Evening star., 1934-05-11
LOCAL ?. v. A. BILL
RULE DUE MONDAY
House Committee to Act on
S20,OCO,O00 Loan Au-
thority Request.

/ The House Rules Committee expects
/ to reach a decision in executive Ses-
| sion next Monday or Tuesday on the
request of the House District Com
mittee for a special rule on the bill
| authorizing the District Commissioners
to seek S20,000,00O loan from the
Public Works Administration for ur-
gently needed construction work.
Chairman Bankhead, after a hear
ing today, said he thought no further
hearings on this subject would be held
by his committee. indicating. however,
there might be still further delay
which would imperil the prospect for
House action before adjournment
This measure already has passed the
Senate
At the hearing today it was indi-
Gated separate legislation for the
sewage disposal system might. receive
favorable consideration than other
projects included in the $4,000, 900
public works program.
Hearing Room Crowded.
The Rules Committee hearing room
was crowded by District officials and
representatives of leading civic organ
izations, all of which have Endorsed
this legislation
The three District Commissioners,
Hazen, Allen and Gotwals, testified.
They emphasized that all that is being
asked is an equal right with other
States and municipalities. that the
Commissioners now have an obligation
under law to increase the tax rate as
much as may be necessary to meet
current expenses, which is guarantee
that whatever loan the Public Works
Administration makes will be fully re-
paid with interest in regular annual
payments; that each project must
stand on its merits before the P. w. A.
will make any ALLEGATION, and that the
District is in no way responsible for
the urgent need for these funds. but
that Congress itself alone could make
the appropriation.
Commissioner Allen stressed the fact
| that there is a grave unemployment
situation in the District which could
be relieved considerably by work under
this construction program, carrying
out the Presidents recovery program.
Engineer Commissioner GotWals told
the committee pollution of the Po-
tomac River is health menace which
has been repeatedly emphasized by the
Public Health Service and by other
special studies for the past 20 years,
that there is increasing pollution and
that no industrial city in the whole
country would stand for a similar
condition
Donovan Is Heard.
District Auditor Daniel j. Donovan
met the principal objection advanced
by members of the Rules Committee,
who desired to know how the loan
would be repaid and what assurance
there was that the District would not
come back to Congress for a special
donation equal to the amount of the
loan.
II want to emphasize" said Dono-
van, that should the loan be made
there is no doubt of full reimburse
ment with interest. The District is a
creature Of Congress. A similar loan
| of $16,000,000 was authorized under
the Capper- -Cramton act, of which
81, 500 900 has been spent in the Dis
trict, and with the amount carried in
the current appropriation act this
sum has been completely liquidated
The situation is exactly the same with
regard to the proposed public works
loan of $20,000,000."
Donovan also pointed out that from
1902 to 1910 Congress permitted the
District to borrow $4,000, 900 from the
Federal Treasury, which was entirely
! (Continued on PAGE 2. Column ~