Evening star., 1939-09-07
District Budget
Economy Urged
In Face Of War
Slash in $63, 900, 900
Requests Sought
By Spokesman

OF LIE WdT Ill EuIOpc Oll OlotIlCL
finances fell upon the public hear
ing today before the Commissioners
on the 1941 municipal estimates as
spokesmen for two of the largest
Washington organizations urged the
city heads to hold their budget re-
quests down to definitely anticipated
revenues.
E. Barrett Prettyman, former cor
poration counsel, speaking for the
Board of Trade, and L. A. Car
ruthers, president of the Federation
of Citizens Associations, both urged
the Commissioners to slash the near
$63 ,O00, 900 requests of their depart
men heads to point which would
prevent any possibility of a further
increase in taxes and both suggested
the District may feel the effect of
the european strife.
Mr.. Pretty man said: II do not
desire to be an alarmist, but I sin
cerely believe that in view of pres
ent world conditions, it would be
well not to enlarge too much the
number of purely civil engineering
projects to be carried on. We are
considering a program for 1940-1941
the end of which period is almost
two years away.
New Burdens Possible.
I'VE do not know what burdens
our people may be called upon to
shoulder by that time. 1t appears to
me that good judgment directs us
to maintain a conservative program
in purely civil governmental expen-
ditures until we have better un-
derstanding of what the immediate
future will bring"
Mr.. Carruthers, also alluding to
the war, said the cost of living now
is going up, without a correspond
ing increase in salaries and wages.
He added: IF our budget calls for
increased taxes, it would mean a
double burden would be placed upon
the people of the District"
Some 26 representatives of various
civic, business and professional
groups, were scheduled to testify
today. The list is much smaller
than that of last year p1d there
were prospects the hearing may be
concluded this afternoon.
Among those who testified this
morning, in addition to Mr.. Pretty
man and Mr.. Carruthers, were
George E. Keneipp of the Keystone
Automobile Club, Washington I.
Cleveland of the District Division,
American Automobile Association,
and William A. Maio of the South
east Citizens Association.
Hazen Urges Restraint.
At the outset, Commissioner Mel
vim c. Hazen declared that the Dis
trict must keep within the 1941
revenues" and reminded the gather
ing that the Commissioners had in
structions from President Roosevelt
that all departments. the District
as we'll as the Federal establish
ment, should cut expenses as much
as possible.
In order to live within income
next year, Mr.. Hazen said, I'VE will
have the headache Job of having
to cut between s13,OOO,O00 and s14,-
100000 from the original requests
of our department heads"
l.. E. Williams, president of the
Board of Trade, said his group had
made a serious study of District
finances, with the aid of several ma
tionally known tax experts. He had
with him William L. Beale, chair
man of the Budget Subcommittee of
the Municipal Finance Committee,
which is headed by Mr. Prettyman
and William H. Press, assistant to
the body's executive secretary.
Mr.. Prettyman suggested that the
general fund budget, that is, all
items not including those financed
out of the highway and water funds,
be held down to roughly $42 200 900
figure estimated by Maj. Daniel
j. Donovan, District auditor and
budget officer, as the prospective
general fund revenues for the next
fiscal year. He reminded the Com
missioners that similar position
had been taken by the Board OF
Trade last year in a statement pre-
sented by Robert " Fleming, and
emphasized that the trade body ad-
heres to the same principle, that
the District budget definitely should
not depend upon any increase in
taxes.
Revenue Hard to Estimate.
Mr.. Prettyman emphasized that
economy is especially necessary in
planning the 1941 budget because "it
is going to be extremely difficult" to
estimate the 1941 revenues prior to
the close of this fiscal year because
of the new taxes enacted this year,
including the personal and corporate
income taxes.
The Board of Trade also held that
proposed appropriations for perma-
nent improvements should not be
increased, and he reminded the
Commissioners that large portion
of the requests for increased funds
made by the departments are for
capital expenditures. He suggested
that the capital outlay should be
about the same as the $4,500, 900
made available for this year. He
said the Districts $18,000,000 P. w.
A. program had provided for the
most urgent necessities, and that
this program should alleviate the
pressure for capital improvements
which had been 80 noticeable"
since 1884.
Mr.. Carruthers said that the Ex-
ecutive Committee of the Federation
had adopted unanimously a resolu-
ton to the point that the body
opposes any increase in the 1941
budget in excess of anticipated reve-
nues based upon present tax laws
and existing rates. He also said
speaking for himself, in interpreta-
ton of the Federation's stand, that
the District should not allow any
surplus to be built up, but that the
District should spend an anticipated
1910 surplus, leaving only a reason
able" cushion for possible emergen-
cies.