Evening star., 1925-02-09
Genuine Fair Play.

nimity by the Senate, The Star voiced
the grateful appreciation of Washing
ton. And in discussing the kind of
relative national contribution which
Congress in appropriating this local
tax money would equitably make,
whether $3.50 for which The Star
argued or 40-6O. or 33 to SO per cent
under the lump-payment plan, The
Star expressed Washington's absolute
confidence that Congress would show
in actually appropriating the surplus
and in applying it to District uses the
same wisdom and sense Of justice that
characterized its recognition of the
existence of the surplus and its au-
thorization of the surplus's appropria-
ton and expenditure.
Representative Cramton in recent
discussion of the District appropria-
tion bill characterized as grotesque
the suggestion that the national con-
tribution relative to the surplus tax
money should equitably be on the
$3.50 rather than on the 40-60 or lump
sum basis. and rebuked the Washing
tonians as Unsuitable petitioners.
Congress, representing the Nation,
serenely conscious of its absolute and
exclusive power of decision, will not
be disturbed or excited even over un-
reasonable petitions by the unrepre-
sented District. But is there anything
unreasonable in Washington's conten-
fiop concerning the SlIrpluS2
What is the tax out of which the
surplus arises? BY what authority
is the tax imposed? From whom and
in what amount is the tax authorized
to be collected? For what purpose
does the law command that the tax
shall be expended?
These pertinent questions are all
answered by the unambiguous provi-
sions of the organic act Of 1873.
That law directs the District Com
missioners to submit estimates of the
Districts needs through the Secre-
tary of the Treasury to Congress. 1t
then says:
ITO the extent to which Congress
shall approve of said estimates, Con-
gress shall appropriate the amount
of so per cent thereof; and the re-
manning so per centum Of such ap-
proved estimates shall be levied and
assessed upon the taxable property
and privileges in said District other
than the property of the United
States and of the District Of Colum-
bia.'
1. Who, then, imposes the tax?
Congress.
2. Upon whom or what is it levied
and assessed? Upon the taxable prop
erty and privileges in said District
other than the property of the United
States and of the District of Colum.
bia.
g.. What amount of tax is author
lied? An amount equal to one-haH of
tho District estimates approved by
Congress for a given year; an amount
exactly the same as the amount direct
ed by the law to be appropriated by
Congress from the national Treasury
for District purposes.
4. What is the sole purpose of the
tax for which it must be expended?
To enable the District to pay its half
of the District appropriations, that is,
One-half of the District estimates as
approved and enacted into law by Con-
greSs.
The law assumes that only the pre-
else amount Of one-half Of a fixed sum,
previously determined, shall be levied
and assessed upon District property.
But in practice the amount of tax col
lected is never precisely the amount
levied and assessed, and Congress by
supplementary tax legislation made
certain that there should always be
either deficit or surplus under
the. law. by guessing at the amount
needed and by imposing a reasonable
tax, raising approximately the amount
to be required and levying and assess
ing it before the approval of the esti-
mates and the appropriations by Con-
gress which fixed the precise amount
of the needed annual District tax.
Thus in some years taxation pro-
duced more than one.half of the
amount appropriated by the District
appropriation bill; in other years less.
In the years since 1878, in which
Uncle Sam wanted to expend in wise
permanent public improvements at
the Capital much more than twice the
amount that he had collected that
year in local taxes, he took note of
the temporary deficit in District reve-
nue. under the law. He advanced from
the Treasury to the District approx
mately the amount of these deficits
and reimbursed himself for these ad-
vances with interest from the District
revenues Of subsequent years. Such
deficits occurred (and were met by
money borrowed by the District from
Uncle Sam and later repaid with in
terest) in 1901, 1902, 1905, 1906, 1907,
1908 and 1909. On account Of these
advances to meet deficits the District
paid to the United States $3,992, ,515. .03
in principal and $5s5,O76.sS in interest.
In 1916 the last of these advances was
repaid.
OF recent years between 1916 and
1920, and especially during our WaE