Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-11
Survey Fails to Draw ConcIu-
SionS-Points Out Large
UntaXed Area.
COMPARES TAXES HERE
WITH OTHER CITIES
Federal Share in 1928 $7,44O,939,
Computed on Municipal Tax
payers Basis.

The report of the Bureau of Efficiency
on fiscal relations between the District
and Federal governments, including a
survey and comparison of tax figures
In IA leading cities of the country, was
laid before the House today by Repre-
sentative Simmons, chairman of the
subcommittee on appropriations.
The report contains no recommends
lions, but in summary accompanying
II points out that it is the opinion of
the investigators that the solution of
the fiscal relations problem may lie in
determining the Government liability
toward the cost of operation and main-
tenance of the Capital City along two
lines. namely Cd its tax liability as a
municipal taxpayer of Washington in
connection with the ordinary costs of
Government to the municipality, and
CD its liability on account of the loss
OF revenue and on account of extraor-
binary expenditures occaSioned by the
fact that Washington is the National
Capital.
The liability of the Federal Govern
ment in the cost of operation of the
city in the fiscal year of 1928, was
computed on the basis of a municipal
taxpayer, $7,440,939, the Bureau re-
ported. The report was prepared at the
request of the Senate and House ap-
preparations Subcommittees.
In arriving at the $7,440,939 figure
the report points out that it has made
no attempt to compute the liability of
the Government on the loss of tax rev.
enue on account of excess ordinary real
property exemptions and the cost of
excess park acquisition and mainte-
nance in the Capital.
Contribution Was S9,oOO,oOo.
In the fiscal year 1928, the year for
which the computation was drawn, the
Government contributed a $4,000 900
lump sum In this connection the re-
port points out that 81 $3.50 was left
of the Federal contribution to be ap-
piled against the extraordinary expendi-
lures of the Capital City.
$50 far as ] have been able to ex-
anime this report said Mr.. Simmons.
1t completely supports the position held
by the House"
The report is voluminous, containing
"A typewriter pages. In accordance
with instructions the Bureau of Eff
cheney has made no recommendations
nor drawn conclusions.
Summary Is Furnished.
The bureau furnished the following
summary of its report, in which it OUT
lined the steps in its compilation, and
explains the reason therefor:
The subject of fiscal relations between
the Federal Government and the Dis
trict of Columbia has been one Of lively
interest ever since the District of Co.
lumbia was established as the seat of
the Government of the United States, in
1900. Briefly, it covers the determina-
ton Of the liability of the Federal Gov
ernmenI toward the cost Of operation
and maintenance of the city of WASH
ington, D. C..
A careful study of the various pro-
posals advanced from time to time for
the solution of the problem of fiscal
relations and of the volui:.inous hear
ings held in connection Herewith. in
dicates that complete tax data for
Washington, D. c., and for other cities
in the United States of comparable size
have never been gathered at any one
time. The Bureau of Efficiency was re-
quested. therefore, in 1928. by the appro-
priations committees of the Senate and
the House of Representatives and by
the Bureau of the Budget to collect the
data essential to full consideration Of
the subject.
History Of Fiscal Relations.
For a complete understanding of the
problem knowledge of the history Of
the District of Columbia is necessary.
Part l Of the bureaus report is devoted
to this subject.
A review of the fiscal affairs of the
District of Columbia during the period
1890 to 1871 indicates that no definite
plan of contribution by the Federal
Government toward the support of the
government of the District of Columbia
existed during any part of this period,
and that appeals were continually being
made to Congress by the residents for
relief from situation which they
claimed was becoming intolerable 1t
was held that the District Of Columbia,
as the Capital of the Nation. was being
developed on scale beyond that which
could be afforded by the average
municipality, and that, therefore, the
Federal Government should share with
the citizens the cost of its operation and
maintenance. From 1890 to 1885 the
Federal Government contributed ST.
429,079.46 toward the municipal ex-
penses of the District of Columbia.
while the residents Of the District paid
$4,12l ,57o.46 during that period. The
contribution of the Federal Government
varied from year to year. no paymen.
whatever being made during % Of the
IS years.
In 1885 the committee on the District
of Columbia of the Senate made an
investigation of the subject and recon-
mended that the Federal Government
should pay a definite proportion of the
expense based upon its property holdings
in the District No action was taken
on the committees report, and the
Federal Government continued its ir-
regular voluntary payments. These
were more liberal, however, 1t being
apparent from the fiscal reports of that
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