Evening star., 1939-07-06
ID. T.. Bill Tieup
Seen EXTENDING
Into Next Week
House Leaders Plan
To Adjourn Today
Until Monday
BACKGROUND

From $3.50 dtUtsion of District
expenses betUeen local and Fed
erat Governments, operative from
1873 to 1922, House has succeeded
in Whittling do1Un Federal con-
trtbutions, first to a 60-4O ratio and
then to fiat lump sum approprio-
ton from 1925 Which has steadily
decredsed in amount from, ton
OF s9.500,0 900 to $4,000 900. uhere
it has remained for seueral years.
Decreasing lump sum and mount
ing budget habe made increased
tdres necessary, but no pern1a-
nent tar structure has been de-
UiSed
The plan of House leaders to ad-
journ this afternoon until Monday
may force the District to operate
through another week end without
legally authorized funds.
The alternatives seemed to be a
speedy agreement this afternoon.
with at least one House conferee
understood to be prepared to ac-
cept the Senate's compromise figure
of S6.500,000, or continuing reso-
luton.
Senator Overton of Louisiana was
prepared to lead his conferees on
the District tax bill into this after
Moons conference with the backing
OF an overwhelming roll call vote
OF II to l for fairer contribution
by the Federal Government toward
the expenses of the National Capital.
Representative Dirksen, Repub-
hcan. of Illinois urged the House,
meanwhile, to continue to resist the
Senate demand.
AS one of the conferees on the
revenue bill, Mr.. Dirksen unex-
pectedly went on the House floor to
discuss the Overton formula de-
signed to settle permanently the
troublesome fiscal relations problem
under which the Federal Govern
ments payment would amount to
about S8000,000 He said if the
formula would be applied to rev.
enue from real estate taxes only 1t
would not be objectionable.
Real estate revenues for the
current fiscal year, Mr.. Dirksen
estimated, would amount to sl8,663,-
1882.
Dirksen Objects.
The Overton formula proposes
measuring the Federal share by the
percentage of land area of the city
required for national purposes and
applying that percentage 30 per
cent? to the general fund expenses.
Using that 20 per cent ratio and ap-
plying 1t to the revenue from real
estate taxes, Mr.. Dirksen said, the
Federal payment would amount to
s3.700,0O0.
But shall the Federal Govern
ment pay 20 per cent of the revenue
derived from other sources?" he
asked. In this connection he men,
toned specifically revenues from
utilities, building associations, auto
mobile taxes, alcohol beverage fees,
business privilege tax, fines, licenses
and dog tags.
Commissioner Allen meanwhile
conferred with President Roosevelt
on District affairs in general. After
ward he intimated that Senator
Overton's fiscal relations formula
was discussed, but he refused to re-
veal the Presidents attitude.
Meanwhile, the District govern
ment, starting its sixth day without
any legally authorized funds for
operating expenses, awaited an
answer from the Social Security
Board to an emergency request by
the Commissioners yesterday for an
advance of 100000 to meet pay
mentS for old-age assistance, aid
to the blind and home care for de-
pendent children.
The board was scheduled to meet
at 4:30 pm. today to consider the
request, after postponing its meeting
from the originally scheduled time
of 2::30 pm.
Compromise Offered.
The Senate vote late yesterday
came on motion by Senator Over
ton to instruct the Senate conferees
to insist further on the Overton
plan.
The House, on the other hand, is
insisting on keeping the present
S5,000.000 lump sum, which is
equivalent to only IL per cent of
the past years expenses.
Senator Overton told the Senate
before It voted that its con1erees
have offered to meet the House
halfway, even to the extent of dis
carding the land formula for the
time being, by proposing COM
promise is per cent Federal ratio,
or about $6,500,000
Two of the House conferees-Rep-
resentatives Randolph of West Vir-
ginia and Kennedy of Maryland