Evening star., 1939-06-27
Senate Adopts
0verton Fiscal
Plan for DC.
U.S.. Would Give About
$4,000, 900 Insteod
Of 900 to D. c.
BY ]. A. OLEARY.

The Senate today passed; without
q dissenting voice, the revised local
revenue bill containing the Over
ton plan re-establishing a perma-
nent basis of Federal obligation to-
ward expenses of the National Cap
ital and continuing the existing bus
iness privilege tax in place of the
House income levy.
This action came shortly after
conferees on the 1910 District ap-
preparation bill, who are dead
locked over the amount of the lump
sum Federal payment for the COM
ing year, had voted to carry their
disagreement on the fiscal-relations
issue back to the House and Senate
for instructions.
The Overton plan, which now goes
back to separate group of House
and Senate confereeS for final set
tlement, would measure the Ma
tons obligation by the percentage
of land area of the city required for
national purposes. At the present
time this would amount to 20 per
cent, or about 100000, instead of
current lump sum payment OF
$5,000,00O.
Still in Disagreement.
Along with their dispute over the
lump sum for the coming year, the
appropriation conferees also voted
to report they are still in disagree
ment on the 100000 Senate increase
in the House 100000 relief fund,
and on more than 1869 900 added by
the Senate to the school building
program.
At the same time, however, the
supply bill conferees announced they
had settled most of their differences
over detailed items of expenditure.
High lights among these agreements
were:
The House agreed to the Senate
plan to place the National Guard
Armory on ground already owned by
the Government at the end of East
Capitol street, instead of on new
site in the Southwest section. A
separate vote must be taken in the
House, however, on the separate
Senate amendment authorizing i'm
mediate preparation of plans and
beginning of construction.
The Senate yielded to the House
by agreeing to merger of municipal
Fairgrounds with school recreation
through the Community Center De-
partment.
Twenty-Five additional policemen
favored by the Senate was eliminat-
ed, but this still leaves an increase
In the force of Is the House original
ly proposed.
The only Senate debate on the
tax bill related to a last-minute
amendment by Senator Tydings Of
Maryland to exempt from the busi-
mess privilege tax members OF
tarmer co-operatives who bring
their own produce to market In
Washington.
Senator Overton, Democrat, OF
Louisiana, who steered the measure
through the Senate with the as
sistance of Chairman King of the
District Committee, agreed to take
the Tydings proposal to conference.
AS soon as the bill had passed
unanimously Vice President Garner
appointed the following to represent
the Senate in conference:
Senators Overton, King, Tydings,
McCarran of Nevada and Capper OF
Kansas.
Second Positive Step.
Today's action marked the sec
ond positive step the Senate has
taken at this session to place fiscal
relations between the Nation and
the local community on a more
equitable basis than has prevailed
during the past six or seven years.
The first move came when it voted
to raise the temporary lump sum
payment for next year in the sup
ply bill from the $5,000,000 House
figure to s7,75O,OOO. The Senate ap-
preparation conferees, led by Sem
ator Overton, are standing by this
temporary adjustment of the prob
lem.
Next Move IN House.
The next development on the
supply bill will come in the House,
possibly late today, when Represent
ative Collins of Mississippi reports
the disagreement on the lump sum,
relief and school issues. 1t is ex-
pected motion will follow directing
the House conferees to insist upon
the House figure of $5,O00,0O0 as the
Federal payment for another year.
If this happens, Senator Overton
will then bring the partial confer
ence report before the Senate and
move that the Senate conferees in
sist upon the higher Senate figure.
This would send the appropriation
(See OVERTON, Page A-3)