News-Record construction cost index (base 1913=100) by which the change in materials and labor is gaged at any particular time, was 225 in 1937 and in March 1947 was 391, an increase of 74 percent. All supplies, materials, and equipment used for operating and maintenance purposes or requiring replacement by reason of ordinary wear and tear have, in many cases, practically doubled in cost in recent years. Parts and replacement items unobtainable during the war period, required excessive and uneconomical repair expenses to continue them in service. In connection with any examination of water system costs due consideration should be given to the distinction between operating costs and capital outlay or improvements when reviewing supply division costs. Operating costs in general are a function of the water demand coupled with material and labor costs, while capital improvements are a function of plant capacity to meet immediate and future requirements of the water system consumers. The need and costs of the capital improvements which must be undertaken to keep pace with the increasing demand for water by reason of population growth is fully presented in House document 480, Seventy-ninth Congress, second session, entitled “Adequate Future Water Supply for the District of Columbia and Metropolitan Area," which was prepared pursuant to a directive from the Congress. In summary, several pertinent facts stand out with respect to the increases in cost of operation over those obtaining in previous years. Notwithstanding the many special conditions that have been noted, it is apparent that with an increase in population of 51 to 54 percent in the 11-year period, and an increase of 57 percent in the quantity of water supplied, the increase in the cost of producing a million gallons of finished water has only increased by 30 percent. At the same time with an average increase of 57 percent in the wage per employee, it has been possible to reduce the number of employees required to produce a billion gallons of water by 21 percent It is considered that the above-noted statistics and other figures indicate an efficiently operated water supply division, producing an improved quality of water, at a unit cost below the increased costs obtaining in comparable water systems and those generally obtaining in commercial and industrial establishments. 1 Represents third quarter, fiscal year 1947, substituted for fiscal year 1946. This quarter was chosen as it represents only a skeleton force of the pay roll necessary in the initial stage of the reorganization of the District of Columbia National Guard. This does not include personnel to operate the National Guard Armory that will be necessary subsequent to the vacating by the FBI in the near future. Beginning with the fiscal year 1942 a reduction in force was necessary due to the ordering of the District of Columbia National Guard in Federal service in 1941 and subsequent transfer of other personnel. In 1943, 1944, and 1945 a skeleton force was necessary to maintain the activities of this headquarters. 1938: Increase of $10,470 is for maintenance of new areas and electric lighting service in unlighted areas. 1939: Increase of $6,400 is for maintenance of new area. 1940: Increase of $22,513 is for one additional mechanic, and installation of utilities. Eight additional employees were authorized for reimbursable work, not requiring additional funds. 1941: Decrease of $22,351 resulted from nonrecurring item for utility installation in previous year. 1942: Increase of $38,855 covers maintenance of new developed areas, withingrade promotions, and additional park police. This increase provided for four new maintenance employees and six additional park police. 1943 Increase of $58,438 provides for maintenance of new area, and legislative salary increases. A decrease of 23 employees is accounted for by the transfer of Recreation Coordinator to Recreation Department, District of Columbia, and elimination of 22 maintenance positions to meet the cost of overtime. 1944: Increase of $52,525 covers legislative salary and wage increases and equipment for police cruisers. 1915: Increase of $24,440 provides for increase of compensation of the park police force, and an additional amount for overtime. 1946: Decrease of $34,980 resulted from the elimination of 19 positions (8 park police and 11 operating positions). Appropriations for National Capital Parks reflect a net increase of $156,310 for the 10-year period 1937 through 1946, or approximately 17.2 percent. During this period, the National Capital Parks acreage has increased by 60 reservations, or 1,033.79 acres in the District of Columbia. NATIONAL CAPITAL PARK AND PLANNING COMMISSION, APPROPRIATIONS FOR PERSONAL SERVICES FROM FISCAL YEAR 1937 THROUGH 1947 6,960 39.740 Vacancy of city planner filled and made full-time position. Administrative promotions (peri odic pay increases). Do. 2 positions of draftsman added to Increase in annual fund due to and 1939: Increase for salaries and miscellaneous repair items. 1940: Increase for one additional position, Ramspeck promotions, and increased costs of fuel, food for animals, repair items, etc.; and one new truck. 1941: Increase for Ramspeck promotions and for minor supply items. 1943: Includes salary deficiency appropriation of $7,690; one new position, $1,320; $5,500 for new incinerator (this a nonrecurring item-incinerator not built and money turned back); $3,000 for increased food costs; $10,000 for repairs to buildings; $1,600 for new transportation equipment; balance for minor supply items. 1944: Includes salary deficiency appropriation of $7,000; balance of increase required for new positions and for salary increases occasioned by legislation changes due to Public Law 694. 1945: Includes increase of $43,638 for overtime pay; $4,420 for three new positions; $2,763 for Ramspeck promotions; $5,190 for increase in food costs; $2,400 for additional educational equipment; the balance to meet increased costs of fuel, building repair, and miscellaneous items. 1946: Includes $65,670 deficiency appropriation for increases occasionel by legislative changes in salaries; $12,000 for a new incinerator; $4,500 for road repairs; $3,600 for transportation equipment; small increase to meet added cost of sundry items. Senator CAIN. We will now hear from Mr. Ford E. Young, president of the Fussell-Young Ice Cream Co. STATEMENT OF FORD E. YOUNG, PRESIDENT, FUSSELL-YOUNG ICE CREAM CO., WASHINGTON, D. C., APPEARING ON BEHALF OF THE ICE CREAM SECTION, MERCHANTS AND MANUFACTURERS ASSOCIATION Mr. YOUNG. My name is Ford E. Young. I am president of the Fussell-Young Ice Cream Co., 1306 Wisconsin Avenue NW., appearing on behalf of the ice cream section of the Merchants and Manufacturers Association, which is composed of Southern Dairies, Melvin Dairies, and the Breyer, Good Humor, Colonial, Washington Maid, Carry, and Fussell-Young Ice Cream Cos. I am appearing in connection with S. 843 and H. R. 2290. I am appearing neither for nor against a sales tax for the District of Columbia. Rather I am concerned about two provisions in the proposed tax law. First, page 5, lines 1 and 2, under exemptions appear the words, "milk and milk products, other than candy and confectionery." I believe that everyone would consider ice cream as a milk product rather than a confectionery. The ice cream which is sold in the District of Columbia consists of at least 80 percent milk or milk products. I would like to submit the basic food chart put out by the United States Department of Agriculture with the following advice: You can get all the right kinds of food needed for health by using this simple guide the basic 7. Be sure to include in your meals each day at least the minimum number of servings from each group shown on the chart. Your attention is called to group 4 of the seven basic foods which includes milk, cheese, and ice cream. In order to assure ourselves that we are on firm ground, not only from the standpoint of the nutritionists in the United States Department of Agriculture but also from general usage, we looked up the terms "confection," "confectionery," and "confectionary," in four of the latest dictionaries which we could find in the Congressional Library, namely, Webster's, published in 1945 by G. & C. Merriam Co.; the Standard, published in 1946 by Funk & Wagnalls; the Oxford English Dictionary, published in 1936 by the Clarendon Press; and the Encyclopaedia Americana, published in 1946. Webster's defined "confectionery" as follows: Sweetmeats, in general, things prepared and sold by a confectioner, confections, candies. The Standard: Sweetmeats collectively that a confectioner makes or sells as candy or other articles made of sugar, sirup, honey, or the like. Oxford English Dictionary: Things made or sold by a confectioner. A collective name for sweetmeats and confections. Encyclopaedia Americana: A general term for any preparation with sugar as a base, used as a sweetmeat and containing nuts, fruits, or other flavoring. The United States confectionery is commonly called candy. I have gone to considerable lengths to bring out the fact that ice cream is a food and so classed by the nutritionists in the United States Department of Agriculture. In the Dairy Branch of the Department of Agriculture it is commonly known as a frozen dairy food. In none of the leading dictionaries is ice cream mentioned as a confection or confectionery. In fact, the Encylcopedia Americana states that in the United States, confectionery is synonymous with candy, or in their words, is commonly called candy." I presented these facts because I know that administrative officials are charged with enforcing the law which is written and many times questions come up when it is quite helpful to administrative officials to know what was the thinking of the legislators who wrote the law. I believe in fairness to the industry and to the administrative officials who will have to enforce the law if such a law is passed that this committee should go on record that confectionery does not mean ice cream, providing of course that the term under question is left in the law as it is finally passed. The second point which I believe should be cleared up is that brought up by the following on page 5, lines 11, 12, 13, 14, and 15: Provided, That the aforesaid exemptions shall not be deemed to exclude the following from the tax imposed by this title: Soft drinks and sodas and beverages such as are ordinarily dispensed at bars and soda fountains or in connection therewith (other than coffee, tea, and cocoa, beer and other similar malt beverages except as provided in paragraph (4) of this section). Apparently, the only reason for exempting coffee, tea, and cocoa and not exempting sodas and "beverages such as are ordinarily dispensed at bars and soda fountains" is that coffee, tea, and cocoa are considered foods and, by implication at least, sodas and soda fountain beverages are not. Ice cream sodas are made of a combination of ice cream and liquid which without the ice cream would probably be known as "a soft drink." Certainly the ice cream which is included in the soda is a food, and in my belief one with more food value than coffee, tea, or cocoa. Milk shakes and malted milks are also drinks commonly served at soda fountains. Their ingredients consist of milk, ice cream, flavoring, and in the case of malted milk, also malted milk. Certainly there are few if any foods that have greater food value than these drinks commonly served at soda fountains. Apparently sundaes, dishes of plain ice cream, ice cream sodas, and banana splits which consist of bananas, ice cream, flavoring, and whipped cream are not to be taxed inasmuch as they are not soft drinks or beverages. Since ice cream unquestionably is not only a food but a most thoroughly nutritious food-in fact often one of the first foods which is prescribed for an invalid or children after a sickness-should we not be consistent and eliminate from any tax bill the chance that any administrative official will consider it imperative that he tax such foods. Therefore, I suggest that the words beginning on page 5, line 13, "and sodas and beverages such as are ordinarily dispensed at bars and soda fountains," be deleted from the proposed law, or the committee go on record by a statement that these items do not include those sodas and milk beverages of which ice cream is a part. Senator CAIN. I will say to those present that we shall now adjourn these hearings for the time being. Public notice will be given when they will be resumed. Perhaps it is interesting to note, in passing, that 107 citizens of the District of Columbia, as individuals, have been heard during the course of the past several weeks, representing organizations as well as themselves. And I should like to say on behalf of Mr. Bates and myself and the entire joint committee that we have appreciated deeply and extremely the courteous attitude of those who have been in attendance, their sincerity, and their willingness to talk in terms of what they conceive the need for their city to be. I would like to add, in addition to that, that in my opinion, anyway, the presence here each day through these long hours of labor by the press has been extremely helpful to an understanding by the District of Columbia of what the Congress, in concert with them, is trying to do. I bid you good morning. ADDITIONAL STATEMENTS SUBMITTED TO THE COMMITTEES The Washington committee of the Southern Conference for Human Welfare opposes the proposed sales tax for the District of Columbia. The sales tax is, to our knowledge, one of the least equitable methods of raising revenue ever devised. At a time when the public clamors for reduction of our overinflated retail prices, the proposed sales tax is, in effect, a general 2 percent price increase. Persons with a high income allowing comfortable savings, it is true, will not miss this 2 percent. But the Government employee, the salaried worker, who must budget his income carefully to stretch it over a pay period, will suffer. He will have to make an adjustment in his spending in order to make ends meet. He either will have to buy less or demand a raise in salary. In the end, Washington's trade, as well as Washington's consumers, will suffer. 99538-47-55 |