Evening Star Newspaper, January 23, 1929, Page 5

SHMONSDEENDS LUNPSIMFORD.. Chairman of Subcommittee‘ Also Believes School Prog- ress Is Maintained. (Continued From First Page.) _ S Y | members of this House, none of which | were acceptable to those citizens of Washington who in season and out constantly demand more and more from the Federal Treasury. The report from | the bureau was asked for in the hope that, as an independent study, it might bring this constant complaint against the Congress to an end. The report has been made. The report accepts as its basis the premises heretofore outlined | by District citizens as the proper ones | on which to reach a decision—and from that basis the report in its determina- tion of facts fully supports the position | heretofore taken and maintained by the House of Representatives. Taxpayer Liability of U. S. “The report determines first that the liability of the Federal Government, were it a taxpayer, would in the fiscal year 1928 have been $7,440,939. It then States that after deducting this ‘tax liability 'from the $9,000,000 lump sum contribution, $1.559.061 was left to be | applied against’ the Federal Govern- ment’s “liability on acgount of the loss } of revenue and on account of extraordi- nary expenditures occasioned by the | fact that Washington is the National | Capital’ In that statement the report grants to the District everything that the most enthusiastic opponents of the $9,000,000 lump sum plan have de- manded. It gives no credit to the Gov- ernment of the United States for the use of buildings and land owned by the | United States, a normal rental of which | would be $150,000. It gives no credit to the United States for property given to the District last year amounting to $27,356.14. It gives no credit to the United States for the services of 10 Army officers in municipal capacities at salaries amounting to $42.137. It gives| no credit to the United States for the services rendered to the District by such Federal agencies as the Bureau of | the Budget, the Bureau of Efficiency, the Bureau of Standards, the Bur_eau‘ of Public Roads, and the many services in one capacity and another rendersd the District by the Federal Government | that are too numerous to detail and im- possible to estimate—all, however, being | services not rendered to any other American city by the United States and services given to the municipal govern- ment without charge. “Last, but by no means least, the re- port does not even suggest that the United States should be given either credit or consideration for the mainte- nance here of the largest business in the world—the Government of the United States—the maintenance of an army of employes here at an ever-in- creasing pay roll of approximately $140,000,000 a year, that is not affected either by flood or drought, or by famine or overproduction. Business depression does not reach it. Washington, due to the location here of the seat of Gov- ernment, is the only city in America that is assured of a permanent growing prosperity. No Credit to U. S. “The report suggests no credit to the United States for the multipfed mil- lions spent here in buildings, grounds and shrines or those that hereafter will be spent. Likewise, the report sug- gests that the United States be charged ‘with ‘taxes’ oh its property here— every dollar of it—completely ignoring the fact that no city in America save ‘Washington the temerity to ask that the Govetnment of the United States contribute to its revenues in licu of taxes. “The report holds that we should pay in excess of a tax comparable to other property holders. It then sug- gests dnother and an .indefintie obli- gation to pay other moneys to the Dis- trict, but it gives no credit to your Gov- ernment and mine for the benefit that this city receives from the Federal Gov- ernment, that no other city receives. “The report refers to a ‘liability on account of the loss of revenue' oc- casioned by the fact that Washington is the National Capital and likewise | refers to ‘extraordinary expenditures’ occasioned by the same fact. ., “What revenues have been lost by the | fact that Washington is the seat of Gov- emment? None can be established. ‘There are those who imagine that were this not the Nation's Capital that fac- tories and other activities would come. Probably so—but, at best, a rather un- , satisfactory basis upon which to predi- cate a charge of ‘loss of revenue.’ “Loss of Revenue” Charge. “The charge is that there is a ‘loss of revenue’ here ‘by the fact that Wash- ! ington is the Na%ional Capital’ and that | therefore there is a ‘liability’ on the part of the United States to contribute to the District on account of that ‘loss.” The loss, of course, cannot be proven.” Mr. Simmons cited Washington's growth and declared: “So it is clear that Washington is not only being retarded by the presence .here of the Nation's Capital, but the city is rapidly gaining in population and is going ahead of ‘industrial’ cities be- cause of the ‘fact that Washington iis the National Capital.’ " Mr. Simmons quoted Assessor Rich- ards on a statement that Washing- ton’s future growth and increasing property values are assured. “The observations have been made not so much with the thought of ‘find- ing fault’ with the bureau report as they have been made with the idea of | demonstrating that the report, to say the least, is not unfriendly to the Dis- trict and most certainly is not biased in favor of the United States. Two Conclusions From Report. . “It is not my purpose here to go into @ detailed analysis of the tables in the ! report. They are printed and available as House document 506. Two con- | clusions are readily drawn from the re- por! “First, that the United States is not | only fully meeting and paying every obligation that could possibly come to it, were it a taxpayer, but in addition is contributing over and above all that a considerable and generous sum and more than meeting its obligations | toward the Capital city. “Second. ‘That the City of Wash- ington is mot only not overtaxed, but | in fact is undertaxed in comparison | with other cities. That the low taxes here have not resulted in an unde nourished city, but that, on the con- trary, Washington, when compared with | other cities, is developing in all its| city activities without undue curtail- | ment of funds. ! “The position of the House on fiscal relations and the contribution made by the United States to the District of Columbia is fully supported by this re- port. I commend a study of the report o those members of the House who| are interested in the details of city expenditures and revenues generally as | well as in the Capital City. “It is_interesting to note that the United States, on the basis of being a ‘taxpayer,’ has but 22.2 per cent of the “taxable’ real property of the District, upon which the Bureau of Efficiency figure a 2 $5,4: 67. Then the | bureau ax’ of $1,536,315 upon tangible personal property for the year 1928. It should be noted that ihe total collections for the District on tangible personal property in 1928 amount to but $1470.203. These fig- | ures charge the United States with 51 | per cent of the taxable tangible per- onal property of the District. Clearly | one of two things follow. Either the figure for the United States is exces- give or else the owner of tangible per- onal property in the District is escap- -ing the.payment of taxes on-that class 'THE EVENING STAR, WASHINGTON, b ©, WEDNESDAY, JANUARY 23, 1929." of property. Whichever conclusion is reached, if' leaves the District taxpay- er in an advantageous position as com- pared with the United States. “I suggest that in view of the fact that the 22.2 per cent real property is based upon the District assessor's rightly be applied to tangible and in- tangible personal property in lieu of the method used which obviously reaches a result unfair to the Federal Government when compared with the trict taxpayer on personal tangible or ‘tax’ of: Real property. .. Tangible personality Intangible personality. $5,452,767 419,518 678,718 g;55!.003 “I suggest that a total ‘tax liability’ of $6.551.003 is far nearer correct than is the $7.440,939 proposed by the Bu- reau of Efficiency. This figure is some- what larger than I arrived at last year, due to the inclusion in part of intan- gible personalty. But either figure shows that the present contribution of the United States is shown to be not only fair, but generous to the people of the District. Varying Percentage Disclosed. “The report discloses that in 1915 the Federal property, including park prop- erty, constituted 36.8 per cent of the whole. In 1928 it was but 28.3 per cent of the whole, or when park prop- erty is excluded in 1915 the Federal property was 28.2 per cent of the whole and in 1928 but 22.2 per cent of the whole. “Demand is made by District tax- payers that Congress return to a per- centage basis of contribution instead of the lump sum now carried and that the percentage paid by the United States be 40 per cent or 50 per cent of the total. These figures disclose the reason for the demand and also why, in fairness to the United States, neither of the requests can be granted. “If the ratio between privately owned and Federally owned property remained constant year after year, then the per- centage plan of payment would be as fair a basis of contribution as the lump sum. But the ratio does not remain constant. The percentage of Federally owned property is constantly de- creasing and the percentage of pri- vately owned property constantly is in- creasing. “Likewise these figures clearly show why ~the Federal contribution has properly decreased comparatively dur- ing the recent years that have wit- nessed a rapid development of private property in the District. Demand is made that the United States carry 40 per cent of the cost of the city gov- ernment and yet this report discloses that the United States owns and uses for Federal purposes but 22.2 per cent of the property of the District. Is it fair to ask 22.2 per cent of the property to pay 40 per cent of the taxes? Says U. S. Carrying Share. “The lump sum contribution of $9,000,000 carried in this bill pays 28 per cent of the total paid from general revenues, which again discloses that the United States, owning but 22.2 per cent of the property, is carrying its full share of the load. This is approximate- ly the same percentage as has been paid during the past two years. “What would the $9,000,000 Federal contribution pay? “Based upon this bill the $9,000,000, contributed by the Federal Government to the District of Columbia would pay the cost of the police department, the fire department, the health department, the courts and prisons, the public buildings and parks, including $1,000,- 000 for the purchase of land under the National Capital Park and Planning Commission, and the Zoo. There is then left for the people of the District to pay the general salary items, con- tingent and miscellaneous expenses, street and road improvement and repair, sewers, collection and disposal of refuse, the electrical department, the schools, the public welfare. The water service is self-supporting. The gas tax pays $1,600,000 of the $3,785.100, carried in the street and road improvement and repair item. “Upon the items in th2 bill, if the 60-40 plan were in force, the District would be called upon to pay only for the general salaries of the city, con- tingent and miscellaneous expenses, street and road improvement and repair, public schools, the health department and public welfare. “While the United States would be asked to pay for the sewer system, the collection and disposal of refuse, public playgrounds, the electrical department including all street lighting, etc., police and fire department, courts and prisons, parks and buildings, including the $1,000,000 for new park land under the National Capital Park and Planning Commission and the Zoo. “To state it thus is to show how utterly absurd and unfair it is to ask that there be a return to 60-40. “I regret that the Bureau of Effi- ciency has not submitted to the Con- gress tables of the various other taxes that enter into the revenues of a city and the tax cost to its citizens, I am advised that this material will be sub- mitted and included in the main report. Water Charge Declared Low. “In my judgment, the charge for water in Washington is exceedingly low. How does it compare with other cities? The $1 a car auto license cost in Wash- ington is absurdly I ‘What do other Rent Manager An opportunity for a young man with a reasonable amount of experience in rental work—as assistant in charge of rent depart- ment in one of the larger offices. Address Box 105-X Star Office SEE US FOR LUMBER MILLWORK PAINT HARDWARE BUILDING SUPPLIES COAL Whatever Your Needs Talk With Us First! Small Orders Given Careful Attention No Delivery Charge J. Frank Kelly, Inc. 2101 Georgia Ave. N. 1343 Lumber—Millwork—Du Pont _Paints Coal — Hardware — Building_Supplies 46-day cruises to the MEDITERRANEAN $ per day with complete shore program and five days’ stayin Egypt Never before such value! 46.day cruises, including Holy Land and Egypt. Also M. deira, Gibraltar, Algiers, Monaco, Italy, cruising liners Adrlatic and the new Laurentlc, siling February 28 and 395 including all expenses ashjp and ashore. For full information address R. M. HICKS, Mgr., 1419 G St. N.W,, Washington, D. C.. or any authorized steamshin agent WHITE STAR LI TERNATIONAL MERCANTILE MAR figures, that the same percentage could | comparative amount paid by the Dis-| property. We would then have a charge | ot 1% FALeS bEtWech B | has_exempt. from _taxation cities pay? The gas tax here of 2 cents | ton, The answer to some of them may a gallon is the lowest rate charged by | be found in the report. any tax body. Maryland charges 4| “Clearly the report establishes that cents and Virginia 5 cents. License | the lump sum, and not the percentage and gas tax revenues here are spent on | plan of contribution, is the proper one, the city streets. License and gas tax |and clearly the report establishes the moneys collected in most cities are | fact that the present contribution is spent on country roads. What ad- [ample and generous to the District. vantage does Washington have as a |The report. while decidedly favorable to result of it over other cities? No in- | the District in every basis of calcula- heritance tax is levied in the District. 3 D What is the status of other jurisdic- |and maintained by the House of Repre- tions? sentatives. “What are the comparative corpora- Tells of Salary Increases. tion tax rates bptwevnpw;nshmgmn and | “Last the year the committee, in order Here few |to bring the employes of the District of | Columbia up to the average of salaries “The head of a family in the Disttict | in the same grades in the Federal serv- household | ice, added $121.245 to the salary esti- goods, etc, of the value of $1,000. | mates received from the Bureau of the What are the exemptions elsewhere? | Budget, making a total of $175,000, stip- “The District levies no poll tax. What | ulating that this payment should go of other jurisdictions? Every State but | those grades where the lower sala five has one in some form. rates applied. It was contemplated at “What abeut license taxes and gen- | that time that an additional increase eral franchise taxes this year of $170,000 in salaries would “What other taxing jurisdiction in|be necessary to secure the expressed America gives an exemption from taxa- | desire of the committee. The increases tion to_intangibles comparable to those | granted last year have been made in given by the District, and listed on |Aaccordance with the intention of the page 23 of House document No. 3307 committee. Those salary increases af- “Washington taxes tangible personal | fected approximately 50 per cent of property at a rate of $1.70 a hundred, | the District force. At the time the intangibles are taxed at 50 cents a hun- | committee took that action the passage dred. Do other tax bodies give intan- | of the Welch act was not contemplated gibles a rate of less than 30 per cent of “The Welch act, passed in the la: the tangible rate? few days of the session, applied to Dis “Is there another city in America that | trict as well as Federal employes. As receives contributions from the Federal | construed and applied, it granted p Government toward its general ex-|increases to all employes of the Di penses? Is there another city of the | trict, and to many employes, two in- United States without bonded or other | creases in pay schedules. Following the indebtedness? Is there another city of | adjournment of Congress the question the United States with a cash free sur- | was raised as to whether or not the plus of approximately $7,000,000? Welch act superseded the “step-ups” “Each member may be able to answer | given by the Congress in the last Dis- these and other questions as they apply | trict bill. I advised the District offivials to his own State and be thereby able to judge of the tax burde: Washiny such charges are made. act increa: The Cabriolet , Body by Fisher 41265 £. 0. b. factory Bumpers and wire equipment estra tione clearly supports the position taken | that it was my opinion that the Welch | U | not in lieu of the Increases granted by Congress. The interpretation I sug. gested was followed. The net result of | the whole transaction was that the | District_employes received under the increases carried in the District bill las year, $175,641. The Welch act added $557,802 to the pay roll of the District government over and above the $1%5.- tal of the two bills reaches $733.433 in salary increases last year in the District government. All District employes during the last year received one in- | crease in pay, better than 50 per cent | received two increases and many of them three increa: | “Prior to the holding of hearings on | this bill study was given“to the fiscal condition of the District of Columbia. | Briefly, a very satisfactory situation sts.” Without increases by way of deficiency appropriations or new legis- | lation and assuming the passage of | bill sent us by the Bureau ofthe Bud there would have been a surplus in | the Treasury on June 30, 1930, of ap- | proximately $10,400,000, over and above all obligations, “Deducting that $5,000,000, surplus sufficient for cash basis, it is obvious that additional appropriations from $4,- { 000,000 to $5,000,000 can be made with- | out'jeopardizing the finances of the Dis- trict. In our judgment those appropri- ations should be made for needed bet- | terments—they can be made without in- creased taxes in the District or the | Federal contribution. “It is the consensus of opinion that the city should purchase and begin the development of a municipal center. The President has approved the plan to pur- chase two blocks south of the present Judiclary Square. I have introduced the legislation that will authorize the appropriation of the needed moneys. The District has the money to pay the were in addition to, and | cost of this land purchase if the legis- | like 641 granted by the committee. The to-| | lative committee will secure the au- | thority for the appropriation to be made. I would like to see the appropri- |and begin plans for the construction | of this plan. “The expenditure carried in this bill by way of supplemental estimates plus | the proposed expenditure for the mu- | nicipal center will probably reduce the surplus as far as is should be reduced at this time. the appropriation of $10,000.000 for ad- ditional school building§ and grounds. The bill is without condition as to when the appropriations are to be made or where schools are to be located or the kind of schools. congestion due to rapid development of residential areas that could not have | beenanticipated. ~Adequate steps are being t ) > those conditjons. There are 81,000 seats now in the Dis- trict schools. When the building pro- gram now under: way total of 90,000 seats. exceed 75000 pupils in the District schools. So that there is space in_the District schools for every student. The difficulty has been that in the shifting of the population and the necessity for maintaining independent schools for both white and colored, often in the | same neighborhood, that congestion has arisen in certain areas. That is being corrected, but on the whole the Wash- ington_schools are not congested, and no_child is being deprived of educa- tional opportunities in the District be- cause of the building situation. New Buildings Needed. | the requirements of a growing city a policy of building replace {ation carried in the last deficiency bill | of this Congress to purchase the land | “I have introduced a bill authorizing | “In certain parts of the city there is | y and carried in | the bill is completed there will be a | There are not to | | 7 “New buildings are needed to meet | year was 1,500 | ~ youre going to Dr Great New Car. ments will be carried out. These con- ditions are to be expected in a grow- ing, prasperous city. “'As an indication of the progress that is being made let me cite one situation. In 1920 there were 360 pa in the District schools. That number has now been reduced to all of which are first or second grade pupils. The entire tendency now among school people is toward shorter school hours for the younger pupils. No ma harm is being done these children. T! condition of the schools is the best it has been for a long series of years and they are constantly improving “The budget shares the view of this committee that more ‘ should be provided and fev in proportion to the tots New elementary rooms a the area where the Busin: now is. With the abandonu school as contemplated by the erection of a new business high school, the budget felt that that building should be devoted to elementary school uses and the classroom condition in that area relieved. They have so provided in the bill. In that decision we concur. If at a later date a better use can be made of the building the provision can be -time classes | changed. In the meantime we will not | be losing on the number of elementary srooms devoted to classroom work. ince September 1. 1928, 73 new schoolrooms have been opened. with sit- ting space for 2,100 pupils. now appropriated for, for which plans Buildings | are being made or which are in the | process of construction, provide for 132 | additional rooms and additional sitting of 4,036 pupils. This bill carries the initiation of projects that will provide | seating capacity for 3,343 pupils. The increase in school attendance this last As rapid progress is being made in the building program as s warranted.” 18} HOURS Washington-to Fiovida The only Double Track d between the North and FROM WASHINGTOM The Miamian Gulf Ccast Ltd. Iv.2:45 pom. 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