Evening star., 1937-01-03
MYSTERY SHR0UDS
D. c. BUDGET BILL.
ON CONGRESS EVE.
Questions OF Ultimate Size
and Federal Share Still
in Balance.
s46,000,000 ESTIMATE
is BELIEVED LIKELY
Special Committee Completing Re-
port on Lump Sum for
President.
BY DON S. WARREN

BY DON S. WARREN,
The Districts 1887 budget--as yet
badly unbalanced-was headed last
night for the legislative mill on Cap
itol Hill. with the questions of what
may be the ultimate size of the meas
ure. the need for boosts in taxes and
the size of the Federal payment all
hanging in the balance.
There was reason to believe Presi-
dent Roosevelt, acting on the advice
of the Budget Bureau, would send to
Congress Thursday bill proposing
estimates of about $46, ,000, 900, or some
$2,000,000 less than the total urged
by the Commissioners.
Logic suggested also that the Budget
Bureau this year will include in its
report blank for the sum constitut-
ing the Federal share of expenses for
the operation and maintenance of the
Capital, leaving that item for ulti-
mate decision by Congress.
A special committee named by the
President now is placing the finishing
touches on the report of its findings
of what should be the size of the Fed
eral payment. This secret finding is
to be forwarded to Congress by the
President. probably in the immedi-
ate future.
President Awaits Report.
The report of the Special Com
nittee on Fiscal Relations has not
yet gone to the President. This is
the basis for belief that the Budget
Bureau has departed for once from
its traditional practice of including
in the proposed new District budget
the sum of the Federal payment
made by Congress at the previous
session.
Last year, the Commissioners made
q strong plea that the Budget Bureau
recommend an increased Federal pay
nent over the one contained in the
preceding years Districts appropria-
tion act, but the plea fell on deaf
ears. The bureau chiefs said it could
not recommend an increase in the
sum. even though in previous year
it had suggested reduction in the
sum.
j. L. Jacobs, director of the Fis-
cal Relations Committee, devoted
much of yesterday to- conferences at
the Budget Bureau, where he was
reported engaged in completion Of
the final chapters Of the report of
his committee.
He declined to make any statement
OF what recommendations would be
included in the report, other than to
declare it would represent "a compra
hensive factual statement" regarding
the Federal-District relations ON the
costs of the Capital.
Members Of Committee.
Members of the Advisory Commit
tee are George McAneny, president
of the Title Guaranty Trust Co. of
New York City, the chairman; Clar-
ence A. Dykstfa, city manager of Gin
cinnati, and James L. Martin, chair
man of the Kentucky State Tax Com
mission. Jacobs is Chicago effici-
ency engineer and tax expert.
While the findings Of the committee
and Jacobs have been shrouded in
secrecy, District officials who have
testified several times before the group
are not particularly optimistic. Their
reactions to questions by the committee
and its director have led them to be-
lieve they cannot hope for a recon-
mendation for a large boost in the
$5,000,0 900 payment made for the eur
rent fiscal year by Congress. They
have insisted, however, they have not
been advised what will be the COM
mittee's recommendation and hope
their guesses are wrong.
Repeatedly the Commissioners have
Insisted the District must have more
revenues during the next fiscal year,
beginning next July l, for the years
following. They have declared this
must be accomplished by new or in
creased taxes on District residents, un-
less the Federal payment is increased
to a point to relieve the present finan.
clal crisis, or unless needed funds are
made available both by increased taxes
and increased Federal payment.
A committee of District officials.
named more than year ago, has con-
tinued its study of possible new tax
revenue measures, but has withheld
recommendations, at the direction of
the Commissioners, to await the report
OF the Special Committee on Fiscal
Relations.
Revenue Possibilities Weighed.
Members of this District official
group have considered various revenue
possibilities, including an Inheritance
tax, an increase in utilities and bank
taxes, an automobile weight tax as
q substitute for the present personal
property tax on automobiles. theater
tax, an increase in the present q
cent gasoline tax, or even an income
tax.
The Commissioners sent to the
Budget Bureau about two months ago
estimates for the next fiscal year
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