Evening star., 1939-06-22
ID. T.. Conferees
Take No Action
Until Monday
Session Quits Without
Settling Federal
Payment Differences
By ]. A. O'LEARY.

BY J. A. OLEARY.
House and Senate conferees on
the S49 9,6l5, 900 District supply bill
for 1910 ended their third session
today without settling their differ
ences over the Federal payment or
other major issues. while the Senate
District Committee prepared to
ratify the revised tax bill, con-
tinuing the present tax structure for
another year in lieu of the income
tax.
The appropriation conferees ad-
journed until Monday morning,
which will be June 26, only four
days before the end of the fiscal
year, when existing funds for the
daily operation of municipal fuc-
tions expire.
II no agreement is reached early
next week consideration of a con-
tlnulng resolution might be neces-
sary to authorize municipal ex-
penses for July. pending further
efforts to pass the bill. A contin-
ulng resolution merely authorizes
daily operating expenses, at the
same rate as the previous year, with
no new construction.
Meanwhile, a delegation of advo-
Gates of the income tax were at
the Capitol making a last-minute
plea for retention of that levy, in
stead OF continuing the business
privilege tax, but all indications
were the Senate committee will not
reverse its Tuesday decision against
the income tax.
Overton Plan Backing Affirmed.
The delegation, however, re-
affirmed its support of the Overton
amendment to the tax bill, propos-
ing more equitable and permanent
basis of Federal obligation to the
Capital. measured by the percentage
OF land in the city required for ma
| tlonal purposes At this time the
| Overton plan would make the Fed
eral share 20 per cent, or about S.
100000, in place of the 5000 900
lump sum.
This same issue of the inadequacy
OF the present lump sum is the one
keeping the appropriation con-
ferees apart. Headed by Chairman
Overton, the Senate group is in
favor of a s7,750,000 lump sum for
the coming year, while the House
bill continues the existing IS 0O0, 900
payment. The House conferees are
led by Representative Collins of
Mississippi.
A nnal agreement was not in
sight when today's conference end
ed. Although it is understood most
OF the time thus far has been de-
voted to discussing other details of
the bill, the extent of the Federal
payment is believed to be the crux
of the battle. as it has been on fire.
quent previous occasions whenever
the Senate has tried to establish a
larger payment.
lib Groups Represented.
Senator Capper of Kansas, one of
the two supporters of the income tax
at the District Committee meeting
Tuesday, received the delegation.
William j. Tucker of the Federation
of Citizens Associations, acting as
spokesman. said those with him rep
resented lib organizations The pc
tltlon set forth that the organiza-
| tions have combined membership
of more than 100000.
The group, which also included
Arthur Bernstein of the Citizens
Committee for Fair Taxation, indi-
Gated efforts are being made to have
some member of the Senate offer the
income tax as an amendment on
the floor.
Meanwhile, conferees resumed ef-
forts this morning to settle House
and Senate differences over the
$40 900 local appropriation bill.
The District Committee already
has voted decisively for the Overton
plan to raise the Federal payment In
accordance with the land area re-
quired for national purposes in
Washington and to continue the
business privilege levy and other
existing taxes as a substitute for the
drastic House income tax.
May Pass This Week.
The Senate may pass the revenue
measure before the end of the week
and send it to conference with the
House for final decisions on the
Overton formula and on the question
OF whether to keep the Senate's busi-
ness privilege tax or the House in
come levy.
In the tax bill, the Overton for
mula offers a permanent solution
that would establish the Federal
obligation definitely on the land
area yardstick, which at this time
would make the ratio 20 per cent.
The present $5,0000O0 lump sum
payment, which the House sought
to make permanent in the tax bill,
represents only slightly more than
10 per cent of this years total ex-
penditure on upkeep and develop
ment of the Capital.
In the appropriation bill, the Sen
| ate's increase in the lump sum from
$4,000, 900 to s7,750,000 seeks to place
| hA EAl4 -,