Evening star., 1937-03-23
3-P0|NT FORMULA
To Be REJECTED,
THOMAS PREDICTS
Forecasts Federal Share of
S5,000,000 in D. c. Budget
to Be Continued.
REPORT BY JACOBS
HELD UNSATISFACTORY
0klahoman Speaks at Dinner in
Honor of Commissioners
Hazen and Allen.

Rejection of the Jacobs three point
formula on the Federal-District fiscal
relations and the continuation of an
appropriation of lump-Sum Federal
payment of $5,000000 for the next
fiscal year is forecast by Senator
Thomas of Oklahoma member of
the Senate Appropriations Subcom-
mittee handling the District supply
bill.
Speaking last night before several
hundred District officials at a teSti-
mOnial banquet in honor of Commits
sioners Hazen and Allen, Senator
Thomas discredited the formula Of
fered by the Jacobs Fiscal Committee.
so far as l am personally con-
Cerned, the Jacobs report is not salts
factory either to Congress or t, the
citizens of the District" he said.
Il believe I am safe in saying
that the Senate Subcommittee will
take the position the question of the
fiscal relations between the United
States and the District has not been
settled
Same Sum Favored.
Pending further study and con-
sideration, or development of better
formula. it shall be the position of
my committee, l believe, to carry the
same amount of Federal payment in
the next years budget as was carried
in the past one"
Amplifying his speech today. Sem
ator Thomas made known that he
consulted many members of Congress
before reaching his conclusion. Al
though not undertaking to speak for
Congress Thomas, who is chairman
of the Senate Subcommittee on Dis
trict Appropriations, summed up his
view as follows:
"Inasmuch as the Jacobs report
has not been thoroughly digested and
inasmuch as the matter is still
one for further study, and after con-
Sulting with numerous members of
Congress, my opinion is that the Dis
trict bill for 1888 should carry the
same Federal share as in 1887. l
hope also that by the time the next
Congress meets something more def
mite might be worked out and adopted
30 as to eliminate this perpetual and
embarrassing fiscal relations problem" !"
$4,000 for d. c. Report.
The Federal payment for the cur
rent year was S5 100000, less a sum Of
S50,000 appropriated for the investi-
cation and report made by the COM
mittee, of which j. L. Jacobs, tax
expert and efficiency engineer of Chi
cago, was director.
The Jacobs report would end the
statutory requirement that the Fed
eral Government pay 40 per cent of
the costs of operation and develop
ment of the National Capital and
abolish the lump-sum payments which
have been substituted for the pro-
portional system for the past 10 years.
1t would substitute a three point
formula for reimbursements to both
the Federal and District governments
for services rendered, between them
and to the public.
Adoption of Federal payment of
bat S5,000,O00 would leave the District
some s4,O00,000 to $5,000000 in the
red on the basis of revenues from the
present tax system, indicating there
would have to be a heavy boost in
taxes by July l.
Should Let Matter Rest.
Senator Thomas suggested that
while the issue was at stake the pub
lie should let the matter rest with
Congress and hope for adoption in the
future of better formula fol settle
ment of the annual dispute over the
fiscal problem.
He promised that if a better for
mula than the one offered by the
Jacobs committee is offered it would
have sympathetic treatment on both
the Senate and House sides of Con-
gress.
Other brief addresses were made by
Senators King, chairman of the SEN
ate District Committee, and Senator
Capper of Kansas, former chairman of
that group.
All three Senators were praised by
other speakers as true friends of the
District and honored for their long
consideration of District affairs.
A stirring plea for Capitalization of
power in the hands of District Com
missioners was made by Hazen, who
is president of the Board of Com
miSSioners.
Why should we have to go to the
Budget Bureau with every little mat
ter?" he asked.
Would Consolidate Police.
He urged consolidation of the met
ropolitan and the park police, centrali-
cation of the planning and develop
ment Of National Capital parks in the
hands of the Commissioners and the
placing of complete control over the
District Water Department in the
hand of District officials.
E. Barrett Prettyman, former cor
poration counsel was toast master.
He praised Commissioners Hazan and
Allen for their services and lauded
Engineer Commissioner Dan I. Sultan,
who was one Of the honor guests.