Evening star., 1937-07-10
BILL AUTHORIZING
D.C.B0RR0W|NCAS c.
STOP GAP PLANNED
Kennedy Ready to Act if
Court Situation Blocks
Taxes.
HAZEN MAY REQUEST
WHITE HOUSE ACTION
Passage of Separate Measure to
Tide District Government
Over Is Problematical.
BY ]. A. O'LEARY.

D1 j. "A. ~ LLAhI.
A move to let the District borrow
temporarily from the Treasury to avoid
Its approaching financial difficulties
probably will get under way in Con-
gress next week if the local tax bill
remains sidetracked by the Supreme
Court fight in the Senate:
Chairman Kennedy of the House
subcommittee that drafted the tax
bill said last night if the Senate situa-
ton remains unchanged by Monday
separate bill containing only the au-
thority for the Treasury to advance
necessary funds to meet the city's
operating expenses until local taxes
are collected
He made the announcement after
eonferring with Chairman King of
the Senate District Committee re-
garding the predicament that may
confront the municipal government
after this month.
Realty Rate Unsettled.
A major portion of the Districts an
nual revenue is derived from property
taxes, which begin to come in during
September. But the question of what
rate is to be applied to real estate
and tangible personal property this
year is one of the unsettled issues in
the pending tax bill.
Although the Commissioners indi-
Gated yesterday they would prefer to
press for early passage of the tax bill,
rather than seek a separate prelimi-
nary borrowing resolution, the pros
pect of having the tax measure taken
up in the Senate Immediately still
looked hopeless last night because of
the tightly drawn battle line between
supporters and opponents of the Su-
preme Court bill.
This was forcefully demonstrated
late yesterday when Senator Copeland,
Democrat, of New York, met with
delay in getting action on the con-
ference report on the non-military
part of the War Department appro-
priation bill.
Bill Includes Borrowing Proviso.
llt plOpDtSdi W 4Sg t1lC 4ACdSuiS
advance funds to the District pend
ing tax collections is a part of the
pending revenue measure, having been
included by the Senate committee be-
cause of the fact that even if the bill
could be enacted into law imme-
diately, the city probably would use
up its available money before the new
revenue began to flow in.
If the House passes a separate bill
next week confined to the borrowing
clause, it still might prove difficult for
District Committee members to have
that limited measure considered i'm
mediately in the Senate, not because
of any opposition to the merits of the
proposal. but because strict enforce
ment of parliamentary rules has
marked the court battle during the
past few days.
Observers at the Capitol believe,
however. there would be more chance
of obtaining consideration of the SIM
pie borrowing provision by unanimous
consent than there will be of getting
the entire tax bill up until there is a
break Of some kind in the court fight
May Seek White House Aid.
Commissioner Hazen said late yes
terday that If the tax bill is still tied
up by August he would seek the aid
of the White House.
Commissioner Allen has been at the
Capitol during the past two days con-
ferring with Senate committee men,
bers to emphasize the necessity for ac-
ton. Senate Majority Leader Robin
son has made it clear, however, the
tax bill cannot be taken up at this
stage of the court fight.
The District needs $7,0O0,000 Of
new revenue to balance its current
budget, and if Congress should fail
to pass the pending legislation to raise
it from various sources the Commis-
sioners would have no alternative but
to place the entire additional burden
on real estate by raising the property
tax rate, despite the fact that that
source already bears a major part of
the city's present revenue load