Evening star., 1939-03-31


member of Congress and which is
distinctly harmful in its effect upon
the city's welfare. Were it not for
the sympathetic and friendly atti-
tude manifested toward the COM
munity by the men who for the last
few years have occupied the chair
manship of the subcommittee di-
rectly handling District appropria-
tions in House and Senate, plus the
financial assistance which has un-
expectedly come to Washington
through some of the eXtraordi-
nary, temporary depression fighting
grants and loans, the situation which
Washington faces would be far more
serious than it is today.
Former Protection Withdrawn.
LAS we view it, it is serious
enough. The protection to Wash
ington which was represented in the
substantive laws fixed ratio pro-
vision-and which was nominal
protection even during its an
nual evasion-has been withdrawn
through repeal of that provision
without any substitute. Ironically
enough, this repeal was effected
through a tax bill adding millions
to the local tax burden. The testi-
mony of the District auditor force
fully reveals the emergency now
confronting the District under which
the enactment of a program of
heavy, new taxes is essential, under
the present system. to enable the
District to meet even its minimum
needs"
After reviewing earlier congress
sional Investigations in which the
principle of national obligation to
Washington was upheld, Mr.. Noyes
predicted:
Il firmly believe that in this re-
spect history will repeat itself-that
any careful investigation of the
problem. such as the one to which
your committee is now devoting its
effort, will necessarily he followed by
action which reaffirms the existence
OF national obligation to the Capt.
tai and which pledges the Nation to
meet 1t on some equitable and logical
basis OF measurement Washington
owes some of its current difficulties
to the lack Of such inquiries"
Meyer Sees "Clear Arrangement"
Mr.. Meyer, expressing the Posts
Endorsement of the bill, said the
Overton plan "offers a clear and
simple arrangement that should
serve to regulate the Federal pay
ment for many years" His letter
read in part as follows:
I'VE see in this bill the best op-
portunity which has been offered
IN recent years to settle the prob
lem of fiscal relations in way that
will be fair to the Federal Gov
ernment as well as to the District.
In the opinion of the Post there
are three potent reasons why the
Overton bill should be enacted at
this session of Congress. First,
settlement of the fiscal relations
issue may have a vital effect upon
other important legislation con-
cerning the District; second, the
bill provides a simple solution of
a vexing problem which should no
longer be permitted to disturb the
relations between Congress and the
Nations Capital; third, the Over
ton formula is the fairest and most
equitable plan that has been offered
to end the fiscal relations contro-
versy.
The close relationship between
this bill and the measure now be-
fore the House of Representatives
designed to modernize the Districts
obsolete revenue system comes i'm
mediately to the fore. It will be
difficult to enact a satisfactory tax
bill, designed to supply the revenue
needs of the District for a num-
ber Of years, without first laying
down formula through which the
size Of the Federal payment to the
city can be determined. Taxes have
been sharply raised In the District
during recent years to provide var1-
Gus types of municipal service too
long neglected. Since the Federal
Government, as well as District
residents, obtains very positive bene-
fits from this municipal service. it
is only fair and reasonable to adjust
the Federal payment while changes
in the tax system are under con.