Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-05-17
DISTRICT MAY LOSE
$5|)D,0DO|NCO
Amendment to Appropriation
Bill Threatens Serious
Cut in Revenue.

A provision in amendment No.
of the District appropriation bill as il
came out of conference will deprive
the city government Of approximately
100000 in revenue during the next
fiscal year if it becomes a law.
The language referred to is as fol-
lows: 80 and that after June
80, 1922. any revenue derived from
any activity or source whatever, in
Guiding motor vehicle licenses, not
otherwise herein disposed Of, which
activity or source of revenue is ap-
propriated for by both the United
States and the District of Columbia,
shall be divided between the two in
the same proportion that each has
contributed thereto"
Many classes of revenue. such as
the fees collected by the building in
spector, the surveyor, the electrical
engineer and other city officials. are
now deposited in the Treasury. 60
per cent to the credit of the District
and 40 per cent to the United States.
May Lose Large Sum.
ButLthere are a dozen other forms
of revenue which now go to the
Treasury wholly to the credit of the
District of Columbia. Maj. Daniel
J. Donovan. auditor for the District,
stated today that if the language
quoted above becomes law these fees
and licenses also will have to be
divided 600 with the federal gov
eminent.
Here are the items which the city
now gets in full, but which would
have to be divided under the new
bill: Motor vehicle licenses netted
s257.o3s last year. Police Court fines.
dog tags. s22.s57: elevator permits
and engineers licenses. 1889: in
surance licenses, $27.l13: miscel-
laneous business licenses. s144,202:
market rents. s26,211: insurance
taxes. s1S1.75s. and motor vehicle
operator permits, $40.960.
Those items last year amounted to
S1.O22.931. For the next fiscal year
Maj. Donovan figures. they will total
100000. AS the law stands today
the District would get credit for all
of this money. AS the new bill is
worded the city would have to credit
Uncle Sam with 40 per cent. which
would be s4S0.000.
Theory Back OF Proposal.
Apparently. the theory in back OF
the proposed change is that since the
federal government contributes 40
per cent of the appropriations the
offices which gather in these revenues
the United States should take the
same proportion of those revenues.
The unfairness of this reasoning
is pointed out by Maj. Donovan in
the case of motor vehicle tags. In
this instance an appropriation OF
$17.500 is made for the purchase OF
tags. the sale of which produces
$500
The auditor does not believe it car
logically be commended that so large
an item of revenue is directly the
product of so small an appropriation
on automobile tags is clearly &
means of raising District revenue
Donovan believes it would be fairel
to let the District pay the whole cos
of the tags than to be required tc
credit the United States with 40 pei
cent of the proceeds of their sale.
Mai. Donovan's Claims.
The only item of revenue in the iis
6NSh W MAJ. bOHoNdT
feels the United States Is entitled to 6
part is the rental received from thu
Eastern, Western, Georgetown ant
wholesale produce markets The thret
| markets first named belonged to tn.
city before the formation Of the presen
form Of government. While the fedora
government paid no part Of the cost o.
their construction, it paid so per cent o.
| the cost Of upkeep from 1873 to 1921
| and since then, 40 per cent The city
however, has always received full credi
| for the rents. In the case Of the produc,
market, the United States has a so PEI
cent investment. The auditor is of tn,
opinion that Uncle Sam should ge
credit for part Of these rents.
There are two other clauses in tn,
bill as reported by the conferees t.
| which little attention has been paid, bu
which will mean more revenue for Tn
Gle Sam and less for the District
One phrase states that ANY and al
! revenue derived from property no
owned wholly or in part by the District
as between the United States and tn
, District, shall be the property Of tn,
limited States. ."
| United States Would Take 2O,467.
! Auditor Donovan pointed out tina
/ the waterfront property. title t,
which rests with the United States