Evening star., 1923-02-07
Another Surplus" Equity.

"bSiiSNcl CUllsIcSS dppTOpI ldleS
the Districts accumulated tax surplus
for the capitals benefit as part of the
Districts proportionate contribution. it
will apply this local tax money either
in accordance with the $3.50 ratio, un
der which these taxes were collected,
or in accordance with the 60-40 ratio,
which will prevail when these taxes
are expended
Washington has consistently urged
that the tax surplus should equitably
be spent in accordance with the half
and-ha law, which alone authorized
its collection and under which 1t was
accumulated to meet the Districts
half of the expense of then-eXisting
municipal needs of the war time, the
neglect to meet which needs permitted
and caused accumulation OF the tax
surplus.
Thus there are two alternatives in
disposing of the Districts surplus:
|. Apply it in accordance with the
half-andhalf law, under which it was
accumulated, to meet neglected mu
nicipal needs of the war time. which
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
much larger amount than can be
spared from current revenues after
providing for essential current main
tenance; as. for example, to bring our
school buildings up to date in num-
her and equipment, a need demanding
millions of immediate expenditure. Or
apply the accumulated unexpended
taxes to satisfy any accumulated un-
met needs. Note recent reports of the
District Commissioners in which
they show the extent to which cur
rent needs, both of maintenance and
permanent improvements, have been
neglected during the time in which
this so-called surplus has been ac-
cumulating. The surplus merely rep
resents money that ought to have
been applied in the past as the Dis
trict's half contribution toward meet
ing the needs to which the Commits
sioners have called attention. and fail
ing to be thus applied in the past it
ought to be devoted now to meet these
accumulated unmet needs.
.. 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 halfand-half law, which was
in operation when it was collected,
which gave the authority to collect
ii, and under whose terms it was col
make the siXty-forty ratio retroactive.
applying it to money raised before it
was enacted and under the terms of
Il different law. OF course. in equity.
and in accordance with customary
business fair play. the accounts of the
half-and-half period should be bal
anced and closed on the half-and-half
principle, and the siXty-forty ratio
should be postponed in application
certainly until the date of it's enact
ment: and there may he items in re-
srect to which its application should.
in equity. be even further postponed.
The fiudgsun testimony before the
House appropria tions committee this
session and the questions and discus
sion connected with it indicate recog-
'ition of the principle that when ap-
preparations were made on the fifty
fifty basis, which resulted In rcim-
burSencnts later. when the sXty.forty
should he made on the fifty-ffty and
not SiXty-forty basis. II! consistency
and equity this principle applies to
lalf-and half law. but to be expended
or reimbursed under the sixty-forty
ratio. Expenditures of surplus. col
lected under operation of the fifty
fifty law, can only, in equity. be made
in accordance with that law. though
in the meanwhile the ratio has been
changed to siXty-fortv.
But I; Congress which justly and
wisely recognizes the Districts right
to its accumulated surplus taxes may
safely be trusted to show the same
wisdom and the same equity in spend
ing for the capitals benefit this tax
Surplus.