Evening star., 1938-05-08
BLOC |S.F0RMEO
IN HOUSE TO KILL
DC. REVENUE BILL
Stage Set for Bitter Fight
on Floor Tomorrow on
Tax Measure.
STRUGGLE SEEN ALSO
on CAB LIABILITY PLAN
Objection to Business Privilege
Levy on Constituent Firms
Held Cause of Move.
BY JAMES E. CHINN.

A new bloc was organized in the
House yesterday to aid Chairman
Palmisano of the District Commit
tee in his effort to kill the 1889 reve-
nue. bill and force the Commissioners
to increase the real estate tax rate
from SITS to $l90 to balance the
budget in the coming fiscal year
beginning July /.
At the same time House leaders
set the stage for bitter fight in the
House tomorrow over the revenue bill,
as well as a bill requiring taxicab
owners in the District to carry liza
bility insurance. 1t was agreed that
further debate on the civil aeronau-
tics bill which started yesterday,
would not be resumed until the Dis
trict legislation is out of the way
Discussion of the revenue and taxi
cab bills will be renewed as soon as
the conference reports on the meas
ures are called up. Since the Senate
has approved these reports. only
House concurrence is needed to COM
plete legislative action.
Business Tax Opposed.
The bloc formed to fight the con-
ference report on the revenue bill is
understood to be the result of letters
Mr.. Palmisano sent several days ago
to each House member appealing for
support Of his plan. Its members are
said to represent States in which
firms are located that do business in
Washington-flrms that would be af.
fected by the conferer ce reports pro-
poSal to continue the business priyi-
lege tax on gross receipts for another
year
Mr.. Palmisano. the most vigorous
Zoe OF the business privilege tax in
the House, personally will lead the
light against adoption of the con-
ference report. To Representative
Nichols, Democrat, of Oklahoma will
fall the job of trying to have it
approved. Mr.. Nichols is chairman
of the Fiscal Affairs Subcommittee
which drafted the bill. He is Just
as confident the report will be ap-
proved as Mr.. Palmisano is that
it will be rejected and the bill allowed
to die.
Baltimore Boycott.
As Chairman Palmisano completed
his plans for the fight, Mrs. John
Boyle, jr.. chairman of the Citizens
Committee on Fair Taxation. threat
ened to organize home owners for
a boycott of all Baltimore made prod
ucts sold in Washington if the tax
bill meets its death. Mr.. Palmisano
lives in Baltimore and it is largely
through the business interests in that
city that he is endeavoring to kill
the bill
The measure not only will force
the Baltimore firms to pay the busi-
ness privilege tax on their gross re-
ceipts in the District, but will i'm
pose q tax of so cents a barrel on
beer. About rs per cent of the beer
sold in Washington Is said to be
brewed in Baltimore.
Another bitter fight is expected over
the taxicab liability bill. Two factions
OF taxicab operators have engendered
this fight. Their agents spent most
Of last week lobbying at the Capitol.
Conflicting Stories.
One group wants the House to ap-
prove the conference report in its
present form, which will require sep
arate policies for each cab. The other
group wants the House to adhere to its
original plan of allowing operators of
cab fleets to provide a blanket policy
covering all cabs or to file a $4,000
bond with the Public Utilities Com
mission to cover judgments
Out of the lobbying activities of the
taxicab agents. House members have
heard conflicting stories Some have
declared the insurance will result in
an increase Of at least S cents a zone
IN existing rates. Other agents have
declared the taxlcab drivers can alb
sorb the insurance without increasing
rates.
During hearings on the taxicab bill,
the House District Committee was in
formed the insurance would cost
drivers at least 81 day. One taxicab
company. however, recently said it
could procure insurance from a repu-
table company for about 60 cents a day