Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-21
TRADE BODY URGES
BUDGET REDUCTION
AND TAX RATE CUT
Slash in District Estimates
to S43,500, 900 Asked
in Resolution.
$1.65 LEVY FAVORED
UNDER NEW VALUATION
Study Of Fiscal Relations at Com
ing Session Sought by Board
Officials.

Recommendation calling for a re
duction OF the $40, 600 600 budgetary
estimates ae proposed Ivy the cty's
department heads for the operation Of
the District during the fiscal year
1a2S.29 10 a figure not in excess Of
S43.500, 900 and the establishment of
a tax rate on realty for that year not
in excess of 81 ,65 per hundred dollars
today were laid before the District
commissioners by officials of the Board
of Trade. following action taken last
night bv the board of directors of
the trade body,
The Board of Trade, through its di-
rectors, also went on record request
ing the city heads to urge upon Con-
gress at the coming session the APP
pointment of special commission of
representatives of the Federal and
District Governments to determine
upon a fair and JUST tax burden TO
be paid by the city as its equitable
proportion of the expenses of the OPP
Grafton of the National Capital
Favor Advance by Treasury.
A third proposal adopted by the
Board Of Trade directors was a recon.
mendation that should Congress de-
eide not to increase the Federal con.
tribution of 50 600. 600 as it's share OF
the cost Of the National Capital. that
All necessary items Of a non recurring
nature. not covered by the budget as
recommended by the Board of Trade
should be taken care Of by an adj
vance from the United States Treasury
at present interest rates and be amor
tizod over period of years.
In recommending that the estimates
be slashed approximately S6,500,000
which it was believed would make
possible the reduced tax rate. the Off
cials of the trade body pointed to the
grave danger" of the increasing tax
burden and the heavy financial obliga,
tions being assumed by residents of
the District.
The recommenda iions Of the Board
Of Trade We're laid before the Board
of Commissioners at its first session
today on the proposed budget for the
192S29 fiscal year.
Special Committee Appears.
The proposals OF the trade body.
drafted following an intensive study
of the tax and estimates matters, were
presented by a special deputation con
sisting Of Edwin G. Graham. president
OF the board; Ben T. Webster, secre-
tary; Joshua Evans, ir.. chairman of
the committee of the board on munich
pal finance: Richard L. Conner and
Robert j. Cottrcll, assistant secre-
taries
The statement Of The Board of Trade
nc al tn hn m oil
read.
After studying the reports Of all
our committees. which gave thorough
study TO the estimates of the depart
ment heads. the following resolutions
were adopted by the board of drec-
tors.
lit Is the sense of the board of
directors, after reviewing the tax situ-
alton in Washington, that the tax
rate, based on the increased assess
ment, he not in access of $l.65. this
rate being suggested on the assump-
ton that Congress will appropriate
not less than $4,000. 900 toward the
unxeep of the National Capital, maxi
ing a revenue totaling approximately
S43. 500 900. It is also the sense of the
board of directors that the District
Commissioners should not recommend
n budget in excess of $43 500 ,0G0
While we realize that there arc
great many needs al this time, we feel
that the present tax rate of $3.50 can.
not be borne without placing q great
burden OF taxation upon the city.
Fiscal Study Urged.
"2--It is the sense of the board ot
directors of the Board of Trade that
The Commissioners should recommend
to Congress the establishment of
commission composed of Federal and
District members to determine the
fair and Just tax burden to he paid
by the city as its equitable contrihu-
tion toward the uplteep of the Nation
al Capital
"3-If Congress should not increase
the Federal contribution Of 81 900, 900
toward the upl<eep of the National
Capital. that all necessary items OF a
non-recurring nature not covered by
the revenue should be taken care OF
by an advance from the Cmted
States Treasury at present interest,"
rates and be amortiZed over a perlou
of years.
A tax rate of S1.65 as proposed by
the Board of Trade for the fiscal year
l92S-29, it was pointed out by oiticiais
of the organization, would produce
in the face Of the 20 per cent increase
in the assessment on real property
which goes into effect next month'
revenues sufficient to cover budset
of S43, 500 900, computing the Ieheidi
contribution at 50 900, 900.
Burden Held Unequal
The consensus among the directors of
the Board of Trade at their meetl1s
last night was that the local tax pay
prs now are bearing more tl1ah thei
share of the upkeep and Development
of the National Capital when the tax
burden here is compared with that ot
cities of comparable size. 1t was
brought out in the consideration OF
the tax rate and budget for the hscai
wear 1g2S-29 that with the heavy IN
crease In the assessed value of real
propertv, the tax rate Of s1.6o as pro.
posed by the Board of Trade, WOULD
nrodtce more revenue than the pres
ept rate of $3.50 under the current as
sessnent figures The assessment
which becomes effective next month
sets the value of taxable property at
approximately $1,150,000, 900 as op'
posed to the figure of $3.50, 100000 op-
Grating for the current year.
While recommending that the $oo,'
600 900 estimates of the department
heads of the city government be cut
down to approximately $43,5O0,000 TO
make possible the tax rate of $1.65, the
Board of Trade left largely to the
commissioners the paring down pro-