Evening star., 1938-01-01
SHARP FIGHT SEEN
At HEARINGS ON
DISTRICT TAX PLAN.
Failure of Commissioners to
Recommend Single Plan
Hints Division.
INCOME AND SALES
LEVIES SUGGESTED |
Carruthers, Head of Advisory
Group, Sees Buck Passing"
Economy Drive Indicated.
By NELSON Nj. SHEPARD.

Dy 4NLAoo4N AVA oA1A hNDs
Failure of the District Commission
ers to recommend to Congress def
mite tax program of their own that
would offer assurance of city-wide
support presages serious controversy
when public tax hearings are opened
at the Capitol next week, probably
Thursday morning.
Their reputed evasion of the issue
yesterday in approving "for considera-
tion as suggestive sources of new and
additional taxes" the conflicting re-
ports of their two committees that made
studies of the entire tax structure,
drew sharp challenges. The Commits
sioners, apparently unable to agree
among themselves on a compromise
program, withheld comment until
they speak their piece before the House
Subcommittee.
Representative Nichols. Democrat,
of Oklahoma, chairman of the House
District Subcommittee on Fiscal
Affairs, who will conduct the hear
ings, predicted trouble ahead. He
said he was satisfied by his examina-
ton of the tax suggestions reported
Thursday by the Commissioners Off,
cial Committee that the House Sub
committee will have plenty to say
about it" when the hearings open. He
declined further comment before the
hearing.
Suspects Buck Passing"
On the other hand, more than mere
disappointment" over the Commits
sioners action was voiced by L. A.
Carruthers, president Of the Fedora
ton of Citizens Associations. who
headed the Citizens Tax Advisory
Committee. Il would not say that the
Commissioners deliberately passed the
buck to Congress, but it is very de-
scriptive of their action" he COM
mented, 1T was unfortunate that
the Commissioners were not able to
recommend definite program that
would have the support of the busi-
ness and civic representatives as we'll
as the committee of District fiscal
officials"
Meanwhile, it was learned, year of
economy is in store for the District
government. beginning July /, if
Chairman Thomas of the Senate SUBJ
committee in charge of local appro-
priations has his way at the coming
session.
The Oklahoma Senator yesterday
expressed anew his intention of cut
ting appropriation items wherever pos
sible. He said his policy will be to
hold local expenditures down, declar-
ing he does not see any occasion for
increasing appropriations at this time
Agree to Rush Bill.
He revealed at the same time that
he and Chairman Collins of the House
subcommittee that will draft the bill
originally, are in agreement on plans
to expedite passage of the local supply
bill early In the session.
While Senator Thomas is avoiding
any discussion of the local tax situa-
tion, since the revenue problem will
be handled by the House and Senate
Legislative Committees, his decision
to oppose any substantial boost in the
appropriation total will have an effect
on the extent to which new taxes will
have to be imposed.
Returning yesterday for the OPEN
Ing OF the regular session, Senator
Copeland, Democrat, of New York an
nounced he would support the recon-
mendation of a committee of District
officials that the Federal lump-sum
payment toward the District bill should
be raised from s5.oOO,OOo to $500 900,
adding that he did not believe even
that amount would be adequate. The
S7.5O0,000 lump sum proposal was
coupled with suggested forms of local
taxation advocated by the group of
municipal officials designated by the
commissioners to study the subject.
senator Copeland is on both the Dis
trlct Legislative Committee and the
Appropriations Subcommittee.
Goes to Committee Monday.
Speaker Bankhead will refer the
commissioners communication to the
House District Committee as soon as
ne receives it Monday after Congress
reconvenes. Committee Chairman
Palmlsano will then turn it over to
the Nichols Subcommittee.
Inc latter said he plans to begin
hearings on the tax program Thurs
day morning. Every effort would be
made to expedite action, Mr.. Nichols
said, as his subcommittee wishes To
get an early start on the reorganization
program for the District.
We will try to report a tax nrorro,,,
by February l at the latest" he as-
sured.
Inc commissioners made no COM
ment Yesterday when they announced
tnelr decision on taxes. The letter
10 tne Speaker accompanying the two
reports stated their position: THE
commissioners will be prepared tn dis
cuss these proposed taxes before the
House District Committee at the con-
venience Of that committee"
commissioner Melvin c. Hazen later
explained that each of the Commits
sloners wished to express their indi-
vidual views before the committee, Z"
which strengthened conclusions that
they were unable to reach a definite
agreement on their own account.
BY approving both tax reports, the
Commissioners went on record as
favoring an income levy, a general
sales tax and boosting the Federal pay
ment from $5.000,OOo to a suggested
$7,500,000. In the latter connection
there is no conflict.
Mr.. Carruthers expressed surprised
Indignation over combining the two
reports, especially in connection with
the controversial income and sales
tax. His Citizens Advisory Commit
tee had recommended a general con-
sumers' sales tax. exempting food and
medicine, but opposed an income tax.
Hits Lack Of Exemptions.
II feel that the recommending of q