Evening star., 1925-02-11
Preserve the Principle Of Proportionate
Contribution for the National Capital
Petition by the Citizens Joint Committee Fiscal
| Relations Between United States and District
| of Columbia

~ o. ~
! against excessive taxation BY tax
ing body In which 1t In not repre-
| scented.
| g. 1t destroys the fiscal peace set
| tlement prcmised by the new organic
| act. a~,s et
| To raise now the issue OF q lump
sum paymen substitute @for~dsfnfte
proportionate contribution by the ma
ton Is to reopen the fiscal relations
peace settlement of June 80. 1892, and
| to plunge the House and Senate into
the old, wearisone wrangle. so hurt
| full to the District. over the issue OF
definite or indefinite proportionate
contribution toward Capital upbuild-
ing and over the ratio (50-50 or 6O-40}
Of definite 'proportionate contrtbu-
| ton. . 49, = = E
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 relations
| controversy. If the act of 1922 Is
| left for few years to work out its
vindicatfon on Its merits or its failure
! on Its demerits this needed rest will
| be secured. If the old controversy
| over definite proportionate contribu-
discussion of this bill this rest will
| be denied. one OF the ayoved main
purposes OF the act of 1922 will be
defeated and the understanding
| upon which this compromise legis-
| lation was based will be hagrantly
violated.
a. 1t teaches q false theory COM
cerning the relation Of nation to
Capital.
1t obtrudes annually upon the at
tention of Congress the suggestion
| of a large cash donation to the Capt.
tai, as If the primary obligation of
| national city upbuilding were upon
the local taxpayers, and the nation
| were only an incidental contributor,
voluntary and benevolent donor.
Since the nation in 1878 recognized
and assumed its National Capital
power and obligation. it's. responsi-
bility in respect to the Capital has
been primary and dominating. AS
late as 1916 this relation OF nation to
Capital was fully recognized and
| clearly set forth in the report of the
| joint select committee of Congress,
| which made the most thorough, ex-
haustive and able study of the fiscal
relations of nation and Capital that
statesmen had given to the subject
since 1S74S. AS long as all the
assets and revenues of the national
| and local joint contributors toward
| Capital upbuilding are in the hands
Of the national joint contributor, and
as long as all decisions concerning
the amounts to be paid by the joint
contributors, respectively, and con-
cerning the expenditure of the joint
| revenues are to be made by the ma
| tional contributor, the latter must
| in equity, and will, in fact, bear the
| primary responsibility of Capital up
| building, and the local taxpayers
| will be recognized in their true re-
| lation as merely incidental contrib
utors Of tax money. not flxed in
| amount by themselves. but exacted
at the pleasure of the other joint
contributor. -..-..
s. 1t reduces to n minimum or de-
stroys any chance OF equitable pro-
portiOnate contribution by the United
States in appropriatins and spending
the Districts accumulated Treasury
tnx surplus.
Another practical effect of destroy
| ing the 60-4o ratio will be to reduce
to a minimum any chance of equi-
table proportionate contribution by
| the United States when our accu-
mulated tax surplus comes to be ex
pended This tax money was col
lected by authority of the half-and-
half law solely te apply upon the
| Districts half OF District appropria-
| tions. Whenever it Is expended it
| would be equitable to spend It. under
| the half-and-half law, the United
States duplicating it. IL when the
surplus comes to be used the pro-
portionate contributions are on the
60-40 ratio, the nation through
Congress will either apply. as equity
seems to demand, the $3.50 ratio
or will make the existing 60-40 ratio
| retroactive and add to the Districts
surplus only 40 per cent from the
| national Treasury. But If both the
$3.50 and the 60-40 ratios are de-
| stroyed, and when the surplus com es
| to be expended there is no definite
| proportionate contribution by nation
| and taxpaying Capital, then the
chances are 100 to l that the nation
will not participate at all under any
| percentage of obligation to enlarge
the surplus fund for the upbuilding
| Of the Capital.
X
6. There are NO offsettinE bene-
| bill.
surrender its safeguard Of national
proportionate contribution by the as
| surance that through a lump sum
payment system the Capital will
| escape the tender mercies Of the
|