Evening star., 1937-02-17
JACOBS IS SOUGHT
AS FIRST WITNESS
IN FISCAL HEARING
Subcommittee Seeks Ex-
pIanation of Several Points
in D. c. Proposal.
KENNEDY MEETS DELAY
IN LOCATING CHICAGOAN
Two Special House Groups to Call
Advisers Also in Probe
of Formula.

Efforts are being made today by
Representative Kennedy, Democrat,
OF Maryland to reach ]. L. Jacobs,
Chicago efficiency engineer and tax
expert, to summon him as witness
before two special subcommittee Of
the House District Committee to ex-
plain his three-point plan for set
ting the perennial controversy over
the fiscal relationship between the
Federal and District governments.
Jacobs directed the latest fiscal re-
iations study, which resulted in a re-
port to Congress recommending an
entirely new principle for determining
the Federal obligation toward District
expenses.
Attaches in Kennedy's Office called
the Budget Bureau and we're told ia
cobs could be reached at the Hay
Adams House. There, however, it
was said he had checked out"
May Be in Chicago.
Jacobs sometime ago volunteered to
appear before the subcommittee, and
it is believed he returned to his home
in Chicago. Kennedy hopes to reach
him there and notify him that as
soon as he is available public hearings
will be started on the fiscal relations
report.
Kennedy is chairman of one of the
two special subcommittee appointed
by the District Committee to study the
Jacobs fiscal relations plan. The
other is headed by Representative
Nichols, Democrat, of Oklahoma The
Kennedy subcommittee was instructed
to consider revenue features in the
Jacobs report, and the Nichols group
the 10 proposed legislative changes.
The subcommittee however, have de-
cided to hold joint hearings at the
outset Of the study.
Kennedy is desirous of having
Jacobs as the first witness, SO he can
explain some of the details of the
report that still puzzle members Of
both subcommittee. The first public
hearing will be held as socn as Jacobs
Is prepared to testify.
Advisers to Be Called.
The so-called Advisory Committee
which assisted Jacobs with the fiscal
relations inquiry also is to be called
before the two subcommittee. The
members are George McAneny, presi-
dent Of the Title Guaranty Trust Co.
Of New York City; Clarence A. Dyk-
stra, city manager of Cincinnati, and
John Martin, chairman of the Ken
tucky State Tax Commission.
The House Subcommittee on Ap-
priations, in charge of the 1896
District supply bill, also plans to call
Jacobs as soon as it begins considera-
tion Of the proposed new fiscal rela-
tions plan. This study Is to be inde-
pendent of the one undertaken by the
two subcommittee of the District
Legislative Committee of the House.
The two subcommittee decided to
begin their study with joint hearings
at a special executive meeting yester-
day which was attended by the Com
missioners and Maj. Daniel j. Dono-
van, auditor and budget officer. Later,
separate hearings may be held.
A few hours after the special ses-
sion, Chairman Norton of the District
Committee referred to Kennedy's SUBJ
committee the four tax bills which
have been sponsored for some years
by Representatives Mapes, Republi-
can, of Michigan. These measures pro-
vide for an increase in the gasoline
tax from 2 to cents a gallon, a
weight tax on all motor vehicles, sub
stitution of an income tax for the
present tax on intangible personal
property, and an inheritance tax. The
Jacobs report recommended similar
ravnu,Ia hills ir, itc rarort