Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-05-23

| the act OF June 20, 1874 These contracts Of
| the Commissioners, by which new work was
authorized under the name Of extensions,
| and by which they agreed that the contrac-
| tors should be paid therefor In 365 bonds OF
| the District, seem TO your committee TO
have been without authority or warrant Of
| law.
II there were any doubt OF the correctness
| of this construction OF the act the circum-
stances attending the passage of the act and
| contempOraneOus with IL cannot fail TO re-
| move il. The object OF Congress is apparent
| from the terms OF The act itself 1t was to
put the late District government AID the
| board OF public works In a course OF bank
| ruptcy, TO make the Commissioners the as
| signees and trustees, and to audit aud fdnd
all The Outstanding obligatioos OF the Dis;
| provisional, and the terms of the act afford
| conclusive evidence that Congress expected
fbe District a she ensSer sss
sion. Large appropriations of money
| were made py this act, and an unusual rate
| OF taxation was authorized TO be levied from
the property of the District To pay the over
| due demands of laborers, employees and
others. in order that the District might be
| extricated from the financial embarrassment
which the reckless and unlawful manage
ment of the affairs of the board of public
| works and of the District had entailed upon
It's government, and thencefortn 10 be run
on cash basis.
1t was said by one OF the members of the
| Joint committee In the Senate "that the idea
OF the bill was to lift this bankrupt District
out OF It's present distress, and for that pur-
pose appoint temporary government and
board OF audit to audit the accounts OF this
District, which for three years have never
seen the face of an auditor" The chairman
OF tie joint coMmittee on the part of the
House on the day the bill passed this House
said:-"The District is, in q sense, utterly
baE krupt. They have no means wherewith
to carry on the government any longer.
Their treasury is utterly exhausted. Tney
much less TO pay their debts. 1t is
proposed 10 change this govern ment,
and for the purpose Of carrying on
posed there shall be three Commissioners ap-
pointed by the President, and that they shall
take charge OF the affairs OF the District and
perform the duties now vested In the COVER
nor and the board of public works, except as
limited In the second section. These are linn
itdtions, utctu be seen, placed on these Commits
StoleTs such as ICiU, ia The opinion Of the commit
Of dos" "'' '''S &" '''' "''''''""
Again, he says. the bill provides also for
funding all the floating debt. Then 1t is pro-
vided that the sinking fund commissioners
shall, when this debt is audited, cause to be
issued bond bearing 65 per cent. interest,
| forms Of Indebtedness may be funded in that
bond, and he gave as a reason for fixing upon
this bond that the committee have found
that in some OF the contracts OF the board of
public works an allowance of 25 per cent.
had been made to the contractors in the price
Of their work, on account "of the deprecia-
| 1ion OF the securities in tUIitch payment had
| been made. Taxing this into considera-
tion, the Committee had come to the
conclusion that the 3.65 bond would make
this as near right as possible" The
report of this joint committee is In har.
mony with the remarks made In each house
by members OF the committee on the pas
sage OF the bill. After enumerating the in.
| District, 1t says, "of the foregoing indebted
ness under the provisions of the bill, the fol-
lowing items may be funded at the option of
the holder or creditor of the District"
Auditors certificates. ...... 81, 900, $50 50
| AHlOIlnf due on 10 become due on in
complete contracts, eStinldted.... l. 900 90
Claims for damages on account
of change OF grade, and for
property taken for streets, es-
t1mateo....... ............ 5oO,UU %
| Sewer certificates outstanding. 100000 90
| assessments .................... 100000 90
| Total estimated that may be
| 1nnued .......................... SeI30o,oo oS
| They state further IN this report that the
| District treasury is practically exhausted
| I'D all its departments, and they recon- mend
the appointment OF a commission to man.
age the affairs OF the District, "Iulder limited
| and restrained poIOers," and the raising OF
| government for the District. and submit the
| same for its action at the next session of Con-
eress; and in reference to the Indebtedness OF
/ the District, this report says that
| believing that ii is due to the people OF
1 The District that all the debts created By the
board of public works and by the District
l VI,
| recommended that these debts be funded
into a bond. pay able at remote period, and
| bearing low rate of interest, and as pre-
liminary to that funding they think it es-
| should be made by responsible officers OF
| the government"
The intention OF Congress cannot be mis-
| taken. All claims then existing against the
| board of public works and of the District
| government were 10 be adjusted, audited
and funded into the 3.G5 bond; and as TO the
fllfI n NuoC tn mo moi md m nra
| debt incurred.
To the board of audit was confided the ad-
justment and auditing OF the then existing
| District were intrusted with the executive
| authority under Limitations that left them
without power 10 add 10 the Indebtedness OF
| 10 execute existing legal obligations and
| contracts, and to preserve and protect i'm
| provements, whether flushed or unfinished,
| but they could not increase the moneyed
obligations of the District, or agree to
do so; but in this regard, they were lin
tied to the use OF the. revenues of the
Congress might make for such pur-
| poses. 1t has been by exercising a power
| nowhere given or necessarily implied, but
IN direct contravention OF the whole scope
| and meaning OF this act-that of making
| new contracts on the part OF the District,
| and agreeing TO pay for new work In 3.65
| District so much beyond the amount esti-
mated by the joint committee OF 1874.
| There can be no dispute or controversy
that Congress intended that the valid con-
tracts OF the board OF public works should be
| completed, and that provision was m ade for
auditing and funding the claims growing
| out OF the completion Of this work according
| TO the terms Of these contracts. The esti-
| mates for the completion of these contracts
were made by the deposed governor, and the
| srm believed TO be sufficient to cover this
anticipated expenditure was put down at
S1,325 900. But this sum was only an esti-
mate, and may have been purposely under
estimated by the governor, both as TO the
number OF the incomplete contracts aud the
amount necessary for their completion.
Neither the Commissioners nor the engineer
can be held responsible If the work needful
to finish these con tracts required larger
expenditure than the sum estimated by the
joint committee.
Your committee made no exception to the
increase OF the debt of the District, growing
out of this expenditure. Whether more or
less than estimated, the claims growing out
of the completion of these incomplete con-
tracts were provided for and required to be
audited by the board OF audit. It was not a
matter over which the Commissioners had
any jurisdiction, except TO see, by their en-
gineer, that the work was done according to
the original contract, and that the measure.