Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-07-08
TELLS HOW HE DID N
Capt. Lothrop Tells How He Got
Half Million Dollars for
the State.
0vercame Established Precedent
Which Would Have Reduced
the Claim by Half.
Executive Council Will Determs
inc the Amount to Be Paid
Special to Times Republican.


Des Moines. July S.-Capt. ]. s.
Lothrop, of Sioux City, appeared be-
fore the executive council today to
talk over the matter of his compensa-
ton for pushing the Iowa war claim
4 The matter was left by the legislature
entirely to the executive council, and
that body has the authority to pay the
Sioux City lawyer. former senator and
former collector of internal revenue
mine would be right and fair. Capt.
Lothrop has not fixed any definite sum.
| If the bill which was considered in the
Legislature had passed he would have
been compensated by a large sum.
Opinions differ greatly as to what the
council ought to do, and it is probable
| deemed right, Capt. Lothrop will go
before the next legislature with Il
claim. But it is hoped by the members
of the council and Capt. Lothrop that
this may never be necessary.
| Il knew the money would come all
fright said Capt Lothrop, in discus
sing the matter of the claim. Il felt
| all along that we had made out good
case and the officials could not refuse
it. They did not scale the claim one
cent. They found an error OF about
Sis which they say l made in the foot
| ings, but that was not much of an error
| in such large amount of figuring,
when one considers that it had to be
done hastily. But the greatest thing we
had to contend with was Il rule of the
court of claims which had become a
settled precedent With them which, if
applied in our case, would have re-
duced the claim much more than half.
This was the rule that the money
raised by direct taxation in the several
states and applied to the war and de-
fense fund should be figured as an Off
tset against the claims of the states.
y wv this was all wrong. and yet states
that have settled with the government
have allowed this plea to be set up and
be maintained. For instance, Pennsyl-
vania lost over million dollars on her
claim by reason of this rule. There
We're proportionate losses in New
Hampshire, Indiana and other states.
L cdntended that the rule was wrong.
Not one of the attorneys for the other
states had made any such contention
and | could not find a plea made by any
of the lawyers for any of the states
that would help me in the least in max
ing my contention before the DEPART
ments. Now this is what happened:
AT the outset the state of Iowa borrow
ed money for the immediate use of
those who We're equipping the army
After awhile the government imposed a
direct tax on the property of the state
and turned this money over to the
state on its war and defense fund. The
government provided the whole ma
chinery of this taxation, including its
own assessors and tax collectors. For
tlnately in Iowa the state readily con-
sented to make the collection of the
tax and did so and we We're spared the
humiliation of a government tax coll
lection by federal officials. The money
was taken from the people for the use
of the government and disbursed by
the state for the use of the govern
ment. held that the state merely act
ed as the agent of the government in
this matter. The money never be-
longed to the state at all and was in no
state in equipping troops early in the
war. 1t is true the money was raised
in Iowa and disbursed here. but at no
time had the state any real ownership |
of the money. With this rule out of the |
way the entire Iowa claim was good. |
That was the problem before us, and !
IA; fi,I
the Investigations and the claim. 1t |
was money Justly due the state. | can
not understand how other states have /
so blundered in permitting the scaling
down of their claims, and feel sure that |
If the matter had been rightly pre-
sented they would have got back all
they spent"
Capt Lothrop is not so much con-
cerned with what becomes of the mon
ay which has been secured by his eff
forts; but others are He expressed
the belief. without going deep into the
matter, that the executive council
might count the money thus secured as
an offset to the amount which must be
faised by taxation this year II sup
oose," he said, that possibly the
amount mentioned in the law as neces-
;ary to be raised is rather in the nature
)f Il limitation. If this is so, then the
council need not raise the levy so high"
others, however. are of different opin-
on. The law uses the word 'shall' in
'elation to the sum which is to be
'aised by the tax levy. There is no lee
way left. 1t is contended by some that
+ the council is to be left to its dis
.retcn in the matter or raising the
unds the legislature has no occasion to
tx the exact sum- but should leave 1T
or the council to figure out at time
When it can be figured out much better
han i'm the closing hours of a legisla
i've session. And again it is pointed
'ut that if the council is to exercise
discretion in the matter of the amount
If money to be raised by taxation a
dangerous precedent may be set which
night be turned to thWart the will of
he legislature at a critical time. But
he attorney general is to be asked for {
lis opinion before anything is done.
Nhe council will not act until this mat
er is disposed of.
The people of Iowa are to be invited {