Evening star., 1933-02-03
House Subcommittee Given
Auditors View in Fiscal
Bill Hearing.
PAID D. C..
INCREASE OF $4,000
Highway Burden Declared Eased
for Realty 0wners-Economy
Act Called "Life-Saver."

The present 2-cent gas tax is yielding
more than enough revenue to fulfill the
special purpose for which it was i'm
posed, District Auditor Daniel j.
Donovan testified before the subcom-
mittee drafting the District appropria-
ton bill, some of the hearings on which
were made public last night. The Mapes
bill, passed by the House, proposes to
double the gas tax, and the Senate
District Committee recommended split
ting the difference and making it three
cents
District automobile owners paid ST.
993 3,996.10 in gasoline taxes during the
fiscal year that closed June 30. last,
according to Auditor Donovan's testi-
mony This was an increase of S343,000
over the previous year and established
record for gasoline tax revenues.
The Districts streets are in far
better condition than ever before" he
testified, and the increased gasoline tax
revenue has enabled the municipal gov
ernment to do 81 900 900 worth of street
improvements and $4,000 worth of
highway construction and repair work.
This burden was lifted from the real
estate owners and put on the automo-
pie OWuerS, ne pointed OUT.
Use of Excess Tax.
Auditor Donovan, when asked by
Chairman Cannon of the subcommittee
for his advice regarding the surplus
gasoline tax, whether the tax should
be reduced or part of the levy should be
applied to other District requirements,
recommended that the excess should be
used for general highway construction.
NJ Is
ing compulsory furlough, without pay,
on Government employees, saved the
District government from a deficit Of
approximately s869,0o0, Mr.. Donovan
testified.
'The economy act is in a way life
saver for the District" testified Mr..
Donovan. THE savings under the
economy act amounted to S2,135, ,704.
While the total of our appropriations
exceeds our revenues by S877,0C0 we
may have at the end of 1888 a small
balance of S8,195."
Members of the subcommittee headed
by Representative Clarence Cannon,
Democrat, of Missouri, showed a deep
interest in the operations of the econo-
my act in the District Government. and
in the reorganization of the engineers
office whoch resulted in dismissals. re-
ductions and a few increases in salary
to those who were promoted.
Drop in Collections.
District Commissioner Luther H.
Reichelderfer and District Assessor Will
liam P. Richards testified that there
had been a serious falling off in revenue
collections. both on real estate and
on intangibles. Owing to the number
OF appeals for reduction in assess
ments. Mr.. Richards warned the com.
mittee that it will be difficult to MAIN
tain real estate valuations. He said he
would prefer District income tax to
tax on intangibles.
Chairman Cannon said the subcom.
mittee drafting the appropriation bill
IS faced with the necessity of either
levying an income tax or decreasing
the cost of operation and decreasing
the appropriations for maintenance of
the city.
I'VE would have about $4,000, 900 to
the good" said District Auditor Dono.
van. II all unpaid taxes could be coll
lected. These taxes are on both real
estate and Intangible personal property,
Commissioner Reichelderfer said:
The Commissioners believe that
there Is opportunity for further reduc-
tlons In maintenance and operating
costs In the District Government, and
1t Is their intention that the Economy
Committee during this year shall make
further investigations into the various
branches and services of the District
Government for the purpose of accom-.
pl1Shing this result.