New-York tribune., 1903-08-30
THE TOWN SITE FUNDS.
Defence Of Secretary Hitchcock's
Iction-4naIogouS Case.
IFRoN TIE TRIBUNE BUREAU. J

Washington Aug. 29-The contention that the
Secretary Of the Treasury had inadvertently vio-
lated the law in mis- method OF handling the funds
accrung from the sale OF town sites in Oklahoma,
forth by officials Of the Treasury Department
and printed exclusively IN The Tribune this morn
Ing. created little excitement at the Department
of the Interior to-day, and a result Commis-
sioner William A. Richards OF the general land
ofsce issued a statement to the press explanatory
OF the Secretary's position The greater portion o.
the statement deals with the appropriateness OF n
quotation used in The Tribune. Mr. Richards an
tagOniZing the claim that the auditing ofncers or
the Treasury have jurisdiction the fund re
ferred to. IT, the final paragraph Of his statement,
Mr. Richards, after giving the figures for the eX-
pense OF conducting the sale Of the town lots in
Hobart Lawton and AnadarkO which amounted to
only s,S 5, states that the balance Of the amount
received. s7S0,2Oi s.. was deposited in the United
States Sub-Treasury. Against this amount he says
is 20 be charged &.2S4 p. the amount expended
by the government for surveying the sites and for
which the government should be reimbursed Then
follows this important statement:
No portion Of this balance belongs TO the gov
eminent By the act under which these town
direction Of the Secretary Of the Interior in the
manner proyidea 6y ne act Inc secre1ary 4s me me
ing that il Is expended in the manner provided IN
treasary at St louis. There was no direction in
me la " thar II should be so ,ieTosited Ii might
have been deposited elsewhere IN the discretion OF
the Secretary.
IN subsequent conversation Commissioer Rich
ards said that the Secretary, and he alone
responsible for these funds: against the Secre
tary. and against him alone. the towns would have
recourse IN they believed the funds had not
been properly expended; that only the towns to
which the funds belonged had right to ask Of the
Secretary 1T accounting IN word, Mr.. Rich
srdss contention that the act OF Congress.
quoted in to-day's Tribune, made the Secretary of
Interior the sole and independent trustee for funds
belonging 20 the towns named, that the United
States Government had no jurisdiction in the mat
and rh-
from statutory provisions applying funds be-
longing TO the government.
The peculiar feature Of the situation appears be
the assumption the part Of the secretary's legal
advisers that the act Of Congress makes the Secre
tsry the personal trustee Of the funds belonging to
the towns named in Individual capacity Of
fcials OF the Treasury maintain that the Sec
retary and such subordinates ne may nave
lected 70 audit the receipts and disbursements Of
these funds 70 become suddenly incaPacitated, the
government, such. would have record Of the
affair
Attention IS further called to the that in
instances bills have been presented in Congress
which contained provisions relieving the Secretary
OF The Interior from the supervision of the auditing
officers Of the Treasury. and that both occasions
the provision has been stricken out
uon bill was under consideration kepre sentative
Cannon raised the point OF order on case referring
jary Of te in-er,orI in these respects shall be
conclusive ana not subject 60 review 10y any other
officer" Mr. Cannon said. u make the point OF
The law is that al eXpeditures Of public money
mace everywhere shall he settled by the auditing
oGlcers Of the Treasury Department The change
II law PROPOSED in the words have just read
woula render un- eess2ry improper, impossible the
auditing 4 these accounts by the Treasury Depart
-nent. ] make the point of or-ss" The point of
order was sustained
on January % 1903 the Indian Appropriation biz
being again under consideration in the House, the
attention of Representative Sherman "8- called
70 the fact 'hat The words above quoted Had been
inserted lr Tho bill under consideration. and in
the same connection. and Mr. Sherman moved as
IN amendment that the words be stricken out
The amendment carried.
Inese instance are cited as shoWins mat Con,
10 the administration Of any fund by government
ouGc.al Independently Of the auditing officers Of
The Treasury Department.
Controller TIaceweH on HIS attention being
:. representative Of The tribune to a decision he
had rendered in a case declared to be analogous.
had caused TO be deposited funds accruing from
The sale Of logs the Menominee Indian Reserva-
had made accounting the Auditor Of the
Department Of the Interior until the final trans
lie Iofnt mat tLe method rurs,ie5 leaves \ defect
in the records which may UP TO plague future
investigators Government business is not the work
IF day or even ;he lifetime of any one person
will leave 10 future oficials a record that will
enable them to ascertain what their predecessors
have done and the reasons for their action" The
Controller then points out how such difficulties
see no reason why the Department Of the Interior
would not cheerfully adopt this method-a method
supervision Of the auditor for the Interior De-
nartment-in similar transactions in the future, I
believe il would ne equally satisfactory 70 the
auditor. 7 earnestly recommend the adoption Of
acter'
Citing the above opinion of the Controller Of the
ceedirCs Of Congress. the Treasury Department Of
ncials believe they have clear case against the
legality OF the method adopted by the Secretary
OF the Interior.