The Washington times., 1922-06-17
Q,C.F|NANCiAL
INVESTIGATION.
AGAIN HUNG Up
Cong. Campbell Declares He
viii Call Up Jones Resolu-
ton at Later Date.

lion at Later Odto.
The fate of the Jones resolution,
already passed by the Senate, au-
thorizing q special investigation OF
the fiscal relations between the Fed
eraI and District Governments, today
hung in the balance on account Of
the parliamentary misunderstanding
between the House rules and the
House District Committee.
Chairman Campbell, Of the former
committee. says that at some fater
date he will offer q special rule or
ask for unanimous consent 10 call
up the Jones resolution"
Focht Issues Statement.
Chairman Focht Of the House Dis
trict Rommittee, today made public
the owing statement, explaining
in detail the urgent necessity Of such
an Investigation of the so-called "$o.-
OOO. 900 myth" or frozen credit. which
the District Of Columbia claims Is
due from the Federal Treasury.
when I became chairman OF
this committeeman cane in contact
with various citizens ssociations
In Washington, was advised there
were 81, ,O0O, 900 excess taxes paid by
the people Of the District and now
in the hands of the Government
which should be properly applied
to the development OF the school
and road and water systems OF the
District Of Columbia. came up
here most enthusiastic and came
In contact with the leaders OF the
House and other members who
seemed familiar with that particular
subject, and ], met with great dis
appointment, n not chagrin. when
one of them told me. You have
now taken hold Of the $S,oOo'ooo
myth" 100000.
70 investigate the myth. They say
that we have overtaxed the people
by over $5,0o0,000 and that the
money Is there and ought to be
used by the people Of the District OF
Columbia. Here 10 whore 1t starts:
Beginning with the fiscal year
1861 the appropriations for the
District Of Columbia have for the
past several years been less than the
revenues Of the District. raised by
taxation, have been sufficient to
cover. The District Commissioners
have, in strict observance OF the law.
been compelled to present estimates
within the estimated local revenues.
matched byNFederal money In &C.
cordance with the established ratio
Of District-Fsderal contributions.
Congress has, during these past few
ears, not appropriated as much In
bulk for the District as the Dis
trict's funds have warranted.
Thus for these past few fiscal
years there has been aocumulating
in the Treasury a surplus Of Dis
trict sfax money not appropriated. In
the ~ 1sls-l7 the surplus Of this
moi VAS S1,3s0.2l8.s0. according to
the tires of the District auditor.
In sDf71s the surplus was $6iJ,-
1877. In 1888 II was Sl,226,.
1919. In 1890 II was S7Ss,23g.72.
In 1s2o-21 II was S5s4,744.61. In The
whole Of these five years the accu-
mutation of District tax money, COL
lected but not appropriated. has been
3<.s<s, ,666.ss.
This surplus Of District tax reve-
nues may not be kept in q separate
fund in the Treasury. az has been
claimed by some. II may be q book
keeping myth, as has been alleged.
But the fact II undeniable that $4.-
CAS- ,6e6.6s has been collected from the
people Of the District In taxes and
from other sources during the last
five fiscal years that has not been
spent In appropriations on District
needs.
The pending resolution proposes
the appointment OF q joint commits
sion Of six, three Senators and three
Congressman, to INQUIRE into the
origin, nature and equity Of this sur
plus Of District tax revenues. The
District contends that Il should be
spent for extraordinary public i'm
provements, such a. school buildings,
or water supply, or street extensions
and improvements.
1T is contended by some members
Of the House that II 10 subject to off
sets and claims Of the Federal Gov.
ernment for old debts owed by the
District to the United States. The
purpose Of this inquiry is to ascer.
tain the equities in the surplus of
District tax revenues.
Urges Prompt Passage.
"It is important to pass this reso.
luton promptly. The District appro.
priations bill is now pending in the
Senate. The conferees have agreed
upon the appropriation terms and
upon a new formula of fiscal rela.
tions between the District and the
United States. The major purpose Of
that formula 10 to enable the District
by the beginning Of the fiscal year
1927.l928 to meet It's obligations
under the annual appropriation acts
with it's own cash instead Of requir.
ing advances from the United States
Treasury during the greater part OF
each fiscal year. The tax collections
are made now In May OF the fiscal
year for which they are due and
payable.
"It II proposed to put the District
on q cash basis by various methods.
The conferees plan to enable the
Commissioners to accumulate a fund
Of District revenues oy July 1, 1877,
by increasing taxes In certain re.
spects. As an alternative, Il has been
proposed 60 advance the tax collec-
ton date 90 that District tar funds
may be available earlier In the fiscal
year. II is also proposed to apply TO
the cash payment fund any surplus
Of District tax revenues that may be
found to stand to, the undispnted
credit of the District In the Treasury.
"It is the true purpose Of this
resolution to conduct an inquiry by
jolnt committee into the nature and
,,~..apt ataftia ~ this stirr,ltss ~