Evening star., 1921-04-26
$5,00,0DO SURPLUS
Of D. c. DISCUSSED
Tax Fund Not Generally Held
Bookkeeping Myth-Crea-
ton Explained.

The situation concerning the $5.-
100000 surplus supposed to be credit
ed to the District of Columbia was
discussed at the opening meeting Of
the House District committee today.
Chairman Focht, for the benefit Of
the new members and others inter-
ested in plans for permanent i'm
provements in the National Capital
which considered utilization of this
$5,000.000 surplus, said that in the
Interview granted exclusively to The
Star yesterday he was warning the
District Commissioners and the peo-
pie of the District that as chairman
of the District he had been given no.
tice not to encourage any legislation
that was predicted on this surplus.
Chairman Focht said that he was
nonexistent, and not available for
improvements. permanent or other
wise. and that new revenues must be
sought to pay for any of the proposed
improvements.
Asks Explanation OF Surplus.
Representative Underhill of Massa-
chusetts, a new republican member,
asked where the surplus came from,
and when he did not get a satisfac-
tory reply. said: III somebody asked
us about this. are We supposed to re-
ply that we don't know anything
about it?"
Representative Fitzgerald of Ohio,
another new republican member. for
the benefit of the new members eX-
planned how the surplus had been
rolled up by the citizens of the Dis
trict through taxation in excess of
the money which the federal govern
ment had matched. dollar for dollar,
with them under the contract made in
1878. He pointed out also that when
the fiscal proportion was changed to
60-40 the District had continued to
accumulate surplus which had now
reached approximately $4,000. 900.
Any doubt which Congress may have
as to the existence of a District sur
plus fund in the United States Treas
ury will be removed, District officials
believe, when Congress examines some
of it's own acts, which have recog-
nized specifically the existence of such
surplus.
Not Held Bookkeeping Myth.
1t developed today that Congress in
a large number of acts has recog-
nized that the surplus is reality and
not a bookkeeping myth by directing
that certain advances made by the
United States to the District should
be refunded out of the surplus.
The payments have been made. as
directed. Probably the most striking
illustration Of this is the refund made
to the United States on account of
certain advances to the District dur
ing the period 1903 to 1910. These
advances totaled more than $4,000
900, and were for certain extraordi-
nary improvements made during that
period, such as elimination of grade
~
erage disposal system, new filtra-
tion plant, etc.
Inasmuch as District revenues were
not sufficient to meet its share Of
the cost Of these improvements dur
ing the constructioodna On pe9lod, per congress S
make up the Districts share, direct
ing it should be reimbursed out of
District revenues, with interest at
per cent.
The District government not only
has refunded this amount. but on ac-
count of the advance it has paid to
the federal government an interest
charge amounting to something like
100000, the total payment having
been made out of its surplus funds.
This account was squared up back
in 1916.
Fund Generally Recognized.
More recent instances. however. are
available to show that Congress mas
the existence of a Dis
trict surplus. Something like two
million dollars have been paid out OF
the surplus, at the specific direction
Of Congress, to cover advances made
hv the United States to the District
since 1878, the last of these refunds
having been made in accordance with
the requirements of the 1920 District
act.
These payments, covering prior ad-
vances. were ordered as result Of the
Of the fiscal relations
between the District and federal gov
ernments made by the House District
committee under the chairmanship OF
p Ben Johnson.
The payments authorized in the 1920
act included a general
advance made by the United States of
s7b. 600, an advance Of $4,000 for
school needs and an advance Of $780,
R65 for building and eduipping a
school in Georgetown. These amounts
have been paid out Of the surplus
revenues.
Paying Since 1903.
Refunds made by the District to
the United States on account of ad-
vances for improvements between
1903 and 1910, with interest thereon.