Evening star., 1928-12-02
FIXED RATIO PLAN
IS URGED FOR D. c.
Civic Groups Continue Efforts
for Abandonment of Lump
Sum Appropriations.

During the short session of Congress
which begins tomorrow local trade and
civic organizations will continue their
efforts for abandonment of the lump
sum plan of Federal contributions to-
ward the upkeep and development of
the National Capital and for reStora-
ton of the policy of a fixed ratio be-
tween local and Federal appropriations,
SpokeSmen for the organizations de-
clared last night.
The ultimate answer to the problem
of providing for the ever-groWing list
of needed and urgent public improve
ments, 1t was contended, lies In return
to the principle Of fixed proportion en-
bodied in the organic law which would
allow more generous contributions from
the Federal Government than the So
100000 lump sum.
Reduction of Ratio Cited.
Edward F. Colladay, chairman of the
citizens joint committee on fiscal re-
lationS, emphasized last night that the
100000 lump Federal appropriation,
which amounted to about SO per cent of
the total local budget when instituted
four years ago, had dWindled to about
221a per cent of the budget for the cur
rent year.
This gradual reduction of the pro-
portion of the cost of the National Capt.
tai borne by the Federal Government,
he said, is wrong, but illustrates point
edly the justice of the movement of
local taxpayers for a return to the fixed
ratio between Federal and District ap-
preparations.
While concerned about the growing
list of needed Capital Improvements for
the District, the cost of which runs into
millions of dollars, the three major local
trade organizations, following. con-
sideration Of the proposed budget for
the next fiscal year, have recommended
to the District Commissioners that the
present tax rate of $1.70 on real estate
be continued for another year. Warn
ings were voiced that an increase in
taxes might result in serious economic
harm to the District.
The Board of Trade and the Wash
ington Chamber Of Commerce in re-
ports to the city heads on the budget
pointed out that local taxpayers are
willing to bear their full share of the
cost of maintenance of the National
Capital, and are doing so, and that the
local tax burden was comparable to that
of cities of similar size.
Every record and every comparison
indicate that the people of the Dis
trict have assumed fair tax burden,
which, If increased, would bring serious
economic difficulties on the city," the
Board of Trade declared in its recon-
mendations to the Commissioners. The
statement was made on the basis OF
the national tax survey conducted by
the board, which indicated that Wash
ington stands second in list OF the
larger cities of the country in the
amount Of per capita assessment.
Merchants Favor Return.
The chamber adopted report stat
ing that washington taxpayers are
carrying their full responsibility in the
payment Of municipal activities OF pri-
marily local import, and, in addition,
they also are bearing the expense on
large part of the many local undertak-
ings which are primarily Federal in
character"
Maj. Gen. Anton Stephan, president
Of the Merchants and Manufacturers
Association, stated last night that his
association would continue its part III
the movement for a return to the fixed
ratio between Federal and local contrt-
buttons to the local budget and voiced
opposition to any increase in local taxes.
The Board of Trade in its report cn
the budget urged the Commissioners to
continue vigorous fight for an equit-
able Federal appropriation toward the
DEVELOPMENT of the National Capital
1t also voiced a protest against the
practice of predicating the budget for
the 1880 fiscal year on the basis OF
Federal contribution of but $4,000, 600:
The trade body recommended bud
| get for the next fiscal year totaling SAL
| $4,000. This was predicated upon a
contribution Of the $1,T0 tax rate and
an expected Federal appropriation
amounting to $10,768. 900, or 81, ,788 900
more than the lump sum provided from
national revenues in the past several
years, it was pointed out.
improvements Not Provided For.
This budget figure, however, 1t is ex-
planned, would not make provision for
many major public Improvements held
| to be urgently needed. The official bud
get, as 1t now stands, Is reported to
total slightly less than $40,000,000.
THE Board of Trade is impressed
with the great municipal needs gradual
ly being stacked up year by year
| through insufficient appropriations" w.
w. Everett, president of the organiza-
| ton, declared. The board, he said, would
/ continue to gather tax and assessment
statistics from cities over the country
to keep the survey material up to date
In preparation for continuation of the
movement for restoration of the fixed
ratio plan of Federal contributions.
Detailed consideration of the fiscal
relations situation will come RefQre the