Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-12
Plan Drafted
To Invite More
Business Here
Trade Board to Spend
$240, 900 in Effort to
Stabilize Economy
By Tom Burke

tAAO " ooAiuISCO II DOdIU VI lTdQe.
Calling for the expenditure of
$4,000 a year for the next three
~@-~-~~-----~
Portiol Text Of Trode Boord Reports on
D. c. Development PIon. Pooe Az
years. the program is aimed at
attracting new business interests
which would be "least responsive
to Federal employment f1uctua-
tlons."
Business stability is leopard
lied, the report adopted by the
board declared, in the abnormal
ratio of Government employees
to non-Government workers.
This ratio was set at 1.35 nom
Government to / Government
worker.
The reduction of 10000 Fed
eral jobs here during 1858, ac-
companied by "hypochondrial"
attitudes, points up the dangers
Of over-reliance on one indus
try" the report stated.
Years Prior Study.
The report was prepared by
the Metropolitan Development
Committee of the trade board
after nearly year of study and
discussion It contained a dis
cussion of the committees find
ings on the business outlook
here, discussion reprinted else
where in The Star today. 1t con-
tanned also a generally optimistic
prediction of potentialitieS, if
orderly business development is
planned.
The section on planning cited
dangers which must be avoided.
One, the committee mentioned.
is found in efforts toward moving
Government Offices outside the
District. 1t said the city should
be prepared to meet such activity
which might send new Federal
offices further into Maryland and
Virginia.
Notes Exodus From City.
The committee noted a trend
OF the better than average in
come" families to move out Of
the central area of the city
leaving a void which is rapidly
being filled by low income fami-
lies unable to contribute their
adequate share to the cost Of
Government service.
The spectre of higher taxes to
meet increased Governmental
needs in the District while at
the same time business activity
and substantial wealth is moving
to the suburbs was cited.
The committee foresaw the
following conditions unless pres
ent trends are arrested:
l. The concentration of Fed
eral personnel within the District
of Columbia will diminish.
2. The number of Federally
employed persons within the
presently conceived boundaries
of Metropolitan Washington will
decrease as Government func-
tons move even further afield.
3. Job opportunities within the
District will continue to diminish
as businesses move to the sub
urbs. Employees of these business
houses can be expected to move
their households to locations
closer to their relocated places
of employment.
Fear Property Depreciation.
4. A surplus of real property,
particularly business property.
and reduced business volumes
will ensue. with adverse effects
on District revenues and the
quality of municipal services.
5. Tax loads on business es-
Establishments remaining in the
District will increase and coupled
with loss of customers through
changes could mean
setbackS and business failures.
The report declared that other
communities, notably Birming-
ham, Ala. and South Bend, Ind.
have adopted similar programs
of encouraging new businesses
to their areas. Birmingham has
a budget of $4,000 a year for
d five-year program. South Bend
has 100000 for a three-year
program.
These steps we're listed as rec
commended for immediate action:
l. Work toward utilizing the
(See TRADE BOARD, Page A-5)