Evening star., 1939-07-13
Senate Conferees
Refuse 10 Yield
On District Bills
Overton Says He Won't
Call New Conference on
Taxes and Appropriation
Continued From First Page.)

various improvements already ap-
proved for the present fiscal year.
The major question at issue in
both the tax and appropriation bills
Is the amount of the lump sum
Federal payment. The Senate re-
lucantly agreed to comprise the
amount at $6,500,000 after holding
out for some time for the Overton
formula, which would have given
the District about S8,000,000. But
the House fatty refused to so be-
yond the s5,OO0,0OO figure. and in
fact, instructed its conferees not
to accept any other amount, or
even agree to a Senate proposal
for creation of a special commission
to study the local tax situation.
Meanwhile, the District govern
ment must continue illegally to
operate without funds.
Overton Predicts No Concessions.
Senator Overton issued a statement
yesterday in which he predicted the
Senate would make no further con-
cessions to the House. Furthermore,
he declared, if the District is unable
to issue pay checks Saturday to the
1850 municipal employees, the blame
cannot be placed on the Senate.
The statement of Senator Over
ton follows:
ut is very much to be regretted
that the House did not agree to
the report on the District of Colum-
bia tax bill approved by its own
conferees, as well as by the Senate
conferees. The Senate, on the other
hand, has agreed to the report sub
mitted by the conferees of both
houses. The impasse is to be justly
attributed to the action of the
House.
Furthermore it is to be observed
that in order to provide the Dis
trict of Columbia with a revenue
bill, the Senate receded on all con-
troversial items of taxation and ac-
ceded to the tax structure provided
by the House. The Senate agreed,
with minor qualifications, to the i'm
position of the income tax proposed
by the House, and to the Houses
elimination of the business privilege
tax and the tax on Intangible per-
sonal property. Furthermore, the
Senate agreed to eliminate the Fed
eral payment formula based on
United States Government real es-
tate acreage, because the House
conferees objected to any formula.
The Senate then agreed to meet the
House half way on the difference
between the Federal payment pro-
posed by the House and the Fed
eral payment provided by the Sen
ate.
Sees Functioning Killed.
Il cannot predict what further
action the Senate may take. But in
my Judgment, and speaking for my
self only, I do not think that the
Senate can recede further. If it
does, it ceases to function as
coordinate branch of our Federal
legislature, and will, in effect, pro-
ceed to sign both the District of
Columbia tax bill and the District
of Columbia appropriation bill on
the dotted line as presented to 1t
by the House.
"If the District of Columbia finds
itself unable to meet its payroll next
Saturday, or otherwise to function,
the fault cannot be laid at the door
Of the Senate"
An hours debate preceded refusal
OF the House to accept the con-
ference report-a report that had
been formerly agreed to by its own
conferees and those of the eSnate,
and subsequently adopted by the
Senate in the spirit of concession to
the House.
Representative Nichols, Democrat.
OF Oklahoma, chairman of the House
Conference Committee, called up
the report under unanimous con-
sent agreement, although he an
nounced at the time he would be
forced to vote against its adoption
I'm in peculiar position said
Mr. Nichols.
He explained the agreement be-
tween the Senate and House con-
ferees was reached during his alb
sence from Washington last week
and several of the items COM
promised he did not approve. Later
he told the House these were the
amount of the Federal payment
and the proposal to create a special
commission to study the tax stu