Evening star., 1937-01-20
PUBLIC HEARINGS
ON FISCAL REPORT.
ASSURED BY PLANS
Two District subcommittee
of House to Begin I'm.
mediate Study.
PARLEY WITH DONOVAN
ON D. c. TAXES SLATED
Revenues and Law Changes Un.
der 3.Point Formula to Be Ex.
plored by Special Groups.
BY JAMES E. CHINN.

Two special subcommittee Of the
House District Committee made prep
arations today to undertake an imme-
diate study Of the Jacobs fiscal rela-
tions report and its potential effect
on the taxpayers Of Washington.
Authorized by the full committee to
analyze thoroughly the reports rec
concentrations for scrapping existing
principles OF fiscal relationship be-
tween the Federal and District gov
ernments and the substitution of a
three-point formula. the special sub
committees plan to go into action to-
morrow
One Of the subcommittee will study
proposals in the Jacobs report for new
tax legislation to Offset part Of the
sl0,00O,000 deficit the District will face
in the coming fiscal year If the pro-
posed three-poin formula is approved
by Congress. The other will handle
the 19 statutory changes recommended
in the report to make the Jacobs plan
completely effective.
Early Public Hearings Likely.
Representative Kennedy, Democrat,
OF Maryland, who heads the subcom-
mittee in charge of the tax legislation,
said he would confer with Chairman
Norton Of the District Committee be-
fore working out program of pro-
Ho
public hearings on the proposed tax
bills probably would start next week.
Kennedy also plans to confer with
Maj. Daniel J. Donovan, District audi
tor and budget officer, before starting
public hearings. He believes Maj. Dom
oyan's knowledge of the serious f1nan-
cial condition confronting the District
will be invaluable to him in mapping
out a program Of procedure for the
forthcoming hearings.
Nichols disclosed he planned to
make a serious study of the Jacobs
report before arranging public hear
ings. Like Kennedy, he hopes to
start public hearings early next week
on the features of the report assigned
to his subcommittee.
Each subcommittee Is composed Of
five members-three Democrats and
two Republicans.
Kennedy's Tax Subcommittee is
Of Pennsylvania. Democrats, and Dirk
sen Of Illinois and Short of Missouri,
Republicans. The personnel of the
subcommittee headed by Nichols in
cludes Randolph of West Virginia and
McGeehee of Mississippi. Democrats.
and Brewster of Maine and Cole Of
New York, Republicans.
To Map Course.
Both Kennedy and Nichols indi-
Gated there would be preliminary
meetings of their respective subcom-
mittees at which definite programs
for the studies would be completed.
Witnesses to be summoned to the
hearings also will be determined.
1t Is a foregone conclusion that
J. L. Jacobs. Chicago efficiency en-
gineer and tax expert. who directed
the special fiscal relations study, will
be the first witness before both sub
committees Jacobs has assured Mrs.
Norton he would cooperate.
The Advisory Committe which
worked with Jacobs in the fiscal re-
lations investigation also is expected
to be called before both committees.
George McAneny, president of the
Title Guaranty Trust Co. of New York
City was chairman Of the Advisory
Committee. The other members were
Clarence A. Dykstra. city manager of
Cincinnati, and John Martin, chair
man of the Kentucky State Tax Com
mission.
The subcommittee also intend to
hear the testimony of number of
civic and business leaders who are
vitally interested in solution Of the
fiscal relations problem. Mrs. Norton
has urged each subcommittee to give
the disfranchised residents Of the
District ample opportunity to express
their views.