Evening star., 1952-12-31
Urges
u. ). 10 Boost
District Funds
Formal Report Gives
Seeretory's Views,
And Trumun Agrees
BY Joseph A. Fox

says Cne OlSCrlcC mas peen maneu-
vered into financial impasse"
because Of its unique municipal
status and that it is up to the
Federal Government to recognize
its growing responsibility and bear
an adequate share of local oper-
ating expenses.
AS one of his last official acts,
the cabinet officer has filed a
formal report with President Tru-
man, setting out his views which
are based on the observation of
20 years. Pointing to the dwin-
ding proportion of the Federal
share of running costs here. in
the face Of ever-expanding civic
needs, Mr.. Chapman says:
II am convinced that the Fed
eral Government, from now on.
must contribute a substantially
larger proportion of the income
of the District government"
President Truman, in agree
ment, suggests a new formula.
under which the Federal share
would be based on the ratio that
Government-occupied tax-exempt
holdings bear to the total land
area Of the District. Mr.. Truman
favored this plan when he was
in the Senate.
Under 10 Per Cent.
In his communication to the
President, the secretary stresses
that the Federal Governments
one-time so per cent share of
local expenses has dropped to 10
per cent or less, although mush-
rooming Federal employment has
created new demands for fire
protection, streets, sewers, police.
water and the like. These serv-
ices, he stressed, must be fur
nished in large part for nom
resident population which pays its
taxes in the nearby States.
National Parks, he continues
in pressing his point, are for the
benefit of the people of the whole
United States-but the District
government bears their cost.
These should be a Federal re-
lsponsibility, he says.
The actual Federal contribu-
tion-for parks and everything
else-is now about 80 per cent Of
general revenues - the lowest
figure since 1873.
Text of Communication.
The text of Secretary Chap
mans communication to the
President follows:
Before leaving Office, I want to
bring to your attention the critical
problem which is developing in
connection with the financing Of
the District of Columbia govern
|ment and the contribution which
the Federal Government makes to
that financing. / have become
especially aware of this problem,
as Secretary of the Interior, be-
cause Of the close relationship that
exists between the District gov
|ernment and the National Capital
Park system, a unit of our National
Park Service.
"As you of course know, the city
|of Washington, which comprises
the District Of Columbia, has a
governmental system which is
unique among American munich
palities. The source from which
tax revenues can be drawn is pro-
|portionately smaller in the District
than in other comparable Ameri-
can cities; at the same time, the
District government does not have
control over its own revenues. To
"a very large extent, it depends on
decisions made by the Federal
Government.
Land OFF Tax Rolls.
'The assumption always has
been that since a great part of
the most valuable land in the Dis
trict is owned and occupied by
the Federal Government, and
hence is not subject to tax, the
Federal Government should make
Ia financial contribution to the
District government in lieu of the
real property taxes which ordinar-
lily would be collected. In the old
days that Federal contribution
was a very substantial part of the
Districts operating revenues. At
one time, I believe, it ran as high
as SO per cent of the total.
I'm recent years, however, that
proportion has declined very
sharply. Today it stands at 10
per cent or less of the whole sum.
Currently the Federal Government
provides around $1l million of
the more than $3.50 million oper-
|ating expense of the District gov
eminent.
There has been, of course, q