Evening star., 1934-04-25
Senate Subcommittee Told
House Slash in Fund
Is Unjustified.
THEORY P. W. A. GRANT
WAS LOAN DISPUTED
Donovan Says D. c. Was With.
out Power to Accept Sum
on Such Basis.

A plea for restoration of the an
proxlmately $l,335,000 cut by the
House from the Federal share of next
years District appropriation bill was
made to the Senate subcommittee on
District appropriations by District
ofhclals at the opening today of hear
ings on the bill.
The House cut the Federal contri-
button from S5,700,O0O to S4,364295
on the contention that the District
was indebted to the Federal Govern
ment for 10 per cent of the amount
allotted by the Public Works Admin
lstration last Summer for sewer con-
struction.
Borrowing Prohibited.
The Commissioners and District
Auditor Daniel J. Donovan empha-
sized before the Senate subcommit-
tee today that the sewer allotment
was a grant and not a loan, pointing
out that the District government
would have been prohibited by law
from accepting the money as a loan.
The Public Works Administration
can make allotmentS to States and
cities on the basis as an outright
grant of 80 per cent and 20 per cent
as loan, but there was no reference
to this basis when the sewer money
was made available for the District.
A statement was issued by the Public
Works Administration that Congress
would determine the division of cost
between the Federal and District gov
ernments, but the formal notice of the
allotment received at the District
Building did not contain any discus
sion to indicate that the funds were
being provided on loan basis.
Repayment Drastic.
1t was further pointed out today
that even if Congress should de-
termine that the District should repay
a part Of the sewer allotment, the ac-
ton OF the House is subtracting 70
per cent of the allotment at one
time from next years Federal contri-
button constitutes a far more drastic
reimbursement than is required from
the States or cities of the country
The 20 per cent loans by the Public
Works Administration are reimburse
BILE over period of years.
The Commissioners and Mai. Dono-
van testified for two hours on the
general issues involved in the bill, after
which the subcommittee adjourned
until 2:3O pm, when it planned to so
into detailed changes in specific ap-
preparation items.
Presided over by Senator Thomas,
Democrat. of Oklahoma, the subcom-
with Commissioners Hazen. Allen and
Gotwals. accompanied by Donovan,
as the first witness.
The subcommittee was prepared to
ask them to summarize the effects on
the District of the bill as passed by
the House, which carried a total Of
less than the budget recommended
tions.
Oppose Further Cuts.
Aside from the arguments on which
the House cut the Federal contribu-
ton, however, there have been indi-
cations that members of the Senate
subcommittee are not in sympathy
with the effort to diminish further
the Federal Governments share of
District expenses, which has been de-
clining steadily for the past few years
at the insistence of the House.
The Senate has made an annual
fight to keep the Federal contribution
at more equitable figure.
The hearings probably will extend
over several days, with q score or
more of municipal department heads
waiting to explain the need for modi-
~, %4to 1aI ~f
House bill, which contains total of
only $32,650,657. The Budget Bureau
had recommended $33 3,454, ,843, exclu-
sive of permanent and indefinite
appropriations.