Evening star., 1936-10-25
CITIZENS TO ASSIST
FISCAL COMMITTEE
Liaison Group Requested at
Close of Hearing of Dis
trict Suggestions.
fcontinued From First Page.)

Donovan said, sent the 1888 budget TO
the Budget Bureau in two parts. The
primary budget will provide for nor
NAL operating expenses only. he said,
whereas the secondary budget con-
tanned items for capital improvement
totaling s4,5o0.0oo. The District, he
declared, should spend ss,500.000
every year for capital Improvements.
Maj Donovan also pointed out that
the District Is receiving $4,000, 900 less
in revenue today than 1t did five years
ago, but in the interim operating costs
had jumped and the expenditures per
capita improvements had decreased.
Members of the committee ques-
toned Maj. Donovan sharply about
the so-called surplus revenues which
at one time amounted to $9,569,000
and have completely disappeared. DON
ovan said these surplus funds were
accumulated as a result of the policy
on the part of the Budget Bureau OF
slashing of the budget coupled with
the refusal of Congress to permit the
District Commissioners to lower the
tax rate. These surpluses were put
into capital expenditures, he explained.
more than $6,000,000 of which was
spent In acquiring the site for the
proposed monumental municipal CEN
ter.
Roberts Reviews Plan.
William A. Roberts, retiring peoples
counsel, was recalled to explain more
thoroughly the plan he proposed for
solving the fiscal relations problem
through the creation by Congress OF q
permanent commission which annually
would fix the amount Of the Federal
obligation.
Considerable interest was manifest
BY the Presidents committee in the
Roberts plan and he was urged to sub
NIT brief containing comprehensive
and detailed outline.
Roberts also was asked for report
on the studies he made several years
ago of q plan for recognizing the
District government. He told the COM
n,ittee he would be unable to furnish
It for seven days'-after which ne
will no longer be in the District
service.
In the midst of discussion OF the
proposed reorganization Of the munic-
inal government, it was revealed that
nine volumes had been written and
presented to the Senate District COM
n1ittee, but that the tenth ana nnai
volume, including conclusions and rec
concentrations, never was 1ormally
completed.
The nine volumes of factual infor-
nation showing an investigation not
onlv into the District Of Columbia
government, but into municipal gov
ernments in many parts OF the world,
had been completed and signed by the
three members of the committee.
Lewis w. Douglas, then director OF
the bureau of the Budget; Donovan
and Roberts.
Made Own Findings.
But. Roberts explained, due to po-
ltical issues and differences between
himself and Donovan" the tenth VOL
ume of findings never was finished.
He did not explain what he meant
by political differences" Roberts
had sent up to the Senate committee
o report on his own findings.
Asked by Chairman McAneny
whether the tenth volume was avail
able, Roberts said it was not. He in
dicated 1t had once been locked up
but that now it was mot available or
extant"
Comments at the District Building
some months past had indicated
Roberts was in favor of a major
change in the present form OF gov
ernment, whereas it was understood
that Mai. Donovan held the insistent
view that while there might be some
worthwhile changes in various de-
partments. the commission form OF
government should be preserved at all
costs.
AS a matter of fact. it was apparent
at the District Building at the time
that Roberts had written the major
portion of the exhaustive city govern
ment report himself, and that, in fact,
even q representative Of the budget
director had very little part in either
the study or the writing Of the volumes
which Roberts submitted to the Senate
District Committee.
Chairman McAneny pursued the
possibility in these municipal studies
of q saving in the District govern
ment reorganization. Roberts was
finally pressed to say he believed
savings in reorganization very def
nitely" could be accomplished.
Donovan explained he was not op-
posed to Experimentation of. the
District government.
Budget Procedure Hit.
After the prolonged discussion OF
the omitted tenth volume, Clarence
A. Dykstra, city manager OF Gin
cinnati and a member of the Presi-
dents committee, injected into the
hearing the subject of secrecy Of Dis
trict budget-making procedure.
Repeatedly, Dykstra had sought
from witnesses an expression as tc
whether "there is q general agree
ment for public support of the esti-
mated $4s,000,0o0" budget for 1888
There is disagreement" interjected
Rufus s. Lusk, secretary OF the
Washington Taxpayers Protective As
sociation. There Is disagreement or
several items. Yes, sir!"
Later Lusk disclosed his organiza.
ton Is opposed to any item in the
budget for direct relief, and an IN.
crease provided for the police ano
nremen pension fund.
"Our association feels there Is nc
occasion for any direct relief in this
town" shouted Lusk. 1.-THE town has
been prosperous for three years.
don't think there should be . nicke
epent for direct relief, as 1t is spent
Ia the District"
Lusk called attention to the increas'
ing cost of the police and flremen''
pension fund, and declared the pen
sion system should be revised ane
nlaced on an actuarial basis. He sale
the fund had increased from $50 ,00(
in 1920 to s750,0oo, and eventually