Evening star., 1911-06-05
ADOPTION BY THE HOUSE
IS EXPECTED TOMORROW
Authorizes Committee to Compel
Production of Books and Papers.
TO BEGIN WITH TAX SYSTEM
Public Utilities Corporations Includ-
cd In Provisions for Inquiry.
Chairman Johnson's Recent
Statements on Bonds
Interest.

"Resolved. That the Ho use commit
tee the District Of Columbia, or
any subcommittee thereof. appointed
by the chairman of such committee,
be authorized to send for and compel
the production Of such books and pa
pers and the presence Of such persons
as they may deem necessary for the
purpose Of inquirin& into the opera
tiOns and methods of the departments
of assessment and collection of taxes
of the District Of Columbia, and such
other departments thereof may he
determined by them; well as the
organization, capitalization, bonded
and ether indebtedness and the man
agement and condnct of any and all Of
the public utility corporations doing
business I'm the District
The above resolution. introduced by
Representative Oldfield of Arkansas, au-
tirorizing a sweeping investigation of the
affairs of the District government, with
particular reference to the making of as
sessments and collecting of taxes. and Of
the public utility corporations doing busi-
ness in the District, was favorably re-
ported by the committee on rules of the
llouSc tLIS diteIHOOn.
Expected to Pass.
There seems to be no room for doubt
that the resolution will be passed by the
House by a practically unanimous vote
Representative Henry of Texas, chair
man of the rules committee. will pre-
sent the resolution to the House tomor-
row with the favorable report Of his
committee. and it probably will be acted
upon immediately. ,sseeee
One of the matters which will be care
fully considered by the District commit
tee during its investigation of local az
fairs is the charge made by Representa-
tive Johnson OF Kentucky. chairman of
the District committee. that the United
States has not received credit for. large
sums of money which 1t has expended on
behalf of the District Of Columbia dur
ing past years.
Chairman Johnson's Statement.
When before the rules committee re-
Gently Chairman Johnson had the fol-
owing TO say on this subject. according
10 the printed hearings on the matter.
which have been made public:.
In so far as I am advised, for a num-
her Of years there has been no research
whatever into the affairs of the District
of Columbia as administered by the pres
cnt and former Commissioners; that they
expend annually from eleven to thirteen
millions of dollars. and that their ac-.
counts are audited by an auditor of their
own selection. l have not been to see
the Treasurer of the United States about
it. but the report is current and the
statement has been made upon the floor
OF the House since l have been in Con-
gress. that while the treasury has the
right to audit the accounts, he does so in
a strictly perfunctory manner, treating
the former audit as made by the auditor.
who is appointed by the Commissioners of
the District. in totals rather than in spe-
ciic items.
The Commissioners expend the money
and an auditor appointed by them. audits
the accounts. Now, want 1T to be distinct
" understood that l know Of no scandal.
and ] am not expecting to find any scan
dal: but / do believe that we will find
that for some time large sums of money
that the United States should have credit
for have not been given credit. For in
stance, the United States government, in
my opinion. as / read the law. reading
back through thirty years. were guaran-
the ass cent bonds, and in fact, the
nret year after they guaranteed this in
ltesest Congress made an appropriation to
pay it. and to have credit therefor on the
hak-and-haIf plan.
Interest on Bonds.
Now, 1t is my belief that the United
States government has not received
credit on the half-and-han plan for the
three or four thousand dollars that it
pays annually as interest on these bonds
And ii is further my opinion that an In
vestigation will disclose that the United
States government has not received
credit on the half-and-half plan for the
several millions of dollars that II has
paid toward the retirement Of the 3.65-
cent bonds
"As | understand II. the organic law
binds the government to the payment
of one-haIf of the current expenses or
the running expenses of the government: |:
and that the United States government
has not only paid half of the current
expenses but that 1t has paid half of the
entire expense of the government,
whether it be current or not; and in ad-
dition to that, that while the United
States government was only guarantor
for the interest on these 3.65 bonds that
she has. through a number of years. paid
one-half of that interest without ever
having gotten credit for il in the 50 per
cent which she is obliged to pay
have gone back just forty years,
and | do not find anything that is in
full explanation Of the matter So far
I find nothing where we are bound.
under any appropriation bill or any
thing else. to pay this money In ad-
dition to the so per cent But ] am
Informed. and when 1 asked Mai. Jud-
son about the matter--he did not speak
from the records nor for the board.
but for himself, but he said he also
thought the United States government
was paying this over and above the
80 per cent
should be taken and compared with the
records there to ascertain whether on
not that has been done. As said
CONTINUED on Second Pagel