Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-05-23
6,-5S,72a Is
3li1,1d Is
Dis,ric. unadius,ed claims har,ra

3,1E,ssI Is
Distric: unadjusted claims before
the board OF audlt...............I0,0 05 5l4 &C
which would constitute the full amount OF
the District IS bonded debt when certified
and funded. The time within which all
claims could be presented TO the board OF
audit had expired some two months when
their report was made, and under the act OF
June 20, 1874, no other claims could be pre-
scented unless Congress should extend the
time for their presentation. As 20 claims
growing ont OF the contracts of the board OF
public works, there was no further time
given by Congress for their presentation, so
that the Commissioners had II in their
power, with reasonable certainty. TO ascer-
tain the probable amount OF the 36J bonded
debt.
Ii was made up of certificates converted
into bonds, certificates issued but not con.
verted into bonds, and uradjusted claims
presented TO the board of audit, and alto
gether aggregated SlO.O06, 514 66. In the re-
port OF the board OF audit Up. 26s Elk. Doc. I,
part 81 the same result is reached, and after
giving the class and amount OF each claim Of
the audited and unaudi ted debt authorized
To be funded into 65 bonds, which CORES
ponds exactly with the amounts given
by the Commissioners and stated above,
the auditors say that "classes (con-
tract-work) and 5 general claims against
the District) will probably be diminished
when audited, but by continuance of work
under contracts, No. will be ultimately
increased" This conclusion is greatly cor
rOborated by communication of the Com
missioners, addressed TO the chairman OF the
District Committee OF the House of Repre-
sentatives OF the last Congress, bearing date
the 18th OF February, 1875, in which they ask,
among other appropriations for the fiscal
year ending June 30, 1876, the sum OF three
hundred and sixty-hve thousand dollars,
interest on 3.65 bonds-thus showing that
they estimated that the District debt In 90
bonds would not exceed ten millions OF dol
lars. (See vol. Y, Cong. Globe, sd Cong,
February p. 1873, page i6O4.)
l. 1t viii also appear from their report of
1874 that they passed resolution TO the effect
that all contracts thereafter given out shall
be awarded to the lowest responsible bidder
LATTER due notice by advertisement, and the
right reserved 10 reject any and all bids, !"
and during the year 1874 they faithfully
maintained. this resolution by advertising
for proposals for all new work TO be done
under their authority. The system In vogue
under the board OF public works had been
mittee, and this resolution was carrying
ont the recommendation of that committee
During 1874 they also declined TO furnish any
materials, such as euro stone, brick, sewer
pipe, &c, 10 the contra ctors, another reform
Of the vicious system OF the defunct board OF
public works.
With such favorable showing aud salutsry
reforms 1t is not matter OF surprise that
Congress did not make haste 10 change the
form OF temporary government Instituted by
the act OF 1874. But no sooner had Congress
adjourned, after having made the LIBERAL
appropriation ofover million OF dollars for
the general purposes OF the District, and
provided for the semi annual interest due on
the 3.65 bonds on the 1st OF August, 1875, than
an entirely different policy began to be de-
veloped. Old contracts, that had been COM
pleted, as appears from the report OF the au-
ditor OF public works, for two or three years,
were extended" New work was contract
ed for to be paid for in 3 65 bonds; sewer pipe
and curb stone was bought and paid for In
the same security, and contracts were given
out without advertisement, on the sa me vi
cious, expensive, and corrupting system that
had prevailed under the board OF public
works.
The bonds OF the District, with the guar
antee OF the government, expressly author
lied TO be issued only in payment of indebt-
edness OF the District accrued at the passage
OF the act OF June 20, 1874, thus became a
means OF payment for work done aud mate
rails supplied on contracts that hal no ex-
istence until the year 1875. Contract No. So,
which has been referred to heretofore, ar
fords striking example OF the manner In
which this contract extension was CARR ed
on during the year 1875. IL appears from the
testimony OF James Patrick, 20. 4sD DR..
Blake, Up. 53,) and the statement of the coun-
sci OF the Commissioners, William Birney,
opp. 65 and co., and the report OF the engineer
accompanying this report. that this contract
was reported to be 'scomp lete" by the engi-
neer of the board OF public works, February
contract in 1874, up to t1e making OF their
report OF that year; that late in this year
Mr.. Blow, one OF the Com missioners, agreei
TO give the finishing Of the grading OF this
yard in 365 bonds; that the engineer OF the
District was Of opinion that the work ought
not to be done, because there was no necessi-
ty for IL; that Blows contract was repudi-
ated and the contract was afterward given TO
one VIM. Hussey at so cents per cubic yard =,
Notwithstanding they had the written opinion
of their attorney that they were under no
legal obligation 10 recognize the assignment
of the original contract TO Hussey. II fur
ther appears from the engineers report that
The estimated cost OF the original contract
lf..srr
six extensions" made TO Hussey, OF this
contract, embracing new work on this street,
as well as ten or dozen others in different
This is far from being an exceptional case OF
illegal "extension;" IN other words, OF their
making new contracts for new work, aud
binding the District for their payment in 3 IS
bonds Table No. 1, referred 10 in the ans wers
OF the Commissioners, contains many OF su ch
extensions" m ade in 1875, no one OF which
seems TO have been alluded TO or reported 10
the President In their report OF 1874.
All these new contracts were given out
without advertisement ana without compe-
tftion-some to assignees, and Others to
COMMITTEES, seem TO be strangers 10 the
original contracts. Many OF them are re-
ported to have been "complete," and others
engineer and auditor OF the late board OF
public works. And after refusing in 1874 TO
enter into contracts, or to buy materials 10
and paid for In s.s5 bonds materisIs TO
be used In executing these contracts TO the
amount of over 100000, and report rs
now having on hand materials Of the es-
timated value Of s1o4 ,262l5, much OF which
seems TO have been paid for by discounting
the bonds at the rate OF 10 cents on the dol
lar.
According to the tables accompanying the
answers OF the Commissioners. the cost OF
these ssextensiops" amounts TO the sum OF
- ga 334.04, which has made an additioa 10
the debt OF the District, unauthorized by
Congress. and unwarranted bv auv fair and
reas enable construction OF the act OF June
20. 1874.
We need not reply to the argument m ade
by the Commissioners that these extensions
were necessary To the execution Of existing
legal obligations" or TO the preservation and
protection OF improvements, complete or
incomplete. The existing legal obligation
could only refer TO the work set forth and
cr1bed In the contract o. obligation OF the
board Of public works. Tit ware grading that
was required 70 b done BY this illegal oblignr
ton" In exigtenoe at the passage Of the act,
there 10 no rule Of law O. prfnciplo Of construc,
ton that would include In this obligation the /