The Washington times., 1922-07-06
IA TE OF
SURPLUS
At STAKE
Decision Favorable to Distric,
Expected to Mean Big Re-
duction in Taxes.

The, seventh investigation into
the fiscal relations between the
Federal and the District govern
ments opened today.
With Senator Phipps presiding,
the joint Congressional committee
was scheduled to hold an organ
ization meeting this afternoon and
TO map out plans for its inquiry.
Hearings Oepn to Public.
OF the House members. Congress
men Hardy. Wright and Evans, only
the latter were expected to be present.
inasmuoh as the others are out of
the city.
All Of the Senate members, sena-
tors Phipps. Fall and Harris, were
expected to be in attendance.
1t was the plan Of Senator Phipps
ment upon the work of the joint COM
mittee and then to call upon the Dis.
trict Commissioners and representa-
tives of the Treasury and Justice del
partments to outline their views as
to the proper method of procedure.
The hearings will be open to the pub
Lie, according to the present plan.
Senator Phipps has no objetcion TO
having representatives Of various
citizens organizations in attendance
from time to time. He will grant
them an opportunity to be heard at
q later date. 1t Is doubtful, however,
that the taxpayers committee, head
ed by Theodore w. Noyes. will be
given access to the auditing of the
7 various accounts between the District
government and the Federal Treas
ury.
Auditors to Proceed First.
Senator Phipps, It is understood, Is
opposed to disclosing the commit
tees work to outside organizations.
He believes that the interests Of the
District will be fully protected by the
District Commissioners.
Following the meeting today the
joint committee will adjourn until
its auditing experts have gotten to-
gether and outlined a detailed meth
cd of procedure. 1t is the plan of
Senator Phipps to leave the techri.
cal work in the hands of the repre-
sentatives Of the District govern
ment, the Treasury and Justice De-
partments, and the expert account
ants as far as possible.
Upon the result of the investigl-
ton depends the fate OF the tive
million dollar accumulated surplus.
which the District now has in the
Federal Treasury.
II the inquiry reaches a decision
favorable to the Districts contention.
II will mean a great lessening Of the
hafrdop ~ IN In oil y,N-Ato
and a release of funds for great per.
manent projects here which have
been hanging fire for many years.
Citizens to File Brief.
f. F. Colladay, chairman of the
citizens joint committee on fiscal
d relations, has written Senator
PhipDs the following letter:
your letter of the first instant
was duly received In answer to
mine of the same date.
Referring to my conference with
you yesterday. and your expressed
desire to limit the work OF your
committee at it's session today to a
conference with the Commissioners
OF the District Of Columbia and the
official representatives Of the
Treasury Department and the De-
partment of Justice. leaving con-
ference with the representatives Of
citizens and tax payers organiza-
tions to a later date, l have the
honor to request that this letter
he presented by you to the Joint
Congressional Committee in session
today, as an entry of appearance
Of the citizens joint committee, and
that leave be granted our commit.
tee as follows:
II. Leave to file a brief.
"2. Leave to from time to time
observe the work of the auditors
and-or-accountan in the service
Of your committee"