The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-11-20
The Governments Claim on the Cens
tennial Fund.


provision had been made for the erection
OF suitable buildings. No provision was
made, however, by this act for procuring
the funds necessary; and II was expires ly
declared that the United States should not
be liable for any expenses attending the
Exhibition. All that was done was TO estaD-
lish II commission TO promote ana controi
the undertaking. But in the next year,
1872, in order TO procure the requisite
I FUNDS q corporation was created by act of
Congress, under the name of the Centen-
NAL Board of Finance The corporators
were certain persons selected by name
from each State aud Territory. The pre-
limnary steps for obtaining the subscrip-
lions to n capital stock of si0,0OO,O00, and
for n meeting Of the corporators and sub
scribers to the stock for the election of
Board Of Directors, were to be taken by
the United states Centennial Commission.
The proceeds of the stock. together with
| the receipts from all other sources, were to
be used by the corporation for the cree
ton OF suitable buildings, and for all
other expenditures required in carrying
out the objects of the act Of 1871.
BY the same act, the United States Centen-
NAL Commission, which had been hitherton
sort Of honorary board, was also created
| n corporation, ana its general supervision
and control OF the Exhibition were con-
tinued. The United states assumed the
expense of preparing the stock certificates
for the corporation named the Centennial
Board of Finance; but the act provided
that nothing which it contained should be
40 construed rs 10 create any liability OF
the United States, direct or indirect, for
any debt or obligation incurred, or for
any claim, by the Centennial Exhibition.
or by that corporation, for aid or pecu-
mary assistance. This corporation was re-
quired by the law, as soon as practicable
after the closing of the Exhibition. to con-
vert its property into cash, and after pay
ment of all It's liabilities. to divide It's re-
naming assets among its stockholders.
pro rata, in full discharge of Its capital
stock The other corporation. the L lifted
States Centennial Commission, was re-
CURED to supervise the closing up Of the
AL iirs of the first corporation; to audit its
accounts. and To make report 10 the
President of the United States Of the
financial results OF the Exhibition.
Tlal. it appears that the relation Of the
United states 20 this project consisted in
the crcation'of two distinct corporations,
one Of which was 10 undertake the duty OF
managing the financial Affairs Of the Ex-
hihtion, rs n corporate property for a
body Of stockholders; while the other cor
poration was TO be an agent of the Govern
meut in the exercise Of u visitatOrial or
experimenting power, with authority to
make rules for the carry ing on of the Ex-
hibtion. All pecuniary responsibility or
aid from the United States was expressly
disclaimed.
From this attitude in regard TO Govern
ment aid, Congress i'll February 1876,
so far departed as to advance to the
corporation named the Centennial Board
OF Finance. for tho completion OF tho
Centennial buildings, the sum of $500,
900, by an act, which Affected the appro-
priation with the following proviso;
"Tht N the si.riouto1 Of any moneys that may re-
after the payment OF It's deats. provided for
y Finance me anprop1aiion hcreinbefefe maze Shall
Se(cre any dyiieHd or perce,ase efhe pron,s shall
Dc pid to Tue holders 81 sad STOCK pto.lded ls9'
under any crcnnstances, be aole Tor any debt or obi
& Hoard ~ Fin1nce or aSy payent in in
addition 10 the force jing sum-"
1t is quite plain that this law intended to
secure to the United states a lien, to the
extent Of the advance, upon the funds Of
this corporation, rs a preferred creditor.
The law is 10 be co ,strued in connection
with the act Of incorporation, which gave
the stockholders right to receive distri-
button of the assets arising from the sale
of the property, after the payment there
| nd "a at Of oil / l..
liabilities. The act Of 1879 does not enlarge
this right Of the stockholders, or include
among the assets distributable TO them the
, sum of $1,000 900 advanced by Congress
On the contrary, IL expressly excludes from
those assets tine sum which Congress hai
advanced for the completion of their build
ings, by asserting lien upon any moneys
that may remain IN their treasury aftel
their debts have been paid from the pro-
ceeds of their property or their othe
l asset w Withholding the sum o
1 sl,5JO,OOO from any dividend or percent
1 age Of the profits to be paid TO tn
= stockholders.
: The proper way TO state and clos
the accounts of this corporations uude
G the two acts Of Congress, Is, after pay
a ing its debts from the proceeds of its prop
;, erty. if they are sufficient TO pay them, T.
; put the surplus, If there be any, into il
r treasury. If the sales of the property fal
1 short Of the debts, they may be paid fror
U the remaining assets. But before any pan
OF the cash receipts of the Exhibition
Z amounting, il Is sad, to between one an
{, two millions after payment of the debts
e can he carried TO the credit of III
II stockholders, the Government must rt
Y celyc its sljOO00O In like manner, If III
Il sales of the property should more tina
!, pay the debts, the surplus wOul
T stil be affected by the Governments liel
n for that extends to any moneys that ma
y b. in the treasury of the corporation aftt
the payment of its debts ms provided fC
q BY the former act.
v The proviso of the act Of 1876 dot
D not afford room for u question {
If what are to constitute the profits Of IN
r. Undertaking as Il business cnterpris
" Ihe list act directed specifically how Il