Evening star., 1934-04-20
LUMP SUM SLASH
HELDUNJUST|F|ED
District Heads Protest
House Action Denying
U. S. Loan.
Continued From First Page.)

by the Senate in bringing about res
| toration of a number of important
items stricken from the bill by the
House
The Commissioners. however. ac-
| cepted the s1,759. 500 allotment for
| sewers as an outright grant and
| pointed out at the time it was re-
ceived that they had no authority to
! borrow funds.
Records at the District Building
show that back in August when the
IP. w. A. announced the sewer allot-
ment, with a statement that Con-
gress will determine the division OF
| this fund as to the revenues of the
District Of Columbia and the Federal
| Government" the Commissioners pro-
| tested and declared they could not ac-
| cept the money as a loan.
Then, under date Of August 30, Sec
| retary of Interior Ickes wrote the
| Board of Commissioners as follows:
"In accordance with the pro-
visions of the national industrial
act of 1888. an allotment of ST.
759,500 has been made to the
Board of Commissioners, District
of Columbia, for sewer construc-
ton.
"A list Of the approved projects
showing the amount allotted for
each is attached. Instructions re-
garding provisions to be incorpo-
rated in contracts. progress re-
ports and other detailed informa-
ton will be issued shortly
"A request, copy herewith, is
being forwarded to the Secretary
of the Treasury to transfer sl.759.-
500 to your credit for the per-
formance Of the work"
The Ickes letter made no reference
whatever to any terms of repayment
and at the time 1t was received at
the District Building, the Commits
sioners announced the money was
being accepted as an outright grant
Since that time, the allotment has
been carried In all p. w. A. tabula-
tions as Federal allotment, and not
as "non-Federal allotment"
Regarded as Outright Grant.
Even Representative Clarence Can
mons subcommittee which framed the
appropriation bill. in its report to the
House pointed out that grant would
not have to be repaid. The report
said:
The committee recommends a Fed
eral contribution of $780, 900, which
is the amount provided during the
current year and the sum recon-
mended in the budget transmitted by
the President. In addition to this
direct contribution, the District Gov
ernment has received an ALLEGATION OF
81. .759 500 from the Public Works Ad-
ministration for the construction OF
sewer projects in outlying sections OF
the District of Columbia. The Dis
trict government Will not be required
to reimburse the Federal Government
to the extent of TO per cent of the
amount of this ALLEGATION as is pro-
vided for loans to municipalities for
local Improvements as the sewer pro-
jects provided for in this case are
classified as Federal projects
The bill carries total appropriations
Of S31 ,309377 which is 81 1927, ,7O5 un-
der the amount originally recon-
mended. All efforts to liberalize II
to provide increased funds for schools
the Public Utilities Commission, the
Alcohol Beverage Control Board were
blocked
One Amendment Adopted.
Aside from the cut in the Federal
contribution and the elimination oi
the tax cut rider. the bill now is no,
materially different from its original
state. Only one important amend
ment was adopted and that was pro-
posed by the Appropriations Commit
tee to correct an error in the salary
items for justices Of the District Su-
preme Court. In its zeal for rigic
economy the committee had taken S
per cent off the salaries of the JUS
tices and later discovered that the
economy act had never applied to
them. The amendment raised the
salary item from s112,0 900 to $4,000
The reduction was made in an
amendment offered by Cannon, fol-
lowing elimination from the bill on
a point of order raised by Representa-
tive Blanton of Texas Of the entire
paragraph carrying the $500, ,00o
Federal contribution. The amend
ment fixed the contribution a,
81, 1854 ,295
Cannon told the House the P. w
A. had allotted to the District during
the current fiscal year total OF
Sll,365 ,8lO98, and that great part
of this sum was given gratis. There
were, however, he declared, certain
allotments for purely municipal pur-
poses, which were awarded under the
30-70 terms under which similar al.
lotments were made to the States
80 per cent granted and 70 per cent
loaned. In such ALLEGATIONS. he ex-
planned, the board Of public works
specifically provided for reimburse
ment of the Federal Government by
the District to the amount OF 70
per cent.
Cannon then quoted from a tran
script OF the minutes Of the special
board of public works, list of prof.
! ects for which grants were made
some to be repaid and others not to
be repaid Among the projects to be
/ repaid, the list included sl,759,50
for sewers, and S148,650 turned over
to the Interior Department for i'm
provements in public parks. None OF
the latter fund was handled by the
Commissioners.
"It will be observed" Cannon said.
that the Government has been very
generous to the District. Out OF the
total of sl1 ,305 ,810.98 donated to Dis
trict purposes it requires the repay
ment of the customary 10 per cent
on only 81 1,908,150. Seventy per cent
Of that sum amounts to 81 1886. 705. OF
the s11,305, 5,810ss granted the Dis
, trict, the required reimbursement Is
the comparatively small amount OF
only s1,335. .705.
1.-THE purpose of the amendment
am offering is to repay this COM
paratively insignificant amount &C
cepted by the District as loan. The
bill, as originally drawn, provides for
a Federal contribution Of s5,7000 900.
Subtracting from the Federal contri-
button Of $5.700,000. the $1,335. .7o5
loan. as provided by the specific order
of the Board Of Public Works. we
have $4,364 295. the amount carried