Evening star., 1922-06-21

its functions. has ended it's task, and
is ready to be discharged.
system to the new there remain sew
eral important labors within the
scope of the committees ,pdrpose
which justify and demand the COM
mittee's continued existence.
For example. organized Washing,
system for the retention of the
$3.50 ratio % where that ratio is
contractual. as in respect to the pay
ment Of interest and sinking FUND to
meet the 3.65 bonds. the funded
debt: or (2) where the $3.50 ratio
should be applied in order to prevent
its retroactive elimination. as in the
future expenditure of tax surpluses
accumulated in pursuance of ths
terms of the half-and half law for
the purpose of expenditure on the
half -and-half plan. The 6o-4o ratio
should not; in equity. be retro
ington must fight also to carry over
into the new fiscal system the sound
basic principle of the organic act
that the primary obligation, as CAPT
tai upbuilder is upon the nation, and
that the capital community is merely
the Incidental and impotent contribu-
tor. This vital principle is threat
ened in may ways. direct and indirect.
open and insidious.
TO convince Congress that pay
ment by the District taxpayers of
one-half of the cost of capital up
building constituted a fair and rea-
sonable contribution by the local
community toward National Capital
expenditures and that the taX-burden
thereby imposed upon Washington
taxpayers was sufficiently heavy when
compared in the light of surrounding
circumstances with the city tax-bur-
dens of other comparable American
cities, your committee has made elab-
crate comparisons of the taX-burdens
of typical American cities. using in
succession the census figures of 1915.
of 1915 and of 1920. In every case
where committee. either of Senate
or House. or joint committee. has
given a hearing and thoughtful con-
siderati ton OF these figures. the deci-
sion of the committee has been that
in comparison with other American
cities Washington is fairly and rea-
sonably taxed. 1t will be necessary
in the future to keep these compari-
sons up to date in order that the
capital community may be thoroughly
prepared to show. whenever the occa-
sion demands. that a contribution of
90 per cent of the cost of capital
maintenance constitutes reasonable
and adequate municipal taxation in
Washington.
erS in Congress is that the new ratio of
contribution is not to be disturbed for
many years that both Congress and
the capital community are to be re-
lieved of the annual controversy and
friction over the financing of the cap
ltal. and that the new fiscal system is
with everybody cooperating. to be
literally and sympathetically construed
and applied. and in good faith to be
thorough tested out
Obligation of Preparedness.
THE necessity of utilizing Washing
tons preparedness figures of tax COM
parisons may therefore be delayed. the
longer the better. But the obligation Of
preparedness remains. and the raising
by the new law of the standard of as
sessment from not less than two-thrds
TO full valuation. with a corresponding
decrease OF the tax rate (if the actual
taX-burden is to remain the Same), COM
peiS washington to prove again and
again that the taX-rate alone is no meas
ure whatever of comparative tax bur-
dens. Washington's standard of actual
assessment is through the conscientious
labors of its assessors so high in COM
parison with asse essments in other cities
that its tax-rate is comparatively low.
and this low rate is. as a result of the
new law, to be still further lowered.
since the trainers of the new law declare
that its purpose is not to increase taxes
but to equalize and more equitably to
distribute them. With the increa sed
standard of assessment the taX-rate
must be decreased one-third to produce
exactly the same amount of taX-revenue
Washington must therefore be pre-
pared to prove in the future that a tax
rate from 81 to S1.30 per hundred, when
applied to genuine 100 per cent full as
sessment valuation. taxes Washington
as heavily in total burden as other cities
with low assessments and tax rates two.
three and four times as large as that of
Washington.
when shington's tax rate
ranged from s1.5O to sl.s2 and s195
it was repeatedly challenged as IN
dicating' tax burden less than half
that of other specified cities Wash
ington must hereafter demonstrate
that with genuine full assessment
valuation a rate of 81 to s1.3O means
the imposition of tax-burden upon
Washington as great as that imposed
in cities whose taX-rates are many
times as great as that of Washington
Washington must be prepared to
show in the future that with full as
sessment valuation meaning in differ
ent American cities anywhere from
20 to 100 per cent of real value the
corresponding diversity in tax rates
in those cities ranging from 81 to
S10.63 has no significance whatever
in comparison of actual tax bur-
dens.
"It will be necessary to show in fu-
ture years. as was done, utilizing the
census1fgures of 1918. that the tax
rate is no measure whatever of COM
parative tax-burdens. since, if it were
the cities of Illinois. Iowa. Nebraska
and Washington state would be
shown to be taxed in 1918 anywhere
from three to six times as heavily as
the cities of Ohio, Rhode Island, Vir-
ginia and Wisconsin; which demon
stration reduces to an absurdity the
original proposition.
The tendency to rely upon the
shifting. unreliable tax rate as
tax-burdens is. however, strong. and
must be resisted in the future with
even greater vigcr and effectiveness
than in the past because of this de-
crease in Washington's tax rate. in
effect compelled by the terms of the
capitals new fiscal law.
Proving the Surplus.
"An immediate specific obligation
upon organized Washington. as rep
resented by the citizens committee.
is to prepare thoroughly to Coop
crate with the District Commission
ers in presenting Washington case
to the joint select committee of Con-
gress which will determine the ex-
istence and amount of the accumu-
lated tax surplus or the District and
will ascertain and report, after
careful weighing of opposing equi-
ties. whether the United States has
millions of District money in its pos
session or whether the District Is
indebted in millions to the United
States.
THE same kind of preparedness
for Washington is demand
ed in 1922 as was conducted in 1915.
on a broad and exhaustive plan, and,
as was repeated on less elaborate
scale in dealing with the facts and