Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-20
D. c. COST DIVISION.
ARGUED AT HEARING.
Donovan Holds Service Basis
Unfair to Citizens and
Hard to Work Out.
Continued From First Page)

to pay the entire cost of maintaining
the Nations capital. We are dependent
on the justice and equity of Congress
in that respect"
Holidays Suggestion Adopted.
The question of the percentage the
Federal Government should pay toward
District maintenance on the basis oil
service rendered by the municipality led
to such frequent confusion that Repre-
sentative Holiday of Illinois suggested
that he personally would like to know
the views of every interested person.
Chairman Mapes thereupon adopted
his suggestion that the committee ex-
tend an invitation TO such persons to
appear before it, that the question
might be thre1hed out from all possible
angles.
with the percentage the Federal Gov
eminent should contribute to each OF
the IS separate departments OF the
municipality, rather than treating the
District appropriations as whole.
Each witness upon expressing his opin-
ion, Mr.. Holiday said. should be re-
uuired 10 state the facts on which such
a determination Is based. Mr.. Mapes
concurred in these suggestions.
The matter arose during discussion
of newspaper editorials oeplorlng the
fact that the Federal Government has
constantly increased its holdings in the
District, and by further development
was steadily withdrawing taxable prop
erty to the detriment of the District
taxpayer.
Municipal Center Cited.
During the general discussion OF va
rious items of District maintenance
from which the Federal Government
derives q benefit, Mr.. Donovan pointed
out that the Bureau of Efficiency in
its report omitted the effects OF ex-
traordinary improvement on the general
fiscal relations between the Federal and
District Governments.
He declared he wished to cite the
proposed new Municipal Center as
case in point.
In order to conform to the develop
ment south of Pennsylvania avenue, he
said, Congress has decreed that the DIS
trict should erect monumental structures
that would compare favorably with the
buildings in the Federal project.
There is no question, Mr.. Donovan
said. but that millions OF dollars would
have to be paid from the District appro-
priations for development OF the Mu-
nicipal Center to give 1t q "FeoeraI
dress"
When that time comes, Mr.. Frear in
terjected. Congress will bear It's part
of the necessary expense. Mr.. Dono-
van replied that in all fairness Congress
should certainly do so.
The proposed Municipal Center, the
auditor said, would cost between $40
900 900 and $30,000,000. He cited the
fact, he said, merely to show that with
a development of Government proper
ties a District municipality was COM
peeled to make Improvements on great
er proportion than most other cities OF
comparable size.
Water Rate Discussed.
Mr.. Donovan went at length into the
various steps leading to the acquisition
Of four squares for the Center north
of the Avenue, explaining that Congress
was not satisfied with the original pur-
pose of purchasing only two squares OF
land. He admitted that the District
government, of course, would be paid as
any private property owner for the Dis
trict Building that must be vacated.
Such monumental bridges as the Key
Bridge are not solely community need,
Mr.. Donovan said, adding that this
paid out of District appropriations.
Mr. Frear suggested that although
the Government Is not given credit for
the new Arlington Bridge the District
residents would get the same use from
it as from the Key Bridge.
At the same time Mr.. Frear contended
that the reason the Districts water
rate is low as compared to other cities,
despite recent increase, was because
the Government paid the cost of the
original water system. Mr.. Donovan
believed it had very little, If anything,
to do with existing rates.
Mr.. F'rear asked Mai. Donovan II
he was opposed to any increase in the
taxes in Washington If an investigation
showed that the tax burden here is not
comparable with that in other cities OF
like size.
Disputes Figure for Intangibles.
IT believe the tax on real estate in
Washington is as heavy as it ought to
be-" replied Maj. Donovan. IT am, how
ever, perfectly willing to concede to
the view that the District should pay
a tax fair in comparison with other
comparable cities"
II can't see how the Federal-owned
property in the District would have any
bearing in determining the per capita
tax" declared Mr.. Frear. And I can't
see any reason for the Bureau of Eff
cheney charging $90,OO0,000 for intangi-
bles in arriving at the tax liability OF
the Federal Government"
The automobile license fee question
bobbed up again when Representative
Davis of Tennessee asked Maj. Donovan
If the 81 fee applied to all classes OF
vehicles such as trucks and buses.
The auditor explained that 1t did, and
in response to further questions by Mr..
Davis reiterated his opinion that there
should be a weight tax on vehicles, but
that it should be accompanied by re-
peal of the personal property tax on
vehicles.
"Ill give you concrete example"
said Mr.. Davis. I'm my own State we
have registration fee of so cents a
horsepower, together with the issuing
clerks fee. In the case Of trucks we
have substantial additional tax based
upon weight and capacity, which in
creases rather rapidly and finally gets
up to several hundred dollars. 1t is
based on the theory that trucks are
very damaging to the highways. And
I'm of the opinion that the truck tax
in my own State is not yet commen-
surate with the extent Of damage done
to the highways by the trucks.
In Tennessee we also have numerous
other taxes that you don't have here in
Washington"
Anxious for Federal Activities.
Mr.. Davis then asked Mai. Donovan
II Congress should seriously consider
the decentralization of the Government
activities in Washington if he thought
such a move would be welcomed by the