Evening star., 1937-01-10
RESENTMENT RISES
AS FISCAL REPORT
is STUDIED HERE
More Equitable Adjustment
Held Certain to Be Asked
of Congress.
C0LLADAY BELIEVES
FINDINGS MUNFAIR"
Grants Sincerity, but Questions
Conclusions Reached by
Jacobs Committee.

A mounting tide Of resentment swept
the Capital yesterday as the full i'm
port Of the Jacobs Fiscal Committee
report began to sink in.
Vigorous criticism Of the fiscal re-
lationship proposed to be established
between the District and Federal Gov
ernments came from many quarters,
and it was apparent that strong repre-
sentations will be made to Congress
for a more equitable adjustment.
Edward F. Colladay, chairman of
the Citizens Joint Committee on Fis-
cal Relations and of the Municipal
Finance Committee of the Board of
Trade, said he would not attempt to
speak for these groups in advance Of
a meeting, but that for myself alone
and in preliminary way, I consider
the report distinctly unfair to the tax.
paying residents of the District of
Columbia"
While we do not question the good
faith Of the committee, We do oues-
ton its conclusions" said Thomas z.
Lodge. president Of the Federation
Of Sitizens' Associations.
Suffrage tions Hit.
Lodge said the recommendations on
suffrage were inconsistent" ana that
the suggested plan places a penalty
on economical operation of govern
ment."
We may find ourselves without
any contribution whatever: it may
even end with the Federal Govern.
ment contending We owe it." ne as.
serted.
William A. Maio, president of the
Southeast Washington Citizens As.
ISOLATION and also of the Southeast
council, said he had talked to a mum.
Der OF heads of citizens organiza-
tlons, and that all are bitter"
1t seems to me-" he said. THAT
they are trying TO push the citizens
OF the District out of the District
and into Maryland and Virginia"
Malo has called special meeting
ofthe Southeast Citizens Association
for Friday night at the fifth precinct
to formulate protest. Ordinarily. the
association would not meet until the
end OF the month, but it was desired
to speed action. The council will
take up the report at its meeting at
the eleventh precinct on January 10.
Calls Report Complicated.
Edgar Morris. president of the
Board of Trade, said he was reserv.
Ing comment until he had had an
opportunity thoroughly to study the
report, which he characterized az
very complicated
Colladay made a brief. but critical
analysis of it.
1t lays down three-point program.
or set of three rules, which purport TO
be all comprehensive, but are not" hs
said.
The gross unfairness of the formula
as 1t Is presented in the report rests
not only in the rules themselves, but
especially in the manner in which
those rules are applied.
For instance, the second rule con.
templates that a Federal-controlle
agency shall determine how much is
the Federal Governments share in
capital outlays.
Again, in applying the third rule
to the budget for the fiscal year 1898,
the Special Advisory Committee made
the amount of taxes paid by the house.
holder of a $1,000 house in the District
OF Columbia and in cities chosen by
the committee as fair comparatives
the test for determining the suficiency
or insuficiency of the amount of taxes
paid by the people of the District Of
Columbia. This totally ignores many
other factors which should be taken
into consideration. For example, in
the other cities, not only the residence
of the worker is taxed, but also the fac
tory, shop or business building in which
he works. In contrast to this, the
Special Advisory Committee has ex-
pressly stated that the Governments
buildings and other Government prop
erty shall not be taxed, apparently
meaning that no sum shall be paid by
the Government in lieu of taxation Of
these great properties. They are the
equivalent of the factories, shops and
places of business in the other cities
and should be taxed either actually or
constructively. and no comparison
which omits this element can be fair or
correct.
There are many other elements in
the relations between the Federal
Government and the property owners
and taxpayers of the District Of Co.
lumbia which have been overlooked or
ignored by the Special Advisory Com
mittee.
THE report will be carefully studied
with the end in view that its merits.
dement's and omissions shall be clearly
brought out. This will involve meet
ings of the committees representing
the citizens and taxpayers of the Dis
trict which will be held in due course.
and study of the report made in an
orderly manner.
Later. when opportunity is af-
forded, the results of these studies will
be presented to the proper committees
of Congress. We have no doubt that
fair and full hearings and careful
consideration will be accorded us as
in the past.