Evening star., 1933-07-06
Permission to Use ST., ,500,.
600 After Careful Study of
Plan Indicated.
TALKS WITH ROOSEVELT
ON 2OAD-BRIDGE WORK
Assumes Open Mind on Spending
Surplus Gas Taxes, but Prefers
to $50 Slow" at Present.

The Budget Bureau very likely" will
approve the proposal of the District
Commissioners to spend $1,500,000 of
surplus gasoline taxes on highway and
bridge projects, after careful study of
the plan, Budget Director Douglas in
oicated today following long con-
ference with President Roosevelt.
The Commissioners proposal was
discussed at some length at the White
House, along with other public works
problems, it was learned.
Douglas made it plain after his talk
with the President that his disapproval
of the gasoline tax expenditure as ex-
pressed in letter to the Commissioners
was not final but merely temporary
postponement until further study could
be made as to the merits of the plan.
Prefers to go Slow"
Mr.. Douglas gave assurance he has
an open mind regarding the spending
of the surplus gasoline tax money, but
for the present he preferred to "go
slow" and to determine Just where we
are heading in spending the public
money on public works"
Mr.. Douglas indicated that after he
has had an opportunity to study the
public works program further it may
be likely he will approve the Commits
sioners' request the next time they
make it.
Congress gave me authority to pass
upon the expenditure Of the S1.500,000
of the gas tax money" Director Douglas
said explaining his position. The
District Commissioners wrote me let
ter several weeks ago outlining their
pan to expend this sum and asking my
approval. I replied at the time that I
could not then approve the proposal
because I wanted to wait and see what
was going to happen under all of this
public works program.
The District Commissioners recon-
mended projects in Washington totaling
S22 100000, but before I gave my ap-
proval to any Of this I want to see
where we are going. I firmly believe
that we should proceed slowly and with
considerable thought before We SO
lavishly spend the plblic's money!
Letter to Commissioners.
Director Douglas letter to the Com
m.ssiCners. received last Friday, which
was not made public at that time,
reads:
Il have received the communication
of your budget officer, Maj. D. j. Dono-
van, dated June %, recommending my
approval of certain items of expendl-
ture to be made out of the gasoline
tax fund, as provided in the District OF
Columbia appropriation act for 1884, in
the aggregate of 81 100000.
The discretion entrusted to me by
this act is very distinctly circumscribed
by the provision that such, expenditures
shall be in aid of relief of unemploy-
ment. Both the terms of the act, and
statements made in debate on the floor
of the House Of Representatives, con-
firm me in the opinion that the needs
of unemployment relief must be given
prime, if not exclusive, consideration in
making my decision.
Since this appropriation act was dis
cussed in the committees of Congress
there has been approved the national
industrial recovery act, which, among
other things, makes a large provision
for grants for the building of roads,
under which I understand about 81
900 900 is to be allotted to the District
of Columbia. In addition, the news
papers report that the Public Works
Administration is to be requested to
make other ALLEGATIONS for expenditures
within the District of Columbia in aid
OF relief to unemployment.
Part of National Program.
The program to relieve unemploy-
ment must. necessarily, be national in
scope I do not believe that 1 could
properly exercise the discretion vested
in me without considering the require
ments of the District of Columbia in
the light of the national program.
Having in view all these conSidera-
tions, I must advise you that I feel
that I must be guided very largely by
the opinion Of the public works admin
istration. Until that administration has
studied the national situation and
formulated its plan. and particularly
until we have more light upon the
whole of the expenditures which are
to be made within the District of Co.
lumbia, I do not feel that I can prop
erly pass upon your recommendation.
There is contained in your letter
q statement that the funds appropriated
to the District of Columbia for direct
relief will be exhausted by February l,
and that there will be further require
mentS after this date. I would be re-
miss in my duty if let this statement
pass unnoticed. I must suggest to you,
therefore the consideration whether the
administration of this fund, as such ad-
ministration appears to be contemplated
from the terms of your letter, agrees
with the provisions of the anti-de-
ficiency act"