Evening star., 1936-11-21
ARB|TERSOF DC.
FUND HEAR PLEA
FORFA|RPAYMENT
Lusk Calls for Study to Re-
organize Government
for Efficiency.
TAX GROUP HEAD ASKS
MAXIMUM SERVICE
Roosevelt's Special Committee Is
Given Facts to Show $751; ,000,.
600 Is Not Equitable.
RY JAMES Z. CHINN.

l. A plea Tor permanent adjustment
Of the perennial fiscal relations dis
pute ON q "fair and equitable basis"
was made by the Commissioners today
to the special committee appointed by
President Roosevelt to determine the
amount Of the Federal payment to-
ward District expenses.
The Commissioners. aided by Maj.
Daniel j. Donovan, auditor and budget
ofIicer, submitted . mass Of facts and
figures showing the present $5.000,0 1000
Federal contribution Is far short Of
an equitable share.
As q prelude to the conference be-
tween the committee and the Com
missioners, Rufus 8. Lusk, president
Of the Washington Taxpayers Asso-
citation, submitted . three-page type
written statement urging that con-
tinued study be made Of . proposal
to reorsanize the District government
in the interest Of economy and EN-
cheney.
Sees Aid IN Solution.
Lusk declared the study would be
helpful in reaching q solution to the
fiscal relations problem and at the
same time aid taxpayers who are
interested in providing q maximum
service at q minimum Of cost"
1t was charged by Lusk that the
District government lacks depart
mentanzat ton and coordination, and
that the Commissioners "have practi-
cally no control over many an impor-
tant department of the District gov
eminent, particularly over some which
are the greatest spenders."
1.-THE people Of Washington believe
that the Federal Government should
bear . fair proportion Of the cost OF
operating the District government"
Lusk declared. TT is the committees
function to determine what 1t feels
that that proportionate share should
be. We think that we shall accom-
plish more with your committee and
with Congress, which it must always
be remembered has the final say. If
we try. to see both sides Of the ques-
ton.
when the Federal Government is
asked to bear proportion OF this
expense, it follows that it has right
to know whether or not the costs
which it is asked to share are reason
able and fair. An individual who
agrees to contribute to the support
of another would want to know
whether the expense Of which he
is paying part, was JUSTIFIED and
reasonable. We believe that the same
| situation exists when the Federal
| Government is asked to contribute to
the upkeep Of the District govern
ment."
Cites Burden Of Rise.
Lusk explained that the cost Of
operating the District government is
bound up in the benefits which the
taxpayers receive from the Federal
payment. IF the Federal payment
is on a percentage basis, say IS per
cent" he said, "as our expenses rise
we pay three-fourths Of any addi-
tional expense and the Federal Gov
ernment one-fourth. If We receive
lump sum, any increase in ex-
penditures falls entirely upon the
local taxpayer. To have the Federal
contribution increased four or five
million dollars and the expenses of
the District increased $10,000,000 at
the same time means that the local
taxpayer is just $5,o0o.o0 worse of
than he was before.
I'm view of these reasons we again
request that your committee keep
UP its inquiry into the question Of
costs Of various municipal operations
as thoroughly as its time and funds
will permit, and that in its report it
not hesitate to make specific recon-
mendations for improvements in or
ganization that may produce smoother
| functioning and greater economy in
the operation of the District govern
| ment."
Hazen Seeks $I2,o00,o0o.
The conference between the COM
mittee and the Commissioners was
held behind closed doors. Each Of
the Commissioners presented argu-
ments from different angles, and Maj.
Donovan supplemented tneir state
ments with pertinent data.
Commissioner Melvin G. Hazen de-
clared the Federal payment should be
at least $l2,000,00 The basis for
his argument was the revenue lost
by the District resulting from the
ever-increasing tax-exempt holdings
Of the Federal Government. He in
troduced q chart prepared by Tax A.
SCISSOR Fred Allen showing that the
United States win own about one
half Of the total area of the District
within the next IS years II it con-
tinues to acquire property at the rate
Of the last decade.
According to recent compilations
the United States owns about 80 per
cent of District property. The latest
valuation placed on this property
| totals $3.50. .728.158,