Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-06-12
GET A HALE MILLION.
Iowa Soon to Be Enriched by Sum
From Government.
Washington, D. c., June

Washington, D. c., June 8.
One of these days the treasury of
Iowa will be augmented by the de-
post of United States warrent for
nearly 100000. There is an interest
ing story in connection with this
prospective wind-fall.
The Story.
The state of Iowa filed with the
auditor for the war department, for
adjucation and allowance, claim of
$456, 433.29 for interest paid upon it's
civil war bonds issued to pay the ex-
penses of equipping soldiers for that
struggle. A few weeks ago the audi
tor certified to Congress for an ap-
preparation balance in favor of Iowa
of $456, ALSO. Accompanying this GER
tificate was the following explanatory
note:
"And Still 1t Crew."
'"This allowance is based upon the
decision of the comptroller of the
treasury dated April IA, 1902. If this
claim had been settled in accordance
with the principles announced by the
court of claims, and followed by the
auditor for the war department, in
| the settlement of the claims of the
states of Maine, Pennsylvania, New
Hampshire and Rhode Island, al
ready allowed and paid under the
findings of that court, there would be
due the state of Iowa from the United
States, on this claim $229,S9962 in
stead of the amount certified"
From this it will be observed that
by this late ruling of the comptroller
of fbo Touya shoc honnfito5
s226,721.27.
How Iowa Received All of Claim.
1t may be interesting to the people
of Iowa to have brief history of
these state claims against the United
States, and of the evolution of judi
cial opinion by which Iowa received
the whole or her claim instead OF
about fifty per cent as did some of the
states, notably New York and Penn.
sylvania.
Claims Amounted to 1929, 7o1.76.
/ By the law of April 81, 1881 Con
}gress provided that the United States
would refund to the several states all
sums by them properly incurred in
equipping soldiers for the suppression
of rebellion. The terms used were
Estates had promptly responded to the
lcall for troops but in many cases tt
meet the emergencies they had tc
borrow money on bonds running fol
a serious of years The general rule
lis that, in the absence of a specia
Istatue the government is not bound tt
lpay interest for money advanced to it
But at various times in the succeeding
fo11 e,4a
lieut., New York, Rhode Island, Illinois
land Oregon filed with the proper ac
counting officers of the treasury theil
claims for interest upon the bonds by
them issued.
The claims aggregated $9,291.701.76
With the exception of the claims OF
New York and Indiana the auditor dis
allowed the claims upon the grounds
that interest was not costs charges
or expenses" in equipping troops, but
i simply method of obtaining the
money in the first place by which TIC
equip troops.
Hung Fire for Years.
The cases of New York and Indi
ana hung fire until many years later
/ when in proper manner New York got
it's case referred to the court of claims
That court allowed a portion of the
claim for the interest where New Yorl
borrowed money in the open market
on its bonds, but disaHowed the claim
for the interest upon the money Dor
rowed by the state from it's own cana
sinking fund. Botl parties appealed
to the supreme court of the United
States where, in 1896, it was held thai
'fn view of the objects and purposes
of the loan, the preservation of this
Union, most liberal construction
ought to be given to the intention o.
the statute" and it was decided tina
the total interest was, in fact, from
!. the point of view of the United States
ala charge Of expense upon the part o.