Evening star., 1939-07-01

agreed upon nnally IN the penang
tax bill.
When the House late yesterday
afternoon voted down an eleventh.
hour proposal by Representative
Randolph of West Virginia to COM
promise on a Federal payment OF
not to exceed $6,OOO,OOO, it remained
in the position of holding out for its
own figure of $5,00O,0O0.
Senate Balks at Surrender.
The Senate conferees had beer
ready since Thursday to meet the
House halfway by reducing its lump
sum recommendation from $7,750 .00(
to $6,500,000. but were unwilling last
night to meet the House demand fol
complete surrender on the $4,000 900
The Senate conferees have gone
further by offering to abandon the
Overton formula in the tax bill
which would have established per-
manent percentage basis of Fed
eral obligation, based on the land
area of the city required for nationa.
purposes.
Just before voting down the Ran
dolph compromise, 223 to 20, the
House sent the tax bill back to con-
ference, but there is no prospect the
conferees will get together again
until after the July holiday.
Although the business privilege
levy died last night for the time
being, local officials said there would
be no difficulty in putting it back
into operation if the conferees de-
eide later on to re-enact it, as IA
vored by the Senate, instead of the
House proposal for an income tax
Thus far the battle over the basis
Of Federal obligation has delayed
any detailed discussion of alternate
taxes by the conferees.
The House request for further
conference on the tax bill will come
up in the Senate Wednesday, offer
ing Senator Overton of Louisiana
another opportunity to obtain an
expression of opinion from his COL
leagues. Senator Overton has led
the fight for more equitable Fed
eral payment in both the tax and
appropriation bills.
Reminds House of Responsibility.
In appealing to the House late
yesterday to accept compromise
figure of not to exceed 100000 as
the authorized Federal payment in
the tax bill, Representative Ran
dolph, Democrat, of West Virginia
reminded his colleagues that I'VE
members of Congress have a re-
sponsibility to legislate for the Dis
trict that we cannot escape"
He explained at the outset that he
was not for the Overton formula
which would produce 100000 or
for the $7,750,000 lump sum ap-
proved by the Senate in the appro-
priation bill. He said he did feel
however, that, as an individual
member, he should ask the House
to express itself on a proposal to
try to settle the issue.
He said it has always been his
understanding that when a bill goes
to conference the purpose is to try
to bring out measure that could be
passed.
Representative Nichols of Okla
homa Immediately took the floor to
oppose Mr.. Randolph's motion. He
said that if the Senate had indi-
Gated a willingness to accept So
100000 it would be different propo-
sition.
In Thursdays meeting of the tax
conferees. Mr.. Nichols said, the
Senate group refused a compromise
offer to fix the Federal share at IA
per cent or about S. 100000.
Attacks Formula.
The Oklahoman then turned his
attack on the Overton formula
which proposed measuring the Fed
eral share by the percentage of land
area of the city required for ma
tional purposes and applying that
percentage GO per cent? to the
general fund expenses.
He then contended that if there
was to be such a formula the Fed
eral land percentage should be ap-
piled only to the Districts rea,
estate tax levy, which he calculated
would make the Federal share only
81 300, 900. He based this argument
on the ground that all the Govern
ment owns in Washington is reaI
estate, whereas applying the per-
centage to the general fund meant
including in the ratio all of the
Districts other revenues from in
tangible taxes, business licenses and
miscellaneous fees.
Representative Dirksen of Illinois
a Republican conferee on the tai
bill, joined Mr.. Nichols in opposing
Mr.. Randolph's motion, declaring
the House should not "temporize OF
compromise"
Members Hurry Vote.
Representative Kennedy, Demo.
crat, of Maryland, closed the debate
coming to the support of Mr.. Ran.
dolph, but it was apparent through.
out the discussion that the member.
on the floor were in no mood tt
listen to argument. Several time.
during the brief discussion they
shouted vote! Vote!"
Mr.. Kennedy also announced hi
was opposed to the Overton formu.
la, out insisted that at no time ha.
he heard any one explain why
$5,0000 900 is enough to cover thu
Federal obligation.
Il think this House has a dut,
to the people of Washington" sale
the Baltimorean, in urging the com.
promise.
He recalled how the Government
for many years followed the 5O-5(
percentage basis of payment, fol.
lowed later by the ratio of 60 PEI
cent from the District and 40 Pc
cent from the Federal Government
Then, for some unexplained rea
son, somebody said $5,000,0 900 Il
enough" he added.
Throughout the night session !.
group of District officials remained