Evening star., 1911-07-29
Framing Of Organic Law.

FRAMING OF organic Law.
Mr.. Taylor described the framing Of
the law of 1874 and the organic law un-
der which the District Is now governed
in 1873 The bill reported by a nom
partisan committee in 1874 provided for
continuing the sinking fund commission
ers Of the District in Office and made it
their duty to prepare the 3.65 per cent
bonds for issue. The statute further on
says, THE faith of the United States is
hereby pledged by proper proportional
appropriations as contemplated in this
act. and by causing to be levied upon the
property within said District such taxes
as will provide revenues necessary to
pay the interest on said bonds as the
same may become due and payable, and
create sinking fund for the payment of
the principal thereon, at maturity"
These -bonds,'' continued Mr.. Taylor
were authorized for the purpose of TAX
ing up the Indebtedness of the District,
and the commissioners of the sinking
fund were authorized to exchange said
bonds at par for like sums of any class
of Indebtedness named in the preceding
section, including sewer taxes, or assess
ments paid. provided for in this act
Much debate has been had in Congress
subsequent to the passage of this act.
as to what the language meant. Many
able men contended that the government
only agreed that 1t would pay the in
terest and was not liable for the prin-
cipal. And others equally as able con-
tended that the governments pledge COW
cred both the interest and the principal at
maturity, but none, however, went SO far
as does the gentleman from Kentucky in
claiming that no part of the principal
or interest should be paid by the federal
government.
Cleared by Legislation.
Later on, legislation, which 1 will
cite later. cleared UP any question Of
doubt by specifically providing that the
government must pay it's full share of the
entire principal and interest. However,
/ contend that this language in the act
of 1874 can be susceptible Of no other
construction than that the government
was obligated to see that the principal
and interest were paid by doing two
things; first. paying it's proportional share
toward the same, and, second, seeing
that the District collected enough taxes
to meet its proportional share.
THE act does not say that the faith of
the United States is pledged that it Will
cause to be levied upon property within
the District such taxes as will provide
the revenues necessary to pay the interest
on said bonds. when the same became
due and payable, and create a sinking
fund, but it does say: And the faith of
the United States is hereby pledged that
the United States will by proper proper
tional appropriations, as contemplated in
this act (as contemplated in section 81,
and by causing to be levied upon the
property within the District, such taxes
as will provide the revenues necessary to
pay the interest on said bonds as the
same may become due and payable, and
create sinking fund for the payment Of
the principal thereof at maturity"
Mr.. Taylor in great detail discussed
the various laws enacted since the
passage of the organic law of the Dis
trict, showing that they, too, bore out
his contention that the government guar
anteed both interest and principal on the
3.65 per cent bonds.
He quoted at length from the running
debate on the act of 1873 to show the
House in regard to the responsibility of
the government
In conclusion he said:
II have gone to some length i'm con-
Meeting these various pieces of legiSla-
ton. What 1 have said / mean as no
reflection on the investigation being pur-
sued by the District committee
Only Possible Conclusion.
Those who give this matter considera-
ton, study this legislation, can come to
but one conclusion. First. that the 3.65
bonds were issued under authority of law
as set forth in the act of 1874; second,
that the faith and credit of the United
States was by the same act pledged by a
proper proportional appropriation and by
just taxation of the residents of the
District to pay the interest and create a
sinking fund to meet the principal when
due: third, that the act of 1873 legalized
for the first time joint partnership be-
tween the government and the District
of Columbia on 30 per cent basis as to
all of the expenses of the District of
Columbia that the sinking fund and in
terest of the District of Columbia were
as much part of the current expenses as
were any of the expenses of the District
fourth, the act of 1879 specifically pro-
vided that out of the joint fund of the
District and the United States govern
ment there should be set aside sum
sufficient to meet the interest. and to re-
duce the principal by the creation of a
sinking fund on the 8. .65 bonds. which are
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