Evening Star Newspaper, December 1, 1935, Page 21

TEXT OF DISTRICT TAXATION REPORT . HE full text of the partial re- port of the Commissioners’ Special Comimttee on Taxa- tion follows: | This committee was appointed Au- gust 12, 1935, under an order direct- it: “s ® * to study the entire tax prob- lem of the District of Columbia and to survey the possibilities of obtaining more income from the following: Group 1: Inheritance tax. Income tax. Group 2: Gasoline tax. Motor vehicle weight tax. \ Group 3: | Utilities tax. ! “The committee will investigate the | possibility of securing revenue from | motion picture theaters, chain stores, public entertainments and any other fleld where there is opportunity of' escaping a just tax. “It is not the purpose of the Com- missioners to place a hardship or any | unreasonable tax on any of the classes referred to, but only that all should bear a just and proportionate share toward the support of the government of the District of Columbia. “These instructions are not intended to include real estate. “This committee will prepare a report and recommend legislation.” Instructions Are Reguested. The committee begs to submit the | following partial report, and requests instructions before proceeding fur- ther: The propriety of any tax must be measured by its necessity. Before a | recommendation can be made as to| what taxes should be included in the revenue program, revenue needs must | be first determined. Your committee | does not believe that taxes should be | increased, either by increasing the rates of present taxes or by the intro- duction of new forms of tax, merely because the suggested taxes could be borne by taxpayers, or because the government could spend the money if it had it. In the opinion of your committee the question which must necessarily first be answered is: What are the imperative financial needs of the District government. The period for which these needs should be estimated must be some reasonably extended period in the fu- ture. We have selected 10 years, His- torical data must of necessity be the basis for any careful approach to the problem, ali your committee has, therefore, assembled in convenient form the details of both revenues and appropriations over the past 16 years. Population Increases. It must be kept in mind that in- ereases in population affect govern- mental costs, although the relation- ship is not directly proportionate. Population in the District increased from 439,000 in 1920 to an estimated 520,000 in 1935, an increase of 81, 000 in 15 years, about 20 per cent in that time. Increased population in the metropolitan area, outside the District, is also reflected semewhat in District governmental costs and the increase in this area has been more rapid in recent years than in the District alone. noted that fluctuations in the num- ber of Federal Government employes directly affect requirements as to District government, and the latter must keep pace with peak demands of the former. Appropriations for expenditures di- vide themselves, for the purposes of any study such as this, into main classifications (1) maintenance and operating costs, and (2) capital out- lay. Examination of the attached data shows that the maintenance and op- erating expenses of the District have increased in a somewhat steady curve, except for a temporary drop during the period of the economy reduction, the major part of which was the salary cut. The increase has been at the rate of about 3.6 per cent per year over the past 16 years. In dollars this increase has been from $17,378,359 in 1920 to $35,641,617 in 1936, a total increase for the 16-year period of $18,263,258. This total in- crease is made up of the following increases by departments, stated in the order of the size of the increase: It should also be | l Maintenance Expenses I ’ THE SUNDAY STAR, WASHINGTON, D. C., DECEMBER I, #for a 10-year program, The Committee on Taxes No. 1, Daniel J. Donovan: No. 2, E. Barrett Prettyman: No. 3, William P. Richards: No. 4, Willilam A. | Roberts; No. 5, Richmond B. Keech; No. 6, H. C. Whitehurst. —Harris-Ewing Photos. tend to hold up the total of the cost of the miscellaneous departments. It seems, therefore, that any at- tempt to decrease the maintenance and operating cost of the District in any considerable figure must of necessity come from a reduction of such cost in respect to the schools, public wel- | fare, police and fire. Likewise, any attempt to hold maintenance and op- erating costs to their present levels means the holding of the costs of | these four departments to their pres- ent sums. We are, therefore, con- fronted with this question: What are the necessities of the District in re- spect to the maintenance and operat- ing costs of its public schools. public welfare, police and fire departments? In the public schools by far the largest item in maintenance and operating cost is salaries. To fix that cost at its present level, or attempt to decrease it, means no additional schools and no additional teachers, or | fewer schools and fewer teachers. The !total enroliment ‘fn the schools has increased steadily from 67,084 in 1920 to 99,722 for the last term, an increase | of about {% per cent in 15 years. | Moreover, ‘tducational facilities have |increased both in quantity and in | quality, resulting in increased operat- |ing costs. The extent to which the | public school system should be ex- panded, maintained or curtailed is & matter of public policy in which the desire of the people themselves is the determining factor. The question {really is: What do the people of the | District want in the way of a public school system? Hospital Need Increases. In respect to public welfare, the most important causes of the increase in costs are relief, hospitalization and requirements for penal institutions; for example, operation of the work house has increased from $375.200 to $791,560, Gallinger Municipal Hos- pital from $120,782 to $631.400, St. :Elimbeth's Hospital from $850,000 to 1$2,101,5672. In part, this increase is | due to increase in population, but a | vast majority of the increase is due | to a new concept of the respomsibility | of the Government toward less fortu- ! nate people in need of sustenance or Maintenance and Operating Costs Electrical Department ... National Oapital parks. Courts - Contingent and miscellaneous penses Streets and bridges.. Bewers o Collection and disposal of re (Note: Eliminated items, budget, and accounting_differences cre Sross increase of $21.085. From the foregoing table it is ap-| parent that of the total gross in- crease of approximately $21,000,000 the increase in schools, public wel-| fare, police, fire, general expenses| and water totals about $18,000,000. | 1f the general expense item be di- vided among the 26 different depart- | ments which it covers, the average increase in each of these departments is only $2,300 per year over the 16- year period. The annual increase in all these departments totals only about $60,000. Thus any decrease in the expenditures in these departments, or any of them, represents an infinitesi- mal reduction in the total general expenses of the District. ‘The Water Department is self-sup- | porting and therefore should receive separate consideration from the gen- eral-problem of District expenses and | den of this action upon the local gov- g Increase. $6,788,524 5,289,058 1,925,913 1,165,700 858,537 952,906 893,267 494,785 473,547 364,435 289,770 1920. 1938. $3,658,526 $10,536,050 2,331,344 1,620,402 1,693,802 3,619,715 1,177,420 2,343,120 151463 1,010,000 884,806 1,837,802 321,703 1,214,970 494,015 988,800 424 453 898,000 106,060 470,495 500,660 790,430 174,685 212,000 888,860 175,000 1,100,180 91,980 115,000 462,473 474,200 1,144,880 418,710 1,332,270 190,800 215,000 287,788 262,110 256,020 243,710 232,090 98,820 100,000 $21,065,980 the interest sinkine fund in the 1920 ate certain decréases which bring the 980 down to the net of $18,263,258.) hospitalization. While, of course, the direct expenditure for relief = (now $2,000,000 per year) may decrease, no one can tell to what extent & per- manent problem of relief will remain. The withdrawal of the Federal Gov- ernment from this field has just been announced, and the consequent bur- ernment must be provided for. Whether the District should contemplate a cur- tailment of its public welfare program is a matter of policy, as to which spund public judgment should govern. As to the Police and Fire Depart- ments, it is obvious that increased personnel and supplies are absolute necessities as the city becomes more thickly populated. It is, of course, evident that many expenditures for capital outlay result directly in increased maintenance and reyenue. Neéw Functions Appear. ! If. all the other items (except! schopls, welfare, police and fire) were to continue to increase at the same | rate{as they have over the past 16 years, their increase would be $200,- ! 000 {per year total; if they were all decr&ued at the same rate, the an- nuali saving would be only $200,000 out of a budget of $47,000,000. More- over, new functions are constantly imposed upon the Government undef public demand, such as smoke conf increased activities of the Public Utility Commission, public health measures, etc. The consequent costs, although small individual items, i operating costs; more school buildings mean more teachers, and more hos- | pitals mean more physicians, nurses and attendants. It is estimated that 90 per cent of capital expenditures re- | sult in increased maintenance and operating costs. During the past 16 years the appro- priations for capital purposes have 1926 10,050,628 1927 9,450,462 1928 10,366,953 1929 9,365,800 1930 13,143,277 1931 16,040,378 1932 14,189.102 1933 8,831,194 1934 - 4037881 5,513,071 5,582,501 1 --$140,430,363 Thus, the average annual capital | expenditure over these 16 years has | been $9,362,000, and over the last 10 | years has been $9,752,070. The present current expenditure is $5,582,591. Present Budget | | lvems: P. W. A loan (sew- . age plant and tu- berculosis hospital) 1,0000,000 Streets and bridges.. 1,690,000 Sewers ____. 475,000 Public schools ...« 926,000 PFire Department.... 111,741 Public welfare 165,000 National Capital Park and Planning Com- ‘Water Department.. 849,850 $5,582,591 | for the year 1937 were: | District Building elevators. Street and road improvement.. Sewer construction Improvement of playgrounds. . Radio input system for police Fire alarm equipment. construction of buildings. .. Pire Department, new apparatus.. ‘Walled inclosure at Workhouse Anacostia Flats Capital Program. Capital outlay includes not only new construction but also all major replacements, enlargements, addi- tions and betterments. In contem- plating capital outlay for the next 10 years it seems that the following must be considered in any estimate of prob- able serious requirements. Citizens’ associations and other civic organiza- tions have urged these and many other projects not included in this list. (a) The P. W. A. loan in the sum of $3,800,000 must be repaid. (b) Streets, bridges and bridge ex- tensions will probably continue at the present rate, which is financed by the gasoline tax and is about $1,700,- 000 a year. (c) New sewer mains are about to be required, the cost of which will run about $700,000 a year. ° (d) Public schools ask new con- struction totaling almost $8,000,000 a year.. To expend over a 10-year period $20,000,000 over the 10-year period for this purpose. Fire Department Needs. (¢) The Pire Department faces the necessity for the construction of one or two new fire houses, the extensive re- construction of one or two old stations, and the purchase of considerable equipment. It would seem that the expenditures of this department can- not be reasunably estimated over the next 10 years at less than a total of $1,000,000. . (f) The Board of Public Welfare been as follows 1920 $2,750,880, 1921 3,423,660 1922 4,247,070 1923 6,560,501 1924 - 5,710,844 U1 p—— R L X1 together with the necessary incidental equipment, could not reasonably be estimated over the next 10 years at less than a total of $3,000,000. (g) The Water Department faces extensions of its mains and will prob- ably continue capital expenditures at its present rate of about $850,000 & year, but if that be reduced by $100,- 000 a year it makes a 10-year pro- gram of $7,500,000. Small Courts Building. (h) The small courts building should be built, the cost being esti- mated at about $3.000.000. and the amounts at which they should be in- cluded in any such program, are all matters of policy. As to some items, there are already commitments, such as the P. W. A. loan and the Capper- Cramton act. In almosj every other | instance the question as to whether a given project should be undertaken depends upon public demand—in other words, whether the public wants it or not. Collections Forecast. Perhaps it s only fair to indicate, | even preliminary to an inquiry into public thought upon these necessities, what the revenue situation may be. ‘We have in hand a study prepared by a member of your committee, indicat~ | ing the revenue needs upon certain ex- penditures. It shows that if the trend of revenue collections of the past 16 years be an indication of the trend of the future, the collections, based on existing law and rates, will not exceed $37,000,000 by the fiscal year 1940. This amount does not include the Federal payment. | Your committee feels that before | any suggestions are made with respect to a tax program, some decisions on | the questions of policy hereinabove | indicated as to maintenance and op- erating costs, and as to a capital out- lay program, should be reached. In furtherance of that suggestion we recommend that this report be made | public and that citizens generally, and their various responsible organizations in particular, be requested to submit | to the Commissoiners their sugges- tions on these two questions: 1. What are the future necessities of the District as to maintenance and operating expenses? 2. What are the future necessities of the District as to capital outlay? We further recommend that a pub- lic hearing upon these questions be arranged for an early date and that your committee be permitted to at- tend. With this information in hand, these two questions of policy may be determined by the Commissioners, not in detail, of course, but in general principle and round figures. It will then be in order for your committee to proceed with the ccnsideration of | the matters outlined in your original instructions. | Respectfully submitted, by order of the committee, E. BARRETT PRETTYMAN, Chairman, | | SHOP PLANS BEh;EFIT Sale for Week to Gather Funds| | for Charity Project. | The Opportunity Shop will hold a special one-week sale at 1121 Seven- | | teenth street, starting Tuesday, to | gather funds for building expenses of the new gymnasium at the Christ Child Settlement House, 608 Massa- (1) The program of the National' chusetts avenue. Capital parks, involving the purchase The shop, which is located at 1578 of land already under contemplation Wisconsin avenue, deals in second- | | for which the District liable under the Capper-Cramton act, iwhensver Congress makes the appro- priation, will total $9.500,000. () Some allowance must be made | The appropriation act for 1936 car- | for ‘Jjbraries, the Refuse Department, | ried the following amounts for capital | pivagrounds, the Electrical Depart- | ment (including the new fire alarm (station houses). the following expenditures, all seri- ously urged, must be considered: Water front. Alrport, estimated $1,250,000. Anacostia Flats project. Fort drive, estimated $7,000,000. ‘Watts Run project. Armory and stadium, $2,000,000. East Capitol street bridge. Pennsylvania avenue bridge. estimated Oxon Run interceftor, to commence construction. Public welfare, new building at Recei! Rock Creek Park bridges. Requests of Department Heads | | Among the requests of the several departments for capital expenditures = $92.000 1.000.000 178.750 1,350,000 640,250 76,000 150,000 55,000 35,000 Public schools, for purchase of land and improvement u;é 7,704,000 - 92,000 g Home. 100,000 134,000 Continue construction of permanent buildings at and purchase of equipment and construction of dormitories Adult Tuberculosis Sanatorium, furnishings and equipment. 125,000 Gallinger Hospital, taking over Columbia Hospital s District Training School, buildings and equipment Industrial Home for Colored Children, new building. Industrial Home School, specifications Home for Aged and Infirm. truck and bdfler 386,200 60,000 202,750 7,000 10,000 16,000 180,000 275,000 154,000 25,000 150,000 493,800 35,000 new building. ......... —— t A A f ] Garages (municipal for public use). (™ Subways. Municipal Center. Rock Creek pollution. If the following allowances were made as representing a capital outlay program for the next 10 years, an |March average annual expenditure of $7,500,- 000 would be required, to which sum must be added whatever allowances are made for any of the projects men- Qctober tioned above in (k). Any such esti- mber mate would be greatly below the aver- age annual expenditure of $9,750,000 for this purpose over the past 10 years. Total for Next Ten Ye: National Capital parks (land)---- (Remainder of lia- bility of District under Capper- Cramton act), (mMP.) cccmmane Total, 10 years. ...$74,950,000 000 1,000,000 be- | items mentioned in (k) would bring L3 sanatorium, new completion of the District Training School. These items, 5 [ this average up to $8,500,000 per year. ‘Which of the foregoing projects the Commissioners should' contemplate as proper to be included in the budgets is already hand house furnishings and clothing, system and headquarters) and police may live the life of a goldfish, but (k) The liability of the District for | kisses. Grandfather Charles Piker dolls, books, toys, etc., all of which will be offered at the sale. Triplets Are Protected. CHICAGO (#)—The triplet sons of Mr. and Mrs. John Harenberg | they'll be protected from germ-laden built a glass panel for their boudoir and the curious can look, but they mustn’t touch. THE WEATHER District of Columbia—Cloudy today and colder late tonight; tomorrow fair and colder; gentle to moderate south- erly winds shifting to northwest tonight. Maryland—Cloudy with light snow | in west and probably light snow or rain in northeast portion today; colder late tonight; tomorrow fair and colder., Virginia—Mostly cloudy with Iightl‘ SnOW in extreme west portion and rising temperature in south portion | today; colder late tonight; tomorrow fair and colder. West Virginia—Light snow today; colder tonight; tomorrow fair and colder. River Report, Potomac and Shenandosh Rivers clear last night. m‘:‘“ Until 10 P.M. Saturday, 1 Record Until 10 P.M. 8. 8 ‘l'flIThnt, 37. 4 pm. yest . Year Lows 3 — 6;.“‘ 33, 8 am. yesterday. Year Record Temperatures This Year, Plshest. 98, on July 20. west, —3. on’January 28, Tide Tables, (Furnished by United St nited States Coast and o) Tomorrow. 17 pm. The Sun and Moon. a. 11:28 a.m. Automobile lights must be turn half hour after sunset. Precipitation. Monthly precipitation in_ inches Capital (current month to date): Month, 1935, s ._.__._... APRSIRSSE0ma e e RRREBRBLREE! P & Weather in Various Cities. onen B 90 B BB B ) <ot 22822 £ B SR i) useuzgesseron uArLyLy 2003k R O] T T TS BS%. RIPLSATRIR5R: 1935—PART ONE. MINNESOTA OLD-AGE PENSION FIGHT SEEN embracing maximum benefits of $30 monthly with counties contributing. The conservatives also will en- deavor to enact a 1-cent sales tax without exemptions and set up an un- employment insurance fund to which employers and employes would con- Legislature Convenes Tomorrow tribute, in Special Session—Conserva. tives Control Both Houses. By the Associated —_— FRENCH INSTITUTE ST. PAUL, November 30.—A WaIM | 4, ,y,] Meeting to Commemorate fight over old-age pension proposals— one of which wculd provide $50 monthly to every one over 65 years, Burvey of U. 8. Life. At its annual meeting, to be held at the Mayflower Hotel next Saturday, irrespective of need—was predicted by | the Prench Institute of Washington leaders as the Minnesota Legislature | announced yesterday it would com- prepared to convene Monday in spe- memorate the centenary of the pub- cial session. lication of Alexis de Tocqueville’s The conservative blocs, dominating | “Democracy in America,” noted sur- both houses in opposition to Gov.|Vey of life in the United States dur- Floyd B. Olson and his Farmer-La- | ing the early nineteenth century. bor administration, were marshaling Ambassador de Laboulaye of France forces against the liberals’ pension |and Mme. Laboulaye will be guests plan. They have protested such a|of honor at & commemoratory lunch. program, without contributions from Prof. Gilbert Chinard of Johns Hop- counties as proposed, would cost $90,- | kins University and Prof. Willlam E. 000,000 annually. Lingelbach of the University of Penn- They expect to offer a substitute | sylvania will speak. W. 8 J. Sloane A-21 PERU ART TO BE SHOWN Indian Textiles, Silver, Pottery and Leather to Be Exhibited. More than 1,000 objects of Peruvian Indian art, including textiles, silver, pottery and leather work of rare types are to be exhibited in the foyer of the National Museura throughout Decem= ber, under the sponsorship of the Center of Inter-American Studies at George Washington University and Carnegie Institute. The pleces were collected by Mr, and Mrs. Paul Ledig of Battery Park, Md., during six-year residence in the village of Huancayo, in the Peruvian Andes, where Ledig was engaged in scientific work for the Carnegie In- stitute. West Virginians to Entertain. The twenty-first annual apple cider and ginger bread party of the West Virginia Society will be held at the Raleigh Hotel Wednesday, from 9 p.m. until 12:30 am. Dancing and cards will feature the entertainment. 24711 Twelfth Street You Will Begin the Christmas Shopping in Earnest Now It can be so simplified—so graciously accomplished, if your thoughts turn to the practical and your selections are made here. The Sloane “Thistle” is not only the recognized stamp of quality, but for 92 years it has been the accepted em- blem for distinctiveness in design. Tables and Desks OCCASIONAL END TABLE of genuine mahogany, with book trough beneath. $9 LAMP TABLE of genuine ma- hoznni; with a beautifully turned base, brass claw feet and leather NEST OF TABLES. Made of solid mahogany. " The large table has drop leaves. Each of the other two are of practical sizes. Red brown finish. $19.75 DROP-LEAF END TABLE, also in mahogany; & miniature of a fine old Colonial library table; brass claw feet. $8.50 DRAW-TOP TABLE—A min ture of an early American dra top table; sturdily constructed of rock maple and carefully finished. Will make an ideal cocktail table. s12 MAGAZINE TABLE—A practi- cal piece with top large enough té support a lamp; two shelves below and gracefully turned legs. Gen- uine mahogany construction. $12:50 DROP-LID DESK of the Early American design. Solid rock ma- ple construction. An ideal present to boy or girl. $29 DROP-LID DESK of Early American design. Has four handy drawers in base; with convenient- y arranged interior writing space. Solid rock maple construction. Finished the old Early American tone. 339.50 Chairs SIDE CHAIR of the Empire motif; made of solid Cuban ma- hogany with seat upholstered in & selection of effective fabrics. Ideal chair for bridge, dining or occas- ional use. $13.50 OPEN ARM CHAIR—A vari attractive 18th Century Englisl design. The exposed parts are solid walnut, with graceful ball and claw feet. Effectively cov- ered in a variety of materials; an- tique nail trimmed; all horsehair filled. $29-50 Lamps For everywhere in the house and for all uses. Boudoir Lamps in a variety of new and exclusive designs—ala- baster, pottery, glass, etc. They are complete with shades, effec- tively trimmed in keeping. $2.95 Dressing Table Lamp— Ex- quisite Colonial figures of the Dresden type; beautiful colorings that are very decorative, Com- plete with silk shades. Living-room Table Lamps of imported pottery in a variety of designs and colors; complete with shade. $6 Floor Lamps made to the ex- act specifications of the I. E. S. Equipped with the new bulb that a simple turn of the switch regu- lates the one, two and three hune dred watts. Complete with shades. The Lamp that overcomes e strain. s15 Mastercraftsmen Bed Room Suite The design is an accurate interpretation of the American-Sher- aton motif, rendered in carefully selected genuine mahogany. The pleasing and delicate lines of the Sheraton School, together with the handsome crotch mahogany veneers, lend exquisite char- appreciated gift can be sent into any home. acter to this Suite. Complete in 8 pidces. No more sssc Oriental Rugs Hundreds of genuine, handmade Oriental rugs imported by us direct from the leading looms of the N' ar and Far East. IMPERIAL KERMANSHAHS —1In the rich, handsome colors and beautiful patterns for which these rugs are famous. 9x12 size. $389 ROYAL SAROUKS—and they are the royalty of the rugs produced in the Sarouk district, specially se- lected for their beautiful colorings and attractive patterns. Size 9x12. 8295 Charge Accounts Are gladly opened with settlements arranged for your convenience. LILLEHANS AND SERAPIS— Each of the many designs is a masterpiece of color and execu- tion. Size 9x12. $159 Hamadan Mosul—You will find many needed places throughout the home where these rugs will not only decorate but help to fure nish effectively. “Scatter Sizes” Size 4x7 7.50 5.00 2x4—$13.50 Courtesy Parking ‘While shopping here park in the Capital Garage at our expense. W. & J. SLOANE 711 Twelfth Street District 7262 The House With the Green Shutters