Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-04-25
Fiscal Relations Chief Issue
to Be Settled in Measure
Involving S23, 900, 900.
ACCOUNT WITH TREASURY
is STRONGLY ADVOCATED
New Plan Would Build Up Large
Surplus-Many Items Al
ready Adopted.
BY WILL p. KENNEDY.

The conferees for the House and
the Senate at meeting this after
noon are hopeful of reaching a full
agreement on the District appropria-
tion bill for the fiscal year 1923, car
rying an appropriation of more than
S23,000,O00.
The principal proposal under dis
cussion this afternoon is the fiscal
Ta'ations between the federal and
Sict governments. The PROPOSE
IioE rhich is expected to be agreed
10 wSuid for the first time open an
account in the name of the District
OF Columbia in the Treasury Depart
ment.
The question of an accumulated
surplus to the credit of the District.
amounting to S4,067,0O0, which has
resulted from more money being
paid in taxes in the District than
was expended under the $3.50 or
anent, will probably be definitely set
tied at this time. The proposal under
consideration contempiateS recognlZ-
ing this surplus, which appears on
the books of the District govern :
mentAnd properly so, majority OF
the conferees contend-while it does
not show on any account In the
United States Treasury.
Would Build Up Surplus.
The argument among the conferees
points out that while during the last
few days of one fiscal year and the
first few days of the next fiscal year
a balance to the credit OF the Dis
trict was shown, as a matter of fact
This balance is exhausted by the 18th
or Goth of each July, so that while
the District government draws out
every two weeks approximately ST.
100000 on warrants from the Treas
ury, the United States Treasury Is
really carrying the District govern
ment on overdrafts for eleven months In
This was admitted by Daniel J.
Donovan, District auditor, who has
, been in conference with the confer
ees.
proposed that this accumulated sur
omen an account and deposited to the
Aadit of the District of Columbia
and that hereafter the District Com
missioners shall levy taxes sufficient
TO raise necessary funds to meet the
Districts 60 per cent share Of the
expenses of the National Capital and
something more, so that at the end
of a period of years this accumulated
surplus shall amount to enough 10
meet the Districts so per cent share
1or the next following year
w6uld Put ID. c. ON Cash Basis.
In other words, the fiscal paragraph
in the new bill would provide for put
making the 60-40 per cent of contri-
button by the District and federal
governments, permanent. 1t would
also leave the District Commissioners
absolutely free to set the tax rate with
no minimum and no maximum.
sidering whether this increased tax
levy should extend over a period of
five or ten years. Auditor Donovan
when in conference with the commit
tee was asked if this plan to extend
the increase over period of years
was not preferable than to requiring
tho District to raise two years taxes at
one time. 1t was pointed out in the
conference that practically every. where
else in the country except in the Dis
10 pay the expenses of government
for the following year, while in the
District. taxes are not collected until
the end Of the fiscal year.
The majority Of the conferees have
expressed a willingness to recognize
| Cleus of trust fund, so that as war
rants are drawn upon the Treasury
twice a month by the District gov
ernment they will be drawing out
money that actually Is to the credit
OF the District, instead Of being over
drafts carried by the federal Treasury
without interest charges.
Conduit Item Agreed On.
The conferees have positively
agreed on the item for construction
Of a new conduit from Great Falls to
give the District and Uncle Sans
workshops an adequate and safe wa
ter supply. They recognize that the
whole project will ultiHately cost
Ss,700,000. The Senate amendment to
which the House conferees are will
ing to agree provides that $1.500,000
shall be made Immediately available
and authorizes the Secretary Of War
to contract for material and supplies
TO the extent Of an additional $1,450,
900.
The conferees have agreed as pre-
riously reported in The Star, to all
the new school buildings put into
the District appropriation bill by the
Senate. except $4,000 for building
and land for the Phillips School The
OtneTS anu lduu 1OI
Armstrong Manual Training School
f150.000: building and land for Love.
Joy School, $4,000; land for Dunbar
High School. $4,000. and land foI
Fenley School. $4,000:
For street repairs, all Of the streets
nut into the bill by the Senate have
been approved by the conferees ex-
cept Connecticut avenue, and pos
eibly one minor street.
Hesranxs ON Home Ouuosea.
In regard to the controversy that
has arisen over the location of the
home for Feeble Minded. the con.
ferees have taken a firm stand against
any further hearing on the subject.
They insist that hearings have been
held by tho House committee and by
the Senate committee. and that it is
not in accordance with the usual
cusom to hold such hearings before
conference committees. and that II
they open up for q hearing on this
subject the conference report on the
District appropriation bill, would
probably be held up for months.
The agreement Of the conferees Is
TO locate the homo for feeble minded
on the 200-acre tract at Blue Plains
and appropriate $25o.000 for build
9ng. This building. contrary to pub
lished reports. 10 separate from the
building of the. Home for Aged and
Continued on Page ?, Column ~