Evening star., 1938-04-17
FISCAL RELATIONS
STUDY IS ORDERED
Citizens Federation Plans
to Ask Revival of
6O-4O Fund Basis.

Study Of the problem of fiscal re-
lationship between the Federal and
District Governments from the stand
point OF the District citizen" was voted
by the Federation of Citizens Asso-
Citations, with q view to requesting
Congress to return to the statutory
60-40 basis Of appropriations next
year.
The study was ordered made by the
FederAtion's Fiscal Relationship Com
mittee after an hour OF wrangling
over an appropriation Of 5000 TO defray
the cost Of preparing graphs, printing
a report to Congress and incidental
expenses.
Proponents Of the study assured the
Federation that nothing the organi-
zation could do would add so much to
its prestige" as a thorough-going ef-
fort to clear up the complex and trou-
blesome fiscal relationship problem.
Request that the Federation appro-
pirate funds for such a study was
made by A. M. Edwards. chairman of
the Fiscal Relations Committee, fol-
lowing the submission Of q report by
F. J. Mcdonald, chairman of a spe-
cial subcommittee which has spent
several weeks in q preliminary study
OF the problem.
Eight Point Recommendation.
Mr.. Mcdonald submitted an eight
point recommendation to the fed
Grafton:
Il. Throughout the history Of the
District Of Columbia, the relationship
between Congress and the residents
OF the District has been one long and
continuous debate concerning the
amount Of money which should be ap-
propriated for the expenses of the
District.
y. 1t is apparent that the fiscal
problem which has been such an
issue between the Federal Government
and the District Government is simply
an ordinary business question which
has been settled by our corporations
and industries and which can be set
tied by Congress and the residents of
the District.
3. The wisdom and Judgment
which was the basis of the organic act
OF 1873 which provided a definite ratio
OF $3.50 for sharing the expenses of
the District of Columbia between the
District and the United States still
prevails and should be continued.
4. The substantive law of 1922
which provides for a fixed ratio of
60-40 for sharing the expenses of the
District between the Federal Govern
ment and the District Government
should be defended before Congress.
Fixed Proportion Urged.
IS. There should be a definite, fixed
proportion of the expenses of the Dis
trict to be paid by the Federal Gov
ernment This proportion should be
based on formula containing basic
elements showing the relative per-
centage OF cost of maintaining the
District that should be charged to the
Federal Government and it should be
prescribed by statutory law.
IS. A complete study should be made
OF the functional activities of the Dis
trict OF Columbia regarding their op-
erations taxes and assessments. Such
a study will require considerable work
by individual members of the Fedora
ton. The material developed by the
study should be arranged in graphic
chart form and the conclusions ar
rived at should be drafted in the form
Of statutory laws.
-. Unless the Federation is willing
to support and actively undertake the
preparation Of such a report, It Is wise
to decline the opportunity OF present.
ing the facts which are necessary in
the presentation of this case before
any committee of Congress.
Worthy Undertaking.
"8. This undertaking is worthy of
the best efforts of the members OF the
Federation. We believe that with the
cooperation of the members of the
Federation an appropriate report can be
offered and that Congress will give it
consideration and it is our sincere hope
that this cooperation can be had"
Wrangling over the appropriation
began at once and grew so heated that
at one point Mr.. Mcdonald. white with
anger, declared he was through with
the whole matter" A proposal by
Harry N. Stull OF the Stanton Park
association that the sum be reduced
to 500 was voted down after Fedora
ton Treasurer A. H. Gregory had
warned the Federation that it would
face = deficit at the end of the year.
Although the Federation divided, IS
to II, on the Stull proposal. the full