Evening star., 1947-03-18
District Calls on u. ).
To Contribute Fairer
Share Of Expenses
Continued From First Page

Continued From First Page.)
the fact we must face these costs" !"
Testimony by Mr.. Young and Mr..
Fowler placed before Congress a
clear choice between two broad al
ternatives-one, of increasing the
Federal payment and thereby les
sening the additional tax load on
the District, or two, to ignore the
fiscal formula bill and to saddle on
District taxpayers the entire sl9,-
100000 extra load.
Tax Plan Adequate for Year.
1t was brought out that the $l9,-
100000 tax program itself would
cover the record-breaking sos, 900 900
budget for the next year. The tax
plan was developed this way be-
cause the Commissioners had no
way Of knowing for sure what an
swer Congress would give.
If the O'Mahoney formula Is
adopted, however, it would add per-
haps 100000 to the present
sS,000,000 Federal payment and
eliminate the need for 5000, 900 in
the extra tax load.
Some observers commented en-
actment of the Federal payment bill
would permit elimination of the 2
per cent sales tax from the revenue
program.
The Fowler statement also revealed
District officials have found, in the
last week, an additional 81 $50 900 i'll
anticipated revenues-mostly due to
reassessment of real estate. Because
of the importance of the tax issue.
last-minute recheck Of anticipated
revenues was made.
This would indicate that the an
tcipated shortage in revenues next
year (under present law would be
about $16,1s1 900 instead of ST.
100000.
Warning of Rising Costs.
The budget officer . pointedly
warned the joint hearing, on the
other hand. that it could not antici-
pate that the 1948 costs would be no
more than the $95, 600, 900 now budg-
eted. Costs of materials and services
still are rising. he said.
Also, every now and then new
proposal for expenditures arises. He
mentioned liberalized retirements
and the proposed creation of a vet
erans' department in the District
government.
Every time I see one of these
new requests. I Shiver," Mr., Fowler
said.
Senator Cain, chairman of the
Joint group, said that Is my view,
and that is why We must examine
every request"
Representative Bates broke in to
say, This shows 1t Is essential then,
that we say no once in q while y
Commissioner Young, in support
Of the proposed fixed formula for
theeFederal payment, stressed that
the Federal Government has in
creased its tax-exempt land hold
ings here by more than 18 per cent
In the past 10 years.
Bates Wants Further Study.
Taking into account what the
District loses in taxes from all this
a. land owned by the Federal Govern
ment, as we'll as the cost of the vari-
Gus services to the Federal Govern
ment paid for by the local tax
payers" he said, IAN itemized break
down would show something like
$14,000,000 This fact and figure
is taken from a statement made to
Congress by a member of the House
subcommittee on District appropri-
ations last year"
Senator Cain said he was curious
10 know why the United States was
80 far behind" in its cash payments
TO the District during the years when
substantive law required a 40 per
cent Federal payment.
Commissioner Young said he was
not then in Office, but that he
imagined it was due to pet dislike
to the District" which was held by
former chairman of a District
subcommittee.
Representative Bates said he
thought the Federal payment ques-
ton should be thoroughly explored" +"
He added, though, that he felt the
question turned not alone on the
question Of tax exempt Federal land
holdings, but should be based to an
important degree on what services
the District renders the United
States.
Highway Director H. C. Whitehurst
made an extensive statement to
show the need for the proposed l
cent increase in the gas tax, to
cents a gallon. He struck out
sharply at opponents of the gas tax
rise, accusing them of making dis
torted, inaccurate and misleading
statements"
He named the D. G. Petroleum
Industry Committee as one making
erroneous arguments.
Backlog Of improvements.
1t is displaying "narrow-minded
attitude" for opponents to say they
will do all they can to kill the gas
tax increase without regard to its
needs, Capt. Whitehurst said.
He based his plea for the extra
money, $1,000, 900 a year, on a great
backlog of capital improvements
that piled up during the war year
holiday" on increased construc-
ton costs and on the need for high
way measures to reduce the traffic
toll.
The District gas tax should not
be raised merely because other
States have higher rates. Capt
Whitehurst said. 1t is fact, how
ever, he continued, that the District
3-cent-a-gallon rate now is below
the national average of slightly
more than cents a gallon and
may be contrasted to Virginia's
cents, Maryland's 4, Delaware's 4
Pennsylvania 4 and West Virginia s
cents.
Full Explanation Sought.
Chairman Cain and Bates de-
manded last Friday that District
officials give a full explanation at
the outset of the revenue hearings
as to why District costs had doubled
in the past decade. They said they
wanted to know where the money
had gone" before they considered