Evening star., 1923-01-30
Surplus a Moral as Well
AS Legal Indebtedness

Uncle Sam to relieve him from re-
sponsibility in this connections, in
stead of being helpful to this end,
| increase and strengthen and empha-
| size his obligation and render re-
pudiation of it by him inconceivable.
Taking Candy From an infant.
This reputation would offend more
grossly than a violation of ordinary
business morality because it adds to
the offense breach Of trust, and this
breach OF trust will be the baser, more
contemplate and more shameless. be-
cause Uncle Sam, as trustee, has un-
| limited control Of his wards assets, and
| swindle which his trustees may be
tempted to perpetrate. Under the cir
cumstances. for the trustee to defraud
the ward would be analogous to the
taking OF candy from an infant, or pock-
citing the pennies from the eyelids Of a
corpse.
In relation to his ward. the taxpay-
ing capital community, Uncle Sam as
trustee has absolute power. He lis
protected from loss or risk by pos
session OF all the assets and securi-
ties of the nation-capital combina-
ton. He controls absolutely every
cent of the money contributed for
capital maintenance by both parties.
local and national. He has undivided
and despotic power to fix the amount
OF local tax contribution. to decide, by
what method of taxation 1t shall be
raised. to collect 1t and to spend 1t.
The taxpaying capital community Is
an incidental contributor under COM
pulsion, with no power or control
even of its own tax money at any
stage. and whose sole function in re-
Spect to taxation and its financial
status is TO petition and to pay.
Under these conditions the nation
as benevolent despot should and will
he just. cOnsidcrate and sympathetic
TO the last degree. Scrupulous fair
ness should and will be observed in
eXaction from the impotent local tax
payers, and no precaution to protect
their equities and to prevent abuse
of the nations despotic power will be
viewed as excessive.
The nations obligation in respect
TO the tax surplus is. under these con-
ditions. debt of honor. The obliga-
ton of nation to capital is not weak
ened but infinitely strengthened by
the fact that the impotent District
cannot enforce 1t.
Equitable Disposal of Surplus.
The legal and moral obligation thus
demonstrated to exist is equitabl
satisfied only by the expenditure of
the surplus on municipal needs in
accordance with the half-and-haIf
INV. "nlcn IL was q
to meet the Districts half of the
expense of neglected municipal needs
of the war time. which very neglects
permitted and caused its accumula-
ton. Expenditure of the surplus uu-
der any other ratio Is inequitabIe.
There are two alternatives in dis
posing OF the Districts surplus:
J.. Apply it in accordance with the
half-and-haif law. under which 1T was
accumulated, to meet neglected mu
Stzsr~ ~ ~
neglects permitted its accumulation.
Preferably, apply it in a lump, dupli-
Gated under the half-and- half Law, to
some great and urgent permanent i'm
provement which requires for eco
nomical and speedy completion a
spared from current revenues after
providing for essential current main
tenance: like, for example. the in
crease of local water supply, an
urgent vital need. requiring millions
to meet il. Or use il TO bring our
school buildings up TO date in num-
ber and equipment, another need de-
manding millions of imm ediate ex-
unexpended taxes to satisfy any ac-
cumulated unmet needs. Note recent
reports of the District Commissioners
in which they show the extent to
which current needs. both of MAIN
tenance and permanent improve
ments, have been neglected during the
time in which this so-called surplus
has been accumulating. The surplus
merely represents money that ought
to have been applied In the past as
the Districts proportionate contribu-
tion toward meeting the needs to
which the Commissioners have called
attention and failing to be thus applied
in the past it ought to be devoted now
20 meet these accumulated unmet
needs.
This is the method of disposition
which the Law, equity, a trustees
honor and ordinary business honesty
demand.
No Reputation. Even Partial.
2. Spend the surplus on the indi-
Gated municipal needs, with the gov
ernment contributing 40 per cent OF
the total contribution, in accordance
with the new ratio of sixty-forty in
stead of fifty per cent. In accordance
with the half-and-ha1f law, which was
which gave the authority to collect
it. and under whose terms it was coll
lected. To apply 1t in this way would
make the sixty-forty ratio retroac-
tive, applying it to money raised be-
fore it was enacted and under the
in equity, and in accordance with
customary business fair play the
accounts Of the half-and-ha period
should be balanced and closed on the
forty ratio should be postponed in
application certainly until the date
of its enactment; and there may be
items in respect to which it's appli-
cation should. in equity, be even
further postponed.
The Hodgson testimony before the
House appropriations committee this
session and the questions and discus
sion connected with 1t develop the
argument that when appropriations
were made on the fifty-fifty basis, which
resulted in reimbursements later.
when the sixty-forty ratio prevailed.
these reimbursements should be made
on the fffty-fifty and not sixty-f forty
basis. This contention is analogous to
what We contend in respect to sur
plus of taxes collected under half
and-half law, but to be expended or
reimbursed under sixty-forty ratio
Expenditures of surplus, collected un-
der operation Of fifty-fifty law. can
only. in equity, be made in accord
ance with that law, though in the
meanwhile the ratio has been changed
to sixty-forty.