Evening star., 1924-05-02
Stabbing Our New Organic Act.

The House, on sober second
thought, ought not to be in the least
proud that it permitted yesterday a
legislative rider, offered from the floor
without the sanction of any commit
tee, attached to the District appro-
priation bill by vote of ,2S to 5, to rip
up as effectively as in hara-kiri the
Districts new fiscal law Of June 90,
1922. This law, though it dealt Sc
verely and in some respects unjust
~ with the District, was an elab-
crate and comprehensive piece Of COM
promise, constructive legislation, In
telligehtly and laboriously built up.
Washington refuses to. believe for an
instant that the Senate will follow this
bad example Of the House in mutilat-
ing wantonly the new organic act.
The avowed purpose and promised
result of the new law was to bring
to House and Senate and people Of
the District a period of wholesome
. and refreshing rest from fiscal rela.
tions controversy. If the act Of 1922
Is left for a few years to~work out
its vindicaion on its merits or it's
failure on its demerits. this needed
rest will be secured. II the old con-
troversy over definite proportionate
contribution is TO be renewed by COM
pulsory discussion Of the Cramton
amendment this rest will be denied
and one Of the avowed main purposes
Of the act OF 1922 will be defeated.
No time can be conceived that is
less suitable for revival of this Bit
ter controversy than today. when all
p OF Congress. with hardly a moment
to stop to think, is pushing feverishly
toward early adjournment.
The understanding when the act Of
June %. 1922, was agreed upon by
House and Senate viewed that act as
a compromise measure disposing for
many years of these troublesome fls-
cal relation issues. The Districts
contribution toward Capital upbuild.
ing was increased from so to 60 per
cent, it's tax rate on intangible per.
sonalty was increased sc 2-3 per cent,
and the foundation was laid Though
intent to increase was disclaimedl for
increasing its realty tax; It was
deprived of exclusive credit for
large sums Of miscellaneous receipts
hitherto solely enjoyed, this action
in1icting a heavy loss, and it was
j compelled to accumulate from its tax
money of present years (every cent OF
which was needed to meet the urgent
municipal needs of today a fund of
millions to provide in advance for
meeting the first half-year expenses
Of 1928, .,.
In partial compensation for these
drastic exactions the District was to
enjoy specifically for five years and
indefinitely thereafter the benefit of
approximate certainty as to its ratio
Of proportionate contribution; in or
der to spare the District all contro-
Versy for these five years over ratios
and tax rates, the law in specific
terms levied in advance this tax 'for
each of the fiscal years ending June
80, 1928, 1924, 1925, 1926 and 1921"
indicated how the tax rate should be
automatically fixed, and directed that
the proceeds should be applied to the |
Districts so per cent contribution and
to building up by 1927 surplus to put
the District on a cash-paying basis;
the District was thus to be spared
for a long period the hurtfui dead
locks over ratios between House and
Senate which annually endangered
the District appropriations and un-
desertedly prejudiced House senti-
nent against the Capital community.
But no sooner was the definite 60
40, ratio fixed by compromise agree
nent, leaving only the surplus ques-
ton to~be decided eauitabiy by Con-
gress, and almost before the Capital
community had adjusted itself to its
new fiscal organic act and had begun
to enjoy the promised bliss Of fiscal
peace, q proposition appeared to re-
pudiate the agreement upon the SO.
40: ratio, TO substitute a system Of
unrelated contribution by Capital and
nation. and to precipitate Washington
taxpayers into the fiscal chaos from
which they had recently emerged.
And today, when the prospect Of
fiscal peace has grown brighter; when,
by the certificate of the controller
general, approved by the joint surplus
committee OF Congress-, the Districts
Treasury surplus has. been demon.
strated to exist, and the troublesome
surplus question promises soon to-
be removed from the class Of preju-
dice4pronoters and friction-breeders
the lump-payment proposition is re-
vived and our vision OF fiscal peace
and rest vanishes.
win not the House reconsider