Evening star., 1937-01-15
SEVERAL DEFECTS
IN FISCAL REPORT
SEEN BY D|RKSEN
Difficulties in Putting 3-Point
Formula Into Practice
Cited.
POINTS TO PROBLEMS
IN COST ESTIMATE
Ridicules Committee Comparison
of Situation With Other
Capitals.
BY JAMES E. CHINN.

BY JAMES E. CHINN.
Representative Everett M. Dirksen,
Republican, of Illinois, who plans to
take a prominent part in the House
District Committees exhaustive study
of the Jacobs fiscal relations report,
today began to pick So-called "de.
fects" in the proposed plan for estab-
fishing a new basis Of fiscal relation
ship between the Federal and District
Governments.
First Dirksen foreSees potential dif-
flculties in putting into practice one
of the features Of the three-point
formula under which the United
States and the District would reim-
burse one another for contractual sery-
ices.
1T will be exceedingly hard to evalu-
ate these contractual services" he
said. Personally, I think it will be
impossible to work out an equitable
basis for determining how much the
Federal Government should pay the
District for certain services or vice
versa. How can any one, for in
stance, calculate how much the Dis
trict should pay the United States for
services it provides the residents here
when not all of the residents receive
equal beneflts?"
Calls Attention to Table.
Dirksen called particular attention
to one Of the statistical tables in the
report for which definite estimates Of
cost were not made, but for which,
the Fiscal Relations Committee said,
lower and upper limits of estimated
cost or value can be determined.
One OF the services listed is the
usage Of museum facilities by Dis
trict residents. The lower limit Of
value a year was estimated at $4,000
and the upper 100000. Maintenance
of an arboretum and botanic garden
also were listed as services to the
District by the Federal Government.
The service by the District govern
ment, in the same table, include hos
pitalization of non-residents and 20
ological exhibitions for visitors. Each
item had a wide variance from the
lower and upper limit of value.
The report explained that as the
limits of value of these particular
services come reasonably near to bal
ancing each other-the services Of one
government against the other-these
services could be "disregarded for all
practical purposes"
Says Difficulty Admitted.
That's another illustration OF
what have in mind" said Dirksen.
The committee sets up definite esti-
mates of the division of cost in many
cases. but in this case it admits it
is difficult to determine a fair and
equitable basis by setting up both
q low and high estimate"
Dirksen also ridiculed an argument
set forth In the committee report
which in effect said that since no
sponSibility for the development and
maintenance of its capital unless it
owns all the land and controls all
business activities, as in Canberra or
Moscow, there Is no precedent for an
uncompensated gratuity from the
Federal Government to the District.
ITO me that argument is ridicu-
lous," he declared. You cannot use
the treatment of other governments
to their capitals as a basis for the
situation here In Washington. The
United States owns more than $780,
100000 worth of property here in
Washington, which Is tax exempt.
don't believe that Is true In any
other capital in the world. The situ-
alton here is extraordinary, and some
consideration should be given that
factor in any effort to work out a
fair basis of fiscal relations"
Has Analysed Report.
Drksen was one of the first mem
bers of the House District Committee
to receive copy Of the Jacobs report
and has devoted considerable time to
analyzing the various proposals 1t
contains for upsetting the existing
basis of fiscal relations.
Mrs. Norton has planned to appoint
him to one Of the two special sub
committees she will create to study
the report. It is likely he will be
assigned to the subcommittee that will
consider the five proposed plans for
raising additional revenue to Offset
part of the $10,o00,000 deficit the
District will face in the coming fiscal
year if the three-point formula Is
approved by Congress.
The other subcommittee vii give
its attention to the 10 statutory
changes recommended in the report.
Chairman Norton Of the House Dis
trict Committee has planned to ap-
point Representative Ambrose j. Ken
nedy, Democrat, of Maryland chair
man of the special Tax Subcommittee
Representative Jack Nichols, Demo-
crat, Of Oklahoma is to be placed in
charge Of the special Legislative Sub
committee which will consider the
proposed statutory changes.
With the personnel Of the new Dis
trict Committee completed with the
appointment by the House Of two new
Republican members, Mrs. Norton
plans to call q special meeting either
Monday or Tuesday to perfect Its Or
ganization. At the same time the
two special 81 committees will be
named. M
New Republican Members.
The new Republican members are
Representatives Bates Of Michigan
and Shafer Of Michigan. Bates fills
q vacancy caused by the defeat in
the November election of former Rep
resentative Fenerty Of Pennsylvania.
Shafer replaces Representative Reed
Of Illinois, who was assigned to q
more important committee.
Republicans reappointed to the Dis
trict Committee are Representatives
Dirksen, Short Of Missouri, Brewster
Of Maine and Cole of New York.
Democratic vacancies on the COM
mittee were filed Wednesday with the
appointment Of four new members
Representatives Bigelow Of Ohio, Ar.
mold of Illinois, Allen of Delaware and
Sacks Of Pennsylvania.