Evening star., 1926-11-10
WHAT D. C. GOVERNMENT NEEDS
BY WILL p. KENNEDY.
No. Fiscal Relations on Equitable Basis.

W
| fiscal relations between the Federal
| and District governments on a pro-
portion or ratio basis, but in recent
years by clause in the appropriation
bill making provisions for support of
the Capital City Congress has arbi-
trarily set this aside year after year,
making the appropriations for Sle
municipality of Washington to be paid
| entirely from local taxes, except for
a lump-sum contribution of $9,000,000
from the Federal Treasury, or COM
! mon fund of the Nation.
This nine million dollar lump sum.
| the Nations share in supporting the
. National Capital as the most beauti
full city in the world and which is
, being developed on an elaborate scale
with costly embellishments that no
mere municipality would feel 1t could
| afford, is Just an arbitrary conclusion
! not based on any intelligent, sys-
| tematic, scientific, fair study of the
| equities involved and the obligations
| as between the Federal Government
| and the taxpayers of the District OF
| Columbia.
| on the false theory that percent
! age of real estate ownership is the
| full mea of national obligation IN
| Capital upbuilding, attempt is mace
! to Justify the lump-Sum contribution
1 80
! Governments property holdings, for
| the present and for many years In
| the future, have reached the Satura-
| ton point-that the Government al
ready holds about all the land that II
| intends to own here. But it cannot
| too often be emphasized that the per-
centage of real estate ownership Is
| not the only, or even the most I'M
| portant, consideration.
! It should be remembered that origi-
| nally the Government took hve'
| sevenths of all the land in the Capital
| Citv area and threw more than half
of the whole area into streets. Then
in selling off lots to defray the cost
| of public buildings, as an inducement
to purchasers it pledged that the
| Government would develop the Capl-
| tai City and the property owners
| would be relieved from very large
! proportion of the ordinary expenses
| of a city. This promise OF the GoE
ernment was advertised even IN 1or-
eien nevspapers, but the pledge was
not kept.
| In the jefferson Papers we flnd MN
! protesting to Congress against vast
| ing the resources of this DlStrlCt
which it held as 'residuary legatee.
Then in 1885 the District went into
bankruptcy trying to carry the entlre
load of Capital development aIter
Congress had dissipated the resources
originally intended largely for stceets
which were never built ana on "tlicn
a ridiculously small sum had been
spent.
| SO. at first agreeing to pay pracu-
calIy all the costs of the Capital City,
but in reality paying practically ,notn-
ing. Congress in the organic act OF
lists recognized its obligation, Whlch
il then agreed to carry out in part by
adopting the half-and-half principle OF
sharing the expenses of the Natlonal
Capital. But linked in with that pro-
portionate sharing of costs 1t took TO
itself all control of national and state
taxation for the District. That was
a satisfactory and just arrangement
then. because we did not have here in
the District sufficient population and
resources to command voting repre-
sentation in Congress, and our expert
ence with a voteless Delegate had
been very unsatisfactory.
| x 4 X
Thus every particle of representa-
tive power was taken from the people
and assumed by Congress.
| Then a few years ago Congress
changed the proportion from $3.50 to
6O-40 in accordance with substantive
law, and more recently by arbitrary
action made lump-Sum appropriations.
but it has not surrendered back any
Of the power that it took from the
people here as an integral part of the
fiscal policy in the organic act of
1873.
| SO that there are other considera-
tions to be taken into account which
are much more important than the
proportion of property owned by the
Federal Government, as long as the
Nation holds exclusive power, shut
ting the District authorities out from
saying how much shall be raised in
taxes and how the taxes shall be
spent. There is the fundamental prin
ciple involved that obligation follows
power"
| The definite proportion principle OF
sharing the costs. which the District
people have persistently contended
| for, whether it be $3.50 or 60-40, OF
any other ratio. rests on this founda
ton, that the National Congress In
making appropriations would be
spending it's own or the Nations tax
money as we'll as that of the District
It is a guard against the spending OF
tax money by body in which the
taxed are not represented.
| X \ X
The primary obligation is on Con
gress to see that the Capital of the
Nation is developed in every way
worthy of the Nation-a visible repre-
sentation Of the wealth, power, taste
and love of the American people ir
all the 4S StateS-and an especial "ob
legation following power that the rel
atively small number of local resi-
dents In Washington are not unfairly
and oppressively taxed.
But even the attempted justifica
ton on the ground that Uncle Sam
now owns about all the land he ever
intends to own here is an entirely err
roneOus premise, for we have the
Federal Government even now about
to take over other very considerable
areas.
For example. the entire triangle be
tween Sixth and Fifteenth streets
south Of PENNSYLVANIA avenue to the
Mall as sites for new Federal build
ings under a $4,000, 900 fund. The ap-
proximate cost of privately owned
property in this area will be some
$40 .000, 900
Authority has been given and ap
preparation made for completion of the
purchase of ,325.204 square feet OF
land between the Capitol Building and
Union Station, to be improved as a
park vista for the Capitol. the present
cost being about $3,250,000
Legislation authorizing an expend
iture of some $4,000, 900 for acqui
: sition of six squares between the Cap
3 itol and Sixth street. required in the
5 Strengthening and Improvement OF
nV0lN