Evening star., 1941-04-24
BY JAMES E. CHINN.

The Senate-approVed OVefton
plan. providing a formula for fixing
the amount of the annual Federal
payment toward municipal expenses,
was favorably reported today by the
House District Committee. The vote
was 7 to 4.
The committee also adopted an
amendment TO the bill suggested by
President Roosevelt requiring that
the annual amount appropriated for
capital Improvements here must at
least equal the Federal payment.
1t is estimated adoption Of the
formula would raise the present an
nual $4,000 900 Federal payment to
approximately $4,000 in the fiscal
year beginning July l. The formula
provides that the Federal share OF
municipal expenses shall be based
on the ratio Of tax exempt Federal
acreage to the total land area of the
District after certain deductions.
Text of Amendment.
The text of the amendment fol-
lows:
Provided, that out Of the total
amount appropriated bv 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 al. least
equal to the annual payment Of the
United States. as hereinbefore pro-
vided. for each fiscal year"
Committee approval of the bill
came at the conclusion Of an ex-
planation of the formula by Senator
Overton, Democrat. of Louisiana.
who conceived the plan as a means
of ending the perennial dispute over
fiscal relations between the Federal
and District governments.
Chairman Randolph has planned
to have the bill placed on the House
calendar in time for consideration
Monday. the second District day OF
the month. Representative Hunter.
Democrat. Of Ohio, who heads the
Fiscal Affairs Subcommittee, an
nounced, however, he would appeal
to Mr.. Randolph to try to have the
measure called up under a special
rule to give 1t preferred status.
Substitute Plan Rejected.
A desperate effort was made in
the committee by two of it's mem
bers-RepreSentatives Bates, Repub-
lican. of Massachusetts, and Nc
Gehee. Democrat. of MlSsisSippi-to
scrap the formula. and substitute a
fixed Federal payment of $500 900
for the next five fiscal years. Each
move they made. however, was re-
jected by a decisive vote
Mr.. Bates first made an attempt
to have the bill recommitted to the
Fiscal Affairs Subcommittee for
further consideration. Turned down
on this move by a 9-to-2 vote. he
Joined Mr.. McGehee in supporting
a proposed amendment to scrap the
formula and substitute the fxed
payment.
The four members who voted
against the bill were Representa- =
tives McGehee, Bates. Shafer of
Michigan and Baldwin Of New York.
The last three are Republicans.
The seven who voted for favor
able report were:
Representative Sauthoff. Progress
sive, of Wisconsin and the follow
ing six Democrats: Representatives
Maciora of Connecticut, Hebert OF
Louisiana, Russell of Texas. Harris
of Arkansas, Hunter of Ohio and
D'Alessandro of Maryland.
Overton Tells Need for Plan.
Senator Overton, invited TO the
meeting which was called especial
ly to consider his formula, told the
committee the main purpose OF his
plan is to Ak definite and accurate
method of providing for a Federal
payment toward support of the Dis
trict.
1T is necessary that some sort
of a plan as this be adopted" he
declared. There has been peren-
nial dispute as to what that pay
ment should be
Senator Overton explained that
IJU W 1OIS lIiC CbCI al AON
ernment paid an average Of 1877 per
cent of the municipal expenses, and
that in 1879 Congress adopted the
so-called $3.50 fiscal relations plan
under which it paid one-half Of the
expenses. Under that plan, which
lasted until 1920. he said, fiscal re-
lations ran along smoothly" In
1920, however. he pointed out, Con-
gress substituted 60-40 as the ratio
of expenses between the Federal and
District governments. Then in 1924.
he declared, Congress abandoned
that plan and "reSorted to the pres
ent lump-sum plan"
This plan has brought on consid-
cradle controversy, he said. 1T is
very unsatisfactory. Under 1t the
Federal payment has gone as low as
SIS, 900 900 year. and made 1t difficult
for the Commissioners TO fix their
annual budget because they do not
know what the Federal payment is
to be-"
"I think the whole controversy
ought to be settled by some form =
ula," Senator Overton continued.
1T should be formula in which
the factors are n-controversial,
fixed, have a substantial basis and
do equal justice to the District and
Federal governments.
My bill will result in an increased
Federal payment. but 1t will not
equal the amounts heretofore paid
by the United States. 1t was passed
by the Senate unanimously"
Senator Overton later pointed ia
the need OF increased revenue for