Evening star., 1934-08-31
LOAN DEADLOCK
DELAYS WORK ON
DISPOSAL PLANT.
Ickes and District Officials
at Odds Over P. W. A.
Financing.
administrators BURNT
ONCE, He TELLS PRESS
Refers to Awarding of $4O,OOO
to District for Survey Of
Disposal Project.

and Secretary 4cKeS CAME 10 d HluIooi
understanding on all issues involved
in P. w. A. loans to the District oi
Columbia, it was indicated today that
weeks may elapse before any part OF
the S8000,000 authorized two months
ago is advanced to start work on the
sewage disposal plant at Blue Plains
Seeking to put blame for the delay
on the District authorities, Secretary
Ickes said yesterday at press con-
ference that having been burnt" once
before in dealing with the District, ne
intended to "forestall' the possibility
of a further misunderstanding. Legal
questions involving the rates OF wages
to be paid workmen on the project
also are understood to be holding up
the final release of funds for the
sewage plant.
Secretary Ickes explained that he had
been burnt" the first time in award
ing a $4,000 allotment to the Dis
trict to defray the costs of q survey
for the Blue Plains project. i
thought this amount was to be ap-
portioned between the District and
the p. w. A." he said. But the
Commissioners told Congress it was
q gift"
"Never Burned Twice"
ct never have been burned twice
at the same fire." Mr.. Ickes added,
Secretary Ickes evidently was of the
opinion that the previous allotment
for the survey was to come out of
the $8,000,000 provided in the loan
which the District Commissioners
are now anxiously trying to collect.
(Note: Secretary Ickes is under a
nisapprehension concerning the
$4,000 advanced to the District
last year for preliminary survey
of the sewage disposal plant, Dis
trict authorities said today. Sew
enty per cent of this fund, along
with others advanced by the p.
w. A. for District sewer work last
year, was repaid the United States
through the 1885 appropriation
bill. Mr.. Ickes, it was stated, was
not burned" in any respect, as
the money was paid back faster
than most p w. A. advances to
other cities or States.)
District officials today expressed as
Constituent at the statement of Mr.
1ckeS.
Contract Awaits Signature.
At the District Building it was
understood the allotment positively
would be made and last Tuesday a
contract was on the desk of the chief
of the P. w. A. Legal Bureau awaiting
signature. The contract provides the
manner in which the District is to pay
back the 10 per cent of the $4,000, 900
allotment.
Meanwhile, on the strength of the
statement from IckeS some two
months ago that the 100000 allot-
ment would be made, a large amount
of preliminary work has been done
by the forces of the sewer and high
way departments and the municipal
architects Office getting ready for the
construction.
The site of the sewage disposal
plant adjoining the Home for the
Aged and Infirm at Blue Plains,
D. c., has been surveyed and marked
off for the various buildings, road
ways and sewer lines that are to be
installed, and a force of men from
the highway department is now max
ing test borings for the foundations
Of the disposal plant.
All this work is being done at the
expense of the regular District ap-
preparations for these various de-
'partments. but it was expected they
would be rapid out of the P. w. A.
aI Nnvaf xxy11a ~ Rra, 40
Road Will Be Built.
The first work to be undertaken, if
the allotment is made, is the con-
struction of road from Nichols ave-
nue. and Fourth street southeast to
the site of the plant, and the con-
Struction OF a temporary administra-
ton building to house the staff of
District engineers and contractors
men who will work on the project.
In his statement yesterday Secre-
tary Ickes pointed out that he iias
not yet received notice of formal ac-
tion taken by the Board of Commis-
sioners authorizing the borrowing Of
p. w. A. funds. This is a formality
which P. w. A. insists upon in con-
nection with loans to municipalities
1t was pointed out. Whether the Dis
trict Commissioners feel that the act
OF Congress approved June Is, 1894
fulfills that end without further action
on their part, was not clearly under
stood. Secretary IckeS complained
yesterday he had told them about the
usual procedure that must be followed
The act of June "a, which author
ICES the District Commissioners to
borrow P. w. A. funds up to $40, $780,
600, was passed at the insistence OF
Secretary IckeS. Up to then the Dis.
trict government lacked legal author
ity to borrow money.
Law Provides Payment.
Secretary Ickes stressed further yes
terday the need of being shown ample
security for the loan of $4,000, 900 be.
fore he makes down payment.
He overlooked the fact, however
that the same act Of Congress Stipu,
lateS in precise language the terms or
which p w. A. money is to be Dor.
rowed and the manner in which P w
A. is to be reimbursed. That provision
of repayment is based on 10 cents oi
the tax levied and collected upon each
$lo0 of the assessed valuation of al
real and tangible personal property
subject to taxation This amount, the
act says, shall be deposited in the
Treasury to the credit of P. w. A.
1t Is possible that a conference be-
tween Secretary Ickes and one o
more OF the District Commissioner
VIII be necessary to iron out all mis-
understandings that appear to b
s blocking action on the sewage dis
posal plant The early settlement o
these questions is important, it wa
pointed out, for the District also ha
been allotted s1.5oo.000 for the ney
adult tuberculosis hospital at Glenn