Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-02
Fiscal Crisis
Delays 1900
Relief Checks
Possibility Of Want
In District Feared
In Some Quarters

Faced with fiscal crisis despite
President Roosevelt's direct orders
to carry on in the usual manner"
its normal operations, the District
government last night held up at
least until Wednesday 5000 checks
which otherwise would have gone
out yesterday to the aged, depend
ent children and the blind.
Threatened also with suspension
of financial relief were thousands
on so-called general relief" whose
checks do not go out on the first
and fifteenth of the month. but are
paid on various dates throughout
each month.
Caught in a legislative jam on
Capitol Hill were two vital District
bills-the 1910 supply bill, and the
new tax BILL Both were stuck in
conference, principally because of
the row between the Serate and
House over the size of a Federal
payment toward support of the Dis
trict. Efforts to break the deadlock
will be resumed Wednesday. Mean
time, the District technically is
without funds.
Hazen Expresses Appreciation.
President Roosevelt sent his au-
thority to the District to carry on"
in letter to Commissioner Melvin
c. Hazen about noon yesterday.
Deep appreciation for the authority
was Immediately expressed by the
Commissioner who. is president of
the board.
Opinion differed as to whether
those on relief would suffer over the
long Fourth of July week end The
Government, both Federal and mu-
nicipal, is closed until Wednesday
morning District officials claimed
there would be no pressing need
and certainly no suffering because
of the delay in mailing out relief
checks. From other sources, how
ever, came reports that people on
relief were living on narrow margins
and might run into shortages oil
food. or even threats of eviction by
landlords for non-payment of rent.
Serious problems. however, ap-
parently veered District officials
from the verge of sending checks
out over Sunday, to the precaution-
airy measure of waiting until
Wednesday morning further to ex-
plore the legal situation.
One of the serious problems faced
by District officials revolved around
the pending District supply bills
provisions which would change some
amounts of relief due to various
classif1cations At first it had been
thought that checks might be writ
ten out on the basis of payments
authorized last fiscal year. If the
new supply bill in final form
changed this schedule, the payments
to relief people in the next series of
checks to be sent out July Is could
be modified to correct the total
payments.
Original House Provision.
The House originally provided in
the 1910 supply bill for a fiat limit
Of $48 month for each relief case.
The Senate added to this S. more
for each additional dependent, with
out limit on the number of depend
ents. About week ago conferees
agreed on these limits: Relief and
aid to dependent children, $24 a
month for single person. no more
than $50 for a family of two persons
and no more than Sc extra for each
dependent under Is years of age
and in no event more than $50 to
any one family.
Home care was agreed to be the
same as the above figures. with the
exception that there was no pro-
vision for single person. Aid to
the blind and aged was to be not
more than $50 month to any one
person.
With these figures in the pending
bill. still subject to change and
with no continuing resolution by
Congress to carry forward authority
to spend under provisions Of the last
fiscal year, District officials decided
to wait until Wednesday morning
to decide what to do.
Confident that those on relief
will not suffer were Commissioner
Hazen, Commissioner George E
Allen, who has just returned to the
board. to take over plans for re-
organizing the District govern.
nent; Engineer Commissioner
David McCoach, jr.; District Auditor
Daniel j. Donovan, and Otto j
Cass, who was sworn in yesterday
as director of the Public Assistance
Division.
Checks Often Delayed.
Mr.. Cass, who previously had be.
come familiar with the duties which
he assumed yesterday, pointed Out
that the checks for old-age pen.
sions, aid to dependent children anc
blind persons usually 60 out on the
first and fifteenth of each month
Sometimes, however, he said. the
checks are delayed day or two. ir
the normal course of events, and Il
a way could be provided about the
middle of this week to issue thu
checks, the delay would not be 81
long.
Maj. Donovan said that no report!
had reached him Of any persons or
relief being in distress. Commits.
sioner Hazen, in conference with
Maj Donovan said he had heard o.
no difficulties on the part Of thos,
on relief, and expected none. Mr.
Hazen became indignant at report!
than any landlord might ever
threaten relief tenant with evic'
ton because of the fiscal crisis IL
which the District found itself. HI
! (See nTaTRICT RTTI, Pa0e A.3O