Evening star., 1937-01-12
CHAIRMAN NORTON
RUSHES STUDY OF
FISCAL PROPOSAL
Way Name Representative
Kennedy Head of Sub
committee.
19 STATUTORY CHANGES
ALSO TO BE EXAMINED
COPELAND Doubts Wisdom of Scrap.
ping Present Lump Sum Basis
of Financial Relations.

Rushing preparations for an imnle-
diate study of the Jacobs fiscal re-
lations report by the House District
Committee, Chairman Norton dis
closed today she may appoint Repre-
sentative Ambrose J. Kennedy, DEM
ocrat, of Maryland to head one of
the two special subcommittee she
plans to create to consider various
features of the three-point formula.
Kennedy probably will be placed in
charge of subcommittee that will
handle the five proposed plans en-
bodied in the report for raising addi-
tionsl revenue to offset part of the
estimated S1O0OO,000 deficit the Dis
trict will face in the coming fiscal
year If the three-point formula is ap-
proved by Congress.
Another special subcommittee is to
be created to consider the 19 statu-
tory changes recommended in the re-
port. Mrs. Norton, however, has not
yet decided who she desires to head
this subcommittee.
Although Mrs. Norton is planning
to have her committee begin consid-
Grafton of the Jacobs report without
delay, she said she would not be
"stampeded" into any "half-baked"
legislation for recognizing the District
government or imposing new tax
measures.
Mrs. Norton described as "unfortu-
nate" the fact the "a legislative
changes recommended in the report
should be linked with the budget prob
lem. mo legislation will be rushed
through" she declared. merely to
meet an emergency fiscal condition"
Chairman King of the Senate Dis
trict Committee also said he was not
In favor of rushing legislation through
at this session" to carry out the recon-
mendations.
Senator King announced he will
confer with Mrs Norton at the earli-
est opportunity as to the best method
of proceeding and to discuss the pos
sibility of having the two commit
tees work together.
Comment Of Copeland.
In the meantime, on the Senate
side. Senator Copeland, Democrat. of
New York expressed doubt as to the
wisdom of scrapping the present lump
sum basis Of fiscal relations and turn
ing to the new three-point plan.
Referring to that part of the
formula under which various Federal
agencies would reimburse the District
land said it bore resemblance to the
old fee system OF compensating for
public services. That system, he said,
at one time applied to many public
offices in various States, but is being
abolished.
II am not much impressed by that
method of approach to the problem"
the Senator said.
The New York Senator indicated he
thought determination of a definite
lump-sum Federal payment would be
preferable.
In the House, Kennedy Is expected
to be named to head the special tax
revenue subcommittee because of his
familiarity with such questions. AS
member Of the Senate in the Maryland
State Legislature in 1926, he was
chairman of a committee which han
died number of revenue bills.
Willing to Take Post.
Although Mrs. Norton plans to
make him chairman of a special sub
committee which will handle his own
bill providing for outright repeal of
the so-called "red rider" to the 1886
District appropriation act, Kennedy
said he would take the additional as
signment on the special revenue SUBJ
committee because of his vital inter-
est in an equitable solution of the
fiscal relations problem.
Kennedy has been able to make
only cursory examination Of the ia
cobs' three-point plan. He said, how
ever, he would study it intensively
should he be appointed by Mrs. Nor
ton, before beginning public hear
ings on the proposals for raising addi-
tional revenue. These proposals call
for an increase in the gasoline tax, a
weight tax on commercial vehicles, an
income tax as substitute for the
present tax on intangible personal
property and new business taxes.
From present Indications" Ken
nedy declared, II don't think the ST.
533,347 which would be reimbursed
the District under the Jacobs three
point formula is fair and equitable
The Federal payment of s5,00o,000 in
the current fiscal year certainly was
not adequate, and nothing has hap
pened since Congress appropriated
that amount to Justify such drastic
cut in the obligation of the United
States toward its Capital City" .
Kennedy, however, is inclined to
be sympathetic toward recommended
tion in the report for reorganization
OF the District government on a
more efficient basis. He believes that
under the present set-up there is too
much overlapping Of activities.
Representative Reed, Republican, of
Illinois, a member of the District
committee in the last Congress Joined
with Kennedy in branding as "ineqm-
table" the $2,533, BAT that would be re-
imbursed to the District in the coming
fiscal year under the Jacobs plan.
Reed feels the Federal Government
should contribute a fair share toward
the expenses of the District.
If Reed is reappointed to the Dis
trict committee, he said he would
make a serious study of the proposed
three-point formula, and aid in any
movement for fiscal justice for WASH
mgton.