Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-28
Financing Of Works
Program for District
lis Hit and Defended
Continued From First Page.

CONTINUED From First Page.)
per cent withholding tax or
salaries would produce annua
revenues exceeding $40 million
1--WE believe that the tripod Of
adequate Federal payment, re.
duction in expenditures ant
proper tax PLAN" he asserted
would capably support all pres.
ent and future public works anc
maintain this nations capita
in a manner worthy of our great
Nation"
Mr.. Reilly asserted in his tes-
timony that the program is es.
sential to prevent economic
suicide" by the city. He urged
Congress to allow revenue in.
creases which constitute "even.
handed justice" to the District
and Federal Government.
Mr.. Reilly told the subcom-
mittee that the District cannot
expect to pay for a Capital i'm
provement program out of cur.
rent revenues alone.
Warns of Suicide"
II can Sympathize with those
who are charged with the re-
sponsibility of balancing a cur
rent budget" he added. But il
is economic suicide to balance
a budget and let the Superstruc-
ture of our municipality witheI
and die"
The civic leader and banker
stressed that local tax increases
will more than match the in
creased Federal payment pro-
posed. But he said Washington
citizens must be assisted by q
larger Federal payment.
"All We. the citizens of Wash.
ington. ask is even handed jus.
tice for your city-the city thai
belongs to all America, not JUS
those of us who are privileged
TO live here"
He stressed that delays in i'm.
proving the city's physical plant
will dry up the ability of bust.
ness to operate profitably. which
will mean a serious decline ir
revenues"
Allen Quizzes Finances.
Representative Allen, Repub.
lican. OF California, said he hae
no difficulty justifying the neec
for a large works program. Blu
he said he did have difficulty
in explaining to his colleague!
why the financing should be diff.
ferent than in other communi.
ties.
Mr.. Reilly said the reason the
Federal Government must as.
sumo a responsibility for such
expenses in the Federal city j.
that it places such a "tremen.
dous drain on it."
Representative Smith. Demo.
crat. of Virginia added that ar
even stronger reason for Fed.
eral assumption of responsible.
ties here is that other cities are
supported largely by large in.
dustrial and business revenues
But in Washington, the Vir.
ginian declared. the Government
has discouraged such develop.
ment in order to preserve the
nature Of the Federal City.
The tax increases which fig.
ured in today's testimony ar.
linked with 50 million annua
raise in the Federal payment t.
the city and about Sill million
worth OF Understanding Fed.
eral loans over the next 10 year.
the financing package under
study by Congress.
District Budget Officer Waite
Fowler and Finance ONCE,
James L. Martin argued yester
day that the Federal Govern
ment has not been carrying
share of city expenses common
surate with its interest an,
demands on the Capital.
Needs Are Detailed.
Questioning Of the two Official
on financial aspects of the pro
gram marked a crucial turnin,
point in the hearings.
For the last two days. tn,
subcommittee members hav,
listened quietly as a parade O
District officials have paintet
pictures Of dilapidated structure
and grossly inadequate facilitie
which would be brought up t,
par by the works program.
| For the most part, the presen.
tation was only the importan
back-drop for the financial dis.
cussionS. Congress isn't beinI
asked now to approve any of tn,
specific works projects. Fund
for them will be asked annual,
in appropriation requests. TIL,
only measure before Congress il
the revenue increase bill, with
out which there will not b,
money to carry forth the pro.
gram.
Mr.. Martin was to return to,
day to complete his testimony
sandwiched between citizen wit,