Evening star., 1937-07-22
d. c. Taxes
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Continued From First Page)
to Palmsano that the privilege Of the
District to borrow funds when needed
from the Federal Government to meet
payment Of expenses under appropria-
tions made in Congress- as is proposed
by the Kennedy bill, "is not new"
Authorization for Advance.
An act of Congress. approved June
6, 1900, he said, authorized and direct
ed the Secretary of the Treasury to
advance to the District such sums as
might be necessary from time to time
to meet the general expenses OF the
municipal government. This privilege
OF borrowing, he explained. continued
to July l. 1927, when Congress forcI
the District to go on pay as you go"
basis, and to maintain in the Federal
Treasury at all times sufficient funds
to pay expenses.
Since that time, however, he said,
Congress lifted this barrier several
times and authorized the District. to
borrow sl6.O00,OO0 under the Capper-
Cramton act to acquire park lands and
public Fairgrounds, as well as $40, ,75O.-
900 Of p w. A. funds to finance
various municipal projects, including
a sewage disposal plant and a new
Police Court building
Only $4,322,0CO of the authorized
$l6,000,000 was borrowed for park and
playground purposes, Donovan said,
and that was repaid in full. Likewise,
he said, the District borrowed only
S6.375, 900 Of the authorized slO,75O,-
900 P. w. A. loan, which has been re-
paid at the rate Of 81, ,o0o, 900 a year.
Repayments of s5,00O,000.
In the period of from 1902 to 1909,
Donovan pointed out the District
also borrowed total of s5,OOoO0O
under legislative authorizations in an
nual appropriation acts, which was
repaid with interest at per cent.
This information discloses," the
repotr declared, that all monies at
any time loaned the District since
the creation of the present form of
government in 1878 have been repaid
and with interest, when required by
law"
Support Of House leaders for the
Kennedy bill was being sought today
by Palmisano
Speaker Bankhead, who several days
ago announced he was aware of the
serious financial dilemma that would
confront the District August / If the
bill does not become law, is expected
to take leading part in the move to
push the measure through the House
Palmisano also plans to seek the as
sistance Of Majority Leader Rayburn
and Chairman O'Connor of the Rules
Committee.
May Avoid Obstacles.
Since Monday is a regular District
day in the House, Palmisano pointed
out the bill can be called up in regular
order and thus escape the various
parliamentary obstacles with which
opponents blocked its consideration In
the past.
Palmisano also has appealed to the
2l members on his committee to be on
the floor Monday when the bill is called
up to aid him in overcoming any re-
newed opposition. He especially re-
quested members Of the subcommittee
which framed the revenue bill now in
the Senate, to take part in the antici-
pated debate on the floor. Members
OF this subcommittee, headed by Repre-
sentative Kennedy, Democrat OF Mary
land, according to Palmisano, are in
better position than himself to an
swer many Of the questions about the
Districts fiscal condition that un-
doubtedly will be hurled during con-
sideration of the measure.
Although on the minority side
Representative Bates, Republican, OF