Evening star., 1946-09-15

Capital Needs
In Swan Song
Urges HospitoI Drive,
Slum Action and
Jobless Tax Cut
BY Don S. Worren

Defeated for reelection and
through with politics for life"
McGehee, Democrat,
Of Mississippi, for II years a power
full influence in the House District
Committee, took time out from
packing last night to wish thre3
good things" for his Washington
wards"
First, he voiced hope District resi-
dents would organize q drive that
would quickly bring necessary ap-
for the big hospital
center authorized in the final days
of the 10th Congress.
Second was an equally ardent
hope that funds would be granted
early in the next Congress for be-
the huge job of redevelop-
ment of Washington's slum areas.
This program was authorized in the
bill held up for months by Mr..
but which he helped to
push to enactment shortly before
adjournment, after the Senate ver-
sion was changed in keeping with
his amendments.
Urges Cut In Tax.
To these he added call for
changes of the District Unemploy-
ment Compensation Act to permit
reduction OF the tax rates and to
prevent steady increase in the
S44, 600 900 reserve fund which, he
held, already is SO large there is
mo chance" of it evtr being paid
out to the unemployed.
In his formal swan song" on
District affairs there was no re-
treat from the conservative stand
he has taken all the way through
on the slum- clearance bill, While
others have suggested move may
be made early next year to amend
some of the restrictions he was in
f1uential in placing on public hous-
ing as against private low-cost
housing projects, the Mississippian
contended his amendments GER
tainly are proper"
The taxpayers of the Nation or
the District should not be compelled
to subsidize housing for people who
are able to pay a proper rental"
was the way he put it. To this he
added 1T is my sincere desire to see
the Qand) agency created under
this bill begin functioning at once
and clear the areas of the city con-
templated in the measure"
i ssMf Stresses Hospital Need.
.s Mr.. McGehee said he had been
convinced not only Of the need of
The hospital-center project but that
Congress should lend its aid "to the
fullest extent Of the cost" with q
return, if possible, of part of the
cost by those who utilize it. .
The act authorizes an outlay Of
$35, 600 900 for the project, but the
1,500-bed center itself wass not ex-
Epected to cost more than $40. 900 900,
Sections of the bill to permit some
$l5, ,000, 900 of grants or loans to nom
profit private hospitals not psrtic-
'ipating in the center were stricken
from the measure.
Under the terms of the law, Gar
field, Emergency and Episcopal Hos
pitals, named as the center's orig
inal participants, will contribute the
values of their present holdings and
the District government will be
charged for 80 per cent of the re-
mainder of the cost of establishing
the center.
Mr.. McGehee recalled that he had
devoted many months to hearings on
the unemployment compensation
law, as chairman of the Judiciary
Subcommittee of the House District
group. He was influential in getting
changes in the District law provid-
ing the merit rating for firms which
have the least turnover in employ
ment, in addition to other and more
recent but less significant amend
ments.
He called special attention to q
situation here which he said does
not exist in any other political sub
division of the country city with
an accumulated reserve fund more
than $4,000, 900, that is increasing
every year.
Cites Drain on Employers.
ut is a constant drain on the
finances that should be
he said The Congress
should continue, as I have done over
this period of years, in an effort to
relieve the employer of this constant
drain so that these funds can remain
in the channels of exchange rather
than be boarded as an lou. in the
public treasury.
There should be ceiling and a
flooring established as to the
carried and the local board
to fix the rates so as to
maintain this ceiling and flooring.
Such amendments should be at
tached to the entire act affecting
every political subdivision and the
time is coming when this must be
done"
G. A. Wharton. director of the
DUO Board, said last night it must
be agreed the District is piling up
q reserve that is greater than needed.
Of the $4,000 District employers,
he said, about 1900 are classified
(see McGEHEE, Page A-26.)