Evening star., 1923-11-14
Set Forth in Report of Citi-
zens, Joint Committee on
!. Fiscal Relations.
u. S. SHOULD CONTRIBUTE
FIXED RATIO FOR UPKEEP
60-40 the Right Ratio for Main
tenance--50+50 for Discharge
of Contr. sctNal Obligations.


meeting held October u. 1928. as fol-
lows:
Enactment of the new organic act of
1a22 automatically sh fitted our al
legiance from the half-a nd-half TO the
eixty-forty ratio. and ann >nded the last
plank in our platform of principles SO
that the platform now rea ds:
We contend: First, that the United
states should contribute Las gely to the
maintenance and upbuildins OF the Ma
tional Capital. Second. thar this con-
trihution should be a liked AND definite
proportion. Third, that this U-oportion
should be sixty-forty. sixty by She Dis
trict taxpayers and forty by the United
States.
In loyal defense of the last two RANKS
of our platform of principles. this NOM
mittee, representing organized Waah-
inEton, will strongly and steadily resa 81
any effort to change our fixed. DENIM
and related proportion of capital coIs'
tribution at the ratio OF SiNty-torty
This obligation obviously includes
vigorous and unyelding resistance
10 such Legislative propositions as
tnat which would substitute for che
definite proportionate. related plan OF
sum payment by the nation. This sub
stitution would destroy the unrepre-
scented capitals Safeguard against eN-
cesseS and unjust taxation. 1t would
limit the capital contribution of the. ma
tiou and would leave unlimited that eX-
acted from the District taxpayers
Three Issues Created.
Last years report OF this corunnttee
noted certain issues. created or left un-
solved by the law of 1922, which COM
PEELED this committee TO continue to
exist 1t will be of interest to ascertain
what has been done and what remains
TO be done under these issues.
l. Retention of the fifty-fifty ratio
under the new fiscal system of sixty
forty ratio where the former ratio
is contractual, as in respect to the
payment of interest and sinking fund
to meet the 3.65 bonds, the funded
debt. These bonds Will all soon be
paid and Cancelled in accordance with
existing law. and in few months
this issue will cease to trouble.
2. Retention of the ffty-tifty ratio
where the siXty-forty ratio would. II
utilized. be inequitably and retroac-
lively applied, as in the future ex-
pendture Of District tax SURPRISES
accumulated in pursuance of the
terms OF the half half law FOL
the sole purpose of expenditure or
the half-and- naif basis. This com
mittee will contend earnestly for this
equitable method of surplus appro-
priation when Congress comes 10 ap-
propriate the surplus.
;. Last years report noted an i'm
mediate specific obligation of our
committee to cooperate with the
Commissioners in presenting Wash
ington's case to the joint select COM
rnittee of Congress which was to de-
termine the existence and amount of
the accumulated tax surplus of the
. District.
This obligation has been fully met
The citizens committee, by care
fully prepared brief and by repre-
Sentation at the hearings of the con-
gressional committee through Chair
man Colladay. co-operated effectively
with the District Commissioners in
the vigorous surplus contentions.
Joint Committee Found Surplus.
The congressional joint committed
reported on the basis of the authori-
tative opinion OF the controller gen
craI and the other evidence before il
supplementing the controller 'gener-
ais certificate that the District hao
to its credit "on the books of the
Treasury after deduCting outstand-
ing obligations net surplus of ap.
prOXimately four and n half million
dollars: and that after moral (eQuita-
bie) credits in favor of the natior
since 1874 had been subtracted from
this Treasury surplus and mora
tequitable) credits in favor of tn.
District for the same period had beer
added to it, the Districts Treasury
surplus was reduced only about 5000
000. and still considerably exceeded
four million dollars. The effect of tht
committees report was to record th,
latter amount as the net legal anc
moral obligation of the nation to the
Joint capital upbuilding fund.
The certificate of the controller
general approved by the joint com
Inittee intrusted by Congress with tn.
duty of acting for it in this matter
renders the Districts net Treasury
surplus available for appropriation
part of the District proportional,
contribution whenever Congress
wishes to appropriate.
Citizens Committees Task,
What in this respect remains for tn,
citizens joint committee to do?
tal To urge Congress to appropri
ate quickly the Districts Treasur.
surplus IN order to help to meet tn,
districts urgent need of much more
money for bringing municipal equip
ment up to date than can be sparet
from current revenue.
tb) To make this appropriation OF
the fifty fifty basis with equal contri
button from the United States.
tc) In appropriating to make onl,
such reductions from the Treasur,
surplus, as moral (equitable) credits
of the United States, az have beer
specifically approved by the joint Sc
1ect District of Columbia surplus com
mittee.
(d) To defend before Congress an,
elsewhere the wise and sound conclu
sions of the congressional joint com
mittee on District surplus. One mem
ber of this joint committee of si,
tthree representing the House an.
three the Senate) has filed a minorit-
report Our citizens COMMITTEES is t
prepare itself thoroughly to sustain
the accuracy of the facts and tn
soundness of the reasoning of tn
congressional committees report, es
pecialIy upon the issues raised by TIL
minority report. concerning, for 'ex
ample. the provisions of the new or
Eanic act in respect to interest, and il
respect to Directing equitable credit
since 1874 and comparative moral in
debtedness.
4. One of the avowed purposes o
the new organic act was to function
as a peace-prom oting compromise be
tween House and Senate in the period
cal controversy over the fiscal rela
tions of nation and Capital. and t
give everybody for time and per
haps for a long period. much-neede
rest from prejudice-raising and hurt
full tax-changing agitation.
Prepare for the Future.
But the burden is as much upon u
this year as last to prepare for tha
time in the future when the peac
period promised in the enactment O
the new organic act shall end, and Il
violation Of the spirit of the law o
1922 the District shall be again as
sailed on the theory that tax rate an
tax burden mean the same thing, an
that Washington's comparatively 1oy
tax rate means that its actual Ia.
burden is correspondingly low, an
that IT is undertaxed. The raising b.