Evening star., 1934-05-11
LOCAL ?. v. A. BILL
RULE DUE MONDAY
House Committee to Act on
$4,000, 1000 Loan Au-
thority Request.
Continued From First Page.)

the Commissioners to TX tax rate
sufficient to meet expenses.
vexed by comments by Representa-
tive SABBATH, Democrat, of Illinois,
Auditor Donovan said: mo city in
the United States has more honest
administration under which the people
get more value out of their taxed dol
lar or as much as here in the Dis
trict." He said he spoke from 43 years
of intimate personal knowledge of the
municipal administration.
Debts of Many Cities.
Donovan also pointed out that prac-
tieally every city throughout the
country has large bonded indebted
ness, while the District has been
obliged to carry on all capital projects
out of current revenue, is on a pay
as-you-go basis" and has no debt
whatever
Chairman Bankhead read into the
record statement from Frederic A
Delano, uncle of the President and
president of the National Capital Park
and Planning Commission, urging IA
vorable action on the special rule
unanimously requested by the District
Committee. and emphasizing eSpe-
cially the needs for the sewerage
plant, which he said has long been
contemplated.
In reply to questions from Rep
resentative O'Connor, Democrat, of
New York, District Auditor Donovan
explained that in order to repay the
proposed loan at the rate of $780,
900 a year with interest amounting
to approximately $500,000, an increase
in the tax rate of only Is cents would
be necessary, bu: he said that he and
the District Commissioners anticipate
it can be financed and still pre-. rye
the present tax rate.
Chairman Buchanan Of the House
Appropriations Committee was the
first witness, supported by Chairman
Cannon of the Subcommittee on the
District Budget and Representative
Blanton. a member of that subcom-
mittee, who is leading the fight against
the passage Of this legislation Buch-
anan said the resolution under con-
sideration is mere scrap Of paper
and would reverse the policy of the
Government. If passed. he said, it
back the money and never will pay
unless taxes are substantially in
creased
Both Buchanan and Blanton argued
that the District already had received
larger contributions from the Public
Works Administration than many
States In the Unuion.
Districts Fiscal Position.
Representative O'Connor asked a
number Of questions designed to show
that the District is in a stronger
financial position than almost any
city in the country and that It could
easily and by law would be required
to make repayments promptly. He
also pointed out the discrepancy be-
tween statements of Representatives
Buchanan and Blanton that the city
is now running behind Independent
of Federal contributions with the re-
port brought out from the Appropri-
ations Committee showing an accu-
mulated surplus and proposing fur
ther reduction in the tax rate OF
Sl50 to Sl20.
Reduced by Salaries.
Chairman Cannon testified that the
bill as it passed the House would nave
left a surplus to the credit of the Dis
trict in the Federal Treasury. Donovan
explained that the legislation carrying
a restoration Of 10 per cent in salaries
reduced the surplus s2,0O0,0OO and
that supplemental estimates Of ST.
100000 for relief, with increases IN
the appropriation bill made in the
Senate, would wipe out the surplus.
During the hearing, when the need
for the tuberculosis hospital was be-
ing discussed. Representative Blanton
promised as House conferee to sup
port the provision for the tuberculosis
hospital which the Senate has added
to the House bill. Chairman Buchanan
said that with the Senate increasing
the District appropriation bill approx
mately $4,000, 900, half of this amount
would be agreed to in conference by
the House confereeS.
During discussion of the pollution
of the Potomac River, Representative
O'Connor said he had personal knowl-
edge of one woman who died from
typhoid as a result of bathing in the
Potomac. Commissioner .Iazen said
that already conferences had been
held with the public works admins
traitor, who had gone carefully into
justification for the proposed loans,
and had shown very friendly dispo-
sition toward marking ALLEGATIONS for
the District public works program.
Prompt Action Needed.
Representative Smith, Democrat, Of
Virginia, asked many questions which
brought out the need for prompt ac-
ton on the proposed District build
ing program, and particularly drew
from Commissioner HaZen an asser-
ton that the Commissioners would
increase taxes if necessary, being
obliged to do so by law to meet obli-
cations for repayment Of 10 per cent
CT the public works loan. Commis-
sioner Hazen also in reply to questions
from Smith pointed out that the tu-
berculosis hospital situation is in no
way second to the question Of new
sewage disposal plant.
Commissioner Hazen also said that
there is very dangerous situation
prevailing at Lorton which was orig
inally built as reformatory, but is
now a penitentiary, and that it is
absolutely necessary to have wall
built in order to take care of the worst
criminals, who were formerly sent to
Leavenworth and Atlanta Peniten-
tiaries.
Legislation Supported.
Acting Chairman Palmisano OF he
House District Committee stated that
Joint hearings were held by the Senate
and House District Committees, which
were unanimously in support of this
legislation. I'VE all felt that the Dis
trict should be responsible and that
the money will be fully repaid" he
said. Mr.. Palmisano also challenged
statements that the District has the
lowest taxes in the country by point
ing out that if debt obligations and
sinking funds of other large cities
like his own, Baltimore, were deduct
ed, the tax rate in the District is about