Evening star., 1922-07-07
TREASURY BACKS
/ D. C. FISCAL CLAIM
Figures Coincide With Dis
trlct's as to Surplus
Revenue.

into the surplus revenues of the Dis
trict by joint congressional COM
mittee appointed for that purpose was
gone into at a meeting of the joint
committee in the Senate District COM
mittee room today H. J. Galloway of
the Department of Justice, who has
been assigned to look after the inter-
ests Of the federal government in ac-
cordance with the provisions of the
District appropriation act recently
passed providing for the inquiry. met
with the committee. He advised the
committee in regard to the procedure
and also discussed the laws relating
to the fiscal relations between the
District and the federal governments.
At the conclusion of the meeting
Senator Phipps, chairman of the joint
committee. said that the inquiry would
be proceeded with as speedily as pos
sible after the committee had OBJ
tanned the necessary information
and advice. The committee adjourned
subject to the call of the chairman.
Only the three Senate members of the
committee attended the meeting to-
day. Representative Hardy of Colo
rado, the only member of the COM
mittee from the House now In the
city, was unable to be present.
Treasury Backs d. C. Claims.
The contention of the District of
Columbia that surplus revenues Of the
District, amounting to approximately
$5,0O0.000, are In the Treasury of the
United States was substantiated by
officials Of the Treasury at meeting
OF the joint congressional committee
yesterday afternoon in the Senate Dis
trict committee ROOM
No difference exists between the
figures Of the District officials and
those of the Treasury, the joint COM
mittee was told by c. Grayson, rep
Taggard, representing the controller of
the Treasury. when discussing the sur
plus revenues which accumulated in re-
cent years under the fixed tax rate and
the half-and- half plan.
The contention that the federal gov
ernment has valid claim to some of
these surplus revenues has been ad-
vanced In SOME quarters and the joint
committee will be called upon to de-
eide the Justice of such claims.
Meeting In Executive.
At the meeting yesterday, which was
held behind closed doors, in addition
to members of the joint committee and
were the District Commissioners, Maj
Daniel ]. Donovan, District auditor,
and Corporation Counsel Stephens.
Following the meeting Senator
Phipps of colorado, chairman of the
joint committee, said that the figures
presented by the District auditor.
Maj Donovan. and the Treasury Of
ficials in regard to the surplus CO.
incided. He pointed out, however,
that the investigation by the joint
committee has just been begun: that
an audit Is to be made by auditors
selected by the committee. and that
there is to be careful consideration
of all the laws relating to appro-
priations and the fiscal relations of
the District with the federal govern
ment from the year 1874 until the
present day. 1t was too early, he
said, to express an opinion In regard
to the Districts surplus revenues.
However, the results of the meet
ing yesterday apparently were pleas
ing to the District officials attending.
If the committee holds in it's report
to Congress that the District is en-
titled to the use Of the $5,o00,O00 sur
plus there will be an almost Inn
mediate effect upon the taxes levied
here. The Commissioners have esti-
rolled up in the next five years to
put the District on cash-paying
basis. as provided for in the recent
appropriation law. To bring about
this surplus they have recommended
a tax rate which will bring in 100000
needed to pay the current expenses
of the District each year. until the
100000 has accumulated.
But with surplus of $5,o00.000 al
ready on hand, it will not be neces-
sary to accumulate the 100000
surplus proposed, and the District
could go on a cash-paying basis i'm
mediately and have $2,0oo,000 to
spare.
Maj. Donovan told the committee
yesterday how the surplus revenues
of the District had been accumulated.
The joint committee ruled yester-
day against permitting Alonzo Twee-
dale, auditor of the citizens joint COM
mittee on fiscal relations, to observe
the audit made by the committees
auditors as 1t progresses. The feeling
that the interests Of the people Of the
District would be amply protected by
the Commissioners, Maj. Donovan and
Corporation Counsel Stevens, all Dis
trict officials. Representatives of the
municipal government and the fed
eral government will be permitted, 1t
was said. to observe the course of the
accountants.
Chairman Phipps said that he hoped
to get the audit under way In a short
time. Tho Department of Justice is
to furnish to the committee, under the
act providing for the investigation, an
attorney to look to the interests Of
the federal government. He will sit
advisers of the District.
The members of the joint committee
present yesterday were Senator
Phipps. chairman, and Senators Ball
Of Delaware, Harris of Georgia and
Representative Hardy Of Colorado.