Evening star., 1920-06-02
FINANCES OF D. c.
HANG IN BALANCE
OVER CONFERENCE
Disagreement on $3.50 Prin-
CipIe Blocks Action as Ad-
journment Nears.
CHAIRMAN DAVIS MAY ASK
EXTENDING RESOLUTION
Measure Would Prove Disastrous,
Is Belief; Commissioner Brown
low ReneWs Efforts.

Is Belief; Commissioner Brown
low Renews Efforts.
Eleventhhour efforts are being
made at the Capitol today to get the
fiscal affairs of the District in shape
before the adjournment Of Congress.
! The House and Senate conferees
having reached a disagreement yes
terday over the question of abolition
Of the half-and- principle as con-
tanned in the District appropriation
bill. this disagreement was reported
to both houses. 1t was accepted by
the Senate late yesterday, and will be
brought up for action in the House
late today. Immediately following ac-
tion in the House upon this report of
disagreement Chairman Davis of the
subcommittee of the House on Dis
trict appropriations intends to intro
duce a continuing resolution. which
would make the current appropria-
tions available for the next fiscal year
A continuing resolution. it is be-
lieved by many members Of Congress
and by District officials. would be
disastrous at this time because the
current appropriations are entirely
insufficient to meet the demands for
street repairs. for the enlargement of
school facilities and for increases in
the high cost of living If an efficient
service in the District is to be main
tanned.
Commissioner Brownlow was at the
Capitol today in conference with
Chairman Curtis of the Senate con-
propriations committee Of the senate,
House Leader Mondell, Chairntan
Good Of the House appropriations
commit ttaA and other leaders, Cum
missioner Bfownlow and leaders In
both Sons,a bFaashs' 1sis Of Gonsrssst are stu
reached on the District appropriation
bill which will allow the much needed
increased appropriations.
Road Repair Fund Sought.
Commissioner Brownlow also is en-
deavoring to have included in the
third deficiency bill an appropriation
Of $4,000 for repairs on suburban
roads which was not included in the
report of the House appropriations
committee.
House conferees on the District ap-
preparation bill feel that they have
made their last overtures to the SEN
ate conferees, but are ready to go into
conference again. The House conferees
yesterday made two proposals as a
temporary SOLUTION, oltner one OF
which would stand for but one year.
during which the question of abolish
ing the ha1f-and-half principle of
financing the National Capital, as con-
tanned in a separate legislative meas
ure. could be disposed Of
These two proposals were, first. to
make it a 60-40 division of payment
between the District and the federal
government. the District to pay so
per cent and the tax rate in the Dis
trict to be changed from 11s to per
cent. Second, TO leave the tax rate as
it is and to make the division Of pay
ments two to one. the District paying
s6 2-3 per cent and the federal gov
ernment 33 1-3 per cent Under this
proposal the deficit in the amount be-
tween that raised by the District taxes
and the two-thirds Of expenditures
would be paid out of the surplus fund
Of approximately $4,000. 900 which now
lies in the federal Treasury to the
credit of the District.
Tax Rate Split Conference.
The Senate conferees declined the
first proposition on the ground that
it would not consider any change in
the tax rate. The Senate copferees
were agreeable to a sixty-forty divi-
sion, with a I Y per cent tax rate as
at present. the deficit to be taken care
of out of the surplus to the credit
of the District in the national Treas
ury The Senate conferees are of the
rarily to fixing the proportion at two
to one it would establish a precedent
upon which a permanent fixing of the
proposition would be based. The Sen
ate conferees are averse to any
change in the tax rate at present,
fifty-hfty proportion is enough trou-
BILE at one time.
The House conferees point out that
with the District appropriation bill
carrying more than $4,000. 900, and
with other large appropriations for
total appropriation for the District
during the next fiscal year will be
approximately $20.000.o00 and the
share of the District under the exist
ing tax rate will be between nine and
ten millions.
The House conferees believe that tho
District should be forced to pay more
of the expense Of the national govern
ment, but are willing temporarily to
have any deficit made up from the funds
now held in the Treasury to the credit of
the District. The House conferees ex-
press themselves as feeling extremely
liberal toward the District. especially in
regards to the building of new schools.
Wait for House Conferees.
Inc S6QdL0 COuI6r068 on IQ6 MapeS
bin, which proposes to abolish the half
and-half principle. as 4 distinct legisla-
tive proposition. said today that they
are waiting some suggestion from the
House conferees as to when a. conference
should be held ChaiIman Mapes Of the
House conferees said that the House
conferees are willing to go into confer
ence at any time. In order that action
may not be delayed. he will have an
| informal conference this afternoon with
the chairman Of the Senate conferees.
Two amendments to the Senate provi-
sion as il now stands will be offered by
the Senate conferees. The first will be
| to eliminate the provision increasin the
| tax rate on intangible personal prop
erty. leaving the tax on such holdings
the same as at present.
| Another provision which the Senate
| conferees will insist on will be one
providing that At no time shall til e
tax rate in the District Of Columbia a
fall below ! y per cent Of the assessed