Evening star., 1937-01-30

parts OF the fiscal relations Is
port of the so-called Jacobs
discussed some past findings
burden. Toddy's article disct
obligation to its Capital City
A CCORDING to the conclusions
n reached by the recent fiscal
~ relations study. the little girl
4 a who lives In Arlington County
and attends public school in the Dis
trict and the locally omnipotent. ex.
clusively controlling National Govern
ment, bear exactly the same financial
obligation toward Capital City mainte.
nance-in principle If not in amount
The report does not put 1t exactly
that way, although that Is what II
amounts to. The report held thai
the little girl, and all nonresident
pupils, should pay tuition in return
for educational services rendered by
the District, while the National Gov.
eminent should reimburse to the Dis.
trict, through various departmental
appropriation bills. whatever amount
is reckoned by Federal officials q!
being due the District for services
rendered.
AS far as principle is concerned
no difference in financial obligation
to maintenance of the American Cap
ital is noted as between the non-resi.
dent pupils and the National Gov.
ernment. After their respective OBJ
legations have been met. according tt
the reports complicated methods o.
estimating the amount-about ST.
100000 in the 1898 budget-the people
OF the District. with nothing to Sa!
about whether the little girl from Vir.
ginia is to be excluded because o.
crowded conditions in the school!
and without any voice in levying o.
spending their local taxes. or the ma
ture of services rendered for or by tht
National Government, are supposed tt
assume the remaining financial re-
sponsibility.
Sources Of the Federal Obligation.
Incredibly, but unfortunately true
| the report ignores or overlooks th'
chief sources of the National Govern
ment's obligation in support OF It
Capital, which might be summarized
as follows:
l. The obligation based on ex-
tensive real estate ownership of
the United States in the District
| oyavvent frny,1 "a va finn
2. The obligation based upon the
absolute control of the District of
Columbia by the National Govern.
ment
3. The obligations springing from
demands of patriotic pride in the
American Capital and the desire to
make it one of the beautiful cap
itals of the world.
4. The obligation based upon
heavy national taxes paid by the
people of the District.
S. The obligation to contribute
in lieu of the hundreds of millions
in grants. bOunties and subsidies
paid by the Nation to the Stztes
from national taxes to which the
District contributes more than half
the States, in a distribution OF
which the District is not treated
as State.
Excessive Tax-exempt Holdings.
The first obligation considered b!
many persons Is the obligation baset
on the large area Of the District ex
empt from taxation because of its oc
cupancy by the National Government
or by agencies and institutions locate.
here because this Is the Capital. Tn,
obligation has the advantage of beinl
tangible and easily measured. It Is
moreover. an equitable obligation tina
is generally recognized. Its single dis
advantage, as far as the District 1
concerned, is that it injects the ides
Of taxing the United States Gov.
ernment-although that idea Is no
necessarily founded on fact. The
United States Government already
recognizes an obligation of the
same sort in some other State;
or municipalities. where its agencie!
pay a sum ''in lieu of taxation" anc
there is no sound reason why the same
principle should not apply. with great.
er force, in the District of Columbia
where the amount Of tax-exempt prop.
erty Is in excess of any other Ameri.
can city.
Reasoning Of the Report.
1t is interesting to note the curious
reasoning by which the recent fisca
investigators ignore the obligation o
the United States on account of 1t.
tax-exempt realty. The report sug.
gests a lamentable failure to see th<
woods because Of such trees as tn.
labored point that Federal property II
the District should not be subject Il
the ad valorem tax or to any othel
tax; that some of the exempt property
in the District Is used wholly or IL
part for the benefit Of the Distric
as a community" with such example!
as the National Training School fol
Boys, st. Elizabeth's Hospital, Colum
bia Institution for the Deaf, Smith
sonian Institution and grounds, tn
United States Soldiers Home, Waite
Reed Hospital, the headquarters o
the American Red Cross and the Pan
American Union; that In other cite
there has been q marked reduction II
assessed valuations of taxable proper
ties and much smaller decline in tn,
District.
The points raised are largely irrele
want, although disclaimers might bt
entered at length in connection will
the inference that such institution
as St. Elizabeth's Hospital, the Smith
sonian, the Botanic Garden, thu
American Red Cross headquarters, tn,
Pan-American Union, Walter Reed
ETC., are maintained partly for "the
benefit of the District as a commu.
nifty" Any free benefits from such in
stitutions are purely incidental to theil
essentially national or internationa
character. And the statement thai
assessed values in the District did nol
decline during the depression years q!