The Washington times., 1914-04-09

Entered at the postofnce at uashjugto,, D.
c. as tecond class mail ma.tsI
THURSDAY, APRIL Q. 1914.
THE NEWMAN PLAN.
1t is plain enough that any plan
Tor the division of the expenses of
"ashington's municipal government
hetween local property and the Fed
eral Treasury, must be more or less
arbitrary. The half-and-half plan is
altogether arbitrary. 1t may be as
nearly fair as another plan; but it
is arbitrary. The measure of its
fairness depends on the extent to
which Federal control of the District
imposes special expenses that, if
horne entirely by the local commun-
ity, would be extraordinary and ex-
cessive, as compared to the costs of
local government in other cities.
Commissioner Newman, the Presi-
dents personal representative on the
District Commission, end chairman
OF that body, has presented to the
President and given publicity to
plan for readjustment of these fiscal
relations. Briefly, he finds that ac-
cording to the assessors of the Dis
trict, the proportionate property
values held by the Federal Govern
ment on one side, and all local prop
erty owners, are as follows:
Federal property
improvements ................. 210O0, 900
Total NEUTRALITY-SUSPICIOUS.. 600 Oo0, 600
Locally-owned property
ana S2:5l5 0O0 010
improvements Observation-Disclosures. 262. .0OO, 600
Total OBSERVATION-DISCLOSURES. 5l7, Goa. .OOJ
On this basis, then, the national
contribution would be $50 for every
sol given by the local property own
ers. Instead of half-and-half plan.
we should have three-to-five plan.
Commissioner Newman, however.
indicates that he would exempt all i'm
provements in making this distribu-
lion ratio. In that case the proper
tionS to be supplied by the National
Government and local property
would be as nine by the Federal
Treasury, to 25.5 by local property.
That is, the Federal contribution
would be reduced to about one-fourth,
instead of one-half.
Let US see what are the effects of
having an arbitrary" division of
government expenses between the
Federal and the local revenues. We
have an arbitrary government. 1t
does things for Washington, and it
Goes things to Washington, with
out reference to local public opinion
or desires. Likewise, it too frequent
ly fails to Go things for the town
that local public opinion demands.
In other words, the mere considera-
tion of the tax rate does not give
fair idea Of what it costs the people
81 Washington to be the Federal
Capital.
For instance, thcre is not another
town in the country where the excise
law would be reorganized in the
weeping way it was done here, with
out consideration o. the effect that
reorganization would have on the
iocal revenues. Congress does that |
= ort Of thing to Washington; the rep
esentatiVes of local interest, acting
for the local community and reflect /,
ing itS desires do such things in 9TH !
r cities. The new excise law will re- !
"rce the municipal revenue from !
lrsffic subject to the excise. That de-
tciency must be made up from some
source. 1t is not a question whether |
The new excise law is good law, or |
I better one than the old one. We !
are not discussing that. In this in
.tance, as in many others, the change
Ioes have a marked effect, not vet !
tully developed, on the fiscal status
IF the community. Yet the change
was made without particular consid-
{ ration of the effect it would have in .
that direction. Whether the people
# Washington would have made that
change, ard sacrificed a portion of |
he revenues from this source, if the
community had had to stand on its
OWN revenue bottom and had had the
mower to make its own fiscal pro-
,rram, is question which is typical
If long list of others as TO which
Washington's position is radically
different from the position of ordi-
nary cities.
But this effect which its peculiar
form If government has on the peo-
pie of the Capital, IS not 20 be OBJ
ervcd alone in the immediate de-
tails Of revenue and taxation pro-
grams Take the annual tax that
he public service corporations levy
on the people who must buy gas,
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