Evening star., 1950-01-20
D. {. Offers Plan
For Loan 10 Aid
Wafer Project
City Heads Discuss
Other Improvements
With Subcommittee

multlmlIllon - dollar long rang
expansion of the Districts waite
supply system was outlined t.
Congress by the Commissioner
today.
The city heads appeared befor
the Joint Fiscal Subcommittee O
the House and Senate Distric
Committees in a closed session
Details of the water discussion
were not made public.
The meeting also included /;
conference on the Districts pro
posed expenditures for othe
permanent improvements.
Senator Hunt, Democrat, O
Wyoming, co-chairman with Rep
resentative Smith, Democrat, o
Virginia of the subcommittee sale
informal agreement was reached
that Congress should not earmarl
funds by legislation for Distric'
capital outlay, referring partic-
ularly to schools.
Comply With Suggestion.
He said the Commissioners
overall budget estimates for fisca
1851 almost exactly comply" with
the subcommittee's suggestion last
year that approximately $5,000,-
900 above the normal outlay be
spent for permanent improve
mentS.
He recalled the pending budget
estimates include $5,400,000 fol
new school construction, and this
is expected to eliminate the need
for part time classes.
Senator Hunt said he approved
in general the idea Of borrowing
money from the Treasury for ex.
pansion of water facilities, but
that he doubted whether such 6
loan could be obtained without
interest. Presumably, he would be
the one to introduce legislation te
obtain such a loan.,
Sales Tax Raising More.
Senator Hunt reported after
the subcommittee meeting the
sales tax is raising an estimated
$500,000 more revenue for tht
District than originally estimated
and that there is no suggestion
that the present law be changed
He said the cost of collecting
the sales tax is about 212 pei
cent, which is practically norma.
for the first year and this cost
will increase as time goes on
Financially speaking. the Sem
ator said the District lis abso-
lutely in tip-top shape right
now"
To meet the pressing needs for
expansion of the water system, it
has been variously estimated that
the District could use from $10,-
100000 to $2o,O0o,ooo in the form,
of a loan from the Federal Treas
ury, to be repaid over a period OF
about 20 years. Legislation would
be necessary to authorize such q
loan.
Important Issue.
Whether the loan should bt
with or without interest is ar
important issue. Precedent for &
Treasury loan without interes
exists in the so-called Capper.
Champion Act, under which lane
is purchased for the city by 6
Federal loan, repaid by the Dis
trict without interest.
Need for an expansion of thu
inadequate water supply system
long has been stressed. Rapit
growth of Washington and nearb,
Arlington County which get
water from the city supply. ha
brought the need to an acute
stage. recent reports show.
For instance, the Commission
ers were asked by the Water De
partment, in October. to discart
the "pay-as-you-go" system ant
turn to a loan of some kind TO
permanent improvements. Thi
plea went to the city heads witt
a report on proposed estimate
for the 1851 budget.
But the 1851 Commissioners
budget estimates, sent to Con
gress by President Truman earl.
this month, adhered to the pay
as-you-go policy, eliminating pro
posed improvements to the Wash
ington aqueduct, which would
have called for borrowed money
Substantial funds for new con.
struction out of current Watel
revenues were recommended.
Record Consumption.
Consumption of water in Wash.
ington reached new daily rec
ords during the heat of last sum
mer. During the fiscal year endes
last June 80, it mounted to tn,
grand total of about 81 100000,
600 gallons. This virtually reachet
capacity of the present system
the Commissioners were told.
AS far back as 1946, Distric
Commissioners and Army en-
gineers foresaw the need for /,
"43-year expansion" of the Dis
trict water system.
At that time, a comprehensive,
and carefully prepared report out
lined a vast SAL 100000 plan t,
pipe an adequate water supply II
the 1,455. 900 population forecas
for the District and Arlington
County by the year 1000.
The program outlined a long
range program of expansion o
facilities for collecting Potoma,
River water, purifying it ant
pumping it, through more thar
1000 miles of water mains, either
to huge storage reservoirs or t.
consumers.