Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
-FOUR FISCAL PLANS
GIVEN COMMITTEE
DR.. ReicheIderfer, However,
Wants Congress to Choose
the Best of Them.
Continued From First Page.)

tOonCnueQ from flrSG Page.l
scheme advanced of having Congress tx
tax rate for the District and the
United States. making up the balance
needed to support the municipal budget.
Difficulties of Tax Plan.
Discussing the taxing of Federal
property, Mr.. Cramton said difficulty
would arise in determining what prop
erty should be taxed. The United
States he said, owns a lot of property
in Washington which is used exclu-
sively for municipal purposes, while 1t
also holds other property, such as the
Lincoln Memorial, Library of Congress
use in such a great degree that 1t would
be unfair to tax 1t.
Mr.. Cramton said that property in
private ownership in the District had
increased In value to such a marked
degree that 1t had placed an additional
burden on the Federal Treasury, due
chiefly to the necessary increase in
police and fire protection. The new
Federal buildings, he declared, do not
throw such a burden on the Treasury
as they take care, to a large extent, OF
their own fire and police needs.
There is a further objection to re-
sorting to a definite tax proposition on
Federal property" he declared Fed
eral property all over the country Is tax
exempt and II Congress should adopt
the policy of paying real estate tax on
Federal property in Washington, the
establishment of that precedent would
cost the United States hundreds OF
thousands Of dollars year"
Wouldn't End Agitation.
ry-1.. ,~.aoa-o1 - I.o,,o rxo,rro-r oe
tablish the tax rate for the District and
the Federal Government make up the
additional funds needed to care for the
annual budget, Mr.. Cramton said, does
not have merit because it will not
eliminate the agitation over the fiscal
relations question.
Even when the District had a tax
rate of $1.20 the tax payers protested"
he said. so if 81 20 would cause dis
cord, cannot imagine Congress fixing
lower rate. Every member of Con-
gress knows that the rate would be
higher than the existing $1.70, so it
would not be wise or practical to resort
to that plan"
Turning to the lump-sum plan, Mr..
Cramton pointed out that it has had
the effect of preventing citizens aSso-
Citations from asking for greater appro-
priations because in doing so they would
be urging that their own tax money
be spent for improvements. This plan,
he said, also is advantageous to the
taxpayers, because Congress gives
greater weight to their request for i'm
proVementS, since they are asking that
their own money be appropriated.
COmmendable Features.
Mr. Cramton declared that the pro-
posal for segregating the Federal and
District expenses had "a great deal to
commend it in theory" but that it
would not do away with the recurring
controversy over the fiscal relations
policy.
First" he declared, at would be
difficult to determine the relationship
between Federal and District projects,
and controversies would arise. The
second objection is a sentimental one
it would ignore the desire Of the people
of the Nation that the Capital City be
made attractive"
Mr.. Cramton insisted that since the
lump-sum plan had been in effect
there had been less bitter feeling
toward Congress and less controversy.
There is certainly very little basis for
complaint now" he said. IT don't be-
lievc any one can say the Federal Gov
eminent is paying less than proper
proportion of the expenses Of the Dis
trict and that $1.70 Is high tax rate.
The expenditures Of the Federal Gov
eminent in the District are so great
1t Is difficult for me to understand how
men of intelligence and vision can have
the nerve to say that the United States
is parsimonious in its treatment of the
District when it gives S9,500,000 year.
The Federal building program in the
Mall Is so important to the financial
welfare of the District, I cannot un-
derstand why any agitation should con-
tinue at thus time"
Richards Testifies.
Tax Assessor William P. Richards
was the only other witness heard bg
the committee. At the outset Of his
testimony, he introduced a sketch and
chart showing the various sources of
District revenues and the distribution
of expenses in the last fiscal year snd
then went into a detailed explanation
Of tax collections graphically showing
their growth over period of years.
Mr.. Richards defended before the
committee the policies of his Office and
declared that based on large amount
Of research, assessments were being
made In Washington on real estate at
a figure somewhere between 90 and 100
per cent of the real value. He cited,
buildings downtown where the assess
ment was much more than the sale.
For instance, the Riggs Bank Building.
In discussing the difficulty experienced
by his Office in obtaining information
as to exact sale prices, Mr.. Richards adj
mitted on question by Representative
Patman that it would be a good thing
to have the real consideration written
| into deeds. Mr.. Richards explained,
however, that efforts to obtain legisla-
ton to this affect had met with such
opposition that they had failed OF
enactment. He said he knew of no good
reason why the full consideration should
not be included on the deed of record.
Representative Patman at this point
| brought up the question of the differ
| ence between the real value of property
and the sale price. He charged that in
some instances first trusts were placed
upon property In excess OF its actual
value. In such cases." he declared,
that first trust, then, is watered. 1t
| Is loaded"
40 Per Cent Added.
Mr.. Richards, continuing the discus
| sion on this point, said: For instance,
| IL a man came. into my ONCE and said
he could buy q second trust of $40, 900
| for $4,000, 1t could not have repre-
| sented money. There are a few such
| cases."
Mr.. Richards charged that in some
building operations overhead" of about
| 40 per cent was added to the real cost
price of the ground and the cost price
of the building before the property was
| offered for sale. For instance, he point
| ed out builder might pay $4,000 for