Evening star., 1941-03-23

obtain their large supply of water
free. The fact that cost of plant
development as we'll as maintenance
is placed upon water tax payers pre-
vents a consistent policy of regular
rate reduction toward that desider-
atum, on sanitary and other
grounds, of maximum water use at
next-to-nothing cost by the COM
munity and the National Govern
ment.
On the contrary, the private con-
Sumers of water are now being re-
quired to build up through their
water rents reserve to meet large
new capital outlays that will be
needed to further enlarge the water
supply system during the next dec
ade, part of which expansion will
serve the growing needs of the Ma
tional Government.
The Water Department now has a
surplus of 100000 toward enlarge
ments of the system originally sched-
uled to be carried out over from 6
to 10 years. Col. McCoach testified
recently that the national defense
expansion now taking place will re-
qulre use of some of that surplus
during the coming fiscal year, and
other officials have predicted the
defense influx will make it necessary
to complete the long-range addi-
tlons to the water plant several
years ahead of schedule. This is
only one instance of the need for
prompt settlement of the fiscal re-
latlonS issue on a permanent, eoui-
table basis.
Gasoline Tax (street improve
ment. The Capitals street system
was laid out on a grand scale, befit-
ting non-induStrial, beautiful Cap
ltal. The Government in the begin
ming promised, through implication,
TO maintain the streets. Under the
National Capital-National Govern
ment partnership of 1878 develop
ment and improvement of streets
was shared, the general tax fund
meeting the greater part of the cost.
The gasoline tax, originally proposed
as a substitute for the personal
property tax on automobiles, was
enacted as additional, instead of
substitute, taxation. Its revenues
have increased until the greater
burden OF street (and recently
brldge) improvement has been shift
ed from the general fund Cto which
the United States contributes to
the gasoline tax fund, with constant
pressure to increase unnecessarily
the gasoline tax rate and to extend
the expenditure of gas tax revenues
TO uses other than streets. As the
National Government pays no gaso-
line tax, the burden for street i'm
proVement, impliedly assumed in the
beginning, In the opinion of COM
mentators, as a Federal RESPONSE
bility and later divided between Ma
tion and community, is thus
gradually shifted from the National
Government to the shoulders of
automobile owners and the general
taxpayers of the District.
d. c. Sighted in the Past.
The history of Federal aid to the
States also constitutes an added
reason why the Nation should share
literally now in the upkeep of it's
Capital.
Although Washington has been
permitted to share with the States
in Federal grants and loans for re-
lief and public works under the
emergency programs of the past
eight years, for many years prior
thereto the National Government
distributed bounties to the States,
from which the Capital City was
excluded.
AS George B. Galloway pointed
out IN reviewing the growth of Fed
eral aid, in Editorial Research Re-
ports for January, 1881, the practice
OF granting subsidies to the States
from the Federal Treasury began
with the land ordinance for the
Northwest Territory in 1785 and has
continued down to the present time.
The Federal-aid highway system,
for example, was started in 1916,
but the District did not share in it
until highway construction was used
to relieve unemployment during the
recent depression, with the match
ing process temporarily suspended.
And now, after lapse of more than
20 years, the District has been made
eligible for future highway grants
under the normal matching process.
1t should be recalled also that
even in making the District eligible
for P. w. A. loan-grant projects
during the depression Congress at
first required rapid repayment of
the loans, within few years, at the
rate of 100000 a year, whereas
the States and other cities were per-
mitted to give P. w. A. long-term
bonds for their loans.
1870 of First Loans Repaid.
Acting District Auditor A. r. Pix
erton told a joint Congressional
hearing few days ago that the Dis
trict already has repaid it's 70 per
cent loan portion of the first P. w.
A. grants of $6,375, 900 made under
acts of 1884 and 1885. Later, on
June rs, 1888, Congress authorized
the District to obtain up to $18,-
100000 from P. w. A. for capital