Evening star., 1937-03-10
HOUSE SEES FLAWS.
IN JACOBS REPORT;
QUIZ CONTINUES
Author of Three-Point For
muIa Questioned by
Subcommittee.
TAX-RATE COMPARISON
HIT BY LAWMAKERS
Lack of Figures From Other Cities
Unfair to D, c., Representa-
tives Say.


propriations in charge of the 1888
District appropriation bill continued
today to look for defects" in the
plan of j. L. Jacobs, Chicago efficiency
engineer for solving the long per-
picking problem of fiscal relationship
between the Federal and District Gov
ernments.
With Jacobs on the witness stand
fC~ the second successive day. the
subcommittee piled him with ques-
tionS about his now famous three
point formula for determining to
what extent the United States should
share in the expenses of the District
government.
The subcommittee. it was said, al
ready has discovered several flaws
in various features of Jacobs COM
prehensive 244-page report on the
results of his fiscal relations survey.
Outstanding among these was that
the report compared District tax rates
and assessments with corresponding
figures in II so-called comparable
cities" and failed to show actual tax
collections. Jacobs is said TO have
explained that data showing the actual
revenue derived by the II cities were
not available
1t was pointed out by subcommittee
members that the taxes paid could not
be compared fairly to the District until
the figures are actually known because
OF the possibility of fraud in the other
cities.
Library of Congress Fee.
The subcommittee also questioned
the fairness of the JACOBS report in
charging the District s55 900 for main
tenance Of the Library of Congress
because its residents use it as reading
room.
In fact, the deeper the subcom-
mlttee goes mot the analysis of the
Jacobs plan, according to one Of its
| members, the more puzzling and more
unworkable it appears.
After hearing Jacobs explanation
OF the plan, one subcommitteeman
declared:
To understand it you would have
to be an Einstein, understand the
fourth dimension, and approach the
subject upside down"
The same member said a gigantic
organization about the size of the
Social Security Administration staff
would be necessary TO keep a check
on the SO governmental services in
| the District to figure out the division
OF costs as well as the comparative
tax burden of Washington and the
II other cities set out in the Jacobs
report for comparative purposes.
This member also predicted if the
Jacobs plan is adopted by Congress,
within five years it would cost the
! Federal Government approximately
s2O000,000 because the more the
District spent the more the United
States would have to pay"
Building Program Seen.
If the three point formula is put
/ into use, he pointed out, the District
would be expected to undertake large
building programs in order to receive
greater Federal ACKNOWLEDGEMENTS
that at the same time would be more
| costly to the United States.
! AS soon as Jacobs completes his
testimony the subcommittee plans to
| call to the witness stand, George Lord,
Detroit tax expert, and Thomas F.
Murphy, who are familiar with the
fiscal relations problem. Lord as
sisted the special Mapes committee
of the House when it made a fiscal
relations survey about five years ago
and Murphy directed a similar study
for the former United States Bureau
of Efficiency.
| Chairman Collins of the Subcom-
mittee said he hoped to close the fiscal
relations study late today if possible
and whip the 1888 appropriation bill
into shape to report to the House
Monday
At the same time Collins disclosed
he had received a report from Supt. of
| Schools Frank w. Ballot showing
the income of school employees from
outside employment" Pressure" had
to be used on DR.. Ballou, however, it
was disclosed in order to get the
| information.
Report Returned to BallOu.
When the subcommittee called on
all District department heads last week
for a report on the employees under
their supervision, together with their
income from all sources, DR.. Ballou.
it was said, did not include the
amounts made by school workers from
outside" employment. The school re-
port was returned to DR.. Ballou with
instructions to furnish the complete
information.
Dr. Ballou, it is understood, told
Chairman Collins he could not furnish
the information without approval Of
the Board of Education, and pointed
out the board would not meet for at
least 10 days. Irritated, Collins, it
was said, warned him that he would be
called before the subcommittee for
questioning unless the data were fur
nished without delay.
The report It was said, shows that
about 100 school employees are en-
gagged in 'outside" employment.