Evening star., 1920-12-18
Rate by Mail-Payable In Advance.
MarYland and Yleelnla.
Financial Fair Play.

GIu00C16A G8A Z NY
The House, through the District ap.
preparations bill, proposes q continu-
snce during 1S31-1S2s Of the fiscal re-
lation between the nation and capital
which Congress at the last session
through compromise enacted tempo.
rarily and tentatively for 1s2o-1s21.
BY this compromise the Senate re.
tained the principle of a fixed definite
ratio of contribution toward capital
upbuilding, the House secured
change of this definite ratio from
$3.50 to 60-40, and the two houses
agreed upon sliding scale tax rate
On realty and tangible personally with
11s per cent minimum and per cent
maximum.
If the Senate acts this session as it
did last session it will state as its origi-
nal counter propositions: ID Retention
of the $3.50 ratio; (2) repeal Of law
limiting Commissioners estimates; 80
enactment of an equitable law dis
posing of or preventing tax surpluses
aud deficits, past and future: and a.
9. sliding scale tax rate on realty and
tangible personally which shall take
into account accumulated tax sur
pluses of past years.
The first issue between the two
houses will thus be that of ratio.
whether $3.50. 55-45 or 60-40.
The second seeming issue over re.
peal of the law restricting the Com
missioners' estimates is no issue at all.
Nobody has an interest in retaining
It,. neither the advocates Of the $3.50
ratio, the 60-40 ratio or the 1000 ratio
of the Mapes bill. Inertia is all that
keeps alive a law whose sole effect is
TO prevent the Commissioners from
submitting to the consideration Of
Congress the actual needs of the Dis.
triet. This repeal should be enacted
through quick and ready agreement in
conference on the appropriations bill.
The third seeming issue over the en-
Aetment of law equitably disposing
OF or preventing surpluses and deficits
ought not to remain an issue. Such
. law is as essential and as wise
yhether the ratio Of contribution is
$3.50 or 60-4o. whenever a sliding scale
tax rate Is relied upon. The Commits
sioners can never guess in advance
exactly what tax rate must be applied
10 raise precisely either so per cent
or SO per cent Of the appropriations.
They are sure to guess either too high
or too low. and the effect Of the sur
pluses law that Is proposed by the
Senate is to prevent either a surplus
or deficit from embarrassing the
District by carrying it over either as
q credit or a debit into the succeeding
year or years
This provision so worded as to ap.
ply to any ratio of capital contribu-
tion between nation and capital COM
munity would read as follows:
s's'iIereafter the Secretary of the Treas
Ury is authorized and directed to ad-
vance. on the requisition of the Com
naissioners of the District of Columbia,
Ian, out Of any moneys in the Treasury
OF the United States not otherwise ap-
'pfcpriated, such sums as may be nee
essary from time to time to meet the
general expenses Of said District. as
authorized by Congress. and to reim-
burse the Treasury for the portion of
sad advances payable by the District
OF Columbia out Of the taxes and reve-
nues collected for the support Of the
government thereof. If in any year the
taxes and revenues Of the District of
Columbia shall be insufficient to reim-
berse the Treasury for the portion of
said advance payable by the District of
Cnlni1bia. such unpaid advance shall be
reimbursed to said Treasury out Of the
revenues of the District OF Columbia of
ue succeeding year or years II in any
.ytar the taxes and revenues of the Dis
trsct of Columbia shall be more than
sufficient to reimburse the Treasury for
The portion of said advances payable by
the District Of Columbia, such surplus
cf-revenue and all unexpended surpluses
Of District revenue shown BY the re-
pnrts of said Commissioners to have
been heretofore accumulated and de-
posted m the Treasury Of the United
States shall be held In the Treasury as
trust fund for the benefit of said Dis
trict and be available as revenue of the
District of Columbia for meeting the
portion of appropriations payable by
said District in the succeeding year or
years
The two houses ought to find no
difficulty in agreeing to this legislative
proposition, so far as it applies to
future surpluses and deficits and they
ought to work out promptly. to meet
the many and great accumulated un-
met municipal needs coming over from
the wartime the wisest and fairest way
of utilizing for the Districts benefit
the tax surpiuses that have accu.
nnulated on the 60-40 ratio during
.1920-1921. and under the half-and half
law in previous years. including the
Mar time.
This equitable legislation. rendering
available as District revenue some ten
millions Of dollars. is peculiarly help
ful and necessary at this particular
tisse when the Districts needs for ad.
-ditionaI school buildings. increased
wafer supply and other great perma-
,hcnt improvements demand the ex.
penditure Of many millions of dollars
+. more than can be supplied from cur.
rent tax revenues, and must be met
either by utilizing the surplus funds
of the past or by borrowing through
bond issue or Treasury advance.
The sliding scale tax rate provision
IL it is enlarged to take into account
hast tax surpluses will read as fol.
lows:
Hereafter the per centum Of ap.
proved estimates to be levied and as.
sessed under the act of June IL, 1873.
upon the taxable property and priv
ileSes in said District shall be raised
taxation on realty and tangible per-
Sonaf property as the Commissioners