National Republican. (Washington City (D.C.)) 1872-1888, 1874-03-11
DISTRICT INVESTIGATION.
ntfnued from First Pace.

the old corporation to the new, includin
amongst others in the whole aggregate TIL
'tM5, 900 and odd dollars and then there Is tn
receipt by the comptroller, to Moses Kelly
treasurer of the sinking fund, on page 81, o
8956, 1SS As, in payment of this account. y
that It would be impossible forthe comptroiie
to distinguish what bonds, If any. were apphca
bic to this $215,O
The Governor: would suggest to the com
m;ttee that this settlement was for advance
made by the new government to the old govern
ment in carving on the current business Of tn
government For instance, in regard to schoo
teachers, this $40, 600 and odd dollars referret
to was par. II this money. It came into thi
statement, and went to reimburse the Distric
government. It is accounted for in the comp
troller's report. He receivedit and gave credi
for it, and disbursed It.
The act of Congress to which Judge Merricl
refers, relates to the liabilities of the city o
Washington, found in the auditing commission
report. That was entirely separate from the in
debtedness of the old corporation for advances
afterwards made by the District government
for those school purposes.
Mr.. Merrick. Nevertheless 1t was carried into
that account, and paid to the commissioners OF
the school fund BY the commissioners of the
sinking fund
Mr.. Stanton. Under an act of the legislature,
June 20, 1S72, which expressly states that that
relates to the Indebtedness, and is referred to
In the acts of Congress.
Mr.. Allison Mr. Baker testified that rs to
the amount raised by taxation, and then he
stated that applied to schools in addition to
that, was S2l5 ,94S.
Mr.. Merrick. Yes, sir.
Mr.. Allison. Some one asked him how that
sum was raised, and lie said it was raised by
bonds.
Mr.. Merrick Yes, sir.
Mr.. Allison. suppose those are the bonds
referred to in that statement!
The Governor. Yes, sir.
Mr.. Merrick. Here is the account, and he
states in that how It was raised.
Mr.. Allison. In the a ljustment . certain
amount of bonds were delivered to the new
government.
The Governor. Yes. sir.
Mr.. Allison. That is the way understood it
at the time
The Chairman. 1 wish now to address
word or two to the counsel.
We have had no time as yet to examine these
various acts of the Legislature, nor perhaps all
the acts of Congress on this subject, and it
would facilitate our investigation, and we
would be enabled TO understand the testimony
better if we had trief statement of what has
been done in respect to payment of the debts
vi Lie cOTpOrl''tnS Oh was GEORGE
town, and the county, If there were any debts
due by the county. We told of sink
ing fund commission, created under the act of
the General Assembly.
A voice. Under the act Of Congress.
The Chairman. OF an auditing board to
audit the floating delt of the old CORPORATION,
and that that debt was settled in some way
How was that? We're the debts of those two
old corporations assumed by the District gov
eminent.
Mr.. Stanton. have digest in nv hand
which refers to some of those acts.
The Chairman. VIII you please state ex-
actly what was done.
Mr.. Stanton. In the first place, the organic
act, "Act of Congress of February 81, ISL. or
ganizing District government, section 40 page
2S, part l, Laws Of District, confers on the
Legislative Assembly powers to levy special
taxes upon property. except United States
properly, within the city of Washington, for
the payment OF debts of old corporation of
Washington; so also as to property and debts
of Georgetown and county,
That Is the starting point-the power given
to the Legislative Assembly by the organic
act.
'Act of Legislative Assembly of August 10,
ISL, chapter %, first Assembly session 1,
page rs, ct seq, creates commissioners of sink
ing fund and prescribes their duties 1t pro-
vides that four citizens vcrsed in the manage
ment of financial affairs shall be- appointed,
and, with the Governor, be styled commission
ers of sinking fund. The commissioners are
given entire control of fund and bonded debt, |
due by old corporation of Washington and
Georgetown and county, or thereafter to be
created by the District of Columbia.
"They are to receive, weekly, from treasurer
of the District, all money collected on account
of interest On, or extinguishment of, debts.
bonds or stock Of Washington, Georgetown and
county, or of the District. They are to de-
post and disburse upon their warrants moneys
received by them on account of interest or
sinking fund, or bonds, stock or Indebtedness |
due by said corporations and county thereafter |
to become due by the District. The rest of the |
act prescribes the mode Of administration of |
the sinking fund, the giving of bonds by the |
commissioners, and the filling of vacancies.
"Act of August %, 1871, oh. So first Assem- |
bly,, session /, PIP. III, lis, authorizes sinking
fund commissioners to pay at maturity interest
on all bonds issued by late corporation and by
District, for which purpose, as to interest on
Washington bonds, appropriation is made out
of fund levied and collected for payment Of in
terest on said bonds. or in advent of insuiciency
of said fund, out OF Washington fund.- and as
to Georgetown bonds. appropriation is made
from Georgetown fund and as to District bonds,
appropriation is made from general fund OF
District.
"Act of June 1G, 1871. first Assembly, session
!, oh. 8, PIP. Z, s, authorizes the appointment
of three citizens to constitute a commission to
receive and audit outstanding claims against
corporations Of Washington and Georgetown
and Levy Court, and report in detail to Assem-
bly, with opinion as 10 the merits Of each case.
together with papers and all evidence
Mr. Stanton. That is the auditing commission
"a commission appointed to audit the claims
of individuals against the old corporations-theI
unsettled liabilities of the old corporations to
wards individuals. 1t is a matter entirely out
side of the commissions between the District
and fine old as will no hor
after.
"Said commission are instructed to devise a
plan ts be submitted to the Assembly for liqui-
dation or funding of such claims. Act of Jan
nary 10, 1S72, fret Assembly, special session,
second, oh. "a, p. "A, ct seq, provides for pay
ment of the floating Indebtedness of the old
corporation of Washington, and recites the for
tieth section of the organic act authorizing the
levy Of taxes on property within the different
divisions of the District for payment of previous
debts of the respective portions, and act Of As |
sembly authorizing appointment of auditing
commission and submission of its report"
The Chairman. What is the date OF that!
Mr.. Stanton. June 10. 1871.
"The act, then, for the purpose of paving |
floating and due Indebtedness of corporation of |
Washington, levies tax on property within said |,
city of thirty MS on each one hundred dollars
for fiscal years ending June 20, 1872 1875, 1s74
1875; 1evies tax of ten cents on each one hun
dred dollars annually for the purpose of con- |
tinuing sinking fund created by corporation of
Washington, under an tot Congress: and
1eeies tax off cen cents on each one hundred
dollars annually for payment of interest and
the several funded and Understanding debts
of Washington; tax is also levied Cor retire !
ment of certificates issued by Washington uD-
der the 9th section Of act Of Congress of July7,
1870, and 9th section Of act Of Congress of July
Is, 1870. Taxes thus levied are required to he |
paid over by collector Of taxes to commission |
ers of sinking fund, who are to keep accounts |
thereof and apply the money to extinguish the |
Indebtedness Of the corporation of Washington. |
Upon surrender Of any indebtedness due from |
corporation Of Washington which has received |
approval of auditing commission and of Legis- |
lktive Assembly, the Governor is authorized to |
i}sue to owners of such claim scrip signed by |
the comptroller and auditor in behalf of city Of
Washington, bearing interest from July l, 1871. |
at rate of seven per centum, and payable on or
before July I, 1Si5.'
The Chairman. Created on behalf of the city
of Washington!
Mr.. Stanton. Yes, sir. !
The Chairman. DO you know what the form
nf that scrip Isl