Evening star., 1934-12-12
Federal Experts to Check
Local Rates Against 9th
erS for President.
RESULT WILL AFFECT
LUMP-SUM DECISION
Hearings on District Budget Be-
gin, With $s,ooo,oOo Reported
Slashed Already.

President Roosevelt's proposed survey
Of taxes paid in a number of other
cities to determine whether the people
OF the District of Columbia are being
taxed too much or too little has been
assigned to the Treasury Department.
Mr.. Roosevelt said today he has re-
quested the Secretary of the Treasury
TO have this tax survey made by ex-
perts Of that department and to report
back as soon as possible.
The President said he wants the
answer to the tax question so as to
make up his mind about the fiscal
relations between the District and
Federal Governments in time to advise
Congress accordingly before it gets
down to action on the District appro-
priation bill.
Treasury Is Silent.
At the Treasury this afternoon no
information was available as to how
the department will handle the Dis
trict tax survey assigned it by the
President
Unofficial discussion, however, in
dicated the task would go to experts
of the Internal Revenue Bureau or
the Budget Bureau or a combination
of the two.
The Internal Revenue Bureau has
vast accumulation of data concern
ing taxes throughout the country and
also would have made available to
it reports from the Census Bureau
concerning taxation of cities Of a
similar size
The Budget Bureau for years has
made careful studies of the District
budget.
The Research and Statistics Divi-
sion Of the Treasury also is prepared
to make such a study.
Sum Reported s41,e0o. 900.
In the meantime, it was reported
| at The Capitol, where hearings on
the District bill for 1885 got under
way. that the Budget Bureau has
slashed more than $1,000 900 OF the
original estimates Of the Commis-
sioners.
Estimates calling for appropriations
totaling s44,o3s,356 were prepared by
the Commissioners, but in the prun-
ing process at the Budget Bureau, it
was said the mount was cut to ap-
proximately SAL 100000. The largest
reduction, Chairman Cannon of the
subcommittee indicated. was made in
the amount OF the Federal share of
the expenses Of the District, the
Budget Bureau recommending S5,-
700 900.
The Commissioners had sought to
have the Federal obligation raised to
1881 500, which they considered a
| more equitable share. The $500 900
| figure represents the amount appro-
priated for the current fiscal year from
which was deducted, however, 70 per
cent Of p. w. A. loans to the District,
] bringing the actual contribution by
the Federal Government below S.
600, 900, the lowest in history.
By recommending a $5,700,0 900 Fed
eral contribution, the estimates of the
Commissioners are said to have been
reduced by $2,617,500 Another ST.
000, 900 is understood to have been
Topped of the budget total by chang
ing the s3,000,000 emergency relief
item to $4,000, COO, the same amount
as appropriated for the current fiscal
year.
Police Increase Doubtful.
A number of minor reductions also
are understood to have been made In
the estimates of the Commissioners,
especially those containing items for
the Highway and Police Departments.
The Budget Bureau, it was said, failed
to approve Police Supt. Browns re-
quest for appropriations to fill 35
existing vacancies in his long under
manned force.
Only three members Of the subcom-
mittee, Chairman Cannon and Repre-
sentative Blanton, Democrat, Of Texas,
and Representative Jacobsen, Dem
ocrat, of Iowa, were present when
today's hearing started. Several other
members are expected to attend to-
morrow's session.
As usual the subcommittee con-
Quoted its proceedings behind closed
doors. Even the keyhole In the COM
mittee room was stuffed.
Commissioners Hazen. Allen and
Sultan and Maj. Daniel j. Donovan,
auditor and budget officer, were among
the first witnesses. Tax Assessor VIII
liam p. Richards also was called,
The hearings are expected to last
several weeks. After all District de-
partment heads are questioned civic
and business leaders will be given an
opportunity to be heard. These groups,
however, will be at a decided disad-
vantage because Of their inability to
learn the Budget Bureaus recon-
mendations In advance.
Chairman Cannon announced at
the conclusion Of the initial session
that the entire time was taken up
with the presentation Of preliminary
statement by the Commissioners and
financial report by Auditor Dono-
van, showing the present fiscal status
-