Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-10
The Capital and the Nation

contradiction Of the contention that
Congress had in effect already over
thrown the definite proportion prin-
ciple, and, without repeating or mpdi-
flying the law Of 1873, had repudiated
in effect its definite obligation under
the law Of 1873. But without such
confessed reputation it is impossible
to confiscate the Districts surplus Of
unexpended taxes under the law Of
1878.
There are four alternatives in dis
posing OF the District surplus:
1. Apply It in accordance with the
half-and.half law under which 1t was
accumulated to meet neglected munich
pal needs Of the war time, which neg
lects permitted its accumulation. Pref
erably, apply it in lump. duplicated
under the half-and-half law, to some
great and urgent permanent improve
ment which requires for economical
and speedy completion a much larger
amount than can be spared from cur
rent revenues after providing for es-
sential current maintenance; like, for
example, the increase Of local water
supply, an urgent, vital need, requir-
ing millions to meet it. Or use it to
bring our school buildings up to date
in number and equipment and their
need demanding millions Of immediate
expenditure. This is the method of
disposition which the law, equity, a
trustees honor and ordinary business
honesty demand.
2. Spend the surplus on the indi-
Gated municipal needs, with the gov
eminent contributing 40 per cent Of
the total contribution, in accordance
with the new ratio Of 60-40 instead Of
80 per cent, in accordance with the
half+and-haf law. which was in opera
ton when it was collected, which gave
the authority to collect it. and under
whose terms it was collected. To ap-
ply 1t in this way would be to make
the 6c-40 ratio retroactive, applying
it to money raised before it was en-
acted and under the terms Of a diff
ferent law. OF course. in equity and
in accordance with customary bust
ness fair play the accounts Of the
alf-and.half period should be bal
anced and closed on the half-and-half
principle, and the 60.4Q ratio should be
postponed In application certainly un-
til the date Of its enactment; and there
may be items in respect to which its
application should in equity be even
further postponed.
3. The precise amount Of the sur
plus Of unexpended taxes may be
spent for the Districts benefit without
doubling under the half-and-half law.
This course involves only half confis-
cation. The nation regulates In respect
to these taxes raised under the half
and.half law its obligation Of 1878 and
confiscates for its own benefit the dol
lars duplicating this taxation which
the law Of 1873 requires it to pay.
Uncle Sam will not connscats the Dis.
trict revenue under the law Of 1878.
either wholly or In part
4. The fourth alternative. which is
inconcAivable and no alternative at
all. is that Uncle Sam should conhscate
the whole amount Of District revenue,
saying that after he collected it under
the half-and.hah law and failed to
appropriate It Immediately under that
law he permitted It through neglect
OF his agents to be covered into the
Treasury a. miscellaneous receipts, SO
that 1t is lost entirely to the District.
It is inconceivahle that Uncle Sam
should take advantage Of his own
wrong and profit through reputation,
confiscation and breach Of trust as =
dishonest guardian. Uncle Sam win
never permit himself to be put In this
attitude toward his ward.
Congress postponed final decision
concerning disposition Of surplus until
another time. adopting none Of the
alternatives. 1t contradicted, however,
the theory that definite proportionate
contribution had been eliminated in
effect. Only on this theory can the
surplus be confiscated.