Evening star., 1943-03-16
|nequity Of u. 5.
Share in Budget
Cited al Hearing
Young Reads From
Previous Reports as
Proceedings Open
Earlier Story on Page B-1.)

NEdTlieT StOrS on rage b-l)
The inequity of an annual
Federal payment of s6,000,000
toward support of the District
government was called to the
attention of House Subcom-
mittee on Appropriations today
by Commissioner Young.
Quoting from the reports of for
mer Senate and House committees
which studied the fiscal relations
problem, the Commissioner showed
that once the United States paid so
per cent of the cost of operating the
municipal government, but now,
with its tax-free holdings vastly in
creased, it is paying less than 10
per cent.
The reports he read pointed out
that the lowered Federal payment
has created situation which
ought to receive the early, if not
the immediate consideration of Con-
gresS."
Young Is First Witness.
Mr.. Young was the first witness
before the subcommitte as 1t began
hearings on9he 1914 district budget.
He did not discuss his personal
views about the fiscal relation prob
lem, but merely read excerpts from
the committee reports, chiefly to
famillarize the five new members OF
the Appropriations Subcommittee
with the treatment the District gov
ernment has received FROM the
United States.
These reports, Identical in this
respect, pointed out that Federal
owned property in the District Is
exempt from taxation and that Its
suggested addition to the tax rolls
raised an old question of what part
the Federal Government should play
in the operating expenses of the
+ District government"
For many years the Federal Gov
ernment contributed to such ex-
penses a sum equal to so per cent
thereof" the reports declared.
| Reviews Commissioners Work.
And this at a time when the
/ land holdings of the Government
we're less than one-third OF the
present holdings, and the value of
the buildings erected thereon was
pitifully small as compared to the
colossal figure which now repre-
sents their valuation. While the
growth of the Federal hq iings was
taking place, and theEalue in
creased to a staggering figure, the
Congress. periodically and consist
/ entity, lowered the Federal contribu-
ton annually until today it is less
than 10 per cent, Or S6,000,000 This
created a situation which ought to
receive the early, if not the imme-
diate consideration of the Congress
of the United States"
Reviewing activities of the Com
missioners in the last year Mr..
Young listed as one of the outstand-
ing the creation of a Department
of Civilian Defense. He said the
| Commissioners are satisfied the de-
fense organization is the best in the
| country.
Revenues Fluctuate.
Ever changing wartime conditions,
he told the subcommittee, have had
a flexible effect on municipal reve-
nues-one month the Commission
ers have a feeling the District is
! financially secure, but the next
month finds their calculations all
out of keller.
He explained there had been a
decrease in revenue resulting from
stoppage of building construction
and a steadily lowering income IN
fees from motor vehicle licenses,
parking meter collections, gasoline
taxes. merchandising licenses ard
| several other items.
Some of these losses. however, the
Commissioner said, may be made
up by expected increases from in
come taxes because of the popula-
ton increase and additional revenue
from utility taxes.
The subcommittee will resume
hearings on the budget at 10 am
. Thursday At that time it will start
taking testimony of various heads
of the municipal government in
support of the estimates Of their
/ resnective aoancieS