Evening star., 1936-10-26
A Fundamental Principle.

Two days of friendly discussion be-
tween the Presidents special committee
on fiscal relations and representative
citizens of Washington emphasized their
common bjective-diScovery of a fair
formula for division of expenses in Capt.
tai maintenance and development be-
tween the United States and the District
OF Columbia.
The elements composing the formula,
of course, are still the object of search
and agreement by the members of the
Presidents committee. But one main
purpose of the formula, it was empha-
sized time and again during the hearings,
is to establish in advance the amount
of the National contribution, thus
avoiding the annually recurring disputes
creating i'll feeling between the COM
munity and an element in Congress that
in the past has been suspicious and
Jealous of National aid to the District
OF Columbia, preventing. at the same
time, the delays and uncertainty in
estimating revenue availability for the
District which have made wise city
planning impossible and have had the
effect of paralyzing adequate main-
tenance and development Of the Ma
tional Capital.
If the Presidents committee is unable
to find such formula or, recommending
its elements to Congress, is unable to
secure congressional approval, much of
its work will have been in vain. That
IS understood in advance, along with
recognition of the committees difficulties.
But without crossing that bridge be-
fore we come to it, what is another
fundamental purpose of this desirable
formula? Its advantages in making
possible the careful, sound financing Of
National Capital community needs have
received much emphasis. But in addition
the formula, to be successful, should
establish new safeguards or reafirm the
old safeguards to the local community
that existed under the fixed proportion
plan of appropriating for the Capital
and which do now exist in law, If not in
practice, under the unrepealed provisions
OF that law.
That is the safeguard against excessive
or even capricious taxation without rep
resentation of the local community
which lay in the guarantee, under the
fixed ratio law, that for every dollar
exacted from the local community the
exclusively controlling National Govern
ment would appropriate proportionate
amount of National funds.
That is the safeguard against imposing
an ever-increasing burden of taxation
on the people of the District without
a commensurate increase of the National
contribution. To neglect this safeguard
in any new formula for division of ex-
penses is merely to invite repetition of
history under the lump sum, where every
increase of local contribution has been
used to decrease the Federal contribution,
placing on the District steadily increas-
ing financial responsibility without in
CreaSlng tne amount Oh net revenue
available for expenditure.
The fixed ratio principle is no mere
fetish in the District. 1t represents a
fundamental principle, tried and proven
in more than half century of successful
application, the value of which has been
attested anew through the demonstrated
failure of the lump-sum policy.
The two days of hearings granted local
citizens gave spokesmen for the Wash
ington community their first opportunity
to meet members of the Presidents
committee. The sympathetic, intelligent
interest manifested by these gentlemen
in the problem they have been called
upon to solve and their courteous con-
sideration Of local views and sentiment.
has kindled new hope in Washington for
q successful and satisfactory outcome of
their labors.