New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-02
THE DEBT OF WASHINGTON.
HOW MONEY WAS RAISED TWO YEARS AGO.

LOSS OF THE DISTRICTS MONEY BY POOR BOOK
KEEPING ..
fFRom THE REGULAK CORRESPONDENT TRIBUNE
WASHINGTON, May Pain the early Summer
OF 1873 the Washington Board OF Public Works
bankrupt Contracts for great quantities of work had
been awarded although appropriations TO pay for
had been made, and the illegal haste OF the Board
tearing up streets and giving out work to fayores OF tbs
Ring had deprecated ts certificates Of Indebtedness
and crippled honest contractors that danger
that work would have to stop In midSummsr, with many
OF the streets actually impossible This In view Of tho
enormous appropriations which had been male by Con.
grcss, but which had been about TO be allowed
up by the accumulated liabilities Of the Board made the
future OF the Ring very dark At this Juncture Mr. Aleu-
Shepherd devised plan for realizing at upon the
assessments which had been made upon private property
for special improvements by act extending the tno
OF payment"
Nobody but the Boss" would have thought Of ,hi4
On the hand the pressing necessities Of the
Board; 1t have money at ON the other hand
the poverty OF the citizens many Of whom were IN
danger OF being improved" out Of their homesteIIs
for the work had been done by the Board In such
trayagant manner that hundreds OF citizens acti
ally unable pay the Qnesxth OF the expenso That va
assessed upon them The invention ~ bill, therefore
which, white IL extended the time within which tho prop
ertyholders must pay these assessments at the nn,
time made the proceeds OF the Assessments Immediately
available, WAS therefore. the work OF q genius by thu
terms OF this wonderful act this Board Of Public
Works authorized to issue per cent certificates
OF Indebtedness for done and chargeabc 20 The p
vae property benefited thereby These certificates have
| been generally known greenbacls or " green
eghts" To pay these the Board required 70 dnpDst
with the Commissioners Of the Sinking Fund all ccrtd
Of assessment thereafter issued against private
property II will be observed that these certificates u
indeb tedness were be issued for done" and
not for work to be done. Previous tQ this time the Board
had assessed the property street after the improve
ment was completed sna Il WAS the difficulty Of col
cctng these assessments that was made the preten-e
| for the act referred But the Boss" hal a. lta
| regard for the terms OF the laws passed 10y
his tools, the District Legislature. for the
acts Of Congress, and so, having got tho authority
to issue these per cent grcenback bonds he utterly
Ignored the conditions which they were to be Issued
and which he had himself fixed, and put out the whole
two millions within very short time and before tho
assessment certificates which they " be based
were ssued-before the work had been done. nmlny
| instances, begun In other words, while the private
property OF tho District not by Law liable to la
assessed for special improvements until the work was
| completed and tho assessment sheets made ou;, tho
Shepherd Ring placed upon it lien OF 81, 100000, draw
ing interest at per cent For instance 81 has nothe"n
assessed to this day, and yet the property on F,t il
liable for its proporonate share OF these $1,000 Of
bonds and for the interest upon them since the Summer
| of 1873.
UNJUST ASSESSMENTS.
But this is not the worst feature Of this operation Tho
Ring not only issued the bonds and got the money for
work they performed. but in many cases all over
cities OF Washington and Georgetown they made ont
the assessment sheets streets and Issued certificates o
assessment against private property for work that was
not at the time completed and IL not now completed In
this way We citizens ha.e been re:9.rsd to pay ot
work that has been DONE or II the assessment has
paid is drawing interest at the rate OF 10
per cent per annun, and is with the accrued Interest
lien upon tho property Tor instance Suppose the I'M
provement Of certain street. to cost 200o0, of which
100000 to be paid out OF the general nind ftoooO
by of the private property the street and
$4,000 by the United states Government. Tho Board
| had the entire before 1t began the work. tho
$4,000 was in its treasury, derived from ihe
81 600 900 loan the $50 900 had been Appropriated by
Congress and the $50 900 had been obtained b. the sale
| OF the 8 per cent "greenback" bonds. The Board
awarded contracts for all OF the work the street and
it was begun. Before 1t completed Winter came on
and had to be suspended and on the ls OF January
six months interest tho bonds e. greenbacks) fell
DUE and the Board had money to pay it with They
therefore made an the street for the WORK
done and to be done, and the certificates that were
issued, and that drew 10 per cent interest," were by
the Sinking Fund Commissioners sold TO bank In New
York. In the ensuing Spring tho Board was unable 10
20 with the work, for want OF money or credit tine
money with which this to be completed hav-
ing been used esewhere and the work has never been
completed. But some OF the assessment certificates
have matured. and the propertyOwners have been
obliged to pay them to prevent their property from
being sold. In this they have been forced 10 pay
for work that has never been DONE
This is of assumed case but there real
ones like it all the District and 1t illustrates one
phase OF the Ring mismanagement, which, believe, has
not before been fully exposed The financial fruits OF 1t
are wofod the first place it has greatly increased
the amount Of 1865 bonds which the District Comms-
soners have issued and will issue. Where assessment
certificates have been against property and the inn
proyements have completed the citizens are Of
course very anxious have the work DONE II Is not
done they will naturally rest the payment OF the "a
sessnents as have already done, by means OF M
| functions SC The Commissioners have In many saeh
WHO were willing to go on with the work and take their
nav in the 6j bonds TO do and thus save the trouble
wise one or not shall attempt TO decide IL was 10
easiest method Ivy which anything like justice could bs
done IN the class property0W affected by H. anu
az everybody expects that the United States Coy Mt
will + NAVE wit II Pa etGa1 a
era comparatively little interest in tho increase IN
| their amount.
| ExTRAvAGANCE OF THE SYSTEM
In the second place. Mr. Shepherds method f"eNtend'
ING the time Of payment Of special assessments has been
very expensive one the District and this expense has
been Increased by the delays that have occurred IN pre-
pairing the assessments for much Of the work that hs
been done. While the Board Of Public Works were ~
such haste TO issue the assessment certificates against
some OF the property that they could not or dd nov M
bnv failed to make the assessments after the wori
was done The Board OF Audit reported, IN December
last that there then remained uncolleeted special I'M
movement assessments in excess OF all demands against
| Tho same S3. l76454 81 For about NZOOo,OUO OF tih
n am sti using the figures OF the Board OF Audit the
assessments not yet been made although some .,
The work has been completed nearly two years lnersta
bS rafn OF 10 per cent is charged ON all assessment
certifcaes which not paid within thirty days aet
notice o. los, ,be this s2o0oO0o from ne
time the work was complete, la W. snd his Eos. II
might legally have been made until now, 'S r.
interest will continue until the assessment ccr,es
are issued. - -.
II the assessments had been promptly made, one Of
80 th,n.s would have happened the prOpery-Ow
,,1 have Maid them In which the money would
bave heen used to purchase and cancel equal amount