Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-06-12

LII " Il ~ ~ 1l
the states in equipping the soldiers.
Judgment was given for the whole of
New York's claim
Other States File Claims.
After this decision the other states
proceeded to ask for rehearing in
there cases. This was finally allow
ed. However, one of the first ques-
lions which now presented itself was,
What is the rule of computing inter-
est in these cases?"
How Interest Was Computed.
To cover all the questions raised,
one of the claims was referred to the
court OF claims for it's advisory opin-
Jon. That court held that the proper
rule of computing interest was to al
low interest until a payment by the
| United States upon the principal then
deducting that payment from the prin-
cipal of the bonds, take the remainder
as new principal from which to COM
pute interest until the next payment
/ In fact the result of this holding was
that. if a state had issued it's bonds
for term of ten years, and the year
following their issue the United
States paid the whole principal, the
state would only receive interest for
one year while having to pay interest
4 for nine years more. Upon this advis-
DRY rule of the court of claims the
auditor or the war department acted
and certified the claims of Maine.
Pennsylvania. New Hampshire and
Rhode Island to congress and on eb-
ruary IA, 1902 that body appropriated
Sl,O54S52, in full of these claims. This
is probably half of their total claim.
Indiana Responsible.
Indiana was not satisfied with that
i rule and appealed its case of from
the decision of the auditor to the comp
troller of the treasury. He is an In
diana gentleman, and naturally took
pride in arriving at just decision in
4 the case. A rule adopted by the court
OF claims not being binding upon him,
was subject to review as to its reason.
Mr.. Tracewell soon found that it was
narrow, illogical, inequitable and I'M
patriotic.
State Governments Agent.
The supreme court had held in the
: New York case that the state was the
agent of the government, and he holds,
with much fervor and righteous indig-
! nation, that it is against all thought of
justice that an agent should be held to
j suffer loss for an act which the prin-
cipal had adopted as its own There
may be some question as to the exact
| legal and logical correctness of the
comptroller's holding, but it is the law
for the time being, and it has added
nearly quarter of a million dollars to
the treasury of Iowa, our citizens will
rather applaud his action, and not be
too insistent upon the logic of the mat
ter.
Court Makes Peculiar Ruling.
i The court of claims took the
ground that the government was under
obligations to repay to the state what
ever interest it necessarily paid out.
Thus. when the state Of Iowa borrow
ed $500, 900 for twenty years, and some
time afterward the United States he
paid to Iowa 100000, it was the duty
, of Iowa officials to have placed that
100000 out at interest, SO that when
the twenty years had elapsed, it would
have had the principal and would also
have paid the yearly interest from the
interest it had received from the sub
loan.
OF course Iowa not being in the
money-loaning business, this was not
done and was not done by any state.
Other States Receipt in Full.
, New York and Pennsylvania, how
, ever, have settled upon the old basis
, and therefore have no recourse. They
, have receiDted in full and in such
cases the otter cannot again be open
, ed UP fot nsideration.
n 1t is understood that officers of these
, states are very sore over the recent
= developments and it is quite likely
some action will be taken with a view
, to overcoming the technicality which
, keeps them from driving with Uncle
| Sam the same kind of bargain thai
: Iowa did. Frank ]. Stillman.