Evening star., 1921-04-26
$5, ,OOO,O 900 SURPLUS
OF D. c. DISCUSSED
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Vt " ". OtSNOSS6O
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account of the claims growing out OF
the Johnson investigation. total ap-
proximately $1,000. 900. all OF which mas
been paid to the United States oui
Of District surplus revenues slnce
1903
In view of the fact that Congress
specifically ordered the payments to
be made out of the surplus revenues
District officials do not see how Con
eress can now take the position that
the District surplus is merely matter
Of bookkeeping and is non-eXiStent
Morally, and I believe legally, also
the surplus revenues of the District OF
Columbia belong to the District OF
Columbia and not to the federal gov
ernment." said Senator Jones OF
Washington.
The Congress levied taxes upon the
District of Columbia for the purpose
of meeting the expenditures OF the
District said Senator Jones' fhe
people Of the District also are taxed
under the general laws applying 70
all citizens Of the United States Con-
gress does not levy other taxes dired-
ly upon the citizens of the District
for the upkeep Of the federal govern.
ment Yet if this surplus or Nstric'
revenues is taken away from the Dhs-
trict it will amount to a special taS
upon the people OF the District Tor
the benefit of the federal government
a tax which other citizens of the
United States do not have to pay.
Believes Taxes High Enough
Whether the people here pay high
enough taxes is not involved in TINS
question. II they do not pay enough
tax. the law should be amended. Per
sonally l think they do. But, under
fiscal relations between the federa!
government and the District OF Co
lumbia, in the past the federal gov
ernment has paid one-haIf ana the
District has paid the other haIf OF
the necessary expenditures Tor the
led upon the people of the Distr1c'
with that idea in view. The surplus
revenues of the District accrued While
the half-and-half law was in erect.
"To my mind this money oeionss
to the District and should be used Tor
the District Any other disposition
of it would be manifestly unjust
Senator Curtis Of Kansas, repubif-
oan whip, who had handled the Dis
trict appropriation bills in the Sen
ate in recent years. has been strong
ly in favor of using the S4,O0o,ooo
surplus revenues for the improvement
of the public schools of the District.
for purchase and equipment Of new
parks etc 1t is expected that an
effort will be made during the pres
ent session to make use of the sur
plus revenues for those purposes
Would Anoant to COnhscation-
District Engineer Commissioner
Kutz expressed surprise there could
be any disposition in Congress to
question the existence Of District
surplus. He said he did not believe
this could be the final attitude OF
Daniel J. Donovan, auditor for the
District, said that to deprive the Dis
trict of it's surplus fund, the exist
ence of which Congress has recog-
nized repeatedly by its own acts
would amount to an exercise Of arbi-
trary power which he did not believe
, Congress would for a moment con-
slider.
Mr.. Donovan said that the Distric
in all good faith has been making re
funds to the United States out of it:
surplus revenues and that he did no
believe the United States, having haf
the position that the surplus nj
longer exists.
To wipe out the surplus by consider
ing it non-existent would, in th'
opinion OF District officials generally
amount to confiscation. They do no
| believe Congress would thus appro
pirate moneys which all records SHOW
| have been paid in by District tax
payers and are held in the Unitet
States to the credit Of the District
Henry B. F. Macfariand. formel
District Commissioner and chairman
Of the joint citizens committee on tht
fiscal relations between the United
States and the District. issued z
statement before leaving for New
York today to the effect he was con-
vinced Congress would, upon examin.
ing it's own laws recognize the ex-
istence of the surplus. Nothing is bet.
ter settled under the law. said Mr.
Macfarland. that money collected
from District taxpayers stands upor
the books Of the Treasury as Distric
tax money received for District pur
poses until it is expended for sucl
purposes.