The Washington herald., 1922-04-28
Rep. Davis Says Absurd
Situation Makes Funds
Necessary.
MERCHANTS PROBE
NEW FISCAL BILL
Stephan Cries Tyranny
Blames Lack of Vote
In City.

with members of Congress en-
deavoring to justify their action In
adding s3,OOO.OOO tax burden to the
District and citizens expressing in
dignation over the action. especially
in view of their unfranchised and
therefore helpless condition. WASH
ington last night was still dazed
over the bombshell exploded when
the terms of the conference report
on the District appropriation bill Tor
1928 was made public.
The report has been agreed to
by the Senate and will pc presented
to the House today by Representa-
tive Charles H. Davis. of Mime
sofa.
SAYS CITY IMPOSED ON subhed9
The city of Washington has been
imposed on more than once. but the
new conditions of taxation which are
proposed through the terms of the
conference report ON the District al
preparation bill is just another evil
dence of imposition on an unfran-
ch,sed and therefore defenseless peo-
pIe," said Gen Anton stephan, pres
ident Of the Merchant and Manu-
facturers' Association, after reading
he terms of the report.
Il have ISSUED a call for meet
ing Of the board of governors OF the
Merchants and Manufacturers AS
sOciation for next Tuesday so that
ihe representatives of the twenty-slX
differen liEes OF business trat COM
pose our board of governors VIII nave
an opportunity to voice what L am
sure every citizen of Washington
feels. a sense of having been out
ragged by this proposal.
Coming at a time when most
sincere effort is being made 70
solve the greatest economic prop
lem that business men and the peo-
pIe of every character and KIND
have had to face; likewise at
time when a most earnest effort is
being made to solve the housing
problem. a matter of shelter for
human beings, the proposal is not
only unwise. but eminently sub
versive of a sense Of good order.
1t tends to a situation where taxa
ton is indeed tyranny.
Names Committee to Probe.
We as a people have no voice
whatsoever in the determination of
this and other questions, directly
or indirectly.
1T could not come at more
unfavorable time for any of US, and
since there seems to be no essen
tiaI reason other than by legisla-
tion to arbitrarily increase the cost
Of living. 1 am sure the business
men of the National Capital will
desire, and they will certainly be
given an opportunity, to express
sheir sentiments and to transmit
the same to every member Of Con-
gress."
President Stephan has named a
committee to make a study Of the
situation and be prepared to sub
nit a recommendation at the meet
ing of the board of governors next
Tuesday.
The committee consists of E. -.
Graham, r. P. Andrews, NJ. A.
Leese. General Counsel NJ D. Ros-
enberg and Secretary Charles j.
Columbus.
Davis Defends Measure.
Far from being unjust. the new
fiscal plan accepted in conference
is a move toward remedying of
current abuses" according to Rep
resentative Davis.
by reason OF its operations the
District is in debt to the govern
ment constantly" Davis declared
First, because it borrows money
for the year in anticipation of its
taxes. and, second. because it pays
no interest on its debt"
The government, Davis says. has
been doing too much more than its
share in the upkeep of the Dis
trict. Tt has b. said that the
government owns half the property
Of the city. AS a matter of fact,
il owns no more than 1-25 of the
property value of the City of Wash
ington.
The government pays all its own
expenses; upkeep. charwoen, its own
police force, and it pays half the
District expenses in addition. II
pays a part even of the expense OF
the police department, which the
District is supposed to support en-
tirely. 1t has been an absurd situa-
tion."
The object OF the fiscal plan, Davis
explained, is to put the District
upon a cash basis. by which it will
not be in a position of being forced
to borrow cnstantly firm the gv-
ernment. At the end Of the sug-
gested hve years. the District
should be in a much better financial
condition, besides paying a fairer
part of its own expenses
The government will never en-
tertain a ratio below the $3.50 fig
ure, and the District Is fortunate
il was not set higher. Davis de-
cIared He anticipates no more
trouble in the passage of the meas
ure than a delay of several days
caused by criticism within the city.
Under the report agreed to yes
to-day, the District appropriation
Liu Is increased about s2,240,O0o
ever the amount provided in the
IEouse bill, making a nestimated
+otaI Of about s22.639.sSo.
The report agrees that the exist
i,- ns-4O plan under which the Dis
,rict is now operating shall be con-
Tbe District must be on a cash
,aving basis by June 30. 1927. say
,hs conferees and to that end the
commissioners are instructed to FIX
a. tax rate for he next five years
~, enough additional revenue will
raised to effect this cash paying
sian In this way. disbursements
iii not be made from the Treasury.
" heing understood that the Treas
-, is 10 be reimbursed with funds
Srom the District later on.