Evening star., 1948-12-12
Municipal Association
Seeks U. 5. Lump Sum
PAYMENTS 10 Cities

prove Jncy are dS AAuCA CAAeioAeo
to an annual lump sum Federal
payment as the District.
Assembling for the 1948 meeting
Of the American Municipal Associa-
ton at the Statler Hotel, they want
the payments to offset loss OF tax
revenue from Federal ownership OF
land in their communities.
District observers pointed out
last night. however. that Washing
ton has been trying since 1925 to
get rid of the lump sum payment
in favor OF an equitable percentage
plan fixed in law for the joint sup
port of the Nations capital by the
local community and the Federal
government.
Federal Holdings Cited.
Whenever such plans have been
debated at the Capitol opponents
have raised the question of pay
ments for federally owned tax-ex-
empt property in the cities and
states.
In reply, observers recalled, local
groups such as the Board OF Trade
have emphasized that the Federal
obligation to the District is not
measured merely by the Federal
tax-exempt property here.
The large Federal holdings have
been cited primarily to demonstrate
the complete control exercised here
by the Federal Government as pro-
vldd in the Constitution, they added
Arguments in support of this have
pointed out that the District is moi
to be compared with any other
city because of its dual status as
community and as Capital Of the
Nation.
The complete Federal control also
includes denial to local residents OF
the right to vote either locally OF
nationally.
Meant rs Economy Move.
Appropriation of a lump sum te
the District, is was also pointed out
was instituted not as a measure OF
land holding but as an economy
move to cut down the Federal obli-
CATION from so per cent it had once
been and the 40 per cent 1t was al
the time of the change.
The $12,0OO,OO0 lump sum this
year. they added. contains $1,000 0o(
in payment of the water the Dis
trict provides the Federal establish
ment and has nothing to do with
Federal land holding.
Despite this, however, the pay
ment to the District is expected tc
be cited as an example Of the
treatment that should be accorded
the other cities as the 500 delegates
assemble for sessions that will con-
tinue through Wednesday.
Mayor Fletcher Bowron Of Los
Angeles, president Of the American
Municipal Association, listed this
as one Of the critical matters
on which the association will fl
policy course.
Problem Aggravated.
The loss of property-tax revenues
through government purchase was
aggravated. city officials have COM
planned, by the wartime growth
OF such Federal holdings as down.
town ofice building sites. military
stations, port and airfield areas.
A movement to divide up the
sources Of tax revenue among states,
cities and the Federal government
also is in prospect, according to
Carl II. Chatters, executive director
of the association.
Several potential sources of local
revenue have been dried up, as
sociation officials say, by the gradu-
al move of the Federal Government
into the field of excise taxes on
night clubs, theaters, telephone
service and many retail commodi-
ties.
The frank statement that the as
sociation now is launching into
the field of lobbying, If you want
to call it that" was made recently
by Mayor Quigg Newton Of Denver
The delegates will be asked to pre-
pare and adopt National munich
paf policy" on the problems oil
finance, home rule, housing, civil
defense and other issues.
Cities everywhere are being called
on to provide more extensive and
complex services" Mr.. Chatters said
in q statement.
Financial Starvation"
"At the same time, the fiscal pligh
of cities has become increasingly
serious.
Unless State and local govern
ments revamp their fiscal relation
ship with full cooperation, our
cities will suffer the dry rot Of
financial starvation.
Many Of them-the core of in
dustrial America-are in that fix
now"
Noting that wartime migrations
have increased city populations by
S,000.000 persons since 1910, while
rural population has declined 2OOO,-
900, Mr.. Chatters said the United
States has become "a truly urban
Nation, where municipal problems
are paramount"
Officers Of the American Confer
ence of Mayors previously have
called attention to the tax problem
The conference and the municipal
association are not connected, ex-
cept by overlapping memberships
but the association is expected to
back up the Mayors in another cam
paign-Public Housing.
President Truman yesterday gave
a very favorable and very cordial
reception to a plan for the building
OF 100000 public housing units by
1858, delegation from the Mayors
group reported.
CIV Will Open YuIe Season