Evening star., 1933-02-21
The Federation and Relief.

report from ltS Law ana Legislation
Committee (the full text of which
appears elsewhere in these columns
today, the Federation of Citizens As
sociations joins other citizens and
members Of Congress in recognition of
the fact that the $625,O00 now in the
District appropriation bill for emer-
gency relief in the next fiscal year may
be insufficient and that additional funds
may be necessary. The common objec-
tive of the community, then, is to
obtain guarantee that additional funds,
whatever they may be, when and if
they become necessary, will be OBJ
tainable.
But the federation report is unwilling
to accept the r. F. c. loan plan now
proposed in separate bills before both
Houses of Congress, giving to the Com
missioners the right to borrow from
the r. F. c. where private and public
relief funds are inadequate, the prin-
ciple OF which was specifically con-
tanned in the Wagner bill passed yes
terday by the Senate, and asks for
something that in one form has al
ready been refused and which lacks
the elemental safeguards of the r. F. c.
plan.
This places the Federation in the
position Of declining to accept plan
favored by the Commissioners, the Bud
get Bureau and the Senate, extending
to the District, wisely and equitably,
the privileges enjoyed by all the States
and Territories. Instead, the Fedora
ton asks for something new that, in
effect, has already been refused.
The federation report bases its
opposition to the r. F. c. loan plan on
seven specific points.
/. The first point may be summed
up as presenting the argument that
there Is no good to be expected from the
proposed loan legislation, because the
District of Columbia could not get
loan anyhow. It is suggested, in fact it is
stated with positive assurance, that the
", ~. WOulG, lO1 1CdcO1lc o1oVCAB 1C-
fuse to grant the loan. Then, the
District having placed reliance on a
loan, the District would be worse off
than ever. That, of course, is pure
speculation. 1t involves premature
assumption that the r. F. c. all con-
ditions for a loan having been met
by the District, would refuse to COM
ply with the law and grant the loan
in the face of starvation at its very
doorstep. Nothing in the record of the
r. r. c. justif1es this slurring assump-
ton of such refusal.
While the argument Of the Fedora
ton on this point Is not convincing
that the District, however great its
need and its merit, could never obtain
a loan, the Federation's showing of
the stringent restrictive conditions sur
rounding the grant of loan dissipates
the fear that has been expressed that
present or future Commissioners might
abuse the privilege granted and ex-
travagantly and unnecessarily impose
q heavy debt upon this tax-burdened
community.
2. The federation report argues that
the act of borrowing would constitute
a most unfortunate precedent, showing
for the first time departure from the
well known provisions contained in the
act Of Congress of June II, 1878,
(known as the organic act prescribing
the present form of government for
the District of Columbia:
INDEBTEDNESS NOT TO BE IN
CREASED.-Theres shall be no increase
in the amount Of the total Indebtedness
of the District of Columbia existing
on June II, 1878; and any officer or
person who shall knowingly increase,
or aid or abet in increasing, such total
indebtedness, shall be guilty of a high
misdemeanor, and on conviction there
OF, shall be punished by imprisonment
not exceeding 10 years, or by fine not
exceeding ten thousand dollars. go
Stat. L. 108,c.l80, sec. 49,"
This contention involves a novel con-
struction Of organic law, as well as
lack Of knowledge concerning the prece-
dents.
The amount Of Indebtedness existing
on June II, 1873" was about 23,000,
900. Even maximum loan of $780,
600 would not increase" that amount,
as the District is now debt free. And
1t is, further novel construction of
the law which suggests that congress-
men authorizing the Commissioners to
borrow, as in this case, and the Com
missioners borrowing in conformity with
this authority, would be subject to
criminal prosecution and If convicted to
fine not exceeding s1O,00O or to i'm
prisonment not exceeding ten years.
The Commissioners, of course, could not
borrow without congressional author
ization.
Nor would loan or advance con
stitute a most unfortunate precedent
or show "for the first time departure
from any law limiting Indebtedness.
Between 1900 and 1910 the District Sc
cured Treasury advances (loans) to
the extent of several million dollars
with interest at 2 per cent. They
reached peak of $4,000, 900 in 1908
1909 and 1910. With such advances the
District made many necessary improve
ments, including the Mcmillan Park
filtration plant, the sewage disposal
plant and the present Municipal Build
ing
The federation report argues that
the Commissioners should not be giver
the authority to violate" the organic
oct because Of the waste" directly In
voaved when bond issues, and othel