Evening star., 1925-01-27
Our Grateful Appreciation.

The half million people constituting
the Capital community are gratefully
appreCiative of the overwhelming
vote by which the House practically
perfected the enactment of the Dis
trict surplus bill. At every crisis in
District legislation where fair plav
- the people of the Capital has been
distinctly the issue Congress has in
the final test responded heartily and
faithfully to the pleas for justice of
its unrepresented Capital constitu-.
ency.
The new law will give practical
effect to the findings of the joint Dis
rrict Of Columbia committee of the
last Congress. Senators Phipps, Ball
and Harris and Representatives
Hardy and Wright, who are the sur
vivors in this Congress of the joint
surplus committee of the last Con-
gress, have worked vigorously and eff
fectively 10 put into the law and to
make practically operative the wise
and fair findings of their report con-
cerning the District tax surplus in the
Treasury. With the help of Acting
Chairman Zihlman and the District
committee, and of Chairman Madden
and the appropriations committee. and
of many other friends of justice in
both Senate and House, they have now
succeeded. The Capital community
owes to them all a debt of grateful
appreciation.
When Congress, acting under the
authorization of the new law. appro-
PIRATES the Districts accumulated sur
plus for the Capitals benefit as part
of the Districts proportionate con-
tribution it will in equity apply this
local tax money either in accordance
with the $3.50 ratio under which these
taxes were collected or in accordance
with the 60-40 ratio which under the
new organic act of 1922 is now tho
substantive law.
Washington has consistently urged
that the tax surplus should equita-
bly, be spent in accordance with the
half-and-half law which alone author
lied its collection, and under which
1t was accumulated to meet the Dis
trict's 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. Washington has
also urged that the surplus should be
applied, not to current maintenance
and to a spasmodic reduction of the
tax rate, but in lump sums 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 revenue after provid-
ing for essential current maintenance;
as, for example, to bring our school
buildings up 10 date in number and
equipment, a need demanding millions
of quick expenditure. The law wisely
limits the application of the surplus
to such permanent public improve
ments as schools, parks and play
grounds.
The only other reasonably fair alter
native is to spend the surplus on the
indicated municipal needs with the
government contributing 40 per cent
of the total contribution in accord
ance with the existing substantive
law ratio of 60-40 instead of so
per cent in accordance with the half
and-half law which was in operation
when it was collected, which gave
the authority to collect it and under
whose terms it was collected. To ap-
ply it in this way would make the
6o-40 ratio retroactive, applying it
to money raised before it was en-
acted and under the terms of differ
ent law. OF course, in equity and
in accordance with customary busi-
ness fair play the accounts of the
half-and-half period should be bal
anced and closed on the half,and-half
principle and the 6040 ratio should
be postponed in application at least
until the date Of its enactment; and
these may be items in respect to
which it's application should in equity
be even further postponed.
But a 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.