Evening star., 1939-07-16
BY ]. A. O'LEARY.

Senate and House action early
this week on a new local tax struc-
ture, in which the s6,000,0OO COM
promise Federal payment for this
year would become permanent law,
is all that remains to put the fiscal
affairs of Washington back on a
settled basis.
While President Roosevelt was
signing the s48,OO2, ,347 appropriation
bill at the White House, giving the
city authorized funds for the first
time in two weeks, conferees at the
Capitol came to an agreement on
the revenue bill, in which an in
dlvidual and corporation income
tax to replace the business privilege
levy is the essential new feature.
The prompt signing of the supply
bill by the President enabled the
District to pay the policemen on
time yesterday, but most of the
municipal employees will have to
wait until tomorrow or Tuesday
because of the routine work neces-
sary to get out the entire pay roll.
Firemen's Checks Held Over.
1t had been planned to pay the
city flremen at the same time as
the police. An official in the dis
bursing Office explained, however.
that word of availability of funds
came too late to catch men on the
early shift, who had been told about
ii am. they would not be paid,
Funds were made available about
an hour later, it was stated. but
since the change in shift about
half the men had gone and it was
decided to hold over the checks
until tomorrow.
The decision of the tax conferees
tc recommend that the $4,000, 900
lump sum be made the basic author
lied Federal payment for each year
was a compromise between the
Overton percentage formula favored
by the Senate and the House pro-
posal to keep the lump sum pay.
ment at maximum of IS 100000.
Assuming both houses ratify the
tax agreement. it will restore to
the statute books definite, author
lied measure of national obligation.
When the last Congress repealed tho
6O-40 ratio of substantive law, it left
the District without any basic legis-
lation on the subject of Federal
participation in the upkeep and
development of the National Capital
for the first time in 60 years.
Although Congress since 1925 had
been making temporary annual
lump sum payments in lieu of the
40 per cent ratio, that percentage
principle remained in substantive
law until repealed in the 1888 tax
law.
Senate Approval Expected.
Senator Overton, Democrat, Of
Louisiana, who led the fight result
ing in the new s6000,000 Federal
payment, will call the conference
report up in the Senate tomorrow
and prompt approval by that body
is expected.
1t will then be called up in the
House, probably Tuesday, by Rep
resentative Nichols, Democrat, Of
Oklahoma. Although Mr.. Nichols
did not sign the conference report
because he was not in agreement on
more than $5,0O0,O0O, he said he
would not oppose it on the floor.
AS originally drafted, the provision
fixing a definite Federal lump sum
in basic law was worded to read,
there shall be appropriated" This
was modified by the conferees yes
terday to make it an authorization,
to meet criticism previously ex-
pressed by House members that the
original language infringed on the
jurisdiction of the Appropriations
Committee. This change is expected
to smooth the path of the confer
ence report.
The conferees also eliminated the
Senate proposal for joint House
and Senate committee to continue
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