Evening star., 1941-04-01
Fiscal Problem
May Be Taken
To Roosevelt
Audience to Be Asked;
House Committee
Delays D. c. Action

Congressional leaders in the fight
for a fair and equitable solution Of
the fiscal relations problem between
the Federal and District govern
ments-Senator Overton, Democrat,
of Louisiana, and Representative
Hunter, Democrat, of Ohio-are pre-
pared today to urge President Roose-
welt to interest himself in the sub
ject.
The President is to be asked to
give an audience to delegation of
three Senate and three House mem
bers at which he would be requested
to indorSe the Senate-a approved
Overton bill for fixing the amount
of the annual Federal payment to-
ward the expenses of the municipal
government here.
AS passed by the Senate. the
measure would, after certain deduc-
tions, base the amount of the annual
Federal payment on the ratio of tax
exempt property owned here by the
National Government to the total
land area of the District. 1t is ESTE
mated adoption of this formula
would increase the present s6,000,000
annual lump-sum Federal payment
in the coming fiscal year beginning
July to approximately $4,000
Heavier Burden on ID. C.
Aside from the meritorious fea-
lures of the plan, Mr. Roosevelt will
be asked to approve it as result of
the serious financial situation facing
the municipal government growing
out of the influx here of thousands
Of national defense workers. Rep
resentative Hunter has estimated
that more than s1000O.000 addi-
tional will be needed in the new
fiscal year to provide public schools,
water, sewage, libraries. street light
ing, fire, police and other municipal
services in the newly y-developed sec
tions In which the Federal defense
workers are concentrating.
Despite the emergency. the House
District Committee probably will not
take action on the Overton bill for
several weeks. Only the approval
of the committee is needed to place
1t on the House calendar for consid-
Grafton. The Fiscal Affairs Subcom-
mittee, of which Mr.. Hunter is
| chairman, last week reported it fa-
vorably by 3-to-1 vote.
The full committee yesterday con-
sidered the measure for nearly IS
minutes in executive session with.
out taking action. When the meet
ing ended Chairman Randolph called
In newspaper men and dictated the
following statement:
The committee decided, in view
of the Importance of the question
and the difference of opinions, to
postpone action on the Overton-
Hunter formula and other related
proposals. A special meeting of the
full committee will be held at a fu-
ture date, possibly at night, to con-
slider the entire tax field"
May Await Mid-April.
Neither Chairman Randolph nor
any member of the committee would
indicate when the special meeting
would be held. But in view of plans
of congressional leaders for three.
day recesses of both the House and
Senate until after the Easter holi-
days, there is little likelihood it will
be called up again until the week
beginning April is.
The principal objection to the
Overton plan was voiced in the ex-
ecutive session by Representative
Bates, Republican, of Massachu-
sets, who was Mayor of Salem for
13 years. Asked by newspapermen
after the meeting why he is OPP
posed to the measure, Mr.. Bates
said
THE principle involved in the
Overton formula is wrong. If car
ried into every community in the
country where the Federal Govern
ment owns property, it would lead
to chaos and constant turmoil"
Mr.. Bates recognized the urgent
need of additional revenue for the
District to meet emergency expenses,
but felt it should be raised through
an increase in the present SITS real
estate tax rate and a higher rate
than the present local income tax
of l per cent
He suggested that Federal pay
ments to the District be based on
the cost of services which the mu-
nicipal government furnishes. such
as water, sewerage and lights. He
also declared there was no justifca-
ton for free schools here to families
living in Maryland and Virginia.
Mr. Bates said the Federal pay roll
and the number of Government en-
ployes had more than doubled in 10
years, and this money flows in
every economic artery of the COM
munity, particularly property values.
from which come about 10 per cent
of the city's revenue"