Evening star., 1930-12-07
FISCAL RELATIONS
DATA TO Be HEARD
House Committee to Begin
Second Week of Inquiry
Tomorrow.

The special committee of the House
appointed to study the fiscal relation
ship between the United States and
District governments, will begin the
second week Of its fact-1nding inquiry
tomorrow by considering a compre-
hensiye report of the Bureau Of Ef-
f1ciency, containing the results of its
investigation into the subject.
The findings, as outlined in the re-
port, will be explained to the commit
tee by Thomas F. Murphy, assistant
chief of the bureau, who is to be called
as the first witness. Murphy will dis
cuSs the features in the report and de-
scribe how the bureau gathered the
data and reached certain conclusions
as to the amount it believes the Federal
Government should contribute toward
the support of the District government.
The committee had originally planned
TO call Maj. Daniel j. Donovan, audi
tor and budget officer of the District, as
Its next witness, but decided at an
executive meeting at the conclusion of
the hearing yesterday to put Murphy
on the stand when the sessions are re-
sun1ed tomorrow morning at Gas
O'Clock. Maj. Donovan will be called
later, the committee desiring to oues-
ton him after studying carefully the
testimony of William P Richards, Dis
t44Cb ScA dSSeSSOT.
Three Days on Stand.
Mr.. Richards completed his testimony
yesterday after spending nearly three
days on the witness stand. The COM
m1ttee also plans to recall him later
after reviewing his testimony.
Indications are that the hearings will
continue for at least another week
After the District officials are heard.
representatives of the civic and trade
organizations will be given an oppor-
tunity to present their views. Chair
man MapeS said he desired that every
individual or group interested in the
subject of fiscal relations to appear be-
fore the committee.
The attendance at the hearings thus
1ar, however, has been small, and ap-
parently disappointing to the commit
tee which arranged to use the commo-
dious District Committee room In anti
cipation of a large audience. AS a re-
suit, the committee has decided to
abandon the District Committee room
and complete the hearings in a smaller
off1ce In room 293 Of the House ONCE
Building.
The first four days of the hearings
produced mass Of data bearing on
the sources of District revenues and
expenditures, property valuations and
other information with which the COM
Tnittee is laying the foundation for
the fiscal relations study. Most of this
has come from Tax Assessor Richards.
Question of Taxation.
The gist of Mr.. Richards testimony,
however, has been that Washington's
tax assessments are high in comparison
with other cities Of comparable popu-
sation, and that there is In the District
e646. .000, 900 worth of property which is
yielding the municipality nothing in the
form Of taxes. OF this exempt prop
eEty, he brought out, $500, 900 900 worth
is owned by the United States, $685.
600, 900 worth by the District and S90,-
100000 worth by churches, hospitals
and other institutions which are free
Of taxation.
The committee is gathering the in
formation as to the valuation placed
on the Federal owned property in
washington. primarily because of sue-
gestions THAI perhaps an equitable basis
Of fiscal relations could be worked out
II the United States be taxed on its
real property holdings and contribute
an additional amount toward the sup
port Of the District on account of the
extraordinary expenses due to the fact
that Washington Is the Nations
Capital.
The committee also Is giving some
thought to proposals advanced early in
the hearing that the District relieve its
tax burden by tapping untouched
sources of revenue such as an inheri-
tance or income tax This suggestion
came from Representative Simmons of
Nebraska, chairman Of the subcommit-
tee on appropriations Of the House
District Committee, who accused the
District of failing TO develop new
sources Of revenue to relieve It's tax
burden for the purpose Of endeavoring
to get o larger contribution from the
Federal Government.