Evening star., 1924-05-13
All Other States.
Member OF the Associated Press.
The Districts Surplus.

A subcommittee of the House Dis
trict committee which has been con-
Quoting a hearing on the bill lately
passed by the Senate giving effect to
the findings of the joint congressional
committee concerning the existence
and amount of the accumulated tax
surplus to the credit of the District
IN the Treasury, today voted to re-
port the bill favorably to the full
there shall be credited to the general
account of the District certain sums
which have accumulated as a result
Of the failure of Congress to appropri-
ate fully on the established ratios of
Districtfederal contribution all of the
Districts tax revenue available for
use. This amount is stated in the bill
at s4,438,154.92, representing the diff
ference between all its credits for the
District and charges against it. 1t
also provides that the controller gen.
eral shall make a report to Congress
as to any further amounts under
specific heads that may be added to
lIlc account Oh the DlStrlCt.
The joint congressional committee
found and reported that there was a
free surplus in the Treasury to the
credit of the District, which was legal
ly and morally due to the District 1t
found that this surplus was not a
myth, but concrete fact, raising a
distinct obligation not to be waved
aside. 1t based its findings upon the
authoritative certificate of the con-
troller general, upon the report of Of
fetal accountants Of the committee
and of the Treasury Department and
of the auditor of the District. Analysis
Of the conditions creating the surplus
demonstrated its concrete existence,
and the definite obligation. legal and
equitable, attached to it.
Congress in 1903 recognized that
there could be and would be such
things as surplus revenues of the Dis
trict by directing that the advances
which it was then making to meet
District tax deficits should be REIN
bursed to said Treasury from time to
time out of the surplus revenues of
/. the District of Columbia In the
course of time the District deficits
were met and were converted into sur
pluses. Congress then recognized the
existence Of such surpluses by apply
ing portions of them to the payment
OF alleged ancient indebtednesses of
the District to the United States.
1-uiFaJ C+ataS ,.anor,
nized credit items in its favor accru-
ing from deficits in District tax rev.
enue created by the operation of the
half-and-half law, and reimbursing it.
self from the District revenues with
interest for advances to meet such
deficits, cannot legally or equitably
refuse to recognize a corresponding
debit item in the shape of surpluses
of collected and unexpended District
taxes.
Already the United States has recog-
nized this equitable principle in apply
ing for the fiscal years 1921-1922 the
temporary 6o-4O ratio in District ap-
preparation bills by carrying over sur
pluses or deficits into the succeeding
year.
The legal and moral obligation thus
demonstrated to exist is equitably
satisfied only by the application of the
surplus in accordance with the half
and-half law, under which it was &C.
cumulated to meet the Districts half
oc the expense Of neglected municipal
needs of the wartime, which negIects
permitted its accumulation. Applica-
ratio is inequitable.