Evening star., 1939-03-21
BY JAMES E. CHINN.


If the Federal Government paid
its proper share of the cost of MAIN
tanning the District there would be
no need of additional taxes, A. M.
Edwards. chairman of the Fiscal
Relations and Taxation Committee
OF the Federation of Citizens Asso-
Citations, today told the Fiscal Affairs
Subcommittee of the House District
Committee.
Called as the first witness as the
subcommittee renewed public hear
ings on the proposed new tax pro-
gram, Mr.. Edwards indorsed the
formula advocated by Senator Over
ton, Democrat. of Louisiana, for fix
ing the Federal Governments pro.
portion of District expenses, and de-
clared:
The Federation is strongly op-
posed to an annual lump sum pay
ment by the Federal Government.
1t believes that the Federal paw.
ment should be a proportionate
share of the expenses of the Dis
trlct and that the amount of this
payment should be determined by a
fixed formula
Nichols Enters Discussion.
Representative Nichols, Democrat
OF Oklahoma, interrupted Mr.. Ed
wards to ask him if he did not think
a safer" yardstick for determining
the Federal payment would be a
formula similar to the one recon-
mended in the discarded Jacobs fis-
cal relations report
THAT formula was based on an
exchange of services between the
Federal and District Governments.
The Federal Government would re-
lmburse the District for services it
received in excess of the cost of
those furnished it by the DistrictD
Past experience has shown it
has not been possible to work out
such division of expense" replied
Mr.. Edwards.
I Mr.. Nichols also asked Mr.. Ed
wards If the Overton formula should
be adopted as the formula for de-
termining the Federal payment.
would the Federation be willing to
have it applied to property in the
States owned by the United States.
Utah. where the Federal Govern
ment owns 60 per cent of the land
area he added. would be in grand
shape under the Overton plan"
Sees Advantage In Residence.
Mr. Edwards explained the Fed
Grafton. as far as he knew. had not
passed upon that question.
Il think the Federation would
argue. though" he said. that con-
ditions in the States are not similar
to those in the District 1t would
argue. TOO, that the Federal Govern
ment has a peculiar interest in the
District, more so than it has in the
States"
L. A. Carruthers. federation presi-
dent, joined in the discussion by
pointing out that the people of the
District are governed by the Federal
Government and that fact should
carry with it added responsibility on
the part of the Federal Government.
To offset that" remarked Mr..
Nichols. think of the many advan-
tages that accrue to the people of
the District by reason of the fact
that the seat of the Government is
located here"
Raises Hypothetical Case.
Mr.. Nichols later argued that the
revenue lost by the District when
the Federal Government takes prop
erty of the tax rolls probably is
offset by revenue from the addi-
tional Government employees brought
to Washington to work in the new
Government buildings.
Then Mr.. Nichols raised this
hypothetical case:
Suppose the Federal Government
should come to the federation and
say: We are going to duplicate the
Department of Commerce Building
which will house 1000 additional
employees. We're going to leave it
to the federation to decide whether
this new building shall be erected
here or in Baltimore. What would
the federation say?'"
AHdI pIeIIy uLlllCulI question
to answer" replied Mr.. Carruthers.
Pressed for an answer. Mr.. Car
ruthers said he would give his per-
sonal views, and emphasized that
they were not to be construed as
those of the federation.
Il would say" added Nh. Car
ruthers. lets retain the building
here with the hope that the people
(See D. c. TAXES, Page A-3.)