Evening star., 1936-10-25
FISCAL COMMITTEE.
ASKS FURTHER AID.
Of CITIZEN GROUP.
Liaison Body Requested at
Close of 2-Day Hearing
on Districts Data.
MANY TOPICS REVIEWED
IN ROUND.TABLE SESSION
Representation, Inadequacy OF
Budget and Proposed Reorgani'
cation Discussed.

The special committee appointed by
President Roosevelt to determine an
equitable Federal payment toward
District expenses appealed to the Citi-
zens' Joint Committee on Fiscal Re
lations last night to continue to aid
il in the solution of the perplexlng
problem.
The request came at the close OF two
days of public hearings. at which
representatives of various civic and
business organizations flooded the
committee with statistics and argu-
ments showing the justification for
a substantial increase in the Federal
obligation.
George McAneny. chairman OF the
Presidents investigators, asked the
Citizens Joint Committee to select
a liaison committee Of three members
to work with his group in the con-
tinued investigation of the problem.
The request was made directly to Ed
ward F. Colladay, vice chairman OF
the Brief Committee of the Citizens
Joint Committee, when he concluded
a vigorous presentation Of the f1nan-
cial plight of the Nations Capital.
growing chiefly out of the steadily
decreasing Federal financial support.
To Be Named Soon.
Colladay accepted the invitation.
The Liaison Committee Is expected
to be named in the near future. In
accordance with the suggestion Of Nc
Aneny, it will be representative Of
more than 200 outstanding civic busi-
ness and trade organizations affiliated
with the Citizens Joint Committee.
AS the hearings closed, McAneny
announced that the voluminous in
formation given the committee would
be Of material value.
These two days Of hearing have
been very fruitful" he said. mo time
was wasted"
The final session was marked by
round table discussion. which includ-
ed many subjects allied with the fiscal
relationship between the United States
and the District. Outstanding among
these were national representation,
the inadequacy of the District budget,
budget-rnaking procedure. and the
long proposed reorganization Of the
municipal government.
Colladay ended about six hours Of
argument for fiscal equity by insisting
that fixed proportionate basis should
be used in determining the amount Of
the Federal obligation, and expressing
the opinion that rs per cent Of the
total District budget would be fair
share.
Improvements Tagging.
He also stressed the serious finan-
cial condition confronting the District
in the coming fiscal year, pointing out
that the city already is far behind in
capital improvement.
Unless appropriations are put on 3
more liberal basis" he declared, I'VE
continue to fall behind in capital
improvement"
william p. Richards, retired District
tax assessor, and ]. Nelson Anderson,
general counsel of the Federation of
Business Mems Associations, joined
Colladay in emphasizing the ineQuity
of the existing Federal payment.
Richards, giving the committee the
benefit of his long experience as tax
assessor, declared that the United
States should contribute to the ex-
penses of the District on the basis OF
its wealth" in real property. He
said If such a plan is followed the
Federal Government would now have
to pay between 100000 and sl0,-
10000 a year, whereas its contribu-
ton this year amounted to 5000, 900.
Anderson told the committee his
organization has gone on record as
favoring a fiat percentage basis as
Federal contribution, and believes
the unrepealed 60-40 basis as pro-
vided in substantive law should be ad-
hered to.
Faces $7,5o0,0 900 Deficit.
Mai. Daniel j. Donovan, District
auditor and budget officer. took lead
ing part in the discussions of the Dis
trict's financial situation. He pointed
out that on the basis Of the budget for
the 1888 fiscal year the District would
face a deficit of $7,500,000 in general
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