Evening star., 1921-10-14
NO PODSNAPPERY
FOR UNCLE SAM
District Tax Surplus Not a
Myth, BIT a Concrete Fact,
Raising a Distinct
Obligation.
NOT TO BE WAVED ASIDE
THEODORE w. MOVES.
Editorial Correspondence of The Star.l
III.
NOT TO BE WAVED ASIDE

For the following reasons Uncle
Sam will not be guilty of PodsnAp-
perry and wave out of existence sur
pluses which represent his just debts:
1T will violate the basic principle
or business honesty that prevails
among Individuals
THE offense will be the baser be-
cause Uncle Sam has recognized credit
Items h,e rs accruing from dencits created
Dy the operation of the half-and-half
law, and has reimbursed himself from
MS wards revenues with interest for
advances to meet these deficits. He
cannot. without obvious swindling in
consistency. refuse to recognize the
shape of surpluses of collected and
unexpended D. c. taxes.
3-uncle Sam has recognized the ex-
istence of District surpluses in the
Treasury by transferring from time to
time large amounts of such District
treasury surplus from the credit Of the
District to the United States to pay
ancient, alleged resurrected debts Of the
District. In making these subtractions
from the revenues of the District in the
Treasury the existence of such revenues
is, OF course, recognized, and the obliga-
tjon to repay the remainder of such ac-
cumuiated revenues after these de-
ductions have been made is admit
ted and confirmed. 1t is inconceiv-
able that Uncle Sam will recognize
this District surplus in the Treas
ury only when on some pretext he
takes some portion of it to himself.
The 6O-4O Surplus Precedent.
4-Cncle Sam has recognized the prin-
ciple of surpluses and deficits in ap-
plying the temporary 60-40 ratio in
District appropriations. There is no
consideration which makes equitable
m nf In nd
deficits under the 60-40 ratio in the
short period during which that ratio
has prevailed that does not in honor
able consistency and equity force a
ratio covering the years during which
that ratio was the law. The prece-
dent set by Uncle Sam in dealing with
surpluses and deficits arising under
the 60-40 ratio fits like the paper on
the wall the problem arising from the
surpluses and deficits created under
the operation of the $3.50 law.
Taking Candy From an Infant.
5-This act will offend more grossly
fonse a breach of trust, and this
breach of trust will be the baser.
more contemplate and more shame
less. less. because Uncle Sam: as trustee.
assets. and HIS ward IL iielpisSs ID re-.
sist any swindIe which his trustee
may De temptef to perpetrate. Un-
der the circumstances. for the trustee
to defraud the ward would be analo-
infant or pocketfng the pennies from
the .eyelids of a corpse.
In relation to his ward, the tax
paying capital community. Uncle Sam
protected from loss or risk by pos
session of all the assets and securi-
ties Of the nation-capital combination.
He controls absolutely every cent of
the money contributed for capital
and national. He has undivided and
despotic power to fix the amount of
local tax contribution, to decide by
what method of taxation it shall be
raised. TO collect it and to spend it.
The tax-paying capital community is
an incidental contributor under COM
pulsion: with no power or control
even of it's own tax money at any
stage and whose sole function in re-
status is to petition and to pay.
Under these conditions the nation
as benevolent despo, should and will
be just. considerate and sympathetic
to the last degree. Scrupulous fair
ness should and will be observed in
taxpayerH and no precaution to pro-
tect their equities and to prevent
abuse of the nations despotic power
will be viewed as excessive.
The nations obligation in respect
to the tax surplus is, under these con-
ditions. debt of honor. The obliga-
tion of nation to capital is not weak
ened but infinitely strengthened by
the fact that the impotent District
cannot enforce it.
Equitable Disposal OF Surplus.
There are four alternatives in dis
posing of the District surplus:
l. Apply it in accordance with the
half-and-half law, under which it was
accumulated. to meet neglected mu-
nicipal needs of the war time. which
neglects permitted it's accumulation.
Preferably. apply it in lump, duph-
Gated under the half-and-half law, to
provement which requires for eco
nomical and speedy completion a
much larger amount than can be
spared from current revenues after
providing for essential current main
tenance; like, for example, the in-
crease Of local water supply, an ur-
gent vital need, requiring millions to
meet 1t. Or use it to bring our, school
buildings up to date in number and
equipment: another need demanding
millions of immediate expenditure or
apply the accumulated unexpendsd
taxes to satisfy amy accumulated
unmet needs. Note recent reports
of the District Commissioners in which
they show the extent to which cur
rent needs. both of maintenance and
neglected during the time in which
this so-called surplus has been ac-
cumulating. The surplus merely rep
resents money that ought to have
been applied in the past as the Dis
trict's proportionate contribution, to-
ward meeting the needs to which the
Commissioners have called attention,
and failing to be thus applied in the
past it ought to be devoted now to
meet these accumulated unmet needs
which the law. equity. n trustees
honor and ordinary business honesty
demand.,
No Reputation. Even Partial.
2. Spend the surplus on the indi-
Gated municipal needs, with the gov
ernment., contributing. 40 per cent of
the total contribution. in accordance
with the \new temporary ratio OF
60-40, instead of SO per cent, in ac-
cordance with the half-and-half law,
which was In operation when 1t was
collected. which gave the authority
to collect it, and under whose terms
it was collected. To apply it in this
applying it ito money
raised before it was enacted and un-
der the terms of different law OIL
course. in equity and in accordance
with customary business fair play the
accounts of the half-and-half period
should be balanced and closed on the
la II -and-half principle. and the 60-40
ratio should be postponed in application
certainly until the date of its enact
ment; and there may be items in |
should in equity be even further post
poned. - .,-...-.. .s,--, i
;. The precise amount of the SUR