Evening star., 1933-02-13
D. c. TAX INCREASE
OPPONENTS BLOCK
ADOPTION OF RULE
House Committee Refuses to
Make Boost in Order on
Supply Measure.
LA GUARDIA PREDICTS
RELIEF BY CONGRESS
Promises to Make Motion to Re.
store $e25, 900 Item if Sim.
mons Fails to Do So.

BY a decisive vote, the House Rules
Committee, after lengthy hearing to-
day, refused to grant q special rule
making in order on the District appro-
priation bill the proposed increase OF
the tax on intangible personal property
from S. to Sc per thousand so as to set
up a special fund for unemployment
relief.
Chairman Cannon, Representatives
Blanton and Holiday of the subcommit-
tee that drafted the appropriation bill
and Chairman Mapes Of the special
committee which proposed a group Of
new tax bills for the District urged
that the rule be granted. Former Chair
man Wood of the House Appropriations
Committee and Representative Smith
Of Virginia, member of the House
District Committee, opposed the grant
ing of this rule.
Representative Wood later said he
would make the point of order against
the provision for increased taxes when
the bill comes up tomorrow.
Representative Wood in arguing
against the rule insisted the District
Commissioners already have authority
to increase taxes when they deem 1t
necessary. He was challenged by those
supporting the rule, at least three OF
whom told the committee that the IS
on intangibles Is fixed and mandatory.
La Guardia Promises Motion.
After the Rules Committee action
Representative La Guardia, independent
Republican, of New York, said that If
Representative Simmons, member OF
the subcommittee on District appro-
priations, who filed minority report
opposing the tax increase, failed to
make a motion to restore the $625, 900
relief item recommended by the Budget
Bureau, he would do so on the floor
of the House when the 1884 District
appropriation bill Is taken up for con-
sideration.
Mr.. La Guardia predicted that Con-
gress would not fail to provide ade-
quate relief funds for the District. He
said II the House refused to provide
amply for the unemployed, he helieved4
the Senate would do 1t. In any event,
he declared, President Roosevelt
will not let the unemployed OF Wash
ington starve to death"
Reviews 1882 Provisions.
At the Rules Committee hearing,
Representatives Cannon, Blanton and
Holiday reviewed the relief ap-
preparations in the District bill last
year.. the deficiency appropriation bill
and the District appropriation bill Sthis
year. Representative Holiday went
into detailed information regarding
breakdown on costs of administration
of IS charitable organizations, among
which the Community Chest funds are
divided. Representative Blanton re-
iterated his statement that the real
estate tax in Washington is the lowest
for cities of comparable size and that
Washington Is a mecca for tax dodg-
ers''
In reply to questions he told the
committee that the proposed tax in
crease would yield more than Is needed
for relief work, saying that 1t is es-
timated it would yield $150,000 more
than the S625, 900 which the bill pro-
vides. He explained to the Rules
Committee various taxes paid in other
cities which he said the District resi-
dents are escaping. During his testi-
mony he expressed the conviction that
the Senate will increase the $6,500,000
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