Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-06-12
TIE DIRECT TAX REFUND.


Recommendation That the Resolution
TO Refund West yIrginia's share shall
Pass
SDseioi 70 ~ Rsois.s-
WASHINGTON, ID. c., June 1.-The
report from the House Committee on
the Judiciary In favor of the Joint reso-
luton directing the Secretary OF the
Treasury 20 pay 20 tho Governor Of
West Virginia that States portion Of
the direct tax collected by the Federal
government during tue war is a very
concise, strong and ably written docu-
ment 1t was written by Con-
gresham Terry, OF Arkansas. a
man Of so much mOdesty that
his colleagues ia the House have been
long time in finding out that he is one
OF the cleverest- headed aud best-eouip-
ped lawyers in the body. Mr.. Terry is
as Industrious and painstaking as be is
able aud evidently made as thorough a
study OF the legal questions involved In
the west Virginia direct tax case as be
could have done had 10 been a matter
that Immediately concerned
HIS OWN STATE
or Congressional district. Mr.. Terry
goes briefly into the history OF the case,
reciting the historical facts as TO the
collection OF the money from West Vir-
GINA and other States in 1851, the pass
age Of the Dill to refund the money 20
the States that paid IL, which tlll was
approved March ., 1891, and the re-
fusal OF First Comptroller Matthews 20
pay West VirRinia's share, on the
ground that IL must be held as sst-olf
sgainst the amount due from West Vir-
ginia for her proportion OF the
undivided Indebtedness OF the State
of Virginia 10 the United
States for Indian trust funds that were
invested In Virginia bonds prior to the
division Of the State. This action of
First Comptroller Matthews was based
90 an opinion Of Attorney General Mil
Ter, which opinion was founded on Mill
ler's construction Of section 34S1 u. 5.
Revised Statutes,
WHICH READS AS FOLLOWS:
"Whenever any State is 10 default in
the payment Of interest or principle on
Investments ia stocks or bonds issued
or guaranteed bY such State and held
by the United States in trust the Sec
Rotary Of the Treasury shall retain the
whole, or so much as is necessary, of
any moneys due on any account from
the United States 70 such State, and
apply the same TO the payment OF such
principal and interest, or either or TO
the Reimbursement, with interest there
on, OF moneys advanced By the United
States on account OF interest due on
such stocks or bonds
l. hn f-fn Of 3 ha
Attorney General and on the above sec
tion Of the Revised Statutes, Mr.. Terry
In his report says:
at will be observed from the opinion
of the Attorney General that the right
or remedy sought 70 be exercised by the
Treasury Department under this sec
tion Is that OF set-Cfl; and TO determine
the propriety of its attempted exercise
in this case, 10 becomes important 70 in
Quire as 20 the nature and quality Of
debt or demand that can be used as
set-Off; and when we look 10 these we
find that the very first essential is that
$50 authorize a set-oE the debts must
be mutual and due TO and from the same
parties" (27 Ark, AIS; Waterman on
Set of, Cd ed, p. 26.)
fNow, 10 the case OF an undOubted
debt from the United States 10 West
Virginia, and q disputed claim Of the
United States against West Virginia on
account Of a demand alleged 10 be due
from West Virginia to Old Virginia, a
{. ~ of the United States, there can
surely be no such mutually as is re-
ouired under the wel-settled prin-
ciple Of law above referred 70, neither
is the demand due 20 and from the same
parties. But, going a step further, we
ind that 20 authorize a set-oH, 1.-The
demands must be certain as we'll as
mutual" Waterman on Seton, p.
332.)
Now, there is not even a pretense
that the alleged claim of the United
States against West Virginia is for any
certain amount, and the attorney gen
eral, In his letter 20 the Governor Of
West Virginia, under date Of August z,
1891, expressly says:
The only question before me, then, is,
does the right Of set'Od exist, u deOt
is found TO exist. Whether
there is such a debt, aud, If there be,
what may be It's amount, are all QueS-
tions with which / have nothing 10 do.
(See Exhibit CO.
"IhlS utter lack OF certainty IS surely
fatal to the right Of set-Of sought 20 be
exercised by the United States in this
case"
THE REPORT GOES BRIEFLY
but clearly into the other material
points at issue IN the case, concluding
as follows:
From all the above and foregoing
considerations your committee conclude
that the exercise OF the right OF set-ot
attempted 10 this case is not warranted
by the law aud facts involved, and that
the Joint resolution should be passed.
PREVENTION is better than cure, and
u may prevent that tired feeling by
lg Hoods SarSapariiIa, which will
YOUR blood pure aud free from
germs Of disease.
PILLS DO not purge, pain or
It act promptly, easily and
p. csc.
mat Eastern Indian schools.
NGrPN, d. C., June ll.-Dele-
ark Smith, OF Arizona, will
-.e au effort TO have the appropria-