Evening star., 1926-03-23
FISCAL RELATIONS
INQUIRY APPROVED
|. BY SUBCOMMITTEE
Favors ZihIman Measure to
Probe Matters Between
u. S. and District.
FIXED SUM MEASURE
IS DECLARED UNFAIR
Cramton Upholds Plan, Claiming
1t Is More Advantageous to
People of D. C.

Favorable report on the Zihlman
bill for joint congressional investi-
cation into fiscal relations between the
District and Federal governments was
recommended by a subcommittee of
the House District committee which
| conducted hearings on the measure
! today.
The Zihlman bill to investigate fis-
cal relations is designed to determine
the percentage of appropriations
which should come from the Federal
Treasury, and whether the Federal
Government should contribute a lump
sum. The bill was offered as an
amendment to the Cramton bill,
which provides for making the $9,-
100000 lump sum contribution from
the Federal Treasury. which Congress
has written into District appropria-
tion bills permanent law. The Zihl-
man bill proposes to make the So
600 1000 contribution fixed for the fiscal
years 1927 and 1923. pending report
TO Congress from the joint congress
sional investigation provided for in
his bill
Witnesses today before the subcon-
mittee hearing on the ZihlIlan bill
were Representative Cramton origi-
nator of the lump-sum proposition;
Chairman Zihlman Of the House Dis.
trict committee, and Edward F. Cola
day. chairman of the citizens Joint
committee on fiscal relations between
the United States and the District of
Columbia. The subcommittee is
headed by Representative Beers of
Pennsylvania, and was attended ny
Representative Bowman Of West Vir-
ginia.
Petitions Are Presented.
Representative r. Walton Moore.
Democrat, of Virginia, who is not a
member of the District committee. but
much interested in District affairs.
questioned MIR. Cramton.
Mr.. Colladay presented petition in
behalf of the citizens joint committee.
which was organized in 1915, and
which, he explained. is composed Of
authorized representatives of the
Board of Trade, Chamber Of Com
merce Merchants and Manufacturers
Association, Federation Of Citizens As
sociations, Committee Of One Hundred.
Builders and Manufacturers Ex-
change, Bar Association. Columbia
Heights Citizens Association. North
east Citizens Association. Georgetown
Citizens Association. the City Club,
the District of Columbia Bankers As
ISOLATION. the Real Estate Board. the
Rotary Club, the Kiwanis Club, the
Civitan Club and the Cosmopolitan
Club.
Mr.. Colladay opposed the Cramton
H>;1 Hoi1coI,,tolI, unfair IN the nQODle
of the District of Columbia" He said
the committee he represents does not
favor the first section Of the Zihlman
bill, because 1t writes into permanent
law, even If only for a two-year period.
the lump-sum proposition. and they
realize how difficult 1t would be to get
the law changed. The citizens com
mittee strongly favors the rest of the
Zihlman bill. He disagreed vigorous
ly with several statements made by
Mr. Cramton. who had been an earlier
witness.
Opposes Fixed Sum.
Mr.. Colladay said that his commit
tee is opposed particularly to the
Sc, 600, 900 fixed sum. because IL 1t Is
put into permanent law it cannot
readily be increased even though large
projects. now In contemplation and
likely soon to be approved, would ma
terially change the relationship be
tween Federal-owned property and
privately owned property in the Ma
tional Capital.
Mr.. Colladay also challenged the i'm
preston left with the subcommittee
by Mr.. Cramton that the findings two
years ago regarding the District sur
plus fund had not been fairly reached.
He said that the acknowledges of
the District surplus has been made
after an absolutely fair consideration.
but protested that the spirit of that
finding had been violated in the spend
on the $3.50 basis on which 1t was
built up, but on a 100 per cent draft
on District funds.
Mr.. Colladay urged the subcommit-
tee that after lapse Of 10 years, Gov
ering the readjustment period after
the war, there should be an investiga-
ton made fairly by joint committee
to determine the equitable fiscal rela-
tions, which should be presented to
both House and Senate for action be
fore an attempt was made to change
the fiscal policy by permanent enact
ment.
Would End Controversy.
Mr.. Cramton, who was the first wit
ness, told the subcommittee that the
first lump sum provision was put lii
the District appropriation bill on his
motion because he felt 1t unfair to
increase the Federal contribution be-
cause of the low tax rate and the need
for greatly increased expenditure for
civic growth. He argued that this
would tend to end continual hector
ing of Congress by the press and Or
ganizations in the District. He thought
that advocacy of appropriations would
be tempered by the knowledge that
it would be District tax money that
would be expended if there was any
great increase. He claimed that 1t
would place the people of the District
in a much more dignif1ed position
when they came to Congress urging
an increase for schools. streets and
other civic improvements. 1t would
then be their own money that they
would be asking Congress to spend.
MIR. Cramton said 1t is vital that I'm
provements should not be blocked.
There was more unanimity in the
House for the lump sum than for any
other civic matter. he said. adding
that Congress has committed itself
thoroughly and unalterably to the
lump sum plan. This has tended to
place q greater sense of responsibility
on the people of the District and has
led 10 u greater growth OF the city.
Mr.. Cramton argued that the ga
600 900 lump sum is not subject TO u
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