Evening star., 1938-05-15
HIGH VALUE SET
0NF|NANCE GROUP
Trade Board Units Work
Big Influence in City's
Operation.
BY JOHN II. CASSADY, Jr.

by JOnN II. SASSAD1, Jr.
II it were given to boasting, the
Board Of Trade could be excused, per-
haps, If it publicly threw a few
laurels in the direction of the Mu-
nicipal Finance Committee. In the
opinion of close observers of WASH
ington civic affairs, the action would
be wholly justified.
Beyond any doubt the Municipal
Finance Committee of this 1000
member trade organization for so
years has exerted the most consistent
influence of any unofficial body in the
District on municipal expenditures
and taxes.
The committee has carried on a
vigorous fight for equity in the Fed
eral Government-District of Columbia
fiscal relations, broad and WE'LL
balanced taxes, expenditures within
the ability of District residents to pay
yet in keeping with Washington's posi-
ton as the Nations Capital, and
economy in municipal operation.
Many studies, made at substantial
cost, have been made and placed in
the hands of proper congressional
committees and much time has been
spent impressing members of Con-
greSs with conditions in the District
of Columbia.
Senator Tydings' View.
The work of this committee doubt
less was part of what was in the mind
Nf Senator Tydings, Democrat, of
Maryland, when he told board men,
bers at the Pennsylvania Avenue
Bridge victory dinner last Wednesday:
The Washington Board of Trade
Is really an unofficial branch of the
United States Government. 1t has
contributed greatly to the welfare and
identification and economic we'll be-
Ing of the Nations Capital which,
through lack Of vote. has no official
way of making the will of its people
known"
When the Board of Trade was Or
ganized in 1889. one of its original and
most important study groups was the
Committee on Taxation and Assess
ment, OF which Henry Wise Garnett
was chairman for three years. Back
In those days the city was small; re-
lief. sewage disposal plants, modern
education and many of our present
departments and boards were un-
known The District budget amounted
to only about S5.oo0oOO annually, and
the Federal Government paid half of
that.
The many varied forms of taxation
with which the District now is threat
enec or already paying did not exist
IaXes took only small portion of
personal and business income. It is
not surprising then that the commit
tees chief worry then was the I'M
scientific and apparently arbitrary
method of making real estate assess
ments.
Government Paid in Taxes.
Back in February, 1892, Myron M.
Parker, then president of the board,
called attention to the financial re-
lationship existing between the Dis
trict and the United States Govern
ments. He pointed out the Federal
Government received as a donation
from the citizens of Washington FIVE
sevenths of the land for streets and
avenues, Sal acres for parks and reser-
vations and half of all the city lots.
On this land the government paid no
taxes. and it contributed nothing to
the support of the local government
prior to 1873 These are facts which
many legislators now overlook while
contending that District residents do
not pay enough toward support of the
municipal government.
An act setting up the Board of As
sistant Assessors were approved March
3, 1891, and the Taxation Committee
was Immediately impressed with the
fact that there was no machinery for
correcting injustices and Inequities of
assessment which might be made by
the Board of Assistant Assessors.
Consequently, it recommended crea-
tion of permanent board of assess
ment to hear appeals, and devoted its
efforts during 1898 exclusively to
framing bill to provide for i'm
provement," revision and equalization
of real estate values in the District"
and to provide an assessment of real
estate for 1896 and every third year
thereafter.
Legislation Was Passed.
They were successful in having this
legislation passed, and made law when
the President signed the measure
August IA, 1894. With few changes,
this board is still in operation today.
iy Io
laid down two principles which the
board has consistently followed to the
present time. First, it was stated the
Board of Trade was definitely opposed |
to the practice of raising more revenue
in taxes than was needed to meet
the current expenses of government
Hand in hand with this was recon-
mendation strongly urging that sur
pluses to the credit of the District
should not be created in the United
States Treasury.
Even in those early days. when the
Federal Government was paying so per
cent of the District expenses with little
objection from Congress, the commit
tee sensed the danger to the local tax
payers when it would appear obvious
that the District could easily raise
more money than was needed from its
own resources. The wisdom of this
policy has been demonstrated many
times, and it always has been at those
times when a surplus has accumulated
that Congress decides to reduce its
payment toward local expenses.
Edison Was Chairman.
From 1894 to 1899, and again be-
tween 1914 and 1917, the late John
Joy Edison served as chairman of the
committee. In his report at the end
of his first year in this position, he
recommended repeal of the personal
property tax as unnecessary and in
iquitous. He also pointed out at that
time that the Federal Government was
beginning to backslide bit on the
$3.50 agreement. First instance Of
this nature occurred in 1891.
In 1909, the committee apparently