Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-21
us. AID TO DISTRICT
CALLED GENEROUS
Chairman Simmons Defends
Appropriation in Answer
to 60.4O Plea.

Replying In the House today to the
appeal made by representatives of the
Washington Board of Trade before the
District subcommittee of the House ap-
preparations committee for return tC
permanent law. which establishes the
fixed proportion of 60-40 in fiscal affairs
between the National Government and
the District taxpayers. Chairman SIM
mons of the subcommittee stated the
decision Of the committee. as expressed
In its report on the District appropria-
ton bill:
I'VE have reached the conclusion that
not only Is there no basis for the claim
that the Federal contribution Is too low.
but that it Is exceedingly generous,
and, If anything. too high, giving Wash
ington an advantageous tax position
not enjoved by cities elsewhere in the
United States"
He predicted that ,t NE District ap-
propr;ation bill. now "~ier considera-
ton. is passed. the T>'-trict Commits
sioners will be able =, ~-Iuce the eSti-
mated tax rate at least cents per
hundred.
Salary Situation.
Discussing two substantial increases
IN the bill. Mr.. Simmons cited the
slS7.S00 for salary increases and $780,
600 made available by reduction of
other school funds for the purchase of
additional school and playground sites
He said that the pay increases Will
bring salaries of District employees more
nearly to the average of their grade,
being the first part of a two-year pro-
gram initiated by the committee this
year for that purpose. It is the under
standing that the salary situation is
more acute in the grades where the
lower rates Of pay apply and the
amount recommended has been allowed
with the understanding that first con-
sideration In its application viii be to-
ward relief in those grades to employees
whose efficiency ratings are such as to
deserve recognition"
Discussing fiscal relations Mr.. Sim
mons said:
'"There are two ways in which to re-
duce taxes from the standpoint OF the
man who pays them-one Is to shift the
tax burden. which rightfully Is his. to
the shoulders Of some one else. The
other way. and the correct way. is by
reducing expenditures and thereby re-
cucing the tax burden.
"Ever since the Nations Capital was
located in Washington efforts have been
made to shift the tax burden OF the
District to the United States. For
many years the fiscal relations Of the
United States and the District were
not on any orderly basis. About 1870
the regime of Mr.. Shepherd began
with great OUTLAWS. extravagant expendi-
lures. and much waste for city improve
meuts and development. Just as any
city that embarks upon such q pro-
gram. the city OF Washington could
not carry such load and the Nation
was asked to help. The final outcome
was that Congress abolished the gov
eminent then in existence. guaranteed
the payment Of the city's indebtedness,
and set up the present Commissioner
part Of that plan, the act authorizing
this change provided that the costs Of
operating the city should be paid so
per cent by the District OF Columbia
and SO per cent By the Federal Gov
eminent. To some OF the citizens of
Washington the $3.50 plan Is q sacred
thing, not 70 be touched by mortal
hands It Is interesting. therefore, to
note how it came to be adopted origi-
naliy as the basis Of fiscal relations
between the Federal Government and
the District Of Columbia.
Cites History Of Plan.
Mr. Simmons quoted paragraphs from
w. 3. Bryan's History Of the Nations
Capital" going to show. he declared.
that Congress was In 1874 and 1878 tn
duced to adopt the $3.50 plan of Capt.
tai maintenance by representations by
washingtonians to the effect that,
whereas the Government had large
property interests as well as supreme
authority In the District, 1t should bear
IN equal share with the citizens in its
maintenance and improvement.
Arrived at n this uncertain and OBJ
viously unfair way. the $3.50 plan was
followed by Congress down until 1922,
when the f0-40 plan was adopted" said
Afr Simmons. Since 1925 the United
States has contributed annually 50. 000.-
600 IN q lump-sum amount IN cash TO
the District treasury and In addition
has surrendered its right to q proper
tionate share Of District revenues Ito
which II was entitled under the 60-40
plan). amounting TO approximately
$3.50 900 q year. The Government atso
furnishes TO the District the services Of
Army officers whose salaries amount 70
$50 600 q year. During the past I'VE
years 1lS4.000 worth OF Government
property has been given TO the District
through the chief co-oYdinator In the
way OF surplus material. In l3ZI dlOne
this amounted 10 si22, 600. In addition
10 that, the District uses Government
owned property for city purposes OF
the assessed value Of Si3.742,9i1.l4. A
very nominal ground rental would
amount 10 &i42 600 year. Thus 1t viii
be seen that the Federal Government
contributes not only $4,000. 900 TO the
District Government. but much over
81 000, 900 In addition thereto.
1t Is not my purpose here TO argue
theories or state vague Ideas OF what
the fiscal relations should be. We want
the Congress 10 have the facts. The
committee's conclusion Is that the pres
ent Federal contribution TO the Districts
revenues lis not only fair but exceeding
ly generous.
Tax Free Property.
al the request Of certain District or
CARNATIONS the District assessor recent
iy reported that the assessed value OF
Government realty In the District was
t471, 900 900. that Of District Govern