New-York tribune., 1902-07-08
NEW RAIDS ON TREASURY.
HOW THE GOVERNMENT is MULCTED
IN PAYING STATE WAR CLAIMS
DISCOVERY OF A REsoURCEFUL LOBBY
LIKELY TO TAKE MANY MILLIONS OUT
OF UNCLE SANS BULGING POCKETS.
[RY TELEGRAPH TO THE rR1BUNE.l

IBY TELEGRAPH TO THE TRIBUNE.l
Washington, July 7-Congress is still paying
the back claims OF States for the expenses in
CURED by them in equipping troops for the Civil
War. The General Deficiency bill which was
passed in the closing hours of the session just
ended, has opened wide a new road through
which fresh raids Uncle Sans plethorlc
Treasury can be made The principal of all
these State debts was paid by the federal gov
ernment several years ago, thanks to the activ-
ity of a we'll organized and resourceful lobby,
and il was thought that more would be
heard Of these claims until the lobby, in Its
patriotic search for loot. discovered that the
State governments which contributed troops Tor
the preservation of the Union in nearly every
case had to pay interest on the bonds issued Iol
the enlistment mobilization and equipment or
the victorious regiments. 1t was discovered at
the same time that another considerable item VI
cost to the States in this work arose from the
necessity or expediency of employing agents to
negotiate the sale of the bonds. In the case Oh
a number of these States the bonds were sold
at A discount Although the federal government
paid back to the States the full face value OF
the bonds taking no note of the discounts the
lobby perceived that injustice somehow hao
been worked against the States, and' OF course
every cent of discount must now be allowed III
all future claims paid out Of the Treasury AS
the lobby gets a liberal percentage on every dol
lar thus collected, it is not hard to understand
why the matter of original discount was so care
fully looked into when the indemnity accounts
were being made up.
The Court of Claims, tribunal organized ana
maintained solely for the purpose Of seeing that
Justice is done between the United States ana
It's claimants decided against the first batch or
claims OF this sort, basing its decision on the
technical ground that the statute of limitations
intervened This was exactly TO the liking OF
the lobby, because, IN the vernacular Congress
Is ''easier" than any court in the land, espe-
cialIy 10 the lobby. And so Congress was sue
cessfully appealed to this year, with the some
what amazing result that many millions of dol
lars in the next year two will be transferred
from the Federal Treasury TO the treasures Of
those States which care to make claim Of the
nature here described. It cannot now be esti-
mated what figure finally will be reached by this
latest and most determined raid nor can 1t be
told how much Of the federal revenues thus
diverted from the legitimate support or the
government will go to the lobby in fees.
Some Of the claims which have not yet been
authorized by Congress are ridiculous. That
of Nevada is typical The law under the Sulse
Of which the raid is being made was enacted IN
1861 Nevada not admitted as a state
until 1864 Still Nevada claims TO have gone
to heavy expense while territory in organiz-
ing and equipping gittering battahons to over
by their very presence any reoelhouS
movement that might manifest itself in the
sagebrush of that corner of the West. The lobby
holds that. while the act Of 1861 says that
States" shall be reimbursed. 1t plainly was the
intention of the legislators of that time TO In
clude Territories in the benefits Of the legisla-
ton. Hence, Nevada's claim for several hun
dred thousand dollars will be vigorously pushed
by the energetic lobby along with other less
difficult ones next winter.
The amount actually authorized by the bill
tust passed exceeds S3,OOOO0O and is divided as
follows:
Illinois -sloO5 l29 20 Michigan S3S2 l6I 62
Indiana Ohio 40S,559
Iowa 4J64l7 S9Vermont 2SO. 453 SO
In addition TO the foregoing amounts allowed.
the bill provides that the accounting officers of
the Treasury shall reopen and adjust the claims
OF Pennsylvania, Maine. New-Hampshire and
Rhode Island the basis Of the claims OF the
States named This means that every State
that fought against the Rebellion can bring It's
claim before Congress for interest. discount and
the cost OF negotiating its war bonds and have