Evening star., 1934-10-26
SEEKS
MORE i. s. FUNDS.
Increased Federal Share in
City's Expenses Upheld
by Citizens.

The Federation of Citizens Associa-
tions today threw its influence off,
cially behind the campaign of the
Commissioners for an increase in the
Federal payment toward expenses Of
the National Capital, pledging sup
port to the request Of the city heads
for a Federal appropriation of $685.
868 for the next fiscal year. This
sum is about $4,000, 900 more than
the obligation assumed by the Fed
eral Government for the present year.
officials of the federation, in con-
ference with the city heads today,
also urged that the present real estate
tax system be changed so as to re-
move from the minds of members of
Congress the erroneous belief that Dis
trict residents are not paying enough
taxes. The plan Is to cut the prop
erty assessment in half and to double
the tax rate. This would make no
change in the actual tax burden.
Commissioners Melvin c. Hazen and
George Z. Allen both promptly voiced
approval of the idea, declaring it
would place the District psychologist
ally in q much better position, since
uninformed Congressmen no longer
would be able TO raise the cry that
the tax rate in their home towns was
So, while the rate here was only 81 so.
Whether the Commissioners will take
any formal action in this matter was
not indicated. Commissioner Hazen
said he had suggested such q change
at a conference with members OF Con-
gress last year and that they declared
the suggestion ridiculous.
Remove False Idea"
"It sounds childish, but it certainly
would remove false idea now held by
some members Of Congress" said
Hazen. Commissioner Allen voiced
the same sentiment.
Federation officials, headed by James
G. Yaden, president, called to present
to the city heads six-point financial
program adopted last Saturday night
by the federation. This calls for an
increase Of taxation on public utilities,
adoption Of an estate tax law for the
District, careful scrutiny Of properties
exempt from taxation, a change in the
assessment and tax rate and a larger
lump-sum payment.
Yaden and Mrs. Elizabeth T. Sui
Ivan also suggested that the Commis-
sioners give serious study to proposal
that some kind of a special new tax be
adopted to raise money for the SPECIFIC
purpose of meeting emergency relief
needs. This subject has not been
taken UP for action yet by the fedora
ton. Mrs. Sullivan suggested lux
ury tax. Yaden did not propose any
definite type of new tax. l.. A. Car
ruthers. chairman Of the Fiscal Rela-
tions Committee Of the federation, said
many States have adopted sales taxes
to raise relief money.
The Commissioners said they would
study this subject. They asked that
the federation prepare 8 series OF
proposed bills to carry out the OBJ
iectiyes of their resolutions. In this
work they will cooperate with e.
Barrett Prettyman, corporation coun-
sci.
Assessor Conscientious"
During discussion of the assessment
and tax rate, Hazen asked the delega-
ton II the federation thought Dis
trict realty owners were paying q
suficient tax. Yaden said the fedora
ton did believe the tax burden was
high enough.
"The District has q very conScienti-
Gus tax assessor" he said.
Carruthers explained that present
assessments, for the most part, were
set back in the prosperous days prior
to the Fall of 1929. He said there
was some reduction In assessments
last year, but voiced objections to
placing any heavier burden on real
estate owners. Yaden emphasized
this point.
As an argument for an increase in
the Federal payment, the delegation
reported that tax-exempt Federal
holdings here now have value esti-
mated to amount to 40 per cent Of
the value Of taxable properties.
The. delegation stressed the point
that the District cannot expand its
territory to make up for the loss re-
sulting from exemption Of properties
for taxation as other cities do as they
grow. Maryland and Virginia get the
benefit of the growth of this COM
they explained.