New-York tribune., 1874-10-20
WASHINGTON.
THE LIABILITY OF THE DISTRICT ~
PAY INTEREST.

THE LIABILITY OF THE DISTRICT 10
PAY INTEREST.
ATTORNEY GENERAL WILLIAMS DECIDES THAT IN
TEREsT Is TO BE PAID ON CERTIFICATES or IN.
BOARD OF PUBLIC WORKS AT THE RATE of eiN
PER CENT. ,,
WASHINGTON, Oct 19.-Attorney- -Generai WI
lams has given the following opinion relative " wy
question OF interest the certificates OF
issued by the Board of Public Works Of the ps'c' VI
Columbia: -,
DEPARTMENT OF JUSTICE WASHINGTON, Oct II, 1879
The Hon b. H. BRIsTow secretary Of ne heGsHB In, nj,
have the houOr to acknowledge lhe tclasina
one OF the 9th addressed to you by the First and
Controllers. and requesting my opinion upon he INV M
ton these officers, VIZ whether tney e.
ting as Board OF Audit under the act OF Confo
the Government OF the District OF columbia pon of
June 90 1874 should allow interest on that pouo M
debt OF said District, purportng TO DC s ,Se
certain cerheates signeS by 'he tnd IN the in
closure of your letter copy of one OF these
showing their form and tenor he aected by
the determination Of the question IL may 30 IrnIted
Is not aso, or caea oS TO examine
Congress has enacted law by when IN eolpe ov he
Obliged to pay the debt of another Government dont
that the nature CONDITION OF that uep eau r. he
debt bears interest 1t must ce taken "cun. ohere s
indebtedness TO be audited Is that OF the psum 10 10
provision and has determined that its status sni Io
accurately ascerained. The act above releTfeu W o
when these certificates belong; secondly the debt pur
porting to evidenced and aseerained 3y endht
is lawful and right for the District to pay tbe
these certificates is, as 1aders,ana IN m n IL 'ne
The Board of Public Works having entire control over
the streets avenues, alleys and sewers OF tne eS
Washington and GeOr getOwn, ordered the Improvement
of the streets, &C. to be made, ana contractor WIZ
sundry to do the work Under ,ne q, sa
upon their warrant all moneys az ~ m ~ aet Of
ance OF law, for improvements toecu1n ., C ne inns
OH
granted there is necessarily inferred the authority w. 10
audit and settle the ACCOUNTS GI imnosed upon
an officer styled the Auditor OF tne Boaru Vi ,
Works He represented tue BOARD ot anu ~ his action
was theirs. When the funds OF the BOard pecaho o.
hausted and the amounts ound que 10 ud ave TO
upon settlement could not be paid, the AudtoI cav
them doubtless by order OF the Board) az eViue
snch settlemeps certificates signed by hln az huulo'
in which IT was stated that he had audited aud allowed
accounts, and tho amounts allowed were @ uls ~
given These amounts as n9~n Dy ,e e a bc respect
i've dates OF the certificates ana tnefe peins nv n'r
tion raised to the legality OF the @ Dsrrct
which they incurred tney are debts OI tue Ds0'
of me oppion that interest is chargeabe on these
certificates AFTER their dates, because tht are
evidence of Indebtedness sseertaned anu py
and at times they bear date Ihey are ach
ments Dy the deptor that amounts shown by them
were due at tine date at which the payment was @ uo
cined Tue law In such cases implies contract TO pay
interest The interest becomes part OF the de1t az
obligatory upon the debtor as the principal III Dau
Dam agt Riley q Bro. c. C. D. 81 Lord Tnurow sad 10
Wnen there are accounts regularly stated between the
parties there is an implied contract on tne part VI .e
debtor 10 pay and all contracts 10 pay undoubtedly gave
right to interest from the ume when the principal
ought be paid" And Mr. Justice spencer sa,u IN ~
Walden agt. SberbOrDe Q5tD Johns. 42i " we nave uh
fopmv decided that after an account has been hqJi-
dated carries interest, and that an account Is 10 oe
epe not made TO- it, tee also O. H. j. savares decision
in Reed Rensselaer, Glass Factory Sowen, 49,
Mr.. sedgwck IN his work on damages, wen sums ~
the law ON subject, as 1t is held in Amerea ID
note at the foot Of page $685. thus ,,d,
all of default pay the principal FUN "efe Tie o' snoTs
These authorities will PROBABLY suffice TO show what
the this subject is IN the ease OF ndvdud- aud
cOrporat0ns IL Is not different in respect 10 state aud
Territorial Governments. State cannot be sued by
citizen when questions OF public Indebtedness come
hesitate to dispose OF them the same legal aDd
equitable principles az in the case OF individuals Inc
State liable interest individuals are Respub
ca ACT. Mitchell I'D Dallas 10l; Commissioners agt
Kcmpshal 26 wend. 4Oi; People agt Canal Commission
ers DEMO iOl; I'd Mason c. g. Rep ~ and congress, III
recurring the Controllers of the Treasury to examine
and audit the floating debt OF the District OF Columbia
mas limited them In performance OF this duty by DO
rnes in respect TO those which would
apply to the debts OF individuals corporations ana
and IL be inferred that II s the intent
of the act that they should he governed by those rules
Moreover section Of the act OF April a. 1870 ut stats
g) entitled IAN act TO Amend the Usury Laws Oi ine
District OF Columbia provides that for the loan OF any
money goods things in action, the rate OF interest
shall be six per per annum, and there seems 10 lie
no good reason why this act should not apply to the
qudated and overdue Indebtedness oi .he aie noai
want, GEO. H. "ILLIAhs' A''orne''oenoiai
TIE ACCOUNTS OF THE NAVY DEPARTMENT.
WAsHINGToN, Monday, oct. 10 1874.
Judge Tabor the Fourth Auditor OF the Treasury De
partment who auds the accounts Of the Navy Depart
ment has made his annual report TO the Secretary, TO
be submitted to Congress in December 1t shows that
there are 3,0s3 persons on the navy pension
rolls OF which 1899 Invalid pensioners and leSi
widows and dependent relatives. The total amount
disbursed account Of pensions in the navy s65l95
The amount of cash disbursed during the fiscal year
ending June go 1874 s2lo5s27. There were SO un-
settled accounts on hand. The number OF delinquent
paymasters does not appear to be reduced although
the number OF prepared by the Auditor for su
was quite large OF the nine thus prepared IL does not
appear that any have been proceeded against by the
Secretary OF the Treasury In the prize division the
amount appropriated and set aside for prize money was
$7l66O being almost wholly devoted 10 what Is known
as the Farragut prize money. The amount ac-
tnally paid prize and bounty money was
$2iOO23. The disbursements OF the navy agents
Tor the year slO6s3o0 The Auditor reports that
Notwithstanding the reduction In his force lie has been
enabled keep along with the current work, but he
complains Of the want Of room in his office, lack OF
which Ia felt by every bureau in the Department More
than 100000 annually paid for rent IN this city 10y h
Treasury Department alone owing to the iDadequacy Ol
the Department building.