Evening star., 1925-01-14
District Surplus Equities.

act of justice, with the possible result
of failure to act, the change in per-
manent substantive law of the 60.40
definite proportion plan to the lump
payment plan, for the avowed purpose
of saving to the Nation in Capital ex-
penditure from three to five million
dollars year for the next 25 years."
or vastly more than the amount in
volved in the Nations conceded sur
plus debit.
Why should not the two bills be
considered separately on their merits?
What element is lacking in respect to
the surplus debit to excuse failure to
act upon it separately and immedi.
ately?
The congressional joint committee
on District surplus found and reported
0l the existence of a free surplus in
the Treasury to the credit of the Dis
trict of S4,671 1867, (2) the existence
of certain District credits amounting
TO S665.46 TO be added to this surplus,
81 the existence of certain credits of
the United States amounting TO $685.
101. 81 TO be subtracted from this sur
plus and az the existence of a net bal
ance of Si,438,154 legally and moral
ly due the District from the United
States after all legal and equitable ad-
ditions and subtractiOns have been
made.
The finding by the joint congress
sionaI committee that the District tax
surplus is not a myth, but a concrete
fact, raising a distinct obligation not
TO be waved aside, is based upon and
sustained by
O The authoritative certificate of
the Controller General of the United
States.
(2) The report of the official account
ants of the congressional joint COM
mittee. of the Treasury accountants
and of the auditor of the District of
Columbia.
81 Analysis of the conditions Great
ing this surplus demonstrates it's con-
crete existence and the definite obliga-
tion, legal and equitable, attached
to it.
(D Analysis of the District auditors
figures of net surpluses or deficits in
District tax revenue under the organic
to 1920. inclusive, makes the same
conclusive demonstration.
(5) Congress-, in 1908, recognized
that there could be and would be
such things as surplus revenues of the
Ristrict by directing that the ad-
vs,nces which it was then making to
meet District tax deficits should be
reimbursed to said Treasury from
time to time out of the surplus rev.
shues of the District of Columbia"
(6) After District deficits had been
converted into surpluses, Congress
Z Ncognized the existence Of such sur
pluses in the Treasury by applying
portions of these surpluses to the
payment of alleged ancient indebted
nesses of the District to the United
States, by law specifically transfer
ring to the United States sums from
''the amount in the Treasury of the
1
trict Of Columbia"
7) The United States has recog-
nized credit items in its favor accru-
ing from deficits in District tax rev.
enue created by the operation Of the
haIf-and-half law and has reimbursed
itself from District revenues with in
terest for advances to meet these def
iCits. 1t cannot, legally or equitably,
refuse to recognize the corresponding
debit items i'm the shape of surpluses
of collected and unexpended District
taxes.
The legal and moral obligation thus
demonstrated to exist, is equitably
satisfied only by the application of the
surplus in accordance with the half
and-half law, under which it was ac-
Cumulated to meet the Districts half
of the expense of neglected municipal
needs of the war time, which neglects
permitted its accumulation. Applica.
fion of the surplus under any other
ratio is unequitable.
In relation to his ward, the tax
paying Capital community, Uncle Sam
as trustee has absolute power. He is
protected from loss or risk by pos
session of all the assets and securi-
ties of the Nation Capital combination.
He controls absolutely every cent of
the money contributed for Capital
maintenance by both parties, local
and national. He has undivided and
despotic power to fix the amount Of
local tax contribution, to decide by
what method of taxation it shall be
raised, to collect it and to spend it..
c'he tAx-paying Capital community is
an incidental contributor under COM
pulsion, with no power or control
even of its own tax money at any
stage and whose sole function in re-
spect to taxation and its financial
status is to petition and to pay.
Under these conditions the Nation
as benevolent despot should and will
be Just, considerate and sympathetic
to the last degree. Scrupulous fair
ness should and will be observed in
exactions from the inpotent local
taxpayers, and no precaution to pro-
tect their equities and to prevent