New Britain herald., 1925-06-30
5O.5O SYSTEM OF
 STATE AID WRONG
So Declares Governor RitChie, Calling It Unjust

TOT ana against ". Reierrlns to the arguments for it he said:
 Rest on ESpedicncy.
 T think 1t fair to say that all these arguments in the main are opportunistic or geographic. They rest not on principle but on expe- diency. Certain states. for practical reasons of their own, want 10 keep on getting federal aid. They make profit from it, or 1t returns them all or a large part of the federal taxes they pay. or they claim they need 1t, or that they get the short end on something else and hence are entitled to the long end on this.
 Ut must be apparent that the arguments in favor of the system do not meet or attemut to meet the ob- Jections to it. based on sound prin- can institutions. They do not meet or attempt to meet the unassailable position that, in this country at least good government requires the states to handle and solve these local qucs- tions for themselves.
 Duty Of The State.
 If state knows that this Is go- ing 10 be its obligation, that it has got to work out its needs for itself, that no outside help Is coming, then the states own initiative will assert itself, and no outside help will be needed. Ultimately the problems will be solved by the state and solved in a much better way because Of the very fact that the state did it itself.'
 Governor Ritchie then showed that 1 8 states get back in federal aid less than 10 per cent Of what they pay in income taxes. These state, with the percentages of their fed eral aid, are:
 Washington, s.77; Delaware 9.22; Indiana, s,71; Wisconsin, S.57; Maine, S.14; West Virginia, 7.S6; Missouri. GAO; Ohio, 3.60; Maryland, 315; California, S.11; Michigan. 2.75; Connecticut, 2.27; Rhode ls- land, 2.23; Illinois. 2.21; Pennsyl- vania, 2.20; New Jersey, 1.77; Mas sachusetts, 1.13; and New York .S5. Totals 5G Millions Governor Ritchie showed that the "ffty-ffty" federal aid fund amounts 10 approximately s76,0O0.OOO and that these IS states contribute over SG1 100000 10 if. and get back less than s33. .0O0.oO0 from it, the balance of over s43,OOO,OO going 10 the other states.
 This. he said, means that the fifty fifty" federal aid system costs these IS states approximately s29,- 000,0OO and that they would be financially better off without the system, because then their people would only be taxed 10 raise less than s33. .000,0O0, which is what these states now get from the gov ernment. and not s29,0o0,000, addi- tionaI for the benefit of other parts of the country.
 Governor Ritchie asked; When the people back home in these states realize this. can it be that they will allow their representatives in con gress to continue burdenine them, for the benefit of others. with this lead of s29,OO0, 600 or will they de- mand that it be taken off their shouldors?"
 AnalyZes Situation
 Governor Ritchie then analysed the "fifty-fifty" system of federal aid from an angle which. he said, has not before been studied. That is, the actual needs of the states for help from the federal government i He declared that the whole system Is inherently unsound and cannot be | justified at all. and then proceeded 10 consider whether any states could claim 10 need federal aid, because he felt that necessity was the only | possible excuse that could be shown
 He showed the taxable wealth, the net income per capita and the popu- | lation of each state, then combined these factors as tho hest guide to ability of each state to support it. self and compared the result as tc | each state with the average of those factors for the whole country
 He then continued that a state which in population, taxahle wealth and net income per capita is above two-thrds Of the average for the whole country, could not possibly bC said to need federal aid. There arc 2 states above tho average and 1! l states above two-thirds of the aver. age. he said. The remaining 1i states are below two-thirds of the average.
 3f States Above Figure
 Governor Ritchie showed that th' 31 states which are above two. thirds of the average. nay 9S pei cent of all the federal taxes.
 They also contribute t5 Ter cen or over s7c.l57,n0n 10 the fifty fifty federal ail pool of s7e ooH. noA." he said. but they only cc' back sSc.e55.0nO from the roo'
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