 COM
promise figure accepted in the 1888 ap-
preparation act. The S6,500,000 con-
trlbution was recommended by the
MapeS Committee.
ouSSStcu ncdAty lax.
Chairman Cannon of the subcom-
mittee declared last night that several
District residents who appeared asking
for the relief funds had suggested a
separate tax on real estate to meet the
relief needs. He said it was then
emphasized that unemployment relief
was strictly District problem and that
it should be made clear that none of
the funds come from the Federal con-
tribution. Consequently, it was exc
planned that it will be an aim of the
subcommittee to provide some distinct
way of raising the relief money by
District revenues so that it will be ap-
parent that none of the fund comes
from Federal revenues.
Cannon pointed out last night that
the proposed increase in tax on in
tangibles is thought by some members
of the subcommittee to be more fair
than raise in real estate taxes, which
might be a burden to small home
owners
Last year it was estimated that there
was a total of S510,O00,000 intangibles
in the District, and this year the
amount is estimated at approximately
s400, 100000. The tax now is IS per
subcommittee is to increase this so
cents or 81 per thousand dollars
1t was pointed out. however. that
such an increase would yield only a
part Of the funds necessary for relief
work. and that the intangible tax would
have to be increased to S813 per 81 900
in order to meet the s1,250,000 esti-
mated for unemployment relief this
year.
Tided Over By S25,000.
~
ever, has been tided over by the pay
ment of nearly $4,000 in borrowed
money for the pay roll of 1857 persons
yesterday. The District still owes about
$4,000 to be met from the emergency
relief fund of S625, 900 in the deficiency
bill. This includes approximately
S45,000 grocery bill, and the $4,000
payroll which was met by borrowing
money yesterday.
Bill Passed Quickly.
Passage of the bill in the Senate fol-
lowed promptly when Senator Bingham,
floor at noon and Withdrew the amend
ment he offered late yesterday. seeking
to restore to the bill the S28,000,000
item for Federal tax refunds. The
Senator explained that he thought it
would be possible for the District gov
eminent to borrow money to meet ur-
gent relief needs until the deficiency biH
becomes law. but he found this morning
this would be against the law.
In taking this action. Senator Bing-
ham said he hoped Congress would
provide without undue delay in a later
bill for money due taxpayers as Fed
eral refunds.
Helps Clear Way.
Senator Bingham had been under
the impression the District Government
would be able to get along for a few
more days by borrowing funds, but
following a conference this morning
with Commissioner Reichelderfer and
District Auditor Donovan, he said that
he would not press for action on the
tax refund item in order to let the
District relief money go through today.
Bingham said he learned the city
Government Is prevented by law from
borrowing.
Would Lberalize Rule.
The Relief Committee of the Board
OF Public Welfare, at its meeting next
Thursday, will have before it a recon-
mendation from Leroy "A. Halbert, di-
rector of emergency relief. that the
residence rule for those applying for
unemployment aid be liberalized. As
adopted last August, the rule limits aid
to those who could prove one years
residence in the District prior to July
l, 1882. Mr.. Halbert will suggest
change so that the one year is to count
only from the date of the application.
The question of aid to unattached
single persons, who have been denied
relief so far in an effort to afford relief
primarily to destitute families. will also
be brought up. The board expects to
extend its aid to single persons when
the S625,000 appropriation for the first
six months of the present year IL
available.