Evening star., 1937-03-18

(C0rtlnueQ from f1ISL FdSP.D
mending reorganization. he saw "an
opportunity for substantial improve
ment in administrative organization
and procedure, as well as economy,
without effecting the substantial pub
lie services"
At the outset Jacobs denounced the
lump sum and fixed ratio principles Of
fiscal relations, which his report
recommends should be scrapped.
The "fallacy" Of these two methods,
he declared, ''is that they are predi-
Gated on the theory that there are
no changes in the Federal interest i'll
the District for the amount of services
from time to time. Of course, that
isn't true. There are variations from
time to time. Therefore the recon-
mendation was made that all services
be paid for one government to the
other in order to bring about a fair
and equitable adjustment of fiscal re-
lations. If these intergovernmental
services are equitably paid for, the
source OF irritation between the two
governments will be eliminated"
McAneny described the operation
of new charter granted New York
City as result of the November cleo
tons. The charter will become ef-
fective January /, 1888, he said, and
will give planning commission au-
thority to set up master plan Of
development for the city, and prepare
the capital budget each year.
That's what we are proposing for
Washington he declared.
McAneny also suggested that under
the proposed new fiscal relations plan,
the advisory council that would be set
up would have larger powers in max
ing the local budget, even though
the budget might have to be approved
by the Federal Budget Bureau as at
present. He declared the real au-
thority' for making the budget would
be centered in the District, and that
such a change probably would be
welcomed by the Budget Bureau
1t was disclosed by McAneny that
he succeeded Frederic A Delano as
chairman Of the New York Planning
Commission. Delano Is now chair
man of the National Capital Park and
Planning Commission.
One Of the principal developments
yesterday was criticism by Jacobs of
the method adopted by the tax asses
sor's office in estimating the value of
tax-exempt Federal holdings in Wash
ington.
L. s. Property Valuation Hit.
First, Jacobs took the position that
Federal property should not be used
as a factor in determining the Gov
ernment's obligation toward District
expenses.
A s648, 900 900 estimate by the tax
assessors Office of the valuation of
United States property in the Dis
trict, Jacobs argued, was excessive,
because, he said, ii represented actual
costs Of construction. A true valua-
ton, he declared, would eliminate
monumental costs" Of nearly all of
the new Government buildings, and
would not include the Washington
Monument, the Lincoln Memorial or
vast park areas.
Previously McAneny had estimated
tax on Federal property, as figured
by the assessors Office would yield
S5,500,000, even after park areas are
eliminated His estimate was basec
on valuation of $685. 100000, minus
the estimated value of park areas.
McAneny Challenged by Sacks.
McAneny's explanation was Chal-
ienged by Sacks, who declared the
influence Of the Federal Govern
nent was responsible for large park
areas. Likewise, Sacks attacked ia
oOhs' method Of reducing Fedora
property assessments on the grono
that property used for commercial
purposes would produce substantial!
more revenue than had been allowed.
Both McAneny and Jacobs described
the present tax on intangible persona
property as unavoidable and inequitable
and said a" income tax should be sub
stituted, as recommended n the flsCa
relations report. 1. was estimated b.
McAneny that 3 per cent income tal
would produce S8,500 600 a year
In response 10 questions MCAnen,
also estimated an inheritance tax, a
proposed IN the report, wnJld yielt
about 100000, where an lncreas'
from TO cents a gallon IN the gaso
line tax would add another So 500 00
10 District revenues.
McAneny and Jacobs. however, dis
agreed as TO the disposition Of tn
additional revenue from an inCreaS
FCrApt trIfrr> 7o(r