The Washington times., 1922-03-25
:C0NFEREES
CLASH ON
TAX RIDER
House Members, Standing Pat
on 6O-4O Plan, See Little
Hope of Agreement.

The first clash between the
House and Senate subcommittee
on District of Columbia appropria-
tions came today, and no agree
ment is in sight.
For more than two hours the
Senate conferees. headed by Sen
ator Phipps. attempted to per-
suade the House conferees. headed
by Congressman Davis, to accept
the taxation rider of the Senate
District bill, which abolishes the
fixed ratio plan of distributing
the expenditures of the city gov
eminent and imposes $1.75 tan
gible tax rate on the city.
Jones Has Hopes.
Senator Wesley Jones. upon leav.
Ing the conference, expressed hopes
that an amicable agreement would
be reached, saying that the con-
ferees had discussed general prin-
ciples relating to District taxation
and that, while there was a diverg-
ence of viewpoint revealed, the
prospects of an ultimate understand
Ing were not remote.
Congressman Ben Johnson, Of
Kentucky. said that no agreement
was in sight. From other sources
1t was learned that the House con-
ferees will stand pat" on the 60-40
tax plan that has been carried in
the District appropriations bills for
the past two years. Congressman
Davis, chairman Of the House sub
committee, is understood to be ut
terly opposed to any compromise
with the Senate on this subject.
The other matters in dispute be-
tween the House and Senate were
touched upon only briefly at the
meeting today. The $1,000. 900 item
to increase the water supply Of the
District was not discussed in de-
tail. In some quarters 1t is be-
1ieved the House will accept the
Senate amendment, provided the
Senate will abandon it's tax amend
ment.
Long Deadlock Possible.
There Is an excellent prospect also
that increased Senate items with re-
gard to the public schools, including
the appropriations for the Armstrong
Manual Training school, the Lovejoy
and Phillips schools, will be accepted
by the House.
The disagreement over the tax sit
uation, however, appears to be deep
seated and the District bill Is likely
to remain in deadlock for a long
time. Inasmuch as the conferees
have until July 1 in which to settle
their differences, no particular worry
Is being indulged in because of the
deadlock. The conferees are not go.
ing to rush matters and probably
will not meet again until the latter
part Of next week.
The Hous. has had the traditional
right to dictate the taxation policies
for the District appropriation bill
and intends to maintain it. according
TO the House conferees. The Senate
ccnferees, however, declare that .he
Senate tax plan is directly in line
with what the House has been ad-
vocaitng for more than a century.
The House has always been op-
posed to the half-and- half plan, and
strong faction has favored the
abolition of any dxed ration be-
tween the Federal and District gov
ernments relating to local revenues
Tor many years.
The Chief Obstacle.
This, it is pointed out, is exactly
what the Senate bill provides for.
The chief point of objection to the
Senate bill is that it allows the Dis.
trict to be credited with more than
s4,000,000 of accumulated surplus in
the Federal Treasury. The House
conferees do not believe the District
Is entitled to this credit, although
the funds have been derived from
local taxpayers and have been with.
held from utilization in paying for
the expenses Of municipal govern
ment in Washington only because
Of existing technical features in the
existing law.