Evening star., 1939-07-13

Senate managers on both the Dis.
trict of Columbia tax and appro.
priation bills announced after 6
joint conference at the Capitol to-
day that they will yield no further
to the House on the controversy
which has all District funds dead.
locked and threatens 1850 munici.
pal employees with a payless pay day
Saturday.
Senator Overton, Democrat, oil
Louisiana, chairman of both groups
of Senate conferees, also announced
he will not take steps to call an.
other conference with the Houss
until We can have a free confer.
ence."
This followed on the heels of the
House refusal by a 239-to-74 vote
yesterday to accept the agreement
reached by the conferees on the tax
bill, an agreement which would have
provided an income tax and 9
compromise figure of $6,500,O00 fol
the Federal share in District ex-
penses.
Glass Is Adamant.
Senator Glass, Democrat of Vir-
ginia, chairman of the Senate Appro.
priationS Committee and a conferee
on the local supply bill, emerged
from the conference room with this
emphatic statement:
Il will not sign a conference re-
port that goes below the compro-
mise figure of $6,5OO000, and have
SO informed Senator Overton. There
is no longer a free conference on
the issue"
The Senate members explained a
free conference is not possible at
this time because the House has
bound its conferees not to go above
the House figure of $5,O00,0OO.
"A substantial majority have
agreed not to recede any further" !"
said Senator Overton. "A number
have stated that they will not as
conferees sign any report making
further concessions. The House has
tied the hands of its conferees, there
fore there is nothing to be gained by
asking the Senate to agree to a new
conference with the House until we
can have a free conference.
$1,500,0O Short.
Furthermore, if the House of
Representatives should have its way
there would be $1,500,OOO more Of
revenue to be raised. That would
require either very high income tax
rates, which in all probability would
not be acceptable to either the House
or Senate, or it would make it neces-
sary to apply the tax to all Govern
ment employees who have been here
for definite length of time"
The latter suggestion had refer
ence to changing the provision of
the compromise under which the
income tax would be applied only tc
those "domiciled" in Washington
This legal term excludes all of those
Government employees who are only
temporary residents of Washington
and who could show that their le-
gal domicile, the place they intend
to make their home indefinitely, is
still in one of the States.
District officials, meanwhile, de-
pended on the possible intercessior
OF President Roosevelt to break the
prolonged deadlock between the
Senate and House.
The President today indicated thai
II an agreement is not reached By
Saturday night, he plans to send 8
special message to Congress early
next week emphasizing the respon.
sibility OF Congress in enacting the
controversial legislation immedi.
ately.
Action of the House late yester-
day in refusing for the third time
to yield to the demand of the Sen
ate for Federal payment toward
District expenses in excess of S.
100000 served to complicate and
make more serious the financial
situation of the municipal govern
ment, which has been operating
without funds since July /.
BY its vote on the conference re.
port on the tax bill, the House
automatically stymied final action
on the appropriation bill, which
carries the funds to pay the Dis
trict employees and to provide the
TVonfip,,od an Dooo AIS NoI,,r,D I