Evening star., 1947-06-22
Task Of Fitting
Budget 10 Taxes
0pensThisWeek
Horun Declares Gop
Of s., ,000, 900 Exists
Between Fiscal Poles
B Con S. Worren

demands, TO the size OF prOSpec-
tive revenues will be tackled this
week by the District Subcommit-
tee of the House Appropriations
Committee.
Chairman Koran yesterday fore.
saw a $4000,0O0 gap between the
two fiscal poles. Failure OF Con-
gress to adopt a sales tax, he indi-
Gated, means the only alternative
will be Government loan, If capita.
improvement needs are to be met
now. Mr.. Horan has called number
of top officials to testify tomorrow
on several problems, notably priori-
ties in school construction to elimi-
nate part time class instruction
slum clearance in relation to school
sites, some remaining issues regard
ing the Receiving Home for Chill
dren, and his demands for central
lied auditing control.
Loses Hope for Supply Bill.
Mr.. Koran agreed it was impos-
sible now to get the District supply
bill enacted before the end Of this
fiscal year, June 80. He told re-
porters yesterday it was unlikely
the bill would get House conSidera-
ton before that date. To prevent
the District from going broke July
/, he will sponsor a continuing reso-
luton to provide funds for normal
operations, without any increases
for personnel or contract obliga-
tions, until the regular supply bill
passes.
Action on the remaining differ.
ences between the House and Senate
on the revenue and teacher pa,
bills was expected early this week
No contest seemed to be in the
making over the teacher bill ane
the only issue appeared over one
section of the revenue measure.
This contest is the final decision
Congress must make on the O'Hars
amendment to the income tax sec
ton of the revenue bill, which woule
exempt all Federal employees who
sign statements they are domicilee
in one of the States.
Cain Takes Lead.
The House adopted this amend
ment but it was rejected by the
Senate and thrown into House
Senate conference committee. Sen.
ator Cain, Republican, of Washing
ton, in charge of the tax bill in the
Senate, told his colleagues Friday
the entire District income tax
should be abolished if present in
equities could not be eliminated
The Senate followed his lead and
rejected the O'Hara amendment.
If the Cain plan is enacted al
persons living in Washington fol
seven months or more of the year
excepting members of Congress anc
presidential appointees, will be re.
quired to make District income, taz
returns. Full credits would bt
given those paying State income
taxes back home All but one oi
the income tax States now have
higher rates than the Districts l te
per cent levels.
Those. paying no State income
levies in home States would be
tapped to help pay for use of Wash
ington's facilities, under the plan as
approved by the Senate.
The battle will be fought out by
the House-Senate managers over
the revenue bill. House managers
on the bill are expected to be named
tomorrow. The Senate has named
Senators Cain, Flanders, Republi-
can, of Vermont, and McGrath,
Democrat, of Rhode Island. The
same three Senators have been
named as conferees with the House
on the teacher pay bill.
Two Amendments Added.
The Senate added two amend
ments to the teacher pay bill as
passed by the House. One would
liberalize sick leave for attendance
officers. The other would keep ad-
ministrative officers of the school
system, including principals, from
the maximum teacher pay of $4,000
year, unless they have or obtain
masters degrees. Otherwise, their
maximum would be $4,000
On the budget issue, Chairman
Horan said he hoped the hearings
could be closed tomorrow, or at the
latest, Tuesday. He has called Dr.
Hobart M. Corning, superintendent
of schools, and DR.. Garnet C. Will
kinson, assistant superintendent, to
testify tomorrow morning on school
construction priorities.
At the request of Maj. Gen. U. S.
Grant III, chairman of the National
Capital Park and Planning Commits
sion, a spokesman of that agency
will be heard on school construction
needs. with particular reference to
school needs in relation to slum
clearance.
Mr.. Horan also announced his
subcommittee would go into issues
over the transfer of control over the
fire alarm system from the Elec-
trlcal Department to the Fire De-
partment. He said he wanted to
know if the changed control was
necessary and if it would cost more
or less money. Fire Chief Clement
Murphy, he said, had told the COM
mittee the transferred operations
would cost much less money" Mr..
Horan said he was not satisfied and
that it appeared there is much
more to this than meets the eye"
In this connection the subcom-
mittee will question Acting Police
Chief Walter H. Thomas as to CO.
ordination of calls for police and
firemen.
Chairman Horan has given the
Commissioners a green light to
proceed with construction of the new
Receiving Home for Children, but
he indicated yesterday he was far
from satisfied with the homes
management. He said he would &c
into this at tomorrow's session with
questions regarding the superinten-
dent in charge Of the institution.