Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
HEADS OF DISTRICT
NAME -FOUR BASES
FOR FISCAL LEWES
No Definite Recommended
tionS, However, Given Com
mittee Studying Relations.
DR.. REICHELDERFER LISTS
METHODS TO RAISE FUNDS
Cooperation offered Special Group
in Determination of Finance
Problem.

Inc District Commissioners, called
today before the special committee Of
the House studying the fiscal relations
policy between the Federal and Dis
trict governments, failed to express any
definite views on the subject.
DR.. Luther H. Reichelderfer, as chair
man of the Board Of Commissioners,
declared that he and his colleagues had
no definite recommendations to make
at this time and felt that the relation
ship between the committee and the
Commissioners should be one of as
sistance rather than an attempt to adj
vance any conclusive theory for a per-
manent solution of the fiscal relations
question.
DR.. Reichelderfer, however, read q
prepared statement On behalf Of the
Board Of Commissioners which con-
tanned four inviting methods" for al
locatlng costs OF the municipal gov
eminent These were:
Four Methods Suggested.
Il. The method based on q tax ne.
capita comparable to other cities OF
similar population.
q. The method based upon the Fed
eral Government contributing as local
taxpayer:
the costs Of the municipal government
by paying operating costs from the Local
taxation and capital charges from Fed
eral contributions.
-. The method based upon ALLOCATE
ing the municipal costs to the local
taxation and the Federal Government
respectively IN accordance with service
rendered"
declared, are deeply interested in the
fiscal relations study undertaken by the
committee, and desire to assist 1t in
every way in arriving at proper, Just
and equitable determination Of the
question.
Problem DifficuIt.
1.-THE approach which the committee
is making to the matter Of the division
the District Of Columbia, as between
the Federal Government and local
funds" said DR.. Reichelderfer, els one
so difficult that perfectly satisfactory
formula cannot be hoped foe& on the
other hand, the permanent determina-
ton Of such division Of cost is Of ex-
treme Importance to local residents
within the District and of Importance
to the Federal Government itself.
cit Is felt that this committee viii
use every possible means Of reaching
a solution. The Commissioners Of the
District of Columbia are confident that
the committee win throw every posi-
BILE light on this matter"
DR.. Reichelderfer explained that each
of the suggestions for allocating costs Of
Capital financing has its advantages
and its disadvantages. In fact, in any
method, he said, there is an intangible
factor that cannot be definitely deter
mined and can only be estimated. This
legation Of the District to meet the
financial demands in Washington by
reason of the fact that this is the Ma
tons Capital.
Refers to Report.
DR.. Reichelderfer called the commit
tees attention to the exhaustive report
on fiscal relations recently completed
by the Bureau of Efficiency, and said it
would provide the committee with more
data and valuable information than
anything the Commissioners could pro-
duce at this time. Therefore, he de-
clared, 1t would be waste of the COM
mittee's time for the Commissioners
even to attempt to make any definite
suggestions.
Representative Cramton of Michigan
resumed his testimony at the outset
of the committees hearing and con-
tinued his defense of the existing lump
sum plan which he sponsored. At the
same time he registered his objection
to other proposals Of determining the
fiscal relationship between the United
States and the District Governments.
Three of these proposed plans were
specifically cited by Mr.. Cramton, who
said none Is as meritorious as the lump
sum contribution under which, he de-
clared, the United States is paying a
fair share toward the expenses of the
Municipal Government. He discussed
the proposal for having the Federal
Government pay taxes on property it
owns in the District, the plan for seq
regating the expenses of the District
and United States Governments, with
each paying its own share, and the
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