Evening star., 1933-04-28
HIGHER TAX ASKED
ON D. c. CONCERNS
Capper Introduces Bill, Hop
ing to Add 100000
to Revenues.

Increased CdAdtlOn on .puDllC Utility
companies and certain other enter
prises, designed to give the District
government about 100000 year Of
additional revenue, is proposed in a
bill introduced in the Senate this aft
ernoon by Senator Capper Of Kansas,
ranking Republican member Of the Dis
trict Committee.
The bill is q revision of q measure
the Senator drafted in the last Con-
gress, on which no action was taken
at that time.
Under existing law some Of the util-
tiles pay per cent tax on their
gross earnings, others per cent OF
gross earnings and still others-the
street railways per cent Of gross
receipts.
Tax on Receipts.
The bill now introduced calls for a
tax Of per cent on the gross re-
ceipts of ell street railway, gas, elec-
trio and telephone companies, together
with a tax of per cent on their net
receipts. The companies also are to
be taxed, as at present, On real estate
owned by them.
"The gross-net tax and the real
estate tax will take the place Of all
other District franchise, income and
personal property taxes" Senator Cap
per said.
Taxation Of District banks Is also
dealt with in the bill. but the present
rates of tax for the various types Of
banks have not been disturbed. Ex-
planning the effect of the bill on bank
taxes, the Senator said:
An extensive survey Of bank taxa
ton shows that District banking insti-
tutions are paying taxes considerably
above the average for representative
banks in the Federal Reserve system.
The provisions affecting banking re-
strict tax deductions to interest paid
on bona fide savings accounts. Under
existing laws, so-called State banks are
deducting interest on many different
kinds of accounts"
Explains Railway Feature.
Explaining another feature Of the
bill, relating to steam railroads, the
Kansan stated:
The bill also wipes out an unfair
feature of law which has deprived the
District Of considerable badly needed
revenue for the past 80 years. This ID
the unusual provision which has been
held to exempt steam railroads from
taxation for various structures In the
District, such as tunnels, bridges and
viaducts. The bill proposes that all
steam railroads shall pay taxes on all
real estate owned by them in the Dis
trict, without exception, and, in addi-
tion thereto, the railroads would pay
the District license tax based on the
value Of their property In the Dis
trict"
With regard to street railways, the
bill also contains q clause relieving
them from the cost of salaries of traf-
flc policemen stationed at street car
crossings. The Senator explained that
this same provision Is in the recently
enacted street car merger resolution,
but only takes effect in that measure
If the companies accept the terms OF
merger.
Seeks Fair Distribution.
Senator Capper drew up his original
public utility tax bill while the Senate
committee was considering the Mapes
tax bills last year. In statement is
sued today, Senator Capper said the
hearings at that time developed to his
satisfaction that public utility cor
porations in the District, as well as
other important enterprises, were moi
bearing a fair share of the local taxes
As did not think 1t fair that Con.
gress should attempt to place heavier
taxes on the little fellow in the District
and neglect to revise the old taxation
laws regarding local corporations, I in
troduced bill providing for more suit
able rates of taxation of public utilities
and other classes of business"
He had the subject studied by thu
Bureau of Efficiency, the Commission.
ers and the Utilities Commission. Later
he received the draft Of substitute bill
drawn by a committee appointed by thu
Commissioners, composed Of Auditor
Donovan, Assessor Richards and Assist.
ant Corporation Counsel Roberts. Tit
bill has been introduced as prepared BY
the Commissioners committee.