Evening star., 1953-03-31
Public Works
Financing Plan
Draws Protest
Businessmen Present
Alternate Method to
Prevent Tax Jump

The Federation Of Business
Mems Associations today told
the Commissioners the plan to
finance the proposed 1887 million
public works program would hurt
the District financially.
The federation presented an
alternate plan which it said
would prevent a new spiral of
tax increases and would prevent
a fight to the suburbs by busi-
ness and home owners. The fed
Grafton described it's plan as a
permanent solution to the fiscal
problems of the District.
The delegation from the fed
Grafton was headed by John L.
c. Sullivan, president. and Ben
jamin Striner, chairman of its
fiscal relations committee.
The federation Is made up of
some 40 businessmen's groups
scattered over the city. They
are organized on neighborhood
basis similar to the citizens as
sociationS. Mr.. Sullivan is vice
president Of Hessick, Inc, coal
and oil company, and Mr.. Stri-
ner is a retired pharmacist.
No Quarrel With Program.
Mr.. Striner said the federation
had no quarrel with the conten-
ton that the public works pro-
gram is necessary. He added:
"The federation does not take
exception to the methods pro-
posed by the Commissioners to
finance the program and carry
out the detectives of the public
works proposals"
The Commissioners financing
plan contemplates an increase of
up to 1888 per cent in the wa
ter tax; a new sewer tax which
would be up to so per cent of the
water bill; and a combination of
Federal grants and Federal loans
to produce the rest of the neces-
Sary funds.
1T is the considered judgment
Of the federation" Mr.. Striner
declared, that the solution as
proposed by the Commissioners
will continue the policy of bank
ruptcy for the District"
"It will still foster the causes
contributing to the present prob
lens; offers no solution to the
fiscal security of the District, and
creates even greater problems
after the completion of the
eight-year plan, and starts q
spiral of tax increases which
must inevitably result in the
flight to the suburbs of business
and residences"
Alternate Plan.
Mr.. Striner then presented
the main points in the alternate
plan suggested by the Fedora
ton. They were:
/. Request a $100 million in
terest-free Federal loan for so
years to finance all needed water
and aqueduct. sanitary sewers
and storm sewers. This sum
would be appropriated immedi-
ately and drawn against year
by year as needed.
This loan would eliminate the
danger that the program might
be cut off at any time by Con-
gress and would indicate the
taxpayers willingness to shoul-
der responsibility.
It would do away with the
necessity of an increased water
tax. and a new sewer.
2. The District must get leg
islation setting the Federal pay
ment to the District budget at
IS per cent of the total budget.
Without this Federal payment,
any solution will result in great
er and greater emergencies, con-
Guiding with degenerating facil-
tiles and oppressive taxes which
would result in a ghost town
Federal city"
Major public works would be
paid for through this Federal
payment.
Remove Park Costs.
8. Legislation must be OBJ
tanned to remove the National
Parks in the city, including the
Zoo, from the District budget.
This would save the District
about SO million annually.
4. Legislation must be OBJ
tanned to set a ceiling of $3.50
per diem as the cost of patients
at st. Elizabeths Hospital
chargeable to the District. The
District will pay approximately
$9.5 million this year for some
5000 patients at st. Elizabeths.
The $3.50 ceiling would cut the
bill in half.
S. The State of Virginia should
be required to pay half the cost
of bridges to be constructed
across the Potomac River. This
might save the District taxpayers
$40 million over the next few
years.
Engineer Commissioner Louis
w. Prentiss said he would study
the suggestions. He pointed out
that the timetable for the pub
lie works program called for the
Commissioners to come up with
concrete proposals by April Is
for submission to the Federal
Budget Bureau.
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