Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-19
DONOVAN TO FINISH
FISCAL TESTIMONY
Auditor Says if Gas Tax Is
Raised Personal Tax Should
Be Dropped.
CONTINUED From First Page.)

water fund, which indicated tnat INT
estimated receipts from the sale o
water for the current fiscal year woult
amount to S2,149. 900 and that the APP
preparation charges against this func
would leave a balance Of $458,000 Il
carry into the 1882 fiscal year. At the
end of that year. on the basis OF esti'
mated expenditures in 1882. the state
ment showed, there will be a balance
Of $4,000 reserved as working capital
Donovan next gave the committee, al
the request Of Mr.. Holiday, q mass OF
data showing the number OF District
CHARGES in various Institutions. These
included the National Training School
for BOYS, the Columbia Institute for the
Deaf and st. Elizabeth's Hospital
where the District pays for the main
tenance Of its charges.
Mr.. Holiday then questioned Maj
Donovan about judiciary Square. where
are located the Pension once and
Court House The auditor pointed out
that the only buildings there in which
the District had any interest are the
District Supreme Court and the Court
of Appeals.
The Pension Office, he explained, is
purely Federal building.
Mai Donovan pointed out that the
salaries and all other expenses in con-
nection with the administration of the
two courts are paid out Of the general
revenues. This prompted Mr.. FTear to
ask him to what extent the various
courtS-Police. Juvenile, Municipal
District Supreme and Court of Appeals
are a burden on the District. Mai.
Donovan replied that, as a general rule,
the fines pay the salaries OF the court
attaches, except in the case of the Su-
preme Court.
The total cost of maintaining the
i've courts, Mai. Donovan explained,
amounts to $750,000 year, whereas the
District gets back In fines total slightly
under $650,000 year from the Police,
Juvenile and Municipal Courts. The
fines imposed in the Supreme Court,
he said, go to the credit of the United
States in the Federal Treasury although
the District does receive from the Court
of Appeals approximately $1,000 year.
Gallinger Municipal Hospital and the
District Jail we're next discussed. These
institutions, Donovan said, are located
on a Federal-owned reservation. The
hospital, he explained, is purely mu-
nicipal institution, but the Jail was built
by the United States and later turned
over to the District The new addition
to the Jail and other expenses in con-
nection with its operation since the
District took 1t over, he declared, have
been paid out Of the general revenues.
OOnONdIlf IEbDOIlHG W OOIlCI QQCio~
tons by Mr.. Holiday, explained that
the arboretum on Bladensburg road is
purely Federal investment and that
the District has contributed toward the
cost of the reclamation of Anacostia
Park out of its general revenues.
Mr.. Holiday asked Maj. Donovan for
. brief statement with reference to the
District sewer system, and he replied:
1.-THE sewer system has always been
Maid from unnaral aprrOY1riat iOnS THE
Federal participation in this system
was represented by the annual contrt-
button made by the United States under
the $3.50, 60-40 and 1ump-sum plan.
"All of the Federal activities in Wash
1ngton use this system, and the United
States gives nothing toward its opera
ton and maintenance, except through
its annual contribution"
Asked About improvements.
Mr.. Holiday next asked for state
ment Of street and road improvements
In the District. For several years"
Donovan replied, "all new paving and
some resurfacing and grading have
been paid from moneys collected under
the 2-cent gasoline tax
Nov, for 1882 we estimate a revenue
availability from the gasoline tax
amounting to $1,915,000. Our appropri-
alton estimate for that year carries
items totaling 100000, to be charged
against that fund. The gas tax viii
60 as far as it can for new paving,
and the shortage will be made UP from
general revenues"
When Mai. Donovan finished this
statement. Mr.. Frear asked him If the
gasoline tax in Washington Is raised so
that It Is comparable to that in Mary
land and Virginia, II It would not be
possible to provide all street improve
ments out of general funds.
"Unquestionably, that is right" an
swered Maj. Donovan,
Mr.. Frear then asked Maj. Donovan
II he knew of any reason why the gaso-
line tax in the District should not be
increased
"I don't see why there shouldn't be
an increase in the gasoline tax" re-
piled Donovan.
In connection with the discussion of
street improvements, Donovan pointed
out that the property Of the United
States, the District government and
foreign embassies and legations is ex-
empt from taxation for street work.
Churches and other institutions that
are freed Of tax on their property, he
explained, are required TO pay Tor
street improvements.
Advocates Weight Tax.
Mr.. Frear next asked the auditor for
his Judgment about remarks made some
time ago by Representative Simmons
Of Nebraska regarding the low automo-
bile license fees and gasoline tax in the
District, and he replied:
II see no objection TO modification OF
the license tax. There should be
weight tax perhaps, but II that is done,
! would knock out the personal tax on
motor vehicles. The average personal
property tax collected on these vehicles
for the 1880 tax amounted to S916.
There were 10000 cars that had no
value, but they were assessed at the
minimum personal tax Of 81 each"
"If the license fee In Washington Is
far below that in other States, would
you think that 1t should be raised TO a
fair charge in comparison?" asked Mr.,
Frear.
"whether we should 60 the limit OF
the high States, I would not say" re-
piled Maj. Donovan. But an increase
would add to the revenues Of the Dis
do you think it is fair TO charge
Q truck a dollar for license tag?" in
uuired Mr. Frear.
Il think there ought TO be relative
charge, based on weight, made against
trucks" answered Donovan.
In response to further questions by
Mr.. Frear concerning the per capita tax
burdens Of various cities, Donovan in
sisted that the only fair way tc arrive
at a comparable tax burden in Wash
in9ton with other cities Of like size is
to determine the per capita tax. He
declared that in arriving at the per
capita tax rate for Washington, Federal
owned property should be taken into
consideration on the same basis as pro-
posed by the Bureau of Efficiency In its
recent report on flscal Eelations.