Evening star., 1937-07-20

deficit. BY next year the District will
have tax bill and the Commissioners
can reduce the real estate levy"
The loan authorization was re-
moved from the tax bill before the
House passed it several weeks ago.
In the form of special emergency
legislation, the House late yesterday
turned it down for the second time
by refusing to suspend the rules to
pave the way for passage.
There are only two alternatives left
to get action on the measure in the
House. One is under a special rule
which the leaders already have frowned
on. The other is to call it up in
regular order Monday, the next Dis
trict day. That's what Palmisano
plans to do. I'm not going to waste
time asking for a special rule" he
declared.
1t was ironical that just about the
time the House refused by 90-to-65
vote to permit action on the bill yes
terday, the Commissioners sent an
other letter to Palmisano and Chair
mittee stressing the Districts impend-
ing financial plight. Failure of Con-
gress to enact tax legislation or to
permit borrowing. the Commissioners
warned, is driving the District toward
municipal insolvency"
Thursday Action May Be Sought.
Chairman King of the Senate Dis
trict Committee may try to obtain Sen
ate action Thursday
Senator King would have asked the
unanimous consent for action on the
borrowing provision today, but an
agreement had been made among
Senators generally not to transact any
business until Thursday. Accordingly,
today's session lasted only five min
utes. During that time. however.
Minority Leader McNary inquired
whether there would be a chance fo,.
consideration of unanimous consent
bills Thursday before the court issue
resumed. Senator Barkley of Ken
lucky, acting majority leader, said he
was not certain but thought there
might be time to call the calendar for
unobjected bills following action on
the Presidents veto of the farm loan
interest reduction bill.
The Senate bill differs from
the Kennedy measure in that it does
not require the District to pay interest
on any money it may borrow. The
Kennedy bill would allow the Sec
retary OF the Treasury to charge in
terest not in excess of per cent.
Thomas E. Ladge, president of the
Federation of Citizens Associations
today petitioned every member of both
Houses of Congress to pass at an early
date legislation which would dis
tribute the local tax burden eouitablv
upon all persons. He voiced the oppo-
sition of the federation to proposals
that the District government be
charged per cent interest on funds
advanced by the Federal Treasury or
that the tax on real estate be SUBJ
stantially increased.
organized citizenship of Washing
ton said Lodge in his petition. urges
upon you the inequities of both these
proposals. Obviously provision should
be made to advance funds without in
terest against authorized but uncol-
lected revenue"
Dilemma Outlined.
Ihe plight of the District was
emphasized again by the Commission
ers In these words to King and Palmi-
sano:
Funds will be available for the
payment of employees of the District
Government and for contractural OBJ
legations and other expenses until the
early part Of August.
With the depletion of funds at
that time, these employees will be
stranded without salary payments and
contractural and other obliga tions
cannot be met"
1t was suggested by the Commits
sloners that the bill authorizing Fed
eral advances be passed without delay
with an amendment fixing the real
estate and personal property tax at
&1.70 as provided in the revenue bill
as 1t passed the House. The Com
mlssioners also urged that the tax
payments, due in September, be ex-
tended until October 81. to give the
tax assessor sufficient time to pre-
pare tax vouchers and ledgers.
The Commissioners explained the
tax Assessor is unable to prepare his
records and bills at this time unless
the tax rate is raised to $2.10-a
move they said they are unwilling to
make, and q move they feel "in all
Justice and decency' Congress would
not expect them to make.
Cite Obligation to Capital.
"We feel sure" the Commissioners
declared, that the Congress, having
exclusive legislative control over the