Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-20

never acted upon any recommendation
regarding q change in fiscal relations.
Representative Reid, picking up q
phrase used several times by Mr.. Sim
mons, asked him II In his opinion the
proposed legislation was scheme to
take money out of the Federal Govern
ment,, and Mr.. Simmons replied, Ser
tairiy." Mr.. Reid told Mr.. Simmons
that he thought he was mistaken.
Representative Moore engaged in q
rapid fire argument with Mr.. Simmons
regarding the wisdom of getting expert
study, answering Mr.. Simmons state
nent that the committees of Congress
can at any TINA call in expert testi-
mony; by saying But they do not
Moore declared that "A Mussoliniship
II not wanted in the District" and he
called his attention to the fact that Mr..
conference committee, where there Is
more confusion than anywhere else in
regard to what Is fair amount for
the Federal Government to pay toward
the District expenses.
Representative Simmons said that he
could readily see where ct one time q
so per cent contribution by the Fed
eral Government was fair, and that he
believed the time was rapidly approach
ing when the Federal Government
should not pay more than 10 per cent.
Acting Chairman Mcleod asked him
who should determine when 1t was
time to change to the 10 per cent,
whether it should better be done by a
joint commissions recommendations
after expert study or by small die
tatorship, such as his own subcommit-
tee.
Representative Reid repeatedly called
attention to the fact that Washington
Is different from other cities, and that
Mr.. Simmons and others should not en-
deavor to apply a common rule for all
other cities to this one.
Representative Simmons said that II
Congress was going to give the people
some civic rights, 1t should be done out
right and not come in by q back door
method. Acting Chairman Mcleod
called attention to the fact that water
consumption, street costs and other
charges change with the year, and
would therefore seem to warrant expert
study, and that Congress could be re-
Neved to a considerable extent by hay
ing an expert study made.
In reply to questions from Mr.. Reid,
Mr. Simmons said that one or two rules
might be applied to determine what the
Federal Government should pay, one of
which would be the average of other
large cities Of the country In taxes, or
by direct tax on Federal property.
Representative Reid asked him then
why 1t would not be wise to have such
commissions as Is proposed TO make q
study to see which or what method ID
best
Donovan Cites Discussion.
District Auditor Donovan cited the
long unsettled discussion and disagree
ment over fiscal relations as pointing to
the necessity for a determination by
some agency as to where the District
expenditures should stop and the ma
tional expenditures should start. In re-
ply to questions, he stated that while at
present the District is proceeding on q
tax rate of s1.70, the expenditures from
the Treasury are based on q tax rate Of
Sl85, because certain surplus revenues
are being used so as to not increase the
tax rate. In the pending bill, he said,
is reflected tax rate OF $1.90, and II
there are to be included increases for
the police and firemen and other per-
manent and indefinite appropriations, II
really means the equivalent OF 81 tax
rate.
When Representative Whitley of New
York and other menb2rs questioned
other cities, Az Donovan explained
that taking the Cax rate alone Is not
an intelligent procs dure, but that re.
lated to it is the assessment rate. He
estimated that for the purpose OF COM
parison 1t was fair to say that the Dis
trict is operating on what Is equivalent
to tax rate of 1920.
ID. C. Heads Quoted.
In reply to inquiries regarding the
District Commissioners attitude on the
Moore measure, Acting Chairman Nc
Leod put into the record q statement
that "the Commissioners believe that Q
permanent commission. such as is pro-
posed by this bill, Is highly desirable
and that the results to be accomplished
would be helpful in the establishing OF
fiscal relation between the United
States and the District Of Columbia"
Mr.. Donovan put into the record
some statistical studies regarding Dis.
trict finances and q brief which he fat
prepared for the District Commission
sss IN support OF the Moore bill.