Evening star., 1939-06-25
Action Expected
This Week on
.0verton Plan
U. S. Shore Major
Issue Facing DC.
Bill Conferees
BY ]. A. OLEARY.

A climax may be reached this
week in the Senate's effort to place
the relative financial obligations of
the Federal Government and the
-, local community toward the Nations
Capital on more equitable basis.
With the Senate amendment to
raise the Federal lump sum payment
for the coming year from the S.
10000 House figure to $7,750,000 still
the major issue before them, con-
ferees on the SAC, ,6l5 900 District ap-
preparation bill, will reconvene at
$50 tomorrow morning.
At the same time, District COM
mittee members will seek the first
opportunity to obtain Senate action
on the local tax bill, in which a
permanent solution of the fiscal re-
lations problem is proposed through
the Overton formula to measure the
Federal payment by the percentage
Of the land area of the city required
for national purposes.
The revenue measure continues
the present tax structure, with
notifications In the business privi-
lege rates, as a substitute for the
House income tax.
Silver Fight May Delay Action.
As soon as the Senate passes this
measure, another set of conferees
will be appointed by both houses to
work out nfial agreement as be-
tween the income and business
privilege taxes and also on the Over
ton plan.
The Senate, however, still will
have the controversial monetary bill,
including the future price of Gov
ernment silver purchases, on it's
hands tomorrow. and there were in
.dications last night the silver fight
may keep the District tax bill wait
ing for another day or two. Senator
Overton, Democrat of Louisiana and
Chairman King of the District COM
mittee will continue to seek earliest
possible consideration Of the local
revenue measure.
For the next few days interest will
, center chiefly around the conference
on the appropriation bill, since it
carries the funds for operation Of
the city government for the fiscal
year starting Saturday. If it ap-
pears likely the bill will not be
passed by that time, however, it
would be possible for Congress to
pass a continuing resolution, which
would provide for the daily operat-
ing expenses of municipal agencies
while further efforts were being
made to settle differences over the
regular supply bill
Federal Share Dwindles.
Developments during the next few
days will indicate whether that
course will become necessary.
Under the leadership of Senator
Overton, the Senate Subcommittee
on, District Appropriations is max
ing the most determined effort in
several years to check the dwindling
percentage of Federal participation
in the expenses of the Capital City
that has resulted from reducing the
lump-sum payment during the last
seven years, while the total required
annually to maintain the city has
increased.
For example, for the fiscal year
1888, when the lump sum was cut
from s9,5oO,0O to Sits 900, the total
general fund requirements were
S37 37,755.300, which made the Federal
share little over 20 per cent.
Further reduction in the lump sum
followed and for each of the past
three years the Federal payment has
been only S5,000,000, while the gen.
eral fund total has averaged S40.-
e~400, 900. Thus, the $4,000, 900 has be-
come only IL per cent of present
general fund requirements, and this
makes no allowance for the fact
that, In addition, the District meets
the full cost Of the highway and
water services through motor vehicle
taxes and water rents. When these
are included, the $1,000 900 lumu
sum becomes only a fraction more
than 10 per cent of all the expenses
of the National Capital.
Taxable Area Decreasing.
While the local community's share
~ OF the obligation has thus been going
up under the lump-sum practice
until 1t is now nearly 80 per cent
the Federal Government has con-
ttnued to acquire more of the land
area OF the District, which places
an increasing tax burden on a stead
lily diminishing area of taxable
property.
1t was this combination of cir
cumstances that prompted Senator
Overton to propose the land-acreage
p yardstick as a permanent and sci
entific solution Of the problem. I'm
der his formula, the land area re-
quired for national purposes at this
. time is approximately 20 per cent
or about 100000, on the basis OF
current general fund requirements
In urging the adoption of this
formula as permanent solution
the District Committee points out
that 1t is merely the application
! Of simple mathematics to certain
factors susceptible of definite deter.
mination from of1icial records, and
in this way removes the subject en-
tirely from the field of conjecture
individual opinion and arbitrary
conclusion"
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