Evening star., 1941-03-19
Measuring an Obligation

The hearing called for next week
by Chairman Hunter of the House
Fiscal Affairs Subcommittee will
provide opportunity for discussion
both of the Overton and DirkSen
plans for measuring the size of the
Federal payment to the District.
Senator Overton's plan has an
immediate appeal to those familiar
with the problem, because OF it's
simplicity and the ease with which
it could be applied. If there is op-
position to the Dirksen plan from
District spokesmen, it will not be
based on antagonism to the principle
advanced by Mr.. Dirksen, but doubt
less would be concerned with some
of the difficulties, experienced in the
past, which might be anticipated in
making it effective.
Mr.. Dirksen, as matter of fact,
has based his bill on consideration
which Immediately occurs to any one
who studies the fiscal relations prob
lem. This involves the value of the
vast amount of Federal tax-exempt
property in the District. While the
bill does not attempt to say how such
valuation would be applied in fixing
the size of the Federal payment, the
valuation would be determined an
nually by Federal board of apprais-
ers and supplied to Congress, which,
on the basis of the information,
would determine "the appropriate
amount to be paid toward
defraying of the expenses of the
District of Columbia in lieu of the
real estate taxes which would be
realized from such land and i'm
provements if said land and improve
mentS were not exempt from taxa
ton because of Federal ownership"
1t will be recalled that the old
Bureau of Efficiency, after careful
study of the problem on instructions
from the House, advanced plan for
measuring the Federal payment based
on theoretical tax valuation of Fed
eral property in the District. The sum
thus recommended exceeded by a SUBJ
stantial amount the size of the Fed
eral payment at that time, and subse-i
quently would have increased with
new acquisitions of Federal property
and improvements. But as the plan
Immediately injected the distasteful
idea of taxing Federal property, and
as the so-called tax valuations of
various Government buildings we're
quickly challenged, the plan never
found favor with the House
In view Of this experience, Senator
Overton's proposed formula, which
eliminates entirely the idea Of tax
valuation Of Federal property, has
one advantage at the outset. Mr..
Dirksen's own views on the matter,
however, will be valuable and any
effort he makes in behalf of a
rational plan of measuring the Fed
eral payment, thus eliminating the
uncertainty and the bitterness re-
sulting from lack of any plan or
system of measurement, will be of
great value to the District. Mr..
Dirksen's influence in the House in
District affairs has been shown on
more than one occasion and he is
sincerely interested in finding an
equitable solution of the fiscal rela-
tions problem.
In another part of today's Star
there will be found the first of series
OF editorial articles discussing some
aspects of the fiscal relations problem
as applied to current conditions. OF
interest in the discussion of the
Overton and DirkSen proposals, the
articles will explain some of the
other considerations, in addition to
tax-eXempt Federal property, which
have direct bearing on the Federal
obligation to the District and the
advantages of fixing definite plan
for it's annual measurement.