Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-11
Urge Commission to Seek
Permanent Settlement Be-
tween u. S. and D. C..
DENOUNCE LUMP-SUM
PLAN AS UNSCIENTIFIC
Specific Recommendations on
Budget Not Made, Due to
Lack of Study.

Continuance of the $1.70 tax rate on
real estate and tangible personal prop
erty and the formation of a commits
sion of outstanding economists and, tax
experts to make detailed analysis of
fiscal relations between the local and
Federal Governments to determine an
equitable apportionment of the costs of
the National Capital is urged by the
officers, directors and committee chair
men of the Washington Board of
Trade.
1t was the sense CT the meeting of
this group last night, after Iconsidera-
ton of the budgetry estimates of the
city department heads for the fiscal
year 1881, that Congress should be pc
titioned to sanction the appointment by
the President of commission to seek
permanent settlement of the fiscal re-
lations between the Federal and District
Governments
This was deemed essential before the
District can proceed wisely on develop
ment programs without placing an I'M
bearable burden on local taxpayers, or
without unnecessary delay in some
projects if the tax burden is held within
bounds.
No Specific Recommendations.
The officials of the trade body. sitting
as its budget committee, refrained from
making specific recommendations to the
Commissioners on the 1881 budget esti-
mates now being studied, taking the po-
sition that due to the great Importance
of the financial problems and the short
time available to the trade body to
study them, they could not intelligently
IN IN fo nf
assistance to the Commissioners.
The proposal for the appointment OF
a commission of qualified experts to de-
termine what share of District expenses
the Federal Government should bear
was made by E. G. Graham, past preSl-
dent of the Board of Trade, who de-
clared that something must be done to
avoid the controversy over the local
tax rate and the amount contributed
by the Federal Government, by repudia-
ton of the present lump-sum contrlbu-
ton plan. which sets aside substantive
law providing for 60-40 division OF
costs of the National Capital.
District taxpayers, he declared, are
ready and willing to pay falr tax
burden, but for the most part they have
not been convinced that Congress, under
the lump sum plan and the continual
rising of the total District budget. is
bearing us lull SNARE. IT'D 4CoOlutAOA
was adopted unanimously.
President Should Name Expert.
George C. Shinn supported the mo-
ton, declaring that the Federal Gov
eminent benefits from nearly all serv-
ices of the District government to an
unknown extent and that for this rea-
son an expert commission should be
named by the President, with the sane
ton of Congress, to analyze and report
what should be the proportion of costs
borne by the Federal Government.
The present lump sum plan was de-
nounced as being patiently unfair, in
that it was unscientific and not based
on any known positive analysis show
ing to what extent the Federal Govern
ment enjoys benefits, resulting from OPP
Grafton and development of the District.
w. T. Galliher, after some discussion
of items in the estimates as prepared
by department heads of the District
government. having total cost of $751;
056,505, urged that the trade body off,
Gals refrain from making hasty recon-
mendations on the tentative budget, de-
claring that In so limited a time it
would be utterly impossible for any
group to make intelligent judgments on
the proposed expenditures.
His suggestion was carried after 1t
was brought out that In order to reach
the Commissioners in time for consider
alton before they begin final action on
the budget estimates recommendations
must be fled at the District Building
by July Is.
No Time for Study.
A copy of the estimates was obtained
from the District officials about two
weeks ago and before the trade body
committeeman could study them in de-
tail 1t had mimeographed copies pre-
pared for each committee chairman and
officer. This work was finished late last
week, leaving but short time for de-
tailed study.
Daniel j. Donovan, District auditor
was present in an unofficial capacity
and explained a number of provisions
OF laws governing preparation of the
budget items, trust funds, refunds of
excess taxes collected and other matters.
He explained that while the District
has in excess of $6,000,000 in cash to
its credit in the United States Treasury,
So 100000 must be kept on hand there
to run the District government during
periods of the fiscal year prior to the
actual collection of District taxes. The
remainder of the fund, however, it was
brought out, could be drawn on for new
capital expenditures for the District.
Joshua Evans, jr, chairman of the
finance committee. in charge
of the budget study, urged that the
trade body go on record for continu-
ance of the $1.70 tax rate, and this was
approved. 1t was the