Evening star., 1936-04-09
S5,7OO,OOO SHARE
RESTORATION DUE;
CASPIAN DROPPED
D. c. Bill Expected to Carry
Present Lump Sum,
Thomas Says.
HAZEN WILL POSTPONE
TAX BOOST PROPOSAL
Reasons Cited for Opposition to
Increase in Relief Fund
of $1,500,0O0.
BY ]. A. O'LEARY.

Elated over the assertion Of Senate
Thomas, Democrat, of Oklahoma tha
the Budget Bureaus estimate ~
S5,700,000 as the Federal contributi 4
probably will be restored in the 191
District supply bill, Commission d
Melvin C. Ha2en announced today d
will not push his proposal for Ice
boost in gasoline taxes TO proWa
relief funds.
Commissioner Hazen has not per,
manently abandoned his proposal, ha
he said he will not ask that "A
Sl,500,000 relief fund be increased a
present.
Senator Thomas, chairman Of tn,
subcommittee now holding hearing
on the appropriation bill, gave TIVE
reasons for opposing the increase pro-
posed by Hazen. First, he said, Con.
greSs will be IN session after the first
of the year, in time to make a sup.
Elemental appropriation if necessary,
and, secondly, that some persons on
relief here do not deserve public funds
and assistance.
Law Prohibits Deficit.
District officials questioned the prac.
ticability of making an appropriation
next January or February to take
care Of relief, inaSmuch as existing
law prohibits the creation of dfcit
by the District government.
Under that restriction, the 81 SOC, 600
would have to be prorated over the
entire period Of IL months and the
District government would be limited
to Sl25000 per month, as an aver
age. The plan, however is to begin
the fiscal year with larger expendi-
lures, if needed, gradually reducing
the sum to a minimum by the end
Of the year.
1t was pointed out, on the other
hand, that a deficiency was created
in the current fiscal year in spite Of
the law, but the absolute necessity"
was declared unavoidable.
See Precedent Established.
With that precedent, officials said, II
may be possible to spend more than
the monthly share between July and
next January if existing demand for
public aid continues at the present
pace.
AS it came from the House, the ap-
preparation measure would leave the
District facing a large deficit, to be
met by additional taxes. as a result Of
the slashing of the Federal payment
to the low record of s27O0,00O, toward
a total that ran S908,00 above TIN
aggregate amount proposed by thu
Budget Bureau. The House bill totalec
s42,573, ,2S3.
With the hearings drawing to
close, the Senate subcommittee yester'
day afternoon heard the plea of tn,
people of Washington for fairer ap.
portionment of the cost.
New Report Presented.
The high light of the session wa!
the presentation by Edward F. Cola
day of the comprehensive new taI
report of the Board of Trade, which
showed that Washington has a heavy
per capita tax burden in comparison
with the 43 other largest cities Of
the country.
AAAC ASPOASs "AAAS4l was PACPo4CO W
l. H. Parker, recognized tax expert,
was a factual statement of compar-
ative statistics. The report itself did
not set forth conclusions, but the
data in it was explained to the SUBJ
committee by Colladay, general coun-
sci of the Board of Trade.
Following the hearing, Senator
Thomas expressed the personal opin-
ion that no increase in District taxes
would be necessary if Congress restores
the Federal lump sum to the Budget
figure of S5,7OO,O0o, and does not in
crease the allotment for emergency
relief.
The subcommittee chairman said
" Ls.-- \ q M - a =