Evening star., 1941-04-21
District Committee
Calls Special Session
On 0verton Formula
Meeting on Thursday
Also TO Study Capitals
Acute Fiscal Problems

CogniZant of the serious financial
situation confronting the municipal
government, the House District
Committee today arranged to hold
a special meeting at 10:30 am.
Thursday to consider fiscal prob
lens as well as the Senate-approved
Overton bill containing a formula
for determining the amount of the
annual Federal payment toward the
support Of the city.
Adoption of the Overton plan,
which would tax the Federal Gov
ernment's share Of municipal ex-
peses on the basis of the ratio Of
tax exempt acreage here to the total
land area, it is estimated, would
raise the present Federal payment
from S6,000,0O0 to approximately
So, ,0OO.O in the fiscal year begin
ming July /.
Before the special meeting was
called, Representative Hunter, Dem
ocrat, of Ohio, chairman of the Fis-
cal Affairs Subcommittee who
sponsored the Overton bill in the
House, read the text of proposed
amendment which, he said, was
suggested by President Roosevelt.
The proposal is now at the White
House awaiting the Presidents ap-
proval.
The Proposal.
1t reads:
Provided, that out of the total
amount appropriated by the regular
annual District of Columbia appro-
priation bill for each fiscal year
there shall be allocated for capital
expenditures, whether such expendi-
lures be made from highway, water
or general funds, an amount at
least equal to the annual payment
of the United States, as herein
before provided, for each fiscal year
The President suggested the
amendment at conference at the
White House two weeks ago with
Senator Overton, Democrat, of
Louisiana; Chairman Randolph OF
the House District Committee and
Commissioners Young and McCoach
At that time. it was disclosed, he
revealed he felt the Federal Gov
ernment should pay for all capital
improvements in Washington but
that the municipal government
should maintain them thereafter.
Action of the committee in ar
ranging for special meeting to con-
slider the acute fiscal situation was
preceded by a brief discussion dur
ing which Representative Schultz,
Democrat, of Indiana said the
spotlight" should be thrown on
the entire local tax list.
Schultz Hits Tax Setup.
Expressing the belief that an in
crease in the present real estate
tax of $1.75 would expedite House
action on the Overton bill, Mr..
Schultz declared: Ninety per cent
of the real estate taxes are being
paid by the little fellow who owns
single home and the big fellow is
doing the ducking."
Lets throw the spotlight on the
entire tax list and show who is pay
ing the taxes and the income derived
from real estate" Mr.. Schultz con-
tinued
Corporation Counsel Richmond B.
Keech explained that the tax records
are open to public inspection, and
offered a list of any names he de-
sired for his information.
Chairman Randolph told the COM
mittee that early action on the
Overton bill and the Districts fiscal
problems in general is urgent. He
urged all members to attend Thurs
days special session, saying:
I'VE are faced with very grave
situation in connection with the
growing expenses in the District and
we must have the sympathetic con-
sideration of every member
Senator Overton, who conceived
the fiscal relations formula, will be
invited to attend the meeting.