Evening star., 1928-03-28
PHIPPS CONDEMNS LUMP SUM
PLAN AS "VICIOUS PRACTICE

paid by the taxpayers Of the District Of
Columbia"
In the case of Columbia Hospital for
Women he said. the original cost Of the
buildings S30n.000 was paid by the
Federal Government. but later on Con-
sreSs I'm its wisdom decided to charge
half OF that amount to the District
Points to water System.
Touching on the financing Of the
water supply system. Senator PhippS
said that in the beginning the United
States built the aqueduct and local tax
payers provided the distribution system,
the cost being about equal. II became
necessary few years ago to construct
an additional water supply plant at a
cost Of So. 750 900, and Senator phippa
declared the District is being made to
pay all of the construction cost OF the
new work.
In this connection, he added. Il ask
Senators to bear In mind that the
United States does not pay any water
rental or other charge a cent"
Senator Phipps said the Commission
erS have complied with the direction IN
the substantive of 1922 to raise sur
hcicnt surplus to operate on 4 cash
basis,
That fund is on hand" nc said
and. while expenses have materially
increased, the District is read 70 so
ahead on n cash basis and can Obtain
needed improvements without go,nr
into debt or floating bonds IL the Ma
uonal Government is but ready to do its
share"
Increase Is 100 Per Cent.
In conclusion, Senator PhippS said.
Il have offered figures when prove
that the assessed value of taxable real
estate in Washington has been in
creased during the last nine years by
100 per cent, and that the real property
levy actually payable has been increased
by 200 per cent. II Is evident that such
taxes cannot be made greater and that
personal property rates are now entire
ly too high We have come TO the
parting OF the ways. With Washing
tons imperative and growing needs.
the present fiscal arrangement cannot
continue. The limit has been reached.
AS chairman of the Senate Subcommit-
tee on District appropriations, l raise
my voice publicly in solemn warning, as
have often done in meetings with
my colleagues of the Senate and OF the
House Of Representatives.
The time has come for plain speak
ing, Does any one doubt that Wash
ingtOn has practically reached the limit
OF her taxable resources and that the
slight normal increase will prove gross
ly insufficient for public needs? Does
any one cherish the dclusion that this
is city of great wealth. and that
heavy taxes are levied without conse-
quent hardship on the people who pay
theme Who are the taxpayers of
Washington? The taxpayers of Wash
ington arc the public servants OF the
United States. the employees of the Fed
eral Government They are modestlv
paid, they are under heavy expense.
The great majority OF The homes here
are small, for I'm most sections of the
city every Is or 20 feet represents a
private dwelling Many thousands Of
Government employees cannot afford the
initial OUTLAY IN buy these homes. which.
though humble are too costly for them,
and so they rent their living quarters.
But still they pay the tax. II is passed
on 10 them. of course, as In every other
city in the country: and thus We have
the Federal emplove standing the bur-
den Just the same"