Evening star., 1939-06-20

IHS Us Lne IHTG OF series OF
editorial articles discussing the
fiscal relations crisis no,D faced
by Washington. The fourth and
concluding article piu appear
tomorrow.
The Overton formula, outlined il
detail in yesterdays article, meas
ures the Nations obligation to 1t
Capital City by the extensive are
OF its taxable land in the Dis
trict.
But If Congress should decide t
establish fiscal equity by returnin
to the definite-ratio principle
followed for As years O878 to 1924
or, as last resort, by increasing tn
S., 600, 900 lump-sum payment, ther
are several other primary reason
why the Nation should bear liberia
share through either of these al
tentative methods.
In addition to it's large amour
OF tax-exempt property holdings, tn
Federal responsibility toward tn
upkeep and development of Wash
lngton rests upon the followin;
other basic foundation stones:
l. Obligation based upon absolut,
control of city. Obligation follow
power, including obligation spring
ing from conditions surroundin,
founding of city.
z. Obligation springing from de
mands of patriotic pride in Capital
When Nation shirked it's obliga tion
Capital was national shame. Whe1
Nation met its obligation, Capita
became object of national pride.
3. Obligation based upon payment!
made from local taxes, solely because
Washington is the Capital, in exces.
Of what would be paid II Washing
ton were the ordinary CONNER.
cial self-sustaining community. Also
items which are national or semi
national and impose an obligation
upon the Nation to pay all or half OF
40 per cent of expenditures, and
thus render inadequate the national
payment of approximately 10 pc,
cent under current lump sum an
propriations.
4. Obligations based upon heavy
national Gnternal revenue) taxes
paid by people of Capital, compared
with corresponding payments by the
States.
S. Equitable obligation to share
literally in Capital upbuilding tc
make up for hundreds of millions OF
grants and subsidies paid to the
States over long period of years
from which Washington was barred
until the advent of various emer-
gency programs that grew out OF
the depression in the last six wears
The Equitable Obligation.
In considering the first of these
reasons Washington contends that
the true basis of the Nations obli-
cation of proportionate contributions
to the maintenance and development
OF the Capital is not solely or pri.
marlly untaxed ownership of District
real estate tthe assessed value OF
which recently was placed at s7O3.-
$4,000 in a Federal report to Con-
gress on Government property hold
lngs). though a substantial anc
continuous obligation does arise in
connection with such ownership
The strongest obligation resting
upon the Nation is equitable in its
nature and based primarily on the
circumstances of the Capitals Gre
alton and the treatment of the
Capital by the Nation ever since the
birth of the Nations City, including
the Nations absolute despotic con-
troll of the National Capital.
The general Government by the
fact of planning magnificent Capt.
tai covering large area and char
acterized by broad streets and
avenues and reservations unsuitable
for a commercial city and by found
ing this Capital in a place compare
lively uninhabited. as we'll as by the
terms of the bargain with the owners
OF the soil, by its advertised promises
to purchasers from it of donated
Washington lots and by the decla-
rations of its representatives at the
founding of the city and afterward
showed an intention to build up a
national city at the Nations expense
upon a grand scale irrespective OF
the future population of the District
The Capital was to be primarily q
center of Federal action, and the
expense OF its support and adorn-
ment was not to be limited by the
scanty resources of whatever perma-
ment population it might acquire.
Obviously the primary obligation
in the arrangement between Nation
and District taxpayers should be
upon that party to it which absolute
ly controls every cent of the money
contributed for Capital maintenance
by both parties, local and national
and which has undivided and des-
potic power to fix the amount OF
local tax contribution, to decide by
what method of taxation it shall be
collected. to collect it and to spend
it. Clearly in equity the primary
obligation should not be shifted tc
the Capital, originally the incidental
contributor, which has no power OF
control even of its own tax money
at any stage and whose sole func-
ton in respect to taxation and its
financial status is to petition. to obey
and TO pay.
From the beginning the Nations
obligation in respect to Capita
maintenance and upbuilding ha.
been in equity and on principle
primary. dominating and, like its
power to govern, exclusive and SUI.
preme.
Political Power and Financial
Obligation Coupled.
Primary and full responsibility
both in respect to the control and ia
the maintenance and upbuilding OF
the Capital is in Congress represent
ing the Nation. Political power and
financial obligation are inseparably
coupled. If the Nation controls, il
pays; and to the extent that it con-
trolls, it pays. Washington is the
only capital in the world in which,
if certain policies prevail. the Ma.
ton will do all the controlling and