Evening star., 1921-01-19
District Fiscal Legislation.

gratitude, may lead to t''e equitable
settlement hy Congr" e OF t'e fisra
rela tions NJ nation and c;Ip!rS'.
Both tulr :eS III Congress p 'npnse -
definite and fixed ~ ito Of r''opo"tio:'
ate contribution Tor "a.ia; r"intn
nance and upbu',ding hy nntinn arG
capital community. TIE fIM'se pr"
poses the $40 ratio. Temporarily "n
erative during 1920-1. TIE Senate pro
poses the old and legal ratio Of op-a2.
to which the relation automatically
reverts at the end of the fiscal yea'
19aO-1 The exact ratio 10 prevail dur
ing 1912. or for the f':ture. will be
determined in conference. The Dis
trict has presented fully Tire facts. fig
ures ard reasoning which sustain the
$3.50 ratio to the House District COM
mittee and to the Senate appropria-
tions committee. 1t appreciates ttat
the conferees of both houses under
stand the situation thoroughly and it
has confidence in their fairness. 1t ac-
cepts i'm advance the decision Of this
tribunal concerning the ratio. whether
it be $3.50 Or 60-40. or compromise
ratio of 55-45.
The second issue is over the Jones
amendment. which proposes a system
of financing the District tat prevents
troublesome surpluses or deficits. that
conforms the law approximately to
actual practice. that automatically
does away with controversy over tax
rates, and that safeguards the equities
of both nation and capital.
This system is operative no matter
what ratio Of proportionate contribu-
tinn is finally adopted.
Under it Congress appropriates the
Commissioners estimates so far as 1t
approves them and with slch rnodifi'
cations and additions as it thinks wise
to make The appropriation money Is
advanced from the Treasury. The ma
ton rcimburses itself from District
tax revenues to the extent Of the per-
centage Of the total appropriation
which the District is required by law
to pay. whether it be SO. SIS or so per
cent.
The Commissioners in order to raise
the Districts percentage OF the ap-
preparation are to AK tax-rate upon
realty and tangible personality which
with other tax-revenues of the Dis
trict viii aggregate the 'ount OF
the Districts contribution. OF course
the tax.revenue thus raised viii never
be precisely the amount Of the Dis
trict's so or go per cent Of the total
contribution. II the tax-revenue is less
than that amount. the deficit goes over
for payment from the revenues OF the
succeeding year or years. If the tax
money raised exceeds the Districts
so or so per cent Of the total appro-
priation. the surplus goes over to the
Districts credit. to be used as District
tax-revenue in the succeeding year or
years.
Thus the nation IL assured Of the
collection from the District Of the full
percentage Of the total appropriation
which the law requires the District
each year to pay. and the Districts
tax payers are assured that all Of the
tax-money collected from them will at
some time be applied for the capitals
benefit solely upon the Districts share
OF capital expenditure that 10 hxed
by law.
There ought to b no controversy
whatever in conference over this Is.
sue. There Is no real issue between
the conferees In this matter. This
wholesome provision should be enact
Cd by unanimous consent. whatever
differences may develop over figures
Of ratio or over wise and fair d1spo-
sition Of past tax surpluses.
The third issue concerns the dispo-
sition Of tho so-called ''surplus" OF
local tax money left unexpended BY
Congress in viclation Of the halfand.
half law Of 1878. The Dtstrict's con.
tention II that this surplus. accumu-
Lated through neglect Of the capitals
municipal needs in war time and in
technical violation Of half-And-half
law. should. in accordance with the
spirit and letter Of the law and with
equity. be applied now on the half-and-
half principle 70 help to meet the very
needs neglect Of which In war time
caused the surplus to accumulate.
The opposing contention has been that
obligation TO account for this surplus
in accordance with the halfand-half
Law. or in any other way. should be re-
pudiated: that this money. cxacted in
taxes from the people Of tho District
while the half and half law was In ef-
feet, and left unexpended under that
law solely through the failure of Con.
gress to appropriate. sfaould be con-
fiscated by tho nation. and not DOL
lar Of it be devoted to the only pur.
pose for which 1t could lawfully be
exaeted by tho tax-collector from the
capital community,
Senator Curtis has proposed. and tho
appropriations committee and the Sen.
ats have approved. that part Of this &c.
cumulated District tax money shall be
used ON the half and half basis to meet
this year some Of tho accumulated
unmet needs Of the wartime (espe-
cially In respect to the schools) which
cannot be INST from current revenues.
Tho equities are % clear In respect
to this issue that the District IL oon-
hdent q IN agreement Of the con-
feress in respect to 1t that win be fair.