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

lieve we are in honor bound to respect
until or unless the law is changed. !
respectfully submit that the proportion
ate system of contribution should he
followed in the future as 1t was untll
the year 1925. and that the lump sum
system. IL Il can be dignified by that
designation, is unsound in principle
and vicious In actual practice
Unsound In Principle.
L repeat" Senator PhippS went on,
that the present temporary eXpedient,
adopted from year TO year merely 10
prevent deadlock between the two
houses Of Congress on the annual DIS
trict appropriation bill. a deadlock
which might tie up practically all the
necessary functions OF the local civic
government. is unsomd In principle. In
the first place, such contributions are
contrary to the plan OF financial part
ncrship between the District and the
Federal Government They make the
United States appear in the role OF vol
untavY and benevolent donor thereby
placing the District in false light be-
fore the people of the country. 1t Is
far easier to Justify proportionate con-
tributions than mmp-Sum gifts. The
inevitable t@ndency-I will not say the
purpoSe--of this plan would be grad
ual reduction in the amount OF the
ump-Sum payment. until at last the
District taxpayer would be staggering
under the whole burden of maintaining
Washington not only for himself bur
also for all the people OF the United
States"
Senator Phipps declared there is no
Justice In contributing $9,00OOO0 In
1925 when a total OF S29.000,000 was
required. and the same lump sum in
1929. when S3900O.000 is to be spent.
IF the advocates Of the plan believe
that $4,000 900 was fair in 1924. how
can they claim that the same sum is
fair in 1929? 1t is neither equitable
nor lust practically to double the bur-
den upon one taxpayer and to make
no change in the contribution OF the
other"
Disputes Invited.
The lump sum is unsound because II
settles nothing and merely invites an
nual disputes, Senator Phipps said. He
said It has the effect of reminding
Congress each year that large cash
donation" is given 10 the Capital and
zach year there must be wrangle as
to the amount, He contended this is
as unfair 10 the House and Senate as
il is 10 the people of the District. be-
cause 1t takes time and provokeS argu"
nent
Recalling that in 1924 one of the |
chief arguments OF the lump-sum advo- |
rateS was that 1t would give the Com |
missloners a free hand in deciding how |
much should be spent annually, Sena- |
tor PhipnS said the actual practice since |
hat year proves this argument does |
not hold true He quoted from A letter |
written by the Commissioners a few |
weeks ago al his request. showing how |
the estimates for the next fiscal wear /
were cur:ailed from communications |
lf department heads TO the figures |
finally presented 10 Congress. The let |
ter shows that the department heads /
asked for a total of $5l .238.543, where
as the budget as submitted 10 Con- /
zress. recommended a total OF S40,- /
43i.l8s
Cites Donovan Letter.
obviously" Senator Phipps said /
the highest figure OF S5i 900. 900 repre- /
sented actual needs, but the Commits |
sioners could not insist upon that sum |
with the United States only contributing |
50 900 900 and the balance to be raised !
by still heavier taxation upon distant |
residents" !"
Senator Phipps then quoted a letter |
from District Auditor Donovan showing |
that for each OF the last 10 years there |
has been a wide difference between the |
amounts regarded as desirable by de- |
Dartment heads and the reduced |
amounts which the Commissioners and /
Congress had TO approve II an unreason-
ably high tax rate was 10 be avoided !
The result has been. he said. that de-
selopment Of Washington has been i'm I
Oeded, its growth Stunted. and most oi |
The money has had To be devoted to |
and operating expenses or I
10 semi-nationai projects I'm which local |
citizens are hardly interested 10
greater extent than the people in other |
sections of the country.
Senator Phipps answered those who !
advocate the $4,000. 900 lump sum on the |
argument that the people of Washing /
ton. while enjoying the privileges OF re- |
siding in the Capital, do not paw as /
much In taxes "as the folks back 1
home"
Holds Progress Retarded.
To show how WaShingtons progress /
Is being halted bv the present fiscal /
relations policy Senator Phipps con-
Iinued
What are the necessary and desir- |
able improvements proposed for the I
City Of Washington? The District Com
missioners inform us that items total
ing $50 902 900 should be incorporated
In an expenditure program during the
next five years. OF course, practically
none Of them can be undertaken as
long as the present fiscal arrangement
continues Here are the principal ones: