Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-02

outlay of sl6,OOO,OOO for acquisi-
ton of park areas and Fairgrounds
with funds advanced from the
Treasury to be repaid out of Dis
trict revenues. Through the end
Of the last fiscal year the Congress
had appropriated. roughly, $780,
600 for the purpose; expenditures
totaled $5,l22,750 and reimburse
ments by the District $4,73l,2ll.
Mr.. Ickes, in raising fears the
Overton plan might create a prece-
dent. said: IF enacted, the bill
might well be considered prece-
dent upon which the various States
could rely in petitioning Congress
for contributions toward the ex-
penses of their respective govern
ments based upon Federal owner
ship of land within, their bound
aries. The possibly serious effects
of such a precedent in imposing
new and heavy financial burdens
on the Federal Treasury is appar-
ent."
Held No Precedent.
In reply, one well-versed financial
student declared: The Overton
plan would constitute no more of a
precedent than the fact that Con-
gress has. in former years. made
payments on the $3.50 basis with
the District, later on the 6O-4O basis
and since 1925 on lump-sum basis
1T should be remembered that
the District of Columbia is a place
unique in the entire country: 1t is
the only seat of the Federal Gov
eminent, it is the only place where
completed control over city is vested
in the Congress: it is large COM
munlty in which the Federal Gov
eminent interests are dominant, II
Congress saw fit, it could acquire all
the land without regard to the
wishes of the community
Other students declared there is
about as much reason to say that
the Federal Governments Iow-cost
housing plans Or even the regular
P. w. A. grants and loans constitute
a precedent. Not all cities of the
country. by far. could obtain P. w
A. grants for needed local construc-
ton projects, some could not raise
the partial costs local communities
were required to pay.
Full Grants for Some Projects.
AS to the P. w. A., observers en-
phasized the District is grateful for
the loans and grants made to this
municipality, as we'll as to other ju-
risdictions, and also recalled that the
P. w. A. has made full grants for
some construction at the Zoo, for
walks in Potomac Park and for the
development of the National Capital
Gravelly Point Airport.
On the question of precedent
however, it also was recalled that
Secretary Ickes. the P. w. A. admin
istrator, was authorized under the
act of June 20, 1896, to enter into
agreements with any State or politi-
cal subdivision for the payment of
annual sums to them in lieu of taxes
and for municipal services supplied
IN connection with P. w. A. housing
division projects. Some 81 such
projects eventually were built.
The reason for this Federal pay
ment arrangement was that spokes-
m eC for numerous cities began kick
ing up rumpus about properties be-
ing taken out of taxation and about
the cost of servicing them with mu-
nicipal utilities. Bills were intro
duced to provide for annual P. w. A
payments. Secretary Ickes at the
time conceded there was fairness tc
the legislation and approved of it.
When the Langston low-cost
housing project was under construc.
ton in the District, conferences were
held resulting in an agreement that
the District government would be
paid $2,925 annually from the P. w
A. lin lieu of taxes" and for munich
pal services.
Park Areas Different Story.
The act under which the United
States Housing Authority operates
also provides that the properties &C
qulred shall be tax exempt. The
Federal agency will pay an annual
subsidy to the local jurisdictions to
aid in reducing rents to a leve,
within the ability of the tenants, and
to pay the interest that must be paid
to the U. S. H. A. The ultimate re-
suit, it is explained, is a gift OF
the project to the city at the end
of the Cougar period.
No part of the Federal subsidy is
made payable to city until the
municipality advances at least q
per cent of the amount of the sub
sidy in the form of an annual con-
tribution of tax exemption or tas
remission. To allow for constitu.
tional limitations, cities are per-
mitted to make capital payment
if desired.
National park areas, outside the
District, are a different story from
areas under Interior Department,