Evening star., 1938-01-02
GAS TAX MONEY
SHIFT TO LIGHTS
WILL Be FOUGHT.
D. c. Officials to Oppose d.
version Of $765,OO0 as
Planned by Bureau.
CONGRESS COMMITTEES
TACKLE DISTRICT WOES
Supply Bill, Levies, Traffic and
Transit Problems to Be Delved
by Groups.

District officials will make a fight
against the Budget Bureau proposal
for diversion of S765,0O0 of gasoline
tax moneys to pay the cost of the Dis
tricts street lighting, it was indicated
last night, as congressional commit
tees prepared to tackle a number of
vital municipal problems.
Even before the gavels fall in the
House and Senate, opening the final
session of the 18th Congress, House
Appropriations Subcommittee will be
at work on the 1889 District supply
bill. And before the week is over, sub
committees of the Districts legislative
committee Of the House will be strug-
Cling with taxes, traffic and the transit
situation.
Hearings on the appropriation bill,
postponed five times for one reason
or another, are scheduled to start to-
morrow at 10 am. with the Commits
sioners and Maj. Daniel j. Donovan,
auditor and budget officer, as the first
witnesses.
Strong Opposition Indicated.
That leading District spokesmen
will voice strong objections to the
Budget Bureau plan to shift the cost
of the street lighting from general
revenues to the gas tax and highway
fund was predicted last night by one
important city officer.
In no sense can it be said that the
cost of street lighting is proper
charge against motorists only" he
said. This appears to me to be a
clear case of proposed diversion"
Last session Congress shifted to
the gas tax and highway fund por-
ton of the cost of the Traffic Depart
ment and several other items, but did
not include street lighting. although
the subject had been considered
Commissioner George E. Allen
placed himself on record many months
ago in favor of throwing all of the
special gas tax monies into the gen.
eral hopper of the District, but he has
not yet voiced comment on the cur
rent proposal of the Budget Bureau.
With his possible exception, District
officials are expected to oppose the
street lighting transfer.
To Resume Traction Probe.
The Public Utilities Subcommittee
of the House District Committee later
in the week-probably Thursday-will
resume an investigation of the Cap
ital Transit Co. in an effort to find
a solution to the mass transportation
problem. On the same day the Fiscal
Affairs Subcommittee will begin a
study of the Districts financial situa-
ton to determine what forms of tax
legislation should be enacted to keep
the Municipal Government out Of the
red in the coming fiscal year.
The tax question, from all indica-
tions. probably will be the most i'm
portant one concerning the District
with which Congress will have to deal
at the new session. The transporta-
ton situation, however, will share the
spotlight in view Of the vigorous pro-
, tests against the recent token fare
increase and demands for public own
, ership and operation of the street car
and bus lines.
Representative Nichols, Democrat
OF Oklahoma will direct the tax study
as chairman of the Fiscal Affairs Sub
, committee He has intimated that
regardless of what the Commissioners
: recommend at the hearings in the
form of new taxes, his group will
write tax legislation it believes Con-
gress will approve. Personally he
does not believe the proposed general
sales tax would ever receive the in
dorsement of the House.
The Tax Committee, which Maj.
Donovan heads, urged a general sales
tax, q per cent income tax and an
increase in the Federal payment to-
ward District expenses from IS 1000, 900
to $7,500,000 a year as means of rails
ing sufficient revenue to balance the
1899 budget.
= $1.75 Realty Levy Looms.
p. The proposals of the Commissioners
Tax Committee, one observer said last
night, leaves the door open for con-
tinuation of this years emergency"
: one-year increase in the real estate
tax rate to SITS.
q, 1t was recalled that the committee
calculated that the District next year
would need at least $5,0OO00O in new
revenue, after the business privilege
levy and the realty tax rate boost went
out of operation.
In proposing a plan estimated to
produce about $6,000,000 in new rev.
penues next year, the Commissioners
committee calculated on a $4,000, 900
increase in the Federal payment. If
Congress should fail to approve that
item, then the Commissioners would
have to adjust the realty tax rate to
make up any apparent deficiency in
revenue. The same suggestion would
apply, the observer said, If Congress
disapproved the plan for l per cent
District income levy or for a l per
cent sales tax. The only alternative
visualized last night was that Congress
might decree continuation Of the
business privilege levy on gross receipts
which, so far, has failed to measure up
to revenue forecasts.
AAAO tAoAAoAC AAAAAAy WAL AAA SNGCN
by Representative Randolph, Demo
crat, of West Virginia. who was re-
Gently appointed chairman Of the
Public Utilities Subcommittee It will
revolve around two bills introduced ir
the last regular session of Congress by
Representative Dirksen, Republican
of Illinois. One would freeze car ano
bus fares at 7-cent maximum. The
other would. abolish one-man car op.
erations.
The survey of Washington's traffic
situation is expected to be undertaken
Tuesday by the Traffic Subcommitte.
Of the District Committee, headed b.
Representative Schultz, Democrat, O.
Indiana.
Mr.. Schultz already has made a pre-.
liminary survey. and conducted sew
eral so-called "trafhc clinics" In ar