New-York tribune., 1876-05-23
WASHINGTON.
THE REPORT ON DISTRICT AFFAIRS.

ILLEGAL ISSUE OF 3.G5 BoNDs-THE FRAUDS AND
M1sMANAGEMENT IN THE DISTRICT CRITICISED.
lBY TELEGRAPH THE TRIBUNEi
WASHINGTON, May 22.-The House Commit
tee lie District of Colombia will submit Its report to
the House within few days. As the act Of 1874 abol-
ising the old Territorial Government and providing
temporary substitute until Congress should have
time 10 frame scheme for tho manage
meat o, alaIs In the District, divided
the authority and responsibility among three,
namely. the Board OF Audit consisting Of the FIRST ana
Second Controllers Of The Treasury and directed to settle
all claims against the District Government and the Boad
Of Public Works, the District Commissioners to whom
the executive power intrustcd, and the Engineer
who was to have cha Of the streets and OF ali I'M
proyements upon them, the report naturally treats Oh
the manner In which authority has executed lts
trust dwelling particularly upon the conduct of the
District Commissioners and OF the Board Of Audit.
After recng the resolution by authority OF which the
Committee has made its Investigations and revising the
laws governing the District authorities the conclusion
reached that the District Commissioners had 10 power to
bind the District OF Columbia to pay in the future for
continuing work tho streets under contracts or for
preserving and protecting the improvements already
made-n other words that the issue of 3 G5 bonds in
payment for work Of this kind wholly unauthorized
by law II any contracts obligations OF the District
OF the Board Of Public Works could be satisfied out OF
the funds and revenues Of the District under the
control OF the Commissioners then these funds might
be applied bu. the majority OF the Committee is clear
that right given the Commissioners by Con-
gress to incur obligations for such purposes. IL
makes difference What this has been done,
whether by the extension OF existing contracts or by
their enlargement modification The amount Of 1868
bonds which, by the theory OF the Committee have been
thus Illegally Issued is 81 1884. Tho object for which
such bonds authorized to issued exclusively
to pay debts due by the District June 90 1874 while in
fact they issued 10 debts created subsequently,
TO show that th' is tho proper Interpretation Of the
law and that Congress never intended that the "com-
prehensiye system Of improvements" begun by the Dis
tiic Ring should be carried out by the Commissioners
and paid for In 800 bonds the Committee will quote
from statements made by Senator All!son Chairman OF
the joint committee Of 1874 which framed the act Mr.
Allison said, among other things: "1hcre are lina-
TONS will be placed these Commissioners such
will, In the opinion OF the Committee protect the
people from any further ncurrng OF debts Other quo
taons viii DE made. 30 show that Congre intended to
authorize the Issue OF 365 bonds only for the purpose OF
funding the outstanding floating debt The Committee
will admit that the valid Of the Board Of Pub
lie Works to be completed, ani will call a'tenonto
the fact that Gov Shepherd estimated the cost Of this at
~ 49,. 900
The Committee will not crtcise any increase OF the
debt OF the District caused by finishing this work that
authorized by law What they will declare to bave
been Illegally done ia the work rformcd under the head
OF Extensions" &c.ieyices for obtaining the means
Of prosecuting upon the streets OF Washington,
which the Committee think occurred To the Com
missopers until after ther hrst report was submitted
In that report only three extensions were mentioned;
but after that the estimates constantly increased Ex-
tensions" multiplied and the expenditures grew moro
rapidly than the estimates.
Reference will be made 10 the estimates and appropr
alton. for the year ending June 30, 1876 to show that
the themselves expected to pay these eA-
pcnses from tho ordinary aud that Congress
appropriated money TO pay the share OF tine General
Much OF the pavement was repaired at the
nominal expense the contractors. who were bound 10
keep in order three but the cost was pd Dy
the 365 bonds suit being subsequently brought
against the contractors The Committee will report the
increase of the District frthat purpose wholly
Illegal They will also that ~ these repairs cost
from 10 per cent thln they ought To nave uone
Tae portion or the report referring 10 Tue Bolru on
Auai will brief compilation of the iacts Drought
ont by the Committee during ITS pubic inquiry on tis
bra ch OF the subject IL viii show that While the Joint
Committee of l~TI estimated the damage To real estate
cyusrd bv the and unsettled at rlJ2ouOo
thr Board ~ Audit have passed ella ms Of TINS nature
amounting to S7.l56l7S. While the l1w required All
claims Ia DO pres MED within % DAYS the Board voted
10 consider all claims presented within that time al
though many claimants hir1 no memorandum until =
ye,r later rhi, opened The door fraud 80 that old
claims were revived allowed ~ many cases Ia when
the claimant aware that anything was due nm
until he WAS informed of the Ict 10y .One agent Nho had
Learned Il nom the Office OF the Board of Audit The
report il fortified throughout with reference 10 the testi
mony and tO the statutes