Evening star., 1924-06-08

Continued from First Page)
the United States. but now given to
the District by the change in fiscal
relations, will amount only to about
$500. 900 for the coming year instead
OF 800, 900. as estimated by members
of Congress. The auditor explained
that the reduced rates for automobile
tags under the reciprocity law will
cause the miscellaneous revenues to
shrink.
Here is how Maj. Donovan arrived
at his estimate of an increase of
new act: Under the appropriation
act for the year now ending the
amount chargeable to the District
was s14.20I,7sS. Under the new act
the amount to be raised by the city,
after deductinE Uncle Sans lump sum
of $4,000, 900, is Sl1S9S.353.
This increases the Districts obliga-
ton s3.696.5J5. Allowing 100000 as
the additional sum the District will
get from the 40 per cent of miscel-
laneous collections formerly credited
to the United States. leaves the net
increase approximately IS, 100000.
In 1922 Congress decTeed that the
District should raise surplus of
Sc. 600 600 within five years, SO that by
1927 the city would be on a cash
paying basis. In other words, in 1927
the District would be able to meet it's
share of expenses from month to
month. and not draw advances from
the Federal Treasury pending collec-
ton of taxes.
Greater Surplus Needed.
This meant raising s60o,00t in
each of the five years over and above
current requirements. Maj. Donovan
declared last night that. with the an
nual appropriation act greatly in
creased in total. and with the United
States reducing its share Of contri-
button. il will be necessary for the
District to raise more than $4,000
city is to get on cash basis. He has
taken this into consideration in esti-
mating a tax rate of S1.6e.
Although Congress has for the next
fiscal year abolished the 60-4o ratio
Of appropriating for the National
Capital and substituted the $s,OoO.oOo
lump sum as the federal governments
share, an effort may be made at the
next session OF Congress to obtain
further study of the fiscal relations
Secs Undue Concern.
Senator Phipps of Colorado, in
bill in the Senate, indicated last
night that he still believes a care
full examination should be made to
determine what would be a fair
amount for the United States to pay
toward Capital maintenance, whether
1t be permanently a lump sum or a
fixed proportion of the appropriations.
Senator Phipps also said he thought
there was undue concern over the
effect of the compromise reached for
the next twelve months.
He called attention to the fact that
under the new bill the people of the
District will pay only about $1,000
900 more than they would have been
called upon to pay had they obtained
the same appropriation act under the
60-40 plan. AS the bill was agreed
to- he explained, the District gets the
50, 600, 900 lump sum instead of 8,oo0,- =
900 originally allowed by the House,
and, in addition, gets fun credit for
certain miscellaneous revenues, which
formerly were divided 6e-40 with the
United States.
Senator Wesley L. Jones of WASH
'ngton said that he had been in favor
cf the proposal for an inquiry to de-
termine what the federal govern
ments contribution should be. The
House conferees would not agree to
the suggestion that provision be made
in the new bill for commission to
investigate the fiscal relations fur
ther.