Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-03
Col. Lane Sees
Threat 10 DC.
In Tax Spiral
Says Congress Might
Have to Tuke Over
City's Operation

O1ob1 1Cb G11S1k1CCI SOlILlllS-
sioner Thomas A. Lane last night
warned that If local taxes con-
tinue to spiral upward. the Fed
eral Government may have to
take over the entire operation
Of the Nations Capital.
Col. Lane gave this view when
the possibility was raised by re-
porters during the weekly radio
broadcast, Report to the
People," over WWDC.
at is a very real issue at this
time" he declared.
If taxes become too severe, the
Commissioner added, "we will
see a decline in our revenues and
a depreciation Of our tax base"
At some point along the line.
local tax revenues may say so
much that the city government
would have to be financed and
administered almost the same as
any Federal agency, the Commits
sioner implied.
Says Taxation Can Destroy
"The power to tax is the power
to destroy" Col. Lane declared.
And because Washington's ''high-
ly mobile" population can adjust
to excessive taxes simply by NOV
ing into the suburbs where taxes
may be lower. the District is
especially sensitive" to the tax
policy. he said.
This policy. he continued, con-
sequently is "a very significant
factor in determining whether
the tax base Is to be enhanced
or deprecated. and in the long
run whether particular tax rates
are to be productive or unpro-
ductive."
The Engineer Commissioner
then made, in effect. a renewed
appeal for higher Federal pay
ments to the city's upkeep during
the coming year when new pay
raise legislation and other oper-
ating cost increases are likely to
throw the District deep into debt.
eve cannot regard the needs
of the Nations Capital solely in
the light of the needs of the
residents themselves and of their
tax potential" he declared. He
went on:
1.-THE point I would emphasize
here is that when the level of
taxes on private property and
income in the District has been
advanced as far as sound fiscal
policy will permit. we cannot
then say, This is the budget
There is an overriding Fed
eral interest in the development
of the city which must be recog-
nized and accepted by the Nation
as a whole, so thats these real
needs will be met"
Call Meeting Tomorrow
Further underscoring the ur-
gency of the Districts financial
needs. city officials have called
a meeting of civic and business
leaders tomorrow in the District
Building to examine some of the
problems which the Commits
sioners face.
The conference is slated for 3
pm. in the Office of Samuel
Spencer, president Of the Board
of Commissioners. It will be a
prelude to a session between the
city heads, with their budget
aides, and Rowland r. Hughes,
director of the Federal Budget
Bureau, in the next week or so.
Commissioner Lane said last
night that he and his colleagues
have not yet decided what par
ticular approach they will take
in stating the city's plight to Mr..
Hughes.
It was understood, however,
that much of the discussion will
concern the possibilities of a
higher Federal payment. Much
of the talk along these lines to
date has concerned the Federal
Government paying one-half of
whatever deficit the District
faces in the coming year owing
to pay raises and other opera
tional cost increases. Local taxes
would be boosted to meet the re-
naming SO per cent of the def
cit.
Civic Leaders to Attend
The Commissioners tomorrow
will get the advice of representa-
tives Of at least a dozen local
civic and business groups. Among
those due to attend are:
the Ms Fsds Henry I,or 4, Bartlett president Of
BENJAMIN Striner. representing the
RECREATION Of Businessman.
Herbert J. Rich. president of the Mer-
chants and Manufacturers Association.
William H.. Press, executive vice
Trade.
Robert 8. Moss. District Bar Asso-
citation.
Mrs. John ]. Tamborelle, American
Federation Of Womens Clubs
Mrs. John F.. Latimer, president of
the District League of Women Voters.
Carey winston. president Of the WASH
ington Real Estate Board
Carl c. Smuck. Building and Loan
League.
james E. Scott. president Of the
Frontiers Of America
Plus representatives from the Fed
Grafton Of Civic Associations and the
District Bankers Association.
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