Evening star., 1921-12-22
Rate by Mail-Payable in Advance
Maryland and Virginia.
A Startling Transformation.


The Caraway amendment to the
Jones bill concerning the Districts
fiscal relations exactly reversed every
vital principle embodied in the Jones
bill. The amended or substitute bill
stood for everything that the original
Jones bill had fought, and absolutely
destroyed practically everything for
which the original bill. had contended.
The Transformation of DIR. Jekyll into
Mr.. Hyde was not more abrupt and
more startling.
The original Jones bill represented
the Senate's traditional intiexible stand
in support of a definite proportionate
contribution arrangement between ma
fion and capital community for capital
maintenance and upbuilding. All of
its wise and wholesome provisions
were based upon some definite pro-
portionate contribution system: not
necessarily upon the half-and-half
plan. but upon some definite ratio,
whether $3.50 (which the Jones bill
name6 or 1850 or 1885.
The original Jones bill provided in
substance that Congress should appro-
pirate in satisfaction of District needs,
as submitted in the Commissioners
estimates, whatever amount it deems
wise and necessary, advancing from
the Treasury the needed funds for
capital maintenance and development.
and reimbursing itself from local tax
alton in the amount of the Districts
proportionate part go per cent or 45.
SIS or 60 per cent? of the total appro-
l,riation: that the District should sraise
its part of the capital development
fund by applying each year to the
fixed standard of assessment tax
rate on realty and tangible per-
Sonalty, which, in connection with
other tax revenues and accumulated
surpluses of unexpended District faxes
in past years. should approximate the
capitals obligations for the current
year; that there should be in this
sliding scale no decrease of tax rate
below the present basis-11a per cent
thus reducing to a minimum the pos
sibility of a deficit: that any deficit
which might occur should he charged
against and reimbursed from the Dis
trict revenue of the succeeding year.
and that any surplus of uneXpended
District taxes should go over to be
expended for the capitals benefit as
District revenue in some future Year.
The rounded. constructive lesisl,t
ton which the original Jones bill pro-
posed made the law eonforul4 to the
present practice of financing the Dis
trict and improved both law and prac-
tee. 1t solved the troublesome prob
lem Of District deficits and surpluses.
by sending either deficit or surplus
automatically either as a debit or a
credit over into the financing and rev
enue raising a. the succeeding year ."r
years.
The Senate repeatedly and over
whelmingly adopted this plan. both "a;
a substitute for the House Mapes bill
and as the Senate's amendment to tfs
District Appropriation bill. The very
day before adoption 10y the Senate Of
the Caraway substitute. which reduces
to zero the national promise Of def
mite contributions for capital develop
ment, the Senate had refused to re-
duce the nations definite contribution
from so per cent to 40 per cent.
What does the Caraway substitute
for the Jones bill provide?
First-That the general expenses of
the District shall be chargeable to and
paid out of the Treasury of the United
States. This one provision is in ac-
cord with the letter, spirit and effect
Of the original Jones bill, and Of the
existing substantive law of 1873. In
all three the primary responsibility is
recognized as resting upon the United
States, which is protected from loss
or risk by possession of all the assets
and securities of capital as well as
nation, which controls absolutely
every cent of the money contributed
for capital maintenance by both par
ties, local and national, and which has
F1lndivided and despotic power to fix the
amount Of local tax contribution. to
decide by what method of taxation it
shall be collected, to collect it and to
spend it. From the beginning the ma
tion's obligation in respect to capital
maintenance and upbullding has been
Fin equity and on principle primary,
dominating and Qike its power to gov
,ern) exclusive and supreme.
Second-The substitute bill provides
that the District tax rate shall be fair
IAnd reasonable. Congress is the sole
Judge Of what is reasonable. and the
effect of this provision is to say that
Congress, without the check of any
pledge of proportionate contribution,
may tax the District as it pleases.
The District tax revenues "shan be
covered into the Treasury, of the
limited States as miscellaneous reve-
nue." This provision nationalizes the
local tax revenue, and sewers all rela-
.tion between the Districts tax money
pand definite contribution for capital
by the nation. This pro-
vision which, in connection with the
lrepealing clause, withdraws all def
mite promise of national contribution
FOR capital maintenance and, perhaps
1lnconstituhonally, converts our local
tax money into national revenue is in
sharp, radical contrast with the origi-
snal Jones bill, which provides that all
District tax money, when deposited