Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-02
Senator Urges
Is Pei. Federal.
Share for City
Johnston Asks Fixed
Rutio to Districts
Operating Costs
By Don S. Worren


adoption Of a fixed ratio for the
Federal share of National Cap
ital costs, recommending that 1t
be not less than Is per cent OF
general fund costs.
On the basis of the pending
1854 budget, this would mean a
Federal share of $29, 79O, $40. For
the present fiscal year the Fed
eral payment was Sill million
or 81 million less than the sum
authorized in the District Reve-
nue. Act.
The South Carolinian, who
served eight years on the Senate
District Committee, severely
chided Congress for failing to
meet its fair share.
In a well-documented outline
Of District financial history. he
showed that while District costs
mounted from SIG million in 1917
to $40 million in 1945 and to
$3.50 million last year, the size
Of the Federal payment has
dwindled to less than 8 per cent
Exercising "Squatters Rights"
I'm my opinion, Senator
Johnston declared, lit means that
the Federal Government is exer-
cising little better than squat
tiers rights in the city of Wash
ington."
On the other hand, he said
he had found residents of Wash
ington always ready and willing
to pay their full share for the
upkeep and operation Of the Ma
tional Capital"
He said this record speaks for
itself. In support Of this he
said:
I'm 1851, District residents
paid an average Of $128.61 in
city taxes. This was the highest
per capita rate recorded in any
big American city.
1.-The census bureau reports
that the average person in Amer
ica's largest cities paid only $61
in municipal taxes last year. But
the residents of Washington
our Capital city-paid twice that
amount and have paid 1t for
several years"
Last Tax Source Tapped.
He continued:
District tax collections have
jumped more than 210 per cent
in the last 10 years. We know
now that the District has tapped
it's last major reservoir of rev.
enue. I am speaking Of the sales
tax.
I'VE know now that any fur
ther increases in taxes, especially
in real estate rates, would cause
more people and more businesses
to move beyond District borders.
We know now that the taxpay-
ers of Washington have all the
burdens they can carry"
Discussing mounting operat-
ing costs and higher taxes. COM
pared with the low Federal pay
ment, Senator Johnston said
there could be one conclusion:
1.-THE failure of the Federal
Government to make its fair
payment has shifted the burden
directly to the taxpayers of the
District.
ITO the extent that the resi-
dents of Washington foot the bill
for services to the Federal Gov
eminent. they are substituting
the Federal Government"
Fixed Ratio Needed.
Senator Johnston stressed that
the District government cannot
properly handle it's own financial
affairs unless 1t knows what its
revenues will be. And it cannot
know what its revenues will be
unless it has some assurance of
what Congress will appropriate
as the Federal Payment. The
best way to gain that assurance,
he said. would be to establish a
certain fixed ratio.
He added, 81 am convinced
that Congress must take action
If it is to maintain the financial
stability of the municipal gov
eminent"
Washington is the jewel OF
American citieS-the symbol of
freedom for the people of all
the world, he said. II hope that
this year Congress will begin q
new era in our Federal and Dis
trict relations.
Senator Johnston declared the
Federal payment was neither a
subsidy nor a grant in aid.
(See LUMP SUM, Page A-6.)