Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-06-30
THE REPORT ADOPTED
Conferees' Work on the Dis
trict Bill
ACCEPTEDBY THEHOUSE
MR.. CANNON'S STATEMENT OF
FINANCIAL CONDITIONS.
Chairman Babcock Protests Against
Legislation in the Measure-Vote
of House "a to so.

Debate on the conference report on the
District appropriation bill in the House
Saturday afternoon was considerably ami
mated for some time. Its features were
the appeal of Chairman Babcock of the
District committee to vote down the report.
This was supplemented by an argument by
Mr. Pearre against legislation contained in
the bill regarding restrictions as to bill
posting; an argument by Mr.. Suzer of
New York against the raising of the. retail
liquor license, and defense of the report
and explanation of the bill by Mr.. Cannon
Both the appeal and the argument were
in vain. The report was adopted, the vote
being on a division demanded by Mr.. Bah
cock, ayes 81, noes 90. The report was
called up by Mr.. McCleary, and the first
opposition developed Immediately when Mr..
Sulzer objected to the request that only
the statement be read The reading of the
report was begun, but after it had pro-
crossed some time Mr.. Sulzer withdrew his
objection. Mr.. Babcock then asked sep
arate vote on three amendments which he
considered strictly legislative amendments.
point of order made and sustained
that this could not be had; that the report
had to be accepted or rejected as an entire
ty. Mr.. Lacey demanded an explanation of
the bank tax, and Mr.. McCleary yielded to
Mr. Cannon for this purpose.
Mr.. Cannon's Explanation.
Mr.. Cannon's explanation covered a COM
prehensive review of the whole appropria-
ton legislation. Under the legislation of
the last session, he said there had been a
deficiency of 81 100000. The appropriations
committee had waited several months, he
said for the District committees of the
House and Senate to take action in the way
Of providing some way to meet the evident
deficiency in the District revenues This
wait had been extended until 1t was seen
that nothing would be done in time, and the
appropriations committee had then OBJ
tanned consent from the House to provide
for re-enacting the old personal tax law Of
1871 The Senate had modified this law,
and the conference committee had some
what modified the Senate provision. The
amount which would be raised under the
new tax provisions were, he said $500, 600
on personal taxes and 81 cocoon on the in
crease in the tax on real estate, which
provided for on the 65 per cent basis. Mr..
Cannon said the Senate had estimated the
amount that would be raised under the new
provisions at between 5000, 600 and 500, 600
on the personal tax, and considerably more
than million on the increase in the realty
tax.
Mr.. Cannon then went on to explain that
the saloon tax had been increased from
$500 to $500 by the Senate, and that the
House conferees had accepted this amount
dIIer muCn investigation. tie SAID ne con-
sidered this good place to raise the money
needed
The Bank Tax.
The bank tax al per cent of gross re-
ceipts was next explained. 1t was found,
he said that the banks Of the District had
practically never paid any tax, except, per-
haps tax on what real estate they might
have held. The Senate had proposed to
continue the tax on real estate, and this
had been consented to by the House con-
fereeS. The Senate then proposed to tax
the banks and trust companies per cent
on their gross receipts. This would yield
an annual revenue of $4,000. There are
four trust companies, Mr.. Cannon ex-
planned, with between four and five mil
lion dollars capital. Then there were the
banks with large capital, and many of
them with a large surplus; all of them, he
presumed, were making profits, as the
stock of some was worth 100 or 800 per
cent, while he estimated the average value
of the stock of the trust companies at 200
per cent. The House had insisted on this
tax being per cent, and Mr.. Cannon eX-
planned that this would yield something
like $4,000 year.
savings banks, which he said was 112 per
cent on net earnings. For this reason he
suggested that the whole tax might be de-
clared unconstitutional. Mr.. Cannon diff
fered with this view. and said that Congress
had plenary power over the matter of tax
alton in the District.
MIR. Grosvenor wanted to know if there
was any tax on money and credits, and
Mir. Cannon explained that there was not.
Condition of the District.
In a general statement of the financial