Evening star., 1941-03-06
BY JAMES E. CHINN.

AiC ullPA PACCCuCIlICQ SlOWtIl VI
the District resulting from ma
tional defense activities makes it
utterly impossible" to furnish
adequate municipal facilities
with present revenues, Engineer
Commissioner McCoach today
told a joint Senate and House
subcommittee considering the
Overton formula for fixing the
amount of the Federal payment
toward expenses of the local gov
ernment.
Adoption of the Overton plan is
particularly timely now, Commits
sioner McCoach declared, because it
would increase the present annual
lump sum s6,o00,00o Federal pay
ment to about 100000 and thus
provide some additional sorely
needed revenue.
The Overton formula would fix as
the Federal payment an amount
which bears the same ratio to the
total appropriation for the District
as the area of tax-free land owned
by the Federal Government bears to
the total area of the District.
Plan Called Flexible.
Commissioner McCoach described
the Overton formula as ''the most
logical and equitable solution" that
has ever been advanced for settling
the "vexatious" fiscal relations prob
lem.
'It provides, he said, "for an
equitable distribution of the costs
of the present time If the cost
of developing and operating the
city is reduced or increased for
any reason, it automatically and
equitably allocates the resultant
costs to each party. If the Federal
holdings are increased or decreased,
it likewise equitably and automati-
cally reallocates the cost"
Senator Overton, Democrat. of
Louisiana, who opened the joint
hearing with detailed explanation
of the fundamental principles of his
formula, pointed out that nearly so
per cent of the land area in the Dis
trict has been removed from the
tax rolls by Congress, forcing the
owners OF the other half to bear
most of the city's tax load.
Edward A. Dent, District tax as
SCISSOR, later gave the joint COM
mittee figures showing that 53.6 per
cent of the land here is taxable and
that of the remainder the Federal
Government owns 326 per cent.
Plan Called Timely.
While the Overton plan is in
tended to furnish a permanent solu-
ton to the fiscal relations problem;
Commissioner McCoach declared 'it
is particularly timely now because
of the difficulty arising out of the
unprecedented growth of the city
brought on by the national defense
effort"
Il can say definitely" he added,
"that with present revenues, in
cluding the present Federal partic-
ipation and under existing laws, it
will be utterly impossible to furnish
adequate municipal facilities and
services for a metropolitan city, let
alone those befitting the National
Capital"
For example, take the area east
OF the Anacostia River. The popu-
lation in 1880 was Is 1000. In 1910 it
was $4,000. Since January l, 1910,
a total of 3,700 family units have
been or are being constructed. BY
September l, 1941, it is estimated
that the population will be 10000.
We estimate that there will be
shortage in elementary school facili-
ties for from $500 to 1900 children
in this area.
This rapidly growing section will
require additional high school facili-
ties. police and fire protection, street
cleaning, garbage collection and
other municipal services. Other sec
tions of the city are in a similar
situation perhaps to a lesser degree.
1t would be just as logical to expect
the many munitions plants engaged
in the defense effort to finance their
rapid expansions from current reve-
nues as to expect this city to finance
(See OVERTON, Page A-3)