Evening star., 1941-04-26

Government or in connection with
its buildings and properties.
"(c) Various trust funds.
"At present, the land owned by
the United States in the District of
Columbia as of July l, 1910, and as
declared by the bill, consists of the
following:
Total land owned by; the United
States in the District texclu-
sive of such land devoted to
highway purposes) -.--- 1881
Less 56 per cent of the park areas 4,207
District ------------- 302
Net United States land - SAGE
THE entire land area of the Dis
trict is declared by the bill to en-
brace the total number of acres of
land within the District, less land
permanently covered by water.
Entire land area of the District is ASH
Deducting land permanently COW
Net landed area of the Distritc 39,273
Evolves 21 Per Cent.
"The ratio of Federal payment is,
therefore. determined by dividing
the aforementioned net United
States land 1892 acres by the net
land area above mentioned 39,273
acres, which results in a percentage
of 21.19 per cent. The fraction o.19
per cent being less than one-half
of l per cent is by the terms of the
bill disregarded. resulting in per-
centage ratio of 81 even.
THE total general fund appro-
priations for the District for the
next fiscal year has been estimated
by the budget to be s44,714,000. Ap-
plying, therefore, the bills formula
to the next fiscal year will result
in a Federal payment of 81 per cent
of S44,714,000, or S9,389, $40.
THE bill, as passed by the Sen
ate, has been amended to provide
that out of the total amount ap-
propriated by the regular annual
District of Columbia appropriation
bill for each fiscal year there shall
be made available for capital ex-
penditures an amount at least
equal to the amount herein required
to be appropriated by such bill as
the annual payment of the United
States for such fiscal year.
History of Fiscal Relations Be-
tween the Federal Government
and the District Of Columbia
Government.
THE National Government has
made a Federal payment toward
the upkeep and expense of the Dis
trict of Columbia since the estab-
lishment of the District. From
1790 to 1879 the method of pay
ment was the present lump-sum
payment The payments between
1790 and 1879 averaged 1877 per
cent of the expenditures of the
District. From 1879 to 1920 the
Federal Government contributed SO
per cent of the Districts expendi-
lures under what is known as the
$3.50 plan. From 1921 to 1924 the
Federal payment was 40 per cent
of the expenditures of, the District
under what is known as the 40-60
plan. From 1925 to the present day
the Federal payments have been on
the basis of lump sums, determined
annually and frequently varying in
the amounts of payment. For ex-
ample, in 1925 the payment was
100000. In 1881, s9,500,000. In
1887, s5,OOO0 900, and, during the pres
ent fiscal year, it is $4,000 900.
There has been an interminable
controversy throughout the years
from 1879 to the present in respect
both to the amount and method
of Federal payments to the Dis
trict. The purpose of this bill is
to put an end to this controversy
by providing a fixed formula regu-
lating the payment.
Essentials of a Formula.
mo formula of such payment will
prove satisfactory or successful, or
serve the purpose intended, unless
it is based upon the three follow
ing essentials:
"Q) The factors of the formula
should be noncontroversial, fixed,
certain, and self-operating;
"(2) The factors should not be Of
arbitrary selection but should rest
upon reasonable and substantial
bases; and
"(3) The application of the factors
should result in equal justice being
done to both the National Govern
ment and the District government.
I'm the opinion of the committee
the formula proposed by S. GIT
meets the aforementioned require
ments.
A National Obligation.
Notwithstanding the constant
dispute and divergence of opinions
as to the method and sum of the
Federal payment, the Congress has
uniformly recognized the national
obligation of making Federal pay
ment to the upkeep of the Federal
city. Many reasons have been ad-
vanced in support of the Federal
payment. The main argument is
based on the excess property owned
by the national Government in the
District of Columbia, all of which
federally owned property is, of
course, tax-free. Another argu-
ment is that Washington is the
Federal capital in which the whole
Nation should take a pride and
toward the upkeep of which the
whole Nation should contribute.
Another is that the Constitution
vests exclusive legislative authority
in Congress over the District, and
the Congress determines precisely
what taxes shall be levied in the
District and exactly how the money
shall be expended Another rea-
son advanced is that the Congress
requires the District to construct its
buildings In keeping with the na.
tional architecture. Another arsu-
nnent frequently employed y thet