Evening star., 1938-01-27
DEATH OF KENNEY
POSTPONES ACTION
0ND. c. funds BILL
Rough Road Seen in House
Monday as Members
Plan Assault.
BATTLE DUE ON PLEA
TO RAISE FEDERAL SHARE
Dirksen to Seek an Added ST.
100000 for Work Relief
Projects Here.
BY JAMES E. CHINN.

BY JAMES E. CHINN.
Shocked by the tragic death Of
Representative Kenney, Democrat, OF
New Jersey, the House adjourned
soon after 1t convened today, forcing
. delay in consideration of the 1888
District appropriation bill until to-
morrow. This move also automatically
postponed final action on the measure
until Monday, as the House will not
be In session Saturday.
Speaker Bankhead said there is nc
legislation ready for House considera.
tion Monday and the District bill
would have the right OF way.
As it came out of the Appropria-
tions Committee the bill faced a
series of rough detours in the House
as members prepared to shell it with
amendments.
Already two distinct blocs, with
entirely different objectives, have
formed to attack some Of the major
items. Chairman Palmisano OF the
District Legislative Committee will
head one. The other will be led by
Representative Dirksen of Illinois
ranking minority member of Mr.. Pal
misano's committee.
The Palmisano bloc will direct its
1ire on the S5,00O,0OO Federal payment
as recommended in the bill with view
to having it increased to $9,000,000
Mr.. Dirksen will direct a fight to have
at least Sl,O0O.OOO added to the bill
for projects that will provide work for
the unemployed.
Palmisano Polls Members.
Mr.. Palmisano has polled the 81
members of his subcommittee and
found a number of them who are will
ing to back him up in a battle for a
higher Federal payment These in
clude Representatives Schultz of In
diana and Sacks of Pennsylvania, both
Democrats.
An increase in the Federal payment,
MI. Palmisano proposes to tell the
House, not only is justified, but will
serve automatically to scrap the tax
increase program on which the sub
committee on fiscal affairs in working
to balance the 1899 budget-a program
which would raise between $4,000, 600
and SIC, 100000 although the minimum
anticipated deficit is now placed at
slightly under s2,0o0,0O0.
Mr.. Dirksen, it is understood, made
. vigorous fight before the full Appro-
priations Committee before it reported
the bill yesterday for at least Million
dollar increase in the $45, 5,827, 1922 figure
in the supply bill. The additional
funds. he argued, should be used for
needed Capital Improvements that
would provide employment for many
Of those on relief rolls. Now he plans
to make a similar plea to the House.
Other Amendments Seen.
A number of other members are re-
ported to be preparing to offer amend
ments, either to eliminate items in
the bill or to add new ones. Several
are understood to be ready to make
points of order against the series Of
legislative riders attached to the meas
ure.
Representative Nichols, Democrat,
Of Oklahoma, for instance, said he
hopes to convince the House the $685.
600 street lighting bill for 1899 should
be borne by the general revenues and
not by the motorists through a shift
approved by the Appropriations Com
mittee which would charge this item
to the special gasoline tax fund.
Despite the dwindling budget deficit
for 1899, the Fiscal Affairs Subcom-
mittee met again this morning to
apply finishing touches to the proposed
new tax legislation which calls for an
income tax and continuation of the
business privilege tax on gross receipts
and the present SITS real estate levy
for another year. Mr.. Nichols, the
subcommittee chairman, however, ad-
mits that any one of these three taxes
will provide sufficient revenue to keep
the District out Of the red in the
coming fiscal year. He said he does
not see the necessity of asking Con-
gress to approve all three plans and
raise far more revenue than is needed.
Seek to "Refine" Law.
Mr.. Nichols subcommittee is still
trying to refine" the existing busi-
ness privilege tax law and remove the
numerous inequities. Thus far it has
tentatively decided to recommend
changes in existing law that will pro-
vide q graduated scale Of taxation in
stead Of fat two-f1fths of per cent.
For instance, merchant whose
gross profits do not exceed 3 per cent
would pay . tax of one-tenth Of /
per cent. Business men whose profits
range from to 6 per cent would pay
ut . rate Of two-tenths of l per cent,
and those whose profits are in excess
Of per cent and not more than 8
per cent would pay three-tenths OF !
per cent. The rate for those whose
profits 60 beyond 8 per cent would be
two-flfths Of per cent, or the present
rate Is prescribed by law for all busi-
ness establishments.
The subcommittee, it was said, pro-
posed to define profit as the difference
between cost and sales price. Cost
will represent the wholesale price, plu.
the prevailing freight rate on the
article sold.
Changes in the business privilege
tax law, 1t was said, also contemplate
abolition of the present Board ol
Assessment and Review in the ia,
assessors Office, and creation Of new
board composed of lawyer, engineer
and specialist on assessments.
The present Board Of Assessment
and Review is made up Of eight Dis