Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-01-29
FORTY-FOURTH CONGRESS.
Closing Proceedings Yesterday.
The Interest on the s-65 Bonds.


| man as 10 the character OF the 36Js as a
government obligation, and for this very
reason there ought TO be some limitation.
he disagreed with the Senator 10 the con-
struction OF the law. he admitted that IL
might be construed to authorize the execu-
ton of the valid contracts OF the Board OF
| Public Works, but he knew that such was
| not the intention. He had the same high
| opinion. personally, OF these Commi ssioners
as the Senator, and he did not believe that
they had knowingly done wrong. He must
| confess that he was amazed at the extent of
the power claimed for these Commissioners
by the Senator from Ohio. He understood
that Senator TO claim that these Commits
sioners had the power TO repave every worth.
less street in this District and issue ; Is
bonds for It. II was the Intention OF the com
mittee, and 1t was the opinion OF Congress
| very plainly expressed, that these bonds
| were only to be issued to pay the floating
debt OF the District and for such improve
| ments as were necessary. They had before
them report OF Governor Shepherd made
10 The committee, stating, in mis- opinion
| what contracts IL was essential TO be carried
out, and he did not see how they could mis-
understand the plain intent of the law The
committee did not at the time limit the
amount or these bonds, because &c was inn
| possible Tor them 10 tell what exact amount
| would be required. If the United States did
not have 20 provide for these obligations he
would have no objection for these people To
go on orDamenting the city, but according tn
| the view taken by the Senator from Ohio
| they would have the power to involve the
United States In debt of many millions.
|
| view OF the law aud the meaning OF the com
mittee in reporting it. and the reasons for
! liking the interest at 365, which was that
some OF the contracts he'd been let at prices
twenty TO thirty per cent. in advance be-
cause of. the deprecated certificates which
toey received in payment. But the contrac-
| tors were not forced to take these bonds
The commit had, at the time, given ar
length their reasons for fixing the interest al
| this low rate, because the President had sent
IN message recommending that IL be a xed
| l.. no az
| ton OF the committee and their work In as
certaining the debt of the District. The COM
| mlttee requested Governor Shepherd TO fur
| n1sh an estimate OF the amount required To
complete the contracts, the floating debt OF
the District, &c, TO which he returned a very
| full answer. The committee mad cOllated
| carefully collated his replies, aud had report
| ed that there was total in all OF Sil .Oi37J6
TO be provided for in addition 10 the funded
debt In this Sl1,0lS,T56 is included every
thing. 1t was prepared after months OF
| labor; IL was the estimate OF Governor Shep-
herd, who also said that 81 1875 900 would De
required TO complete the contracts. This
was the solemn assurance OF that govern
ment, and the committee, under all this in
formation, did not suppose that, under auy
circumstances, the amount of these 3.65
bonds would exceed S12. 900 900. Now he was
assured that almost $1,000, 900 had been is
sued. lie did not say that these Commits
sioners bad exceeded their authority; he did
rot know that they had; but. If they hal
not, then that committee had been most
egregiously imposed upon by the late Dis
Ir1Ct government.
Mr.. Sherman said IL was not posi- bic in the
nature OF things for an accurate estimate TO
be made. The late District government was
no doubt, mistaken in it's estimates; the COM
mitfee was mistakeL. 1t was scarcely ever
the case that the original estimates for pub
lie works were sufficient 10 defray the costs
III was true that in the examination OF the
sewers the Commissioners found that they
had TO extend them beyond the degree origi-
nally contemplated. They claimed that they
had the right TO do this under their authority
70 preserve and repair the public WORKS. If
they had not done IL, some of these extensive
and hne sewers would have been ruined.
Mr.. Thurman said he did not know that
the estimates OF the old government were I'M
oerestImateS. He knew that these Commits
sioners said so, but he could not know which
estimate was correct until he had examined
into the matter.
Mr.. Sherman asked who was to blame II
the estimate was too low.
Mr.. Thurman said the people who made
the estimate Were 10 blame. The law OF 1874,
creating this temporary government of Com
missioners. was, at the time OF its pas Sage,
not supposed to be intended for q longer
period than nine months. A special COM
mittee was appointed to prepare a bill for a
permanent government Tor the District. The
Senator from Maine Mr.. MONTHLY was chair
man of the committee. He had reported a
bill for permanent government, but IL had
excited the ire of his friend from Indiana
(Mr. MOrtOD) because It was supposed TO
initiate against the sacred rights of suffrage,
and especially certain class of our fellow
citizens, on account of race, color and pre-
vious condition OF servitnde. On this ac-
count the Senator from Indiana beat and
Mr.. Morrill, (Me He had help.
Mr.. Thurman.-Yes, my friend from Della
10 II
Mr.. Morton.-And that, OF course, was a
damaging blow at the democratic party.
Mr. Thurmau.-well, the Senator from
Maine lMr. MORRILL, had his committee
meeting in the District, and meeting at Sar-
atoga; but even with the assistance of Ha-
tholn water they could not frame a bill
which met the approval of the Senate. But
the fact remained that this act Of 1874 was
not intended o. contemplated to provide for
q further period than nine or ten months.
AS to the pay -aent of the interest on the 3-65
bonds there was no promise to pay IL di-
rectly out Of ne Treasury, but there was a
promise to provide that it should be paid.
What he considered was one of the first
duties of Congress was to provide exactly
what proportion OF the expense. OF this Dis
ment and what proportion shall be paid by
taxation on the property of the District. He
was In tav9r OF the pending bill as 1t came
should be retained. He thought the issue of
these bonds should be stopped at once. We
Were submitting to fearful share of them
now. They were selling at seventy cents on
the dollar, and we would have 10 pay 100
cents on the dollar for thero.
Mr.. Sargent moved An addition TO his
amendment, providing that when the limit
OF Sf5OO0,000 is reached the powers of the
board of audit shall cease and determine,
| ana all the books and papers OF their Office
| shall be handed over to the Commissioners
OF the Dist let or their successors In office.
| Mr.. Conkliug said we had here most ex-
| tIaordinary spectacle. Here were bonds
| which to all iptents and purposes were bonds
| of the United States. Here are these bonds
which according to computation were worth
| and are worth eighty-one cents, are selling
| to-day at sixty nine. What is the reason OF
| this. 1t is because we suggested doubt as
| TO our liability for these bouds, and then
| called attention to IL; and he was Informed
| that law officer OF one of the states had
| decided in q formal opinion that the United
States were not liable for them. Even in
| this very bill now before us a caveat Is en-
tered in the prOyiso that nothing contained
herein shall be construed TO make the United
States liable fOl anv OF these bonds issued
| contrary 10 or in violation of law. So that
| everything is done to throw doubt and sus-
piciOn on these bonds. As natural result
| the bonds are the football OF spectators, and
| have no hold in the money markets. Now
| he Lad looked very carefully over the law,
| and he had seen nothing in 1t TO justify the
| structures passed upon the Commissioners
| by the Senator from Iowa, Mr.. Allison. ]
AS matter of fact, he Mr.. Co. was informed
that the Commissioners had made no new
| contracts. They had, when pavements
Il - 70 ~