Evening star., 1922-05-12
H0PEFOR HEARING
FORD|STR|CT UPON
TAXPLAN REVIVED
Senate Circles Think Citizens
May Have Chance to
Air Views.
PHIPPS MAKES REPLY
TOFLOOD OF INQUIRIES
Insists New Proposal Has Not Been
Understood and Will Not In
crease Taxes.

crease Taxes.
Hearings On the new tax plan fo:>
the District of Columbia worked out
by the conferees on the District ap-
preparation bill today loomed up as
a probability. In certain influential
Senate circles the report was spread
that the citizens OF the District un-
doubtedly would be given a hearing
before the Senate was called upon t"
act on the tax plan.
Senator Phipps Of Colorado. IL
charge Of the District bill, has accom-
panied the President on his week enu
trip to New Jersey. Nothing is likely
to be done with the District bill in
his absence, 1t was said today.
PhippS Explains Attitude.
Before leaving here. Senator Phipps
sent a letter explaining his attitude
upon the District tax rider and taxa
ton in the District in general to all
the organizations and individuals VIII"
have written to him OF to the Senate
protesting against the tax rider, and
asking for hearings on the matter
ne llSlSlS Iilal luc IIcN Eloii 'AoS 4iS'
been sufficiently well understood: that
it will not result in increasing taxa
tion. and that conferees had before
them all the facts with regard to the
fiscal relations of the District and the
federal government and that near
ings We're not considered necessary
An effort probably will be made to
have included in the tax rider on
1.-The District bill when it comes be-
fore the Senate the proposed change
in the law relating to the payment OF
taxes on real property, so that one
half of the tax shall become due No
vember l, and one-half May y. AIS"
an effort may be made to place upoi
the rider the concurrent resolution
adopted recently by the Senate pro
viding for a joint congressional m
yestigation of the existing surplu-
revenues of the District.
Purpose Cash Basis Of Payment.
The purpose of the change in tn"
date of payment Of taxes is to put
the District on a cash-paying basis.
and the same purpose is contained
in the concurrent resolution regard
ing the surplus. If these amend
ments are adopted, 1t is pointed out,
the provision in the rider which calls
for incfeased taxation in the District
during the next five years, SO as to
build up a surplus to put the i)istrjct
on a cash-payng basis might well be
eliminated.
sent to the Board of Trade, Chamber
of Commerce, Federation of Citizens
Associations. the legislative commit
tee OF the allied trade organizations,
bureau of engraving and printing anu
others. follows:
Ioafa recent com
munication, in which you take e&-
ception to the terms of amendment
No. 1 to the District of Columbia ap-
preparation bill for the fiscal year
1928, desire to make reply not onla
regarding the points to which you
call attention, but also to questions
which have been raised in resolu-
tions adopted by several civic or
ganizations.
In Possession Of Facts.
In view Of the fact that the mat,
ter of the fiscal relations as between
the federal government and the Dis
trict of Columbia have been under
discussion for many years past, not
only on the floors of the House anG
the Senate and before congressional
committees, but in the public press
as well, it was the belief of the con-
ferees that they were in possession
of all necessary information regard
ing the matters in dispute, and that
it was unnecessary to call in repre-
sentatives of citizens organizations
to obtain their views. which mao
often been presented to committees :
and in the press. They did. however
keep in touch with the Commission
ers of the District and from time TO
time obtained facts and figures from
the records of the District auditors
office.
"More than one measure relating
to the division of expenditures as be
tween the United States and the DIS
trict. notably the Mapes bill and inc
Jones bills, have been considered in
Congress during the past three years
without definite result.
"The attitude of the House in its
insistence upon 60-40 division OF
expenditures has prevailed since 1920
and was again written in the bill
for the coming year: whereas, the
latest legislative action OF the Senate
on that subject was embodied IN It's
adoption Of the Jones biii, pros,utns ~
all the expenses Of the District out
of the Treasury and that the taxes in
the District should be fair and rea-
sonable, but in no case at less ra.e
than s1.75 per hundred on real estate
and tangible personal property, ana
not more than that. unless further
legislation should SO provide. This
was properly written into the pres
; snt hill as an amendment before it
was reported out by the Senate COM
mittee on appropriations.
When the bill went to conference
the House was contending for 60-4o
basis for the coming year only, and
the Senate for a l u per cent tax con-
tribution as a permanent feature. Al
most daily meetings of the conferees
were held during five or six weeks
| following the date the bill was sent
to conference, each side arguing the
contention Of its respective chamber.
Tho representatives of the Senate
strongly insisted upon a permanent
| basis, with a view to stopping the
| yearly controversies over appropria-
! tion bills and to prevent the inser-
| ton in appropriation bills for 1924
/! and later years without previous leg
| islative action conditions that would
! entail upon the citizens of the Dis
| trict even higher proportionate pay
ments than those now in force and
| effect.
Details Caused Contention.
'In order to establish the 60-4o di-
vision on q permanent basis. it was
found necessary to provide for the
proper handling of certain details
which had been causing contention
and. which the House thought 1usti-
6ed its position. The fact that the