Evening star., 1912-01-20
Board of Trade Committees
View of Organic Act.
DISTRICTS FLOATING DEBT
Its Validity Forever Settled by the
Board Of Audit.
FEDERAL GOVERNMENTS DUTY
Division Of the Expense In Maintain
ing Capital City Discussed by
Col. Truesdell.

Besides listening to an address by tho
German ambassador, the Board Of Trade
last night at the New Willard heard
and unanimously approved the re-
port of the committee on municipal
finance, of which Col George Truesdell
is chairman. In that report Col. Trues-
dell discussed in detail the relations OF
the federal government to the District
of Columbia, and emphasized the duty OF
the federal government to keep faith with
the District by continuing appropriations
on the half-and-half principle laid down
by the organic act of 1878. The board
passed a resolution providing for the
printing Of the report in full. and It's
distribution to all members of Congress,
as well as to members of the board.
Col. Truesdell summed up the conclu-
sions of his committee as follows:
Under the Constitution. the United
States is primarily liable for all valid
debts Of the District Of Columbia. wheth-
er evidenced by bonds or otherwise.
definitely in sections and thereof. for
the benefit of investors. just how the LA
bility of the United States for the pay
ment Of the 3.65 per centum bonds, au-
thorized to be issued by the act, would
be discharged.
Legality Forever Settled.
Whatever question there may have
been prior to the act Of June 20. 1874. as
to the validity Of the floating debt Of tho
District OF Columbia, or of the board Of
public works, the settlement OF the debt
by the board Of audit, created by the
sixth section Of said act. In the manner
provided by said act. and the conversion
Of the same into 3.65 per centum bonds
by authority of that act, settled and de-
termined forever the legality OF so much
of the debt as has been converted into
the bonds mentioned.
'Under the act Of June 20. 1874, the
faith of the United States was pledged
that the United States would appropriate
from the public treasury proper pro-
portion--the precise proportion to be fixed
later-and would cause to be levied
against private property In the District
of Columbia another proportion, of an
aggregate sum sufficient to pay the in
terest on the 3.65 per centurn bonds au-
and payable. and to provide sinking
fund for the payment Of the principal
thereof
THE act Of June IL. 1s7s provided
definitely for an equal division of the
amount necessary to defray the expenses
of the government Of the District between
the United States and the District OF Co
lmubia, and the act Of March 3, 1879,
created a sinking fund for the 3.6o bonds
and made a permanent annual appropria-
tion therefor. Each year thereafter down
to the present time Congress has ap-
propriated for the expenses Of the Dis
trict Of Columbia, including the interest
and sinking fund, one-half from the pub
lie treasury and the other half from the
revenues Of the District OF Columbia, thus
confirming in each appropriation act
from 1879 to 1911 the application Of the
half-and-haf principle to the public
debt.
Limits Power Of Congress.
Under the taxing power Congress
could shift any burden Of debt resting
upon the District wholly to the private
property in said District had not the or
ganic act pledged the United States to
pay so per cent, and no less, Of all the
approved estimates, and that the other
so per cent, and no more, should be levied
and assessed against private property in
said District.
1.-THE organic act, founded In experi-
ence, wisdom and justice, was intended
to establish permanent conditions, under
which American citizens then here, or
who might thereafter be drawn here,
either to assist in the administration of
the government or to engage in business.
or to enjoy the privileges, immunities
and improvements found here, and for
which their money had in part paid.
might acquire and hold property In this
federal reservation.
THAT the act Of June IL, 1873, entitled
An act providing permanent form of
government for the District OF Colum-