Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-02-23
DISTRICT FINANCES.
The Controversy between U. s.
Treasurer Gilfillan and the Dis.
trict Commissioners.

Treasurer GilffIlan and the Dis
trict Commissioners.
DOCUMENT FROM THE FORMER, WHICH HAS
BEEN SENT TO CONGRESS BY SECRETARY sHER-
MAN.
Secretary Sherman to-day transmitted the
following document to the House. 1t was re-
ferred to the District committee. In transmit
ting it, the secretary recommends that it re-
ceive favorable consideration:
SIR: have the honor to make the following
representations: The Treasurer Of the United
States succeeded, under section OF the act of
Congress of June H. 1878, GO Stat 1919 to the
duties and powers of the commissioners of the
sinking fund for the District OF Columbia
Above Offices were thereby abolished. Among
the powers and duties devolved thereby upon
the Treasurer is the duty, under laws yet un-
certain obligations of the District of Columbia
all assessed certificates issued subsequent to
May 29th, 1878, the proceeds of said assessments
to be applied, under the Treasurer's direction,
to the execution OF the trust. That the
circumstances under which that trust was
imposed may be understood, the provisions or
and the issue and redemption of the obligation
intended to be secured are given. Here follow
the laws: section 81 of the act OF February 81,
1871, section of the assembly act OF August 10,
1871, section 1 Of the assembly act of May 20,
1873, the act Of Congress Of June 10, 1875 90
statutes 116), the act of June %, 1871 By the
action of the District authorities in the particu-
lars set forth below the treasurer has been and
is now prevented from exercising certain powers
conferred upon him by law, and from perform
ing certain duties imposed upon him by law, TO
the detriment of the public interests OF
the United States as well as OF the Dis
uict of Columbia The District authorities
have not issued and delivered to the sinking
fund office the ten per cent tax lien certificates
required by the second section of the assembly
act of May 90 1878. OF such certificates there
have been issued and delivered to the sinking
fund commissioners 81 ,06S, BOIL; much larger
portion, amounting to 81, SOC, ,O00 much OF which
was prepared for issue, was never delivered,
and has long been and is now withheld from
this Office though demand has repeatedly been
made therefor as the law provides. In conSe-
Quence OF their failure to issue the certificates In
question they have not demanded, and do not
now demand or collect any interest whatever
upon assessments for special improvements
when paid, certificates for which have not been
issued and delivered to this office, although
the law provides that such certificates shall
bear interest at the rate of ten per centum.
The reason given by them for refusing since
May. 1885, to issue tax lien certificates as re-
Quired by law is, that the assessments are
erroneous; then having failed to issue the certi-
fcates they waive the collection OF ten per cent
annual interest thereon imposed by law for
delinquency. The errors in assessment by their
own admission amount to but from 20 to 25 per
cent OF the original assessment, while the in
terest remitted also in addition to the amount
Of the excess found amounts to 30 per cent OF
the original assessment, so that upon the
81 100000 of tax lien certificates not delivered
to this Office there has been deduction
in interest alone Of some $3.50 ,OO0 all OF which
nave lnuTeu uO6 10 lllS UtutuU vi GlIC COuoClCu-
tious taxpayer, but to the advantage of the de-
nnquent. Under such state of things why
should the provisions of the act of June eth,
1879, be extended to permit delinquent tax
payers, for limited time, to settle arrears with
six per cent interest, when by the ruling Of
the Commissioners they now settle by the pay
ment of the bare amount of the reduced assess
ment and are charged no interest whatever?
They have since october l, 1879, when assess
ments for special improvements have been paid,
for which ten per cent taX-lien certificates
dpnOSitp6 in the sinking find
office, demanded but six per cent interest up to
that date; and for the time subsequent to that
date have demanded no interest whatever, al
though existing law imposes ten per cent inter.
est upon delinquent special assessments unless
paid on or before october 1, 1879, under the pro-
visions of the act Of June 27, 1879. They have
received assessments, paid and unpaid, Tor spe-
bly, act Of August 10, 1871, though such assess
ments had not been complained of as erroneous
or excessive as required by the acts OF Congress
Of the property or his authorized agent, and
have thus issued drawback certificates not con-
| templated by the terms OF said act. They have
revised assessments for street improvements
prepared under acts of the corporation Of Wash
! ington dated long prior to the assembly act of
| August 10th, 1871, referred to in the acts of
| Congress comforting upon the District Commits
sioners authority to revise assessments and
| issue drawbacks; the drawback certificates
| issued under this revision has been excessive
computed by taking tWo,thirds @ OF the amount
interest at ten per cent, the resulting drawback
| being made to exceed by rs per cent the amount
| OF the original assessment thus revised; were
| the revision itself legal there Is no authority
| OF law for allowing interest in computing
| the drawback By the revision of assessments
for special Improvements, in the manner in
! which it is now being made, and by the receipt
| Of drawback certificates of questionable legal
| ity, resulting from such revision, the revenues
| OF the District are now being impaired. By the
refusal of the District authorities to deposit
with this office the ten per cent tax lien certth-
Gates, which they are by law directed to issue
| and so deposit for the redemption OF the out
standing eight per cent certificates OF Indebted
ness, said security is being so rapidly dissipated
, that unless the present revision of assess
ments is speedily brought within the restric-
tions contemplated by Law, it will prove
| inadequate to liquidate the eight per
| cent certificates. The United States is also
! vitally interested in the proper adjustment OF
| Congress Of June 18th, 1875, assumed one-half
Of the general expenses Of the District of Co.
| lumbfa; its proportionate amount Is liked upon
the basis of the anticipated revenues Of the Dis
trict estimated annually by the District Com
missioners; some portions Of these revenues
arising from arrearages of taxes, estimated this
year at $3.50 900, became delinquent before July
1st, 1877, and may be paid in drawback certifi-
Gates, while the government is compelled to con-
tribute its moiety of the District expenses in law
fu money Of the United states sh9uld m the ten n
have been deposited with this Office as security
for the payment Of the eight per cent certifi-
cafes OF 1QQeDIeQneSS, De seriously impaired Ut
dissipated, the United States under the law last
referred to would be compelled to pay one-half
the sum required to liquidate said past due
eight per cent certificates, which at this time
exceeds 100000, principal and accrued interest.
have the honor to make this statement 30 you
that you may cause the same to be transmitted
to the House Of Representatives with the re-
commendation that the issue and receipt
Of drawback certificates by any 2fticer
of the District Of Columbia &c sus-
pended until by Congressional investigation
Il may be ascertained whether the provisions of
law governing the issue of tax lien certificates
and OF the acts OF Congress of June 10th, 1878,
and Of June 27th, 1s79 regulating the revision
of assessments for special Improvements pre-
pared under the District legislative assembly
act OF August 10th, 1871. and regulating also the
issue of drawback certificates have been COM
piled with. ! have the honor to be, very re-
spectfully your obedient servant,
JAS GIFuLAN, Treasurer q. s.
HON. JOHN SHERMAN, Secretary Of Treasury.
MURDERED MANS MISSING COAT FOUND
When William Rhodes, the flsh-pedler, was
murdered at Hicksville, L. l., an overcoat was
stolen from the body. Yesterday this coat was
delivered to District Attorney Downing, Of
Queens county. It had been found In the pos
session Of John Mwood, of Huntington, who
said he received 1t from ma1who obtained II
from VIM Wppks the eouyjef n with the npor0