Evening star., 1933-02-25
Donovan Tells Senate Sub
committee Lump Sum Do
nation Is Too Little.
EXCESS TAXATION
SCORED BY AUDITOR
Deficit Threatened With Down
ward Trend of Revenues-Res-
toration of Items Urged.

The Bingham subcommittee of the
Senate was preparing today to mark UP
the changes it will recommend in the
District appropriation bill after listen
ing to strong plea by District Auditor
Daniel j. Donovan late yesterday for an
increase in the Federal contribution,
which the House is seeking to reduce
from $7,775,000 this year to $6,500,00
for the next fiscal year.
The subcommittee also has before it
for decision requests from nearly every
branch of the District government for
restoration Of urgently needed funds
which were allowed by the Budget Bu-
reau but eliminated in the House bill.
Taxi Conditions Scored.
Chairman Patrick of the Public Utili-
ties Commission told the subcommittee
the commission is convinced present
taXicab conditions are not satisfactory,
In discussing the need for better regula-
ton. The commission has issued an
order for a meter system, which would
bill. Questioned by Senators Copeland
Of New York. and Kendrick of Wyo-
ming, Gen. Patrick estimated there are
1000 cabs in operation, which he re-
garded as more than necessary to rem
der the service. He said the zone sys-
TEN is unjust and discriminatory and
that the commission concluded the zone
system could not be worked out ade-
quately for Washington. The commit
tee also heard Assistant Corporation
Counsel William A. Roberts on the taxi
cab problem.
One more brief hearing was held this
morning to get the views Of the Public
Utilities Commission on the House
proviso which seeks to prohibit the
ordering of meters on taxlcabs. The
subcommittee then ended the hearings
and was expected to have the bill ready
for action by the Senate Appropriations
Committee early in the week.
After presenting numerous figures to
show that there is downward trend
in District revenue collections and that
the city would have a deficit at the
close of this fiscal year on June 80 of
SAC, 1884, the auditor concluded by de-
claring that the s6500,000 lump sum
voted by the House for next year is not
an equitable Federal contribution.
Capper Sees Inadequacy.
When the auditor called the House
lump sum inadequate, Senator Capper,
Republican, of Kansas. observed, Il
think you are absolutely right" He
said it gets little discouraging at
times because of the attitude taken by
the House on the question.
Donovan called the committees at
tention to the fact that the United
States Bureau of Efficiency, after a
careful study, recommended that the
Federal share of District expenses
should be approximately Sl0,200,000.
Donovan said the District started the
present fiscal year last July with bal
ance on hand of S542, 900 Ind until
few days ago it was thought there would
be a small balance of S8,l at the
close Of this year in June. He revealed
at yesterdays hearing that information
compiled within the past two days
shows the expected deficit of S440, ,934
at the end of this year, even after al
lowing for the S2,135,00 saved this
year through the furlough and other
provisions of the economy law. If it
had not been for the economy law,
Donovan said, the deficit for this year
would have been S2,576,000.
As to the next fiscal year, the auditor
said the pending bill, as passed by the
House, would leave a surplus in June,
1884, of 81 700, 900, of which S2,500,0
would be in the general revenue fund,
$1,300,000 unexpended in the gas tax
fund and 100000 in the water depart
ment fund This balance resulting
from the sharp cuts made by the House
throughout the pending bill would be
diminished to whatever extent the Sen
ate decides to restore stricken items.
Inasmuch as the gas tax fund cannot
be used for any other purpose than
highway work, and the water fund for
NO, other purpose than development and
operation of the water system, the Sen
ate subcommittee members have indi-
Gated their intention of increasing these
expenditures rather than allow these
spcial tax collections to repose idly in
the Treasury.
Economies and Revenues.
Donovan stressed the point that the
annual saving from the economy act is
the only thing that Is enabling the Dis
trict to get along with the present
downward trend Of revenue collections
and the downward tendency Of the Fed
eral contribution. For the two fiscal
years of 1888 and 1884, he said the
District. saving by reason of the econ
omy law will aggregate $4,135 600. With
out the economy law and with the Fed
eral contribution held down to S6,500,-
900 as advocated by the House, Donovan
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