Evening star., 1939-06-29
Conferees Study
Compromise on
$6,400,000 Sum
Is Pct. Federal Share
In District Fund
Seen So'ution
BY ]. A. OTEARY.

ny D. IA " LLAnI.
Possibility of compromise to fix
the Federal share of National Cap
ital expenses at 16 per cent, or about
$6,400,000, was reported to be one
proposal under discussion as House
and Senate conferees ended their
first meeting without reaching any
agreement either on permanent
solution of the national obligation
or the type of local tax structure.
The present s50OO,0OO lump-sum
Federal payment, advocated by the
House, Is equivalent to IL per cent
OF current general fund expenses,
not counting Highway and Water
Department costs, which are met
entirely by the District out of spe-
cial tax levies and water rents.
The Overton plan, which the SEN
ate placed in the tax bill unanimous
ly, seeks to re-establish the definite
percentage principle which the Fed
eral Government observed for near
ly half a century prior to the mall
guration of lump-sum payments in
1925. Using land acreage required
for national purposes as the yard
stick, the Overton formula would
at this time call for 20 per cent, or
about 100000.
Midway Position.
Thus, on a percentage basis, 16
would be midway between the posi-
ton taken by the two houses. There
are indications the Senate con-
ferees will make a determined ef-
tort to adhere to the percentage
principle, as fairer and more SCI
entiflc method than the lump-sum.
Meanwhile, another set of con-
ferees prepared to convene this aft
ernoon in further effort to settle
the District appropriation bill, which
is also tied up by the divergent views
OF the House and Senate over
whether the temporary Federal lump
sum for the next year should remain
at 5000 900 or be raised to the Sen
ate figure of s7,75O,OOO.
1t appeared unlikely however.
that any immediate agreement would
be reached on the supply bill, pend
ing further negotiations on the more
permanent solution offered by the
land-acreage formula of Senator
Overton of Louisiana, which the
Senate unanimously wrote into tho
tax bill.
House Returns Bill.
The House again returned the ap-
preparation bill to conference this
morning, instructing its conferees to
continue to hold out for payment
of s5,0OO,OOO.
The conference report on the sup
ply bill, which has been shuttled
back and forth from one end of
the Capitol to the other for the last
several days, was called up by Chair
man Collins of the Subcommittee on
District Appropriations soon after
the House convened at IL o'clock
this morning. Without discussion,
the House at Mr.. Collins request i'm
mediately sent the bill back to con-
ference.
The House also instructed it's con-
ferees not to yield to the Senate in
the increases it voted in public
school and relief items.
With existing appropriations ex-
piring with the end of the fiscal
year tomorrow night, it is probable
that steps will be taken to put
through a temporary continuing res
olution to legalize daily operating
expenses of city functions, if no
settlement is reached during the
day on the two related measures.
House Conferees to Caucus.
1t is understood the House con-
ferees on the tax bill will caucus
by themselves this afternoon to talk
over what developed during their
two-hour session with the Senate
managers this morning.
Whether another joint meeting
is to be held this evening will de-
pend on the outcome of this sepa-
rate exchange of ideas among the
House spokesmen.
Although Representative Ran
dolph of West Virginia, head of the
House conferees, suggested a S6,00O,-
600 lump sum as compromise on
the eve of the conference, observers
were not surprised that no definite
solution was worked out immedi-
ately.
The tax conferees decided to con-
fine their formal announcement to
the brief statement that they are
still in disagreement" It was
learned, however, that the entire
morning was devoted to discussion
of the fiscal relations issue, leaving
for later the question of deciding
between the income tax passed by
the House, or continuation of the
existing business privilege levy, as
proposed by the Senate.
"Head-on Collision"
One House conferee indicated the
two groups had a head-on COL
lision,' speaking flguratively, on the
issue of the Federal payment. An
other inferred that there may not
be another meeting.
1t is not unusual, however, on
legislation generally, for conferees
to make no headway the first day
when the two Houses are as sharply
(see D. c. BILL, Page A-140