Evening star., 1938-05-14
K|NCT0PUSHB|LL
F0RP.W.A,PAR|TY
UP TO $1S,150,0DO
Measure Would Replace "a
Law, Giving D. C. Loan
Terms States Enjoy.
HIGHWAY ALLOTMENTS
ON EQUALITY FAVORED
Post Office Committee Strikes Out
For Maintenance on Funds
to Be Expended Here.
By ]. A. O'LEARY.


The Senate District Committee will
be called together early next week by
Chairman King to act on his bill to
enable the District to share in the
new public works program on an
equal basis with the States, and up
to limit of Sl8.150,000.
Introduced in the Senate yesterday
the place of the local law of 1884,
which requires Washington to repay
10 per cent of any P w. A. allot-
ments at the rate of 81 100000 year.
while other cities have been able to
obtain similar projects on a As per
cent grant, SIS per cent loan ratio.
At the same time. another step was
taken late yesterday to put the Dis
trict on an equality with the States,
when the Senate Post Office Commit
tee approved House bill to include
the National Capital in Federal-aid
highway allotmentS for the fiscal
years 1910 and l94l. The committee
struck out House language that would
have made allotments to the Distric.
available for maintenance. Committee
members explained that in the States
the Federal grants are available only
for new construction. and the change
was made to conform to that policy
here.
d. c. Would Return 55 Per Cent.
Under Senator Kings new local
public works measure the District
would repay SIS per cent of any future
allotments it gets from P. w. A.. in
annual installmentS over a 25-year
period with interest. The rate of in
terest would be matter for agree
ment between Federal and District
officials, with the first annual re-
endorsement due June 80, 194l.
This repayment plan is identical
with a provision written into the ma
tional work relief bill by the House
few days ago to be followed by cities
not in position to incur bonded
debt at this time.
While the King bill only mentions
specifically new building accommo-
dations for the Juvenile Court, Mu-
nicipal Court and Recorder of Deeds
Office, it authorizes application for
other projects within the new limit
of Sl8,l50,000, and the Commissioners
have list of other municipal i'm
provements for consideration after
the bill passes, including enlargement
Of Gallinger Hospital
District Held to 1910 Ratio.
For several years other cities have
been able to obtain P. W. A. projects
on the 45-55 ratio. but the District
has been ineligible except at the
original P. w. A. ratio of 1910, be-
cause that proportion was written
into the special District public works
law of 1884.
In addition to the inequity in the
ratio, the present requirement for re-
payment Of s1,o00,0o0 a year on the
10 per cent loan is a more rapid
amortization requirement than other
cities have confronted. It has been
possible for other cities to obtain
their loans by giving P. w. A. long
term municipal bonds. The District
has no authority to issue bonds. and
can borrow money only as specifically
autnOrlZeQ Dy congress.
The new national work relief bill
passed by the House Thursday. and
awaiting Senate Committee action
next week. continues the As per cent
grant and SIS per cent loan arrange
ment for cities that can issue more
bonds for additional projects. The
alternative method of advancing the
full cost and letting the munich |
pality repay the equivalent of SIS per
cent in annual installments for Is
years was added in the House to aid |
cities that could not apply because of |
bonded debt restrictions
S4.000,000 Paid in Four Years.
Although the District law of 1884
authorized P. w. A. to allocate up to |
Sl0,750,000, Washington has received |
only S6,375, 900, of which $4,462 500 |
was repayable on the 70-30 ratio. Be-
cause of the rapid plan of reimburse
ment-sl 900, 900 annually-Washing-
ton this year will have repaid $4,O0O,-
600 in four years. leaving an obligation |
of only about S463,O00.
Unless the King bill passes, the Dis
trict could share in the new public |
works program only to the extent of
the unalloted balance of $4,375, 900 |
under the 1884 authorization, and |
then only on the 30-7O ratio. The s18,-
100000 authorization limit in the King
bill would replace the $4,375,o 900 bal
ance under the old law.
Senator King announced two weeks
ago he would urge equality for the
District under P. w. A., and has con-
ferred with District officials over the
proposed changes in the local law. 1t
Is expected, therefore, the Commits
sioners will back the pending measure.
They appointed committee recently
to study the subject. composed of
Assistant Engineer Commissioner Tan
sey, District Auditor Donovan and
Corporation Counsel Seal.