Evening star., 1934-05-06
District 4 gain Turns to Debt
As Road to Improvements
Past District Experience in Borrowing
for Needed Projects, Which aided
Capital Development, Is Recalled.


communities haunting nightmare Of
extravaganza and waste, has several
times during It's life proven a distinct
blessing to the District of Columbia.
The Districts excursions over the debt
route have been free from the too
frequent detours of extravaganza and
graft. Because of such past expert
ence, debt, in the abstract, has not the
same terrors for Washington that 1t
has in some quarters.
The Capital has climbed by the
steps Of debt to its present position
of national admiration and prosperity.
Most of the fair fiscal treatment ac-
corded 1t by the national Government
has followed the piling up by the
District of obligations for necessary
public Improvements which should
have been made by the national Gov
ernment itself. It was only after the
local community had bankrupted itself
through its public-spirited effort to
perform the national job of Capital
building that the Nation, through
Congress, came to the city's relief.
When in 1885 the Senate Commit
tee headed by Senator Southard in
vestigated the finances of the National
Capital, the city Of Washington was
found to have accumulated a debt
totaling 81 1906, ,442.59, a huge sum for
the small and impecunious community
of that day. The committee found
that. goaded by the taunts at the
Capital of the Nation, the small
local community had been led into
desperate efforts to perform the tasks
intended to be performed by the Gov
ernment but left undone During this
early period sums beyond their re-
sources had been spent upon street
improvements, erection of city build
inss and the digging of the CheSa-
peake & Ohio Canal. The committee
recognized that the city authorities
had been misled into expenditures
which did not belong to them, al
though the views by which they were
governed were Of liberal and public
spirited character. AS result the
committee recommended that the
Government pay one-half of the ex-
penditures which had been made for
street improvements and pointed out
that because of the liberal grants by
the original proprietors of city lots the
Nation could help relieve the city
from its financial difficulties through
these donated assets without taking
money from the Treasury funds
drawn from the citizens of the coun-
try.
Suffered Neglect Period.
The next Indebtedness was during
the Shepherd period from lc7l to 1874.
The Capital had suffered another long
period Of neglect by the Federal Gov
ernment, only small and irregular ap-
preparations being made for specific
objects. For example, in 1869 the
Government expended more than
100000 and the next year the amount
was only about $4,000 and the year
following that $4,000.
Under such system of neglect the
city of Washington again became a
reproach and national disgrace. The
Board of Public Works. a Federal
body. under the leadership of Alex
ander r. Shepherd and under the
broad powers given it by Congress.
entered upon a most extensive pro-
gram of city building and improve
ment. The city's accumulated needs
were taken care Of and the foundation
laid for the present city beautiful, but
an enormous debt was accumulated
increasing the citys Indebtedness to
more than s20,000,000. Again the city
was practically in hopeless bankruptcy
through again trying to perform single
handed the task of building a great
Capital for the Nation.
Once more the plight Of the city
was forcefully brought to the attention
of Congress and an investigation was
made by the House Committee on the
Judiciary under Representative Pol
and in 1874 The report of this COM
mittee was principally upon the SUBJ
ject Of the form of government, but it
clearly recognized and set forth its
opinion that the financial difficulties
of the Capital community were due
to the failure of the Nationa Govern
ment to perform its obligation as a
partner in the job of capital building
and maintenance. The report of this
committee resulted in the creation of
the temporary commission form of
government and the creation of the
Congressional Joint Select Committee
of 1878.
Spent Fourteen Millions.
A review of the Districts finances
at this time disclosed the information
from Treasury reports that from
1890 to 1873 the citizens of Wash
ington expended $l4,000.000 more
than the United States in Capital i'm
provements-street Improvements, etc.
on what should have been national
| undertakings, in addition to s25 1000,
900 spent on local government, schools
and for other municipal purposes
Under this burden they had worked
themselves into virtual bankruptcy in
| 1885, and SO in re-creating the city
after 1870 the main expense of the
achievement was represented by the
heavy debt of some $4,000, 600
Once more there was recognition OF
the fact that the financial difficulty
of the Capital community had been
produced through the failure of the
National Government to bear its equi-
table share of the burden of Capital
building and maintenance.
At this time Congress, by the Dis
trict's organic act, undertook sys-
tematically to bear its equitable share
of the burden Of Capital building,
which it voluntarily fixed at so per
cent. During the time which this
plan of financing was followed, with
fairly reasonable exactitude, the Cap
ital experienced the period Of its most
steady Advancement This so per
centum undertaking also included
assumption in practical effect of one
half of the Districts outstanding
debts. Many times, however, after