The Washington herald., 1922-05-05
Bond Issue to Forestall
Heavy Increase Is
Proposed.
WOULD MAKE USE
OF SURPLUS FUND
Semi-Annual Collections
Favored to Aid Cash
Basis Scheme.

An optional plan. which will re-
lieve District residents of the bur-
den of taxation placed on them by
conferees on the District appro-
priation bill, has been worked out
by the District Commissioners and
sent to members of the House and
Senate appropriations committees.
The proposal of the Commission
ers also plans to put District
finances on a cash basis. II will
end the credit method of carrying
on the Districts business against
which members of Congress have
raised such objection and which led
to the agreement of the conferees
to provide for collection of enough
extra taxes over a. period of five
years to accumulate a fund out OF
which to pay expenses.
Has Three Features.
The plan has three separate
features.
l. That the sum of approxi-
mately $1,000. 900. which II is
admitted stands to the credit of
the District, in the Treasury. be
made available for District ex-
penditures-
2. That the taxes of the Dis
trict be collected semi-annually
instead of annually as hereto
fore. The taxes would be cell
lected in November and May.
3. That long-term bonds be
issued to raise the balance OF
the sum necessary to put the
District on a cash basis. 1t is
estimated that this bond issus
would not need 20 be more than
s5,OOO.0O0 and would probably
amount only to s3.OO0,0 900.
Seek Compromise.
While the Commissioners have
been adverse to opposing either
Congress OF the aroused citizens of
the District. they have admitted
that there is much to be SAID on
both sides. They believe that a fair
compromise will be acceptable and
have offered their plan as one that
viii meet the objections raised by
both sides against the present sys-
TEN and against the proposed plan
If the conferees.
Maj. Daniel ]. Donovan, District
auditor. has been instructed to pre-
pare a financial statement in re-
gard to District finances. This
statement will show the expendi-
lures and receipts by months and
will be a basis on which Congress
can act.
Want Surplus Fund.
The $4,000. 900 surplus that has
accumulated in the United States
Treasury from the collection of
more taxes in the District than the
expenditures used up has long been
a bone of contention. There Is no
fain AZ hxr rryhf foh
plus collected one year can be made
available to pay expenses during
- the succeeding year.
II Is admitted by the Treasurer
Of the United States that the sum
exists. The District Commission
ers have for years maintained that
this sum rightfully belongs to the
District and should he made avail
able.
It Is understood that II has al
ways been optional with the tax
payers of the District to nay their
taxes in two installments Few,
however. have availed themselves
of this arrangement, preferring to
use the money as long as possible.
The District Commissioners pro-
pose that this semi-annual pay
ment of taxes be required. 1t is
believed that the expense of COL
lecting the taxes twice will not
greatly increase under the plan.
Two bills, however. will need to
be made out for each taxpayer
each year.
Oner Cooperation.
The long term bonds would be
issued on the grounds that the
improvements put on the city are
to be enjoyed by futulS residents
of Washington and NAT they
ought to contribute to the cost.
The bonds probably would be-
liquidsted In increasing amounts
over a period of fifty years.
It Is understood that the Dis
trict Commissioners have offered
their services to the Senators and
Representatives along any line
that will give them a more COM
pIete understanding OF District
problems and desire in every way
ito cooperate with them.
The rush that has taken place
in the District to pay the taxes
due on May 1. yesterday forced
the Commissioners to call on the
heads of all District departments
to send every available man to
;he rescue of the tax collectors