Evening star., 1939-01-10
'0verton Weighs
Separate Bill
On Fiscal Plan
Senator Also Studies
Feasibility Of Adding
1t to Tax Measure
BY J. A. O'LEARY.

Senator Overton, Democrat, of
Louisiana, new chairman of the
Senate Subcommittee on District
Appropriations, is considering the
advisability of presenting his fiscal
relations plan either as a separate
bill or as an amendment to the
forthcoming local tax bill
Meanwhile, the Senator resumed
today the tour he began last week
with District officials to familiarize
himself WITH the condition and needs
of municipal institutions and agen-
cies.
The Louisiana Senator has put
forth the suggestion that the acre
age of tax-exempt land required for
Government purposes p Washing
ton be used as the yardstick Of
Federal obligation toward the city
in place of the annual lump-sum
Federal payment, which he believes
is haphazard and should be aban-
doned.
He is gathering additional in
formation, however, before drafting
the plan in specific terms, He re-
vealed he has given some thought
to the possibility of proposing the
question as an amendment to the
tax bill, which will be prepared soon
| in the House. He is undecided,
| however, on the course of procedure
he will follow.
Randolph Sees Merit in Plan.
In this connection, it was recalled
today that the House took the in
itiative last year in coupling fiscal
relations with taxation by making
the repeal of the 60-40 ratio Sec
ton of the current tax law, passed
last May.
Representative Jennings Ran
dolph, Democrat, of West Virginia,
who will head the House District
Committee in this Congress. where
the tax bill will be drafted. was
not prepared to comment today on
the fiscal relations phase of the
Districts financial outlook. except
to say that he believes there is real
merit in Senator Overton's sugges-
ton.
Although Congress had been de-
parting from the 60-40 ratio by
making lump-sum Federal payments
annually for IA years, that percent
age basis was still in substantive law
until repealed by the last tax law.
This leaves the Government with
no fixed policy on the statute books
for dealing with District finances,
since the lump-sum payment is
made for one year at time by a
provision in each appropriation bill.
Would Boost L. S. Aid.
This unsettled condition of the
fiscal relations problem has made
more timely the stand taken by
Senator Overton for adoption Of
some definite formula.
The Louisiana Senator. who has
been studying past developments on
the subject. including the Jacobs
report of 1886, made known he re-
CARDS the plan recommended in that
document as being too complicated
to be adopted. The Jacobs Commit
tee undertook to measure in detail
the various services the Federal and
District Governments render to each
other. Congress merely received
and filed this 1885 report and con-
tinued on with the annual lump
sum payment.
1t has been estimated unofficially
that the Overton plan of basing the
Federal obligation on the acreage
of land used by the Government.
with allowance made only for the
excess of park areas over the aver
age elsewhere, would result in a
ratio of 70 per cent from the Dis
trict and 81 per cent from the
United States in meeting the new
District budget. Continuation of the
s5,O00000 lump-sum Federal pay
ment would be equivalent to only
105 per cent of the new budget.