Evening star., 1939-03-30
BY ]. A. O'LEARY.

Dy ~. IA ~ ALAn1.
The Overton bill to re-establish a
definite percentage basis of Federal
payment toward the upkeep of the
National Capital was approved today
by special Senate subcommittee at
the close of hearings on the question.
Using the area of land required
for national purposes as the yard
stick, the measure would make the
Federal share 20 per cent of the
general fund expenses of the city.
or approximately 100000 for the
next fiscal year.
1t would replace the present S.
100000 lump sum payment, which
Senator Overton, Democrat, of
Louisiana, author of the pending
bill, believes should be abandoned.
Comparison in Revenue.
Washington is up to the average
OF II comparable cities in per capita
revenue for municipal purposes. ac-
cording to report filed by c. E.
Rlchtor of the Census Bureau, short
ly before the subcommittee acted.
Mr.. Richtors report placed WASH
lngton in sixth place in the list of
II cities on this basis of compare
son. In response to questions by
Senator Overton, however, he ex-
planned the cost of public debt serv-
ice elsewhere was included. The
witness agreed that exclusion of
that factor in the other cities would
raise Washington's position in per
| capita revenue burden.
Commissioners Hazen and Nc
Coach also indorsed the bill at
todays hearing. Mr.. Hazen. in ap-
proving the land area formula, pre-.
dlcted the time may come when the
Federal Government will own more
land in the Capital than the private
property owners.
Calls Bill Essential.
Engineer Commissioner McCoach
told the subcommittee passage of
the bill is essential because in view
OF the repeal of the 6O-4O law in
last years local tax bill. there is
now no law on the statute books
defining the relative obligations of
the Federal and District govern.
ments toward upkeep of the Capital.
Senator Overton will seek action
on the measure by the entire Senate
District Committee at its next meet
ing. If that group approves. the
bill will 60 on the Senate calendar.
Property Exemption Figures.
Mr.. Rightor's report showed that
Washington had the highest per-
centage of tax-exempt property, on
the basis of value, of any of 10 of the
cities used for comparison. Data
were not available from two cities
This large amount of exempt prop
erty is the chief basis on which Sem
ator Overton is seeking settlement
of the fiscal relations problem, ex-
cept that he is using land area in
stead of value because area can be
determined exactly whereas opinions
differ on value.
The report showed Washington
has 1856 per cent of the value Of
real property on the exempt list.
Elsewhere the percentage ranged
from 1873 in Baltimore to 30.l per
cent in New Orleans.
Mr.. Rightor presented tables using
various bases of comparison. but
told the committee 'the most sig
niflcant gauge of the tax burden Of
city is that of the per capita reve-
nues from all sources" leaving out
grants in aid. donations and pension
assessments and receipts from public
service enterprises operated by mu-
inequalities.
This figure. when ascertained for
a group OF cities. permits determina-
ton of the comparative tax burden
of all the cities by ranging them
from the highest to the lowest
amount" he said.
Proceeding on this theory. he took
the II cities nearest to Washington
in population, some above and some
below the District figure.
Table Is Prepared.
He then prepared q table show
ing first the gross revenues and then
the net per capita revenue after de-
Quoting the factors mentioned above.
In both gross and net per capita
revenue, Washington occupied sixth
place, or approximately the average
for the group. After studying the
(See OVERTON, Page A-4J