Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-16
Expert Ends First Stage OF
Work on District Books.
HEARINGS TO BEGIN SOON
Enough Discovered, It Isa Said, to
Warrant Careful Investigation.
INQUIRY MAY CONTINUEsYEAR
johnson Says Every Phase OF Part
nership With National Govern
ment Will Be Probed.


The expert accountant employed by
the special subcommittee Of the House
committee on the District of Columbia
which. under the Oldfield resolution. is
authorized to make an exhaustive In
vestigation of municipal affairs. has
about completed one stage of his work.
For the last three weeks he has been
located at the Treasury Department,
going over the books Of the District to
ascertain II there Is any foundation
for the charge made by Chairman
Johnson Of the District committee that
as a result Of statute misinterpretatton
and faulty bookkeeping the District OF
Columbia owes the Federal govern
ment several million dollars.
Just at present most OF the members
of the special subcommittee are out OF
the city. but as soon as Accountant
Mays notifies Chairman Johnson that
he has completed his work the sub
committee will be called together and
hearings will be begun. Chairman
Johnson declines to discuss the work
of Accountant Mays prior to the lat
ter's report to the committee of in
quiry, but 1t is understood on good
authority that Mr.. Mays believes he
has discovered sufficient indications of
bad bookkeeping in connection with
the partnership between the federal
government and the District OF Column
bia the last thirty-five years to war
rant the committee going deeply into
the subject.
1t is Chairman Johnson's idea that
each phase of the investigation of the
affairs of the District of Columbia be
talxy III will
the plan followed if the special COM
mittee agrees with its chairman. as
there seems to be no doubt that 1t
will do. When Accountant Mays con-
cludes his labors in connection with
this alleged faulty bookkeeping fea-
ture, he will be instructed by Chair
man Johnson to make a careful ex-
animation into the tax assessment and
collection system Meanwhile the sub
committee will hold hearings on the
basis of the work already done by Mr..
Mays. Chairman Johnson said today
that the accountant was a man Of
wide experience In his line.
Knows of No Scandals.
Mr.. Johnson yesterday reiterated his
statement that he knew of no scandals
in connection with the government of
the District of Columbia, and that the
inquiry did not have anything SEN
however, that it is high time a COM
mittee of Congress made the most care
full Investigate ton of local affairs, with
view to recommending corrective
and remedial legislation. Incidentally,
he made an extremely interesting an
nouncemant.
II cannot see." said Mr.. johnson.
how this inquiry in which We have en-
gagged can be concluded in less than q
year We are not on a fishing expedi-
a In m mt tn oh he
matter in haphazard way and by ask
ing every conceivable question to pro-
coed with the hope that eventually we
may discover something. Instead of go
ing ahead In this manner and trusting to
luck the committee has employed an ex-
tremely competent expert accountant to
go over the books Of the District, to look
into all phases of the existing partner
ship between the federal government and
the National Capital. and to lay before
the special subcommittee any sugges-
lions that he may feel called upon to
make as result of his labors.
THE inquiry has just begun. The ex-
animation of the books alone is time
consuming process, and, Of course, after
this stage of the work is concluded the
subcommittee must hold hearings. We
propose to familiarize ourselves with all
features OF the existing relations between
the District and the federal government
and to hear both sides of every contro-
versy that may ar4se in the course of the
y.
animation OF the tax assessment and col
lection system will take a good while,
not to speak of the other objects OF the
inquiry.
Public Service Corporations.
II do not anticipate that the commit
tees probe into the condition of the pub
lie service corporations of the District
will take as long as might be expected.
of foar Ia Ia
termined and the proposition is not so
complex. after all. In this connection the
committee will concern itself not so
much with the present capitalization of
OF money invested in them-not from
earnings, but in the shape of money
brought in from the outside.
1t is becoming a question Of moment.
not only here, but elsewhere around the
country. and not only in connection with
street railways, but steam railroads and
other enterprises as well, as tC whether
corporate interests are justified in pay
ing large dividends upon capitalization
which has been built Up not through
original investment. but through the re-
investment OF earnings made pcssible ny
exOrbitant rates.
In connection with the inquiry into the
public service corporations of the Dis
trict. the special subcommittee WI first
read with care the stenographic reports
of other hearings before the District
committee of the House during the last
ten years, when one or more OF the local
public service corporations Were made
the subject of inquiry. There appears
to be no disposition on the part of any
member of the subcommittee 10 proceed
hastily, TO jump at conclusions, to give
credence TO unsupported charges ur to
do anything that would harm any local
interest or be of oetriment to the aims
OF the inquiry, which stated TO be
furthered by desire to render the best
service to the federal government. and
the National Capital
To Work Through Summer.
Chairman Johnson said yesterday that
inasmuch as Accountant Mays had prac-
tically completed the first stage Of his
work. the subcommittee would undoubt-
eddy begin Its active labors in the near
future and continue through the summer
and fall. Although Mr.. Johnson's health
has not been OF the best of late he is
prepared to sacrifice all personal consid-
erations. owing to his interest in the
present inquiry. which he was instru-
mental in instituting. and remain here
straight through the summer until the
converting Of the regular session of Con-
gress. IL he finds 1t necessary.
Ii is Mr.. Johnsons hope that the in
vestigation which is now under way will
result in the institution OF reforms in
various phases of the system of govern
Of he District rfl