Evening star., 1934-09-22
District Commissioners For
ward Papers to P. W. A.
for $500, 900 Loan.
OFFICIALS SEEK DATA
ON TERMS OF AGREEMENT
Action Follows Word Ickes Was
Holding Up 81, 500, 900 for
Adult Hospital.

The Commissioners signed and for.
warded to the Public Works Admin
istration late yesterday a contract
for loan of $8,500,000 FOR
the construction of sewage disposal
plant at Blue Plains, D. c.
This action came shortly after
word from the P. w. A. that Admin
istrator Ickes was holding up submit
ting a similar contract for a loan of
81 SOC, 900 for construction of an adult
tuberculosis sanatorium at Glenn
Dale, Md, because of the city heads
delay in signing the sewer contract.
The contract signed by the Com
missioners yesterday, it is understood,
provides terms for repayments of ad-
vances to be made for the construc-
tion, but its terms were not made pub
lie. Apparently all of the points in
connection with this contract are not
vet clear, because along with the
document, the Commissioners for
warded a list of questions regard
ing it.
The questions raised by the CON-
missioners were set forth in letter
addressed to Controller General Nc
Carl. A copy of the letter to McCarl
was attached to the signed contract
and forwarded to the p w. A.
P. w. A. officials said today they
expected Secretary Ickes to sign the
sewage contract within 10 days at the
latest. They did not believe any Of
the questions submitted for determin-
alton would cause any delay in sign
ing as those are matters which can
be worked out later after the con-
tract is signed.
They wanted to know whether un-
expended balances remaining at the
end of each fiscal year must revert to
the Treasury. Engineer Commissioner
Daniel I. Sultan explained that it
would be impossible to let contracts
for the entire job during the current
fiscal year. A reasonable" program,
he said, would call for obligating
81 900 900 the first year, 81 .000, 900 the
second year, and SIS 200, 900 in the third
and fourth years.
Another question was whether the
District is to be considered Federal
or non-Federal agency with regard to
the loan, as there are differing lawl
governing such agencies.
Still another was whether interest
on the loan started when authorized,
or when the instalments were actually
advanced. 1t is not yet clear whether
the money will be advanced in install
mentS or in lump sum-
Ickes. before being notified Of the
action of the Commissioners in signing
the sewer contract, complained yester-
day he had not even had report from
them, although "a reasonable time"
had elapsed for signing of the contract
Delay in Providing Funds.
While these matters may not result
in the Public Works Administration
refusing to extend the loans already
approved, it was said the situation will
only serve as a further delay before
any money is turned over to the Dis
trict Commissioners.
Secretary Ickes' only information
about the water supply at Glenn Dale
was gained, it was said, through news
paper reports.
P. w. A. officials contend the water
supply at Glenn Dale has never been
investigated by a P. w. A. engineer,
so far as their knowledge was con-
cerned.
On September 8, however, Richard
o. Marsh, P. w. A. engineer. visited
the site with the newly appointed
Sultan, and pronounced the water
supply adequate, not only for all
the needs of the proposed adult hos
pital but for the children's sanatorium
as well Secretary Ickes. it is believed.
is unacquainted with this fact or else
no report of it was made to P. w. A.
officials.
Opposes Digging Wells.
One reason why Secretary Ickes was
reported at P. w. A. as holding up the
contract for the hospital loan was the
fact that he would not consent to
having p w. A. money being spent
for digging more wells. The applica-
ton for the loan calls for construction
of hospital and he insists, 1t was
said, upon this being carried out to
the letter.