Evening star., 1922-05-14
Rate by NIail-Payable in Advance.
MARYLAND and Virginia.
Amend Amendment One Now.

Amend Amendment One Now.
The explanation by Senator Phipps
OF the purpose Of the Senate con-
ferees in proposing or asserting to the
new fiscal legislation Is illuminating.
and should dissipate any mtsunder-
standing which may exist as to the in
tent Of these conferees.
The capital community, noting
gratefully the vigor and success with
which these conferees have thrown
themselves into the difficult and in
adequately appreciated task of appro-
priating literally and intelligently.
with wise economy and practical ef'
ficiency, to meet the capitals urgent
and vital municipal needs, has not as
a rule, however, misunderstood the
sympathetic and public-spirited pur-
pose and the American spirit Of fair
play which have animated the Senate
conferees.
Divergences of opinion have arisen
not concerning the intent Of the con-
ferees, but concerning the eject on
the Districts welfare Of the drastic
new legislation, with which the capi'
tai is without warning threatened by
the legislative rider attached irregu-
larly to the District appropriations
bill.
Discussion of amendment l has
developed its faults in substance and
in method of enactment. Broadly its
main demerit is in its apparent pro-
posal that realty taxes shall be In
creased a possible so per cent, and
that the intangibles tax shall be in
creased certainly IS % per cent In
order that the taxpayers OF 1927
may. after paying 60 per cent Of cur
rent expenditures, accumulate sur.
plus by the beginning Of the fiscal
year 1928, which will enable the Dis.
trict to pay in advance ten months
expenditures of 1928 until the taxes
for 1898. collected near the end Of the
year, begin to flow in.
Elaborate planning. for building up
this new surplus implied denial Of the
existence of our present five-mtllion
accumulated tax surplus. AS no
change in the date of tax payments
was suggested in the proposed law
it was implied that the taxes Of 1928
would be paid, as at present, in q
lump near the end Of the fiscal year.
II these two implications were &C.
curate the burden was imposed upon
the taxpayers Of the next five years OF
accumulating enough annual surplus
SO that at the end Of fiscal year 1927
the District would have in hand its
share of expenditures for nearly the
whole of the fiscal year 1928. Unoffi-
cial estimates of the amount Of this
compulsory surplus required the tax.
payers Of the next five years, after
paying heavy current expenses, to
plan to raise altruistically and super
fiuously for all.powerful Uncle Sans
fiscal protection between $500. 900
and $4,000. 900 in each year.
It Is now authoritatively explained,
however, that the proposed new law,
thus construed, is misunderstood or
misinterpreted; that it does not in
volve the raising Of large additional
sums Of money as has been erroneous
ly claimed: that change in the dates
Of tax collection is contemplated, and
that il this change is made the Dis.
trict will not need to raise more than
$1,25o. 900 per year for the next five
years over and above current expendi-
lures, and that If the Districts exist
ing hve-million tax surplus Is not
eliminated by future counter claims
on the part Of the United States, to
be considered by a joint congressional
committee, it will not be necessary to
raise any new surplus revenue what
ever.
Amendment 1, as now worded,
makes no suggestion Of change Of
tax-collection date, and on its face OBJ
viously provides new surplus to
meet in advance District expendi-
lures for ten months Of 1898. II ST.
25o.ooo annual surplus for i've years
will be required to meet the Districts
share Of capital expenditures for the
first three or four months Of 1928, un-
til one-half Of the Districts tax con-
tribution is paid. under the changed
law for District taxing, then over
$4,000, 900 per year would be required
to meet in advance the expenditures
Of ten months. assuming that the tax-
paying date was unchanged.
The District contends. however, that
II the taxpaying dates are changed.
as proposed. it win need equitably to
have in hand on July 1, 1928. a. no
surplus at all: or (2) at the maximum
only one-fourth Of its own share Of
1928 expenditure, or Is per cent Of the
total 1928 expenditure. aggregating
between three and four millions.
! Tho creation Of surplus in ad.
vance is an alternative to an interest
charge by Uncle Sam for advances to
the District Of money to pay the Dis
trict's share Of current expenditures.
But Uhcle Sam is himself q 5oint con.
tributor OF 80 per cent under the old
law and Of 40 per cent under the new
law to the expenses Of capital main