Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-23
Case Will Confer
With City Heads on
D. {. Works Measure
CONTINUED From First Page.)

garded by city officials as the
most crucial part Of the bill.
Neither was there any chal-
lenge Of the need for the works
projects. attesting to the success
Of constant efforts by city Off
cials and citizen leaders during
the last two years to convince
Congress the improvements are
necessary.
Unit Meets Tomorrow.
After passage Of the bill. Gen.
Prentiss commented:
II am delighted to see this
action. This puts us over a
major hurdle"
Mr.. Spencer also expressed
delight with the House action.
He said the bill would give the
city many benefits in the future,
adding:
II think that great credit is
due Chairman Simpson. Of the
House District Committee.
Chairman O'Hara. Of the House
District subcommittee, and the
other members of the commit
tee for the hard work they put
in on this bill, and for the eff
cient and expeditions manner in
which they secured its passage"
Prospects are that a Senate
District fiscal subcommittee will
consider procedures for routing
the bill through the Senate at a
meeting already called for 10
am. tomorrow to consider other
matters.
Chairman Case said the Sen
ate's legislative calendar is
pretty well loaded" and he
would not speculate on when the
bill could be handled. But he
said procedures would be worked
out as soon as possible for getting
it before both the subcommittee
and the full committee.
The District Commissioners
applauded the House action and
the House-passed bill as one
from which Washington would
reap great benefits over the
years."
ID. C.. Tax Increases.
The additional general fund
taxes in the bills making up the
$94 million include:
Increased tax on beer from 81
to $3.50 per barrel; increased
cigarette taxes / cent per pack;
increased whisky tax from IS
cents to 81. and wine. from IS
to 20 cents per gallon; increased
individual income taxes, per-
centage point in each taxable
bracket: increased bus mileage
tax, from mills to cent per
mile: increased real estate tax
rate from $1.15 to $1.20 per 500
of assessed property value.
Also, establishment of a new
per cent sales tax on groceries;
reduction Of the 2 per cent sales
tax exemption on meals from
SIPS to so cents; increased sales
tax on hotel transient rooms
from 2 to per cent, and estab-
lishment Of a new auto registra-
ton fiat fee of $22 for cars below
a weight of $500 pounds, and
$32 above that weight.
The three committee amend
ments. all called up by Mr..
OHara and approved without
opposition, lowered tax increases
proposed by the House-Senate
subcommittee on beer and bus
companies and revised the ear
marking Of part of the Federal
payment.
The joint subcommittee had
proposed that half of the So
million increase in the Federal
payment be earmarked for ex-
penditure on works projects and
that the amount so earmarked
be matched with local revenues
each year. Since the current
Federal payment is $11 million,
this would have meant that any,
thing over SIS million would
have been set aside solely for
public works.
This fit in we'll with plans of
District officials. who had in
tended that half the SO million
be spent on new general fund
construction and the other half
on new operating expenses that
would be generated.
SIS Million Capital Outlay.
The House action, however,
would earmark any part of the
Federal payment over $12.5 mil
lion for construction. This means
that if the entire $40 million
Federal payment was appropri-
ated each year, SIS million
counting the Districts matching
SIS million-would be available
for capital outlay.
While general fund construc-
ton needs would be that high
during some of the 10 years,
they might not during others.
District officials said. The off,
Gals are studying effects Of this
provision. and are certain to
discuss them with the Senate
committee.
Representative Harris, Demo-
crat, of Arkansas. who strongly
supported the bill in House de-
bate, told his colleagues the Dis
trict Committee had insisted on
raising local taxes before con-
sidering the Federal payment
increases.
Mr.. Smith told the House also
that the tax increases were