Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-17
State Owes $1,433,757.39
Deposited There by Gov
ernment in 1886.
ALL EFFORTS TO OBTAIN
MONEY FAIL OF SUCCESS
Large Sums Placed in Other States
at Same Time Also Re-
main Unpaid.

day ELECTED the information that the
state OF Kentucky is indebted to the
United states government in the sum of
81 l4S3, 1913. deposited with the state in
1876 by the federal authorities and that
attempts since then, made by many treas
urers of the United States to obtain the
return of the money have been ignored.
John Burke, treasurer of the United
States. when asked today by a reporter
for The Star for information as to the
States against Kentucky. said that he
was not familiar with all the details of
the debt. but that he intends to have an
investigation made for the purpose of
bringing about restitution.
Inquiry among the older employees OF
the treasurers Office brought to light the
fact that Kentucky is not alone in the
position of owing large sums to the fed
erai government and ignoring the debt.
Large sums were deposited by the United
States with various states in 1896, at a
time when the United States Treasury
had more money than it knew what to
do with. for the so-caled purpose of safe
keeping, and under the agreement that
the money should be returned by the
states when the United States Treasury
needed it. Efforts since then, older en-
ployes of the Treasury said today. to
get back the money have met with de-
feat.
Interest in Kentucky's Debt.
Particular interest today centered in the
debt due the United States by the state
of Kentucky by reason of the fact that
Representative Ben johnson of Kentucky
is chairman of the House committee on
the District of Columbia. and is sharply
demanding that the District of Column
bia shall repay to the United States gov
einment about S1,0OO.G00 said to have
accrued on payments on the old bonded
debt of the District prior to the enact
ment of the District of Columbia organic
law.
The statement is made that if Chair
man Johnson lives up to mis- full duty
he should also demand that his home
state repay what it has been owing the
federal government, S1.433, 757.39, since
1886
Mr.. Burke. United States treasurer.
while not caring to be quoted today on
the subject, in advance of an Oppor-
tunity to investigate 1t. said: s-~~
This matter is entirely new to me.
although | see by the records that the
money is evidently due. AS a general
proposition l should say that the states
ought to return the money. and I will
have an investigation made. Offhand,
! should say that the statute of limita-
tions will not lie against the United
/ hardly suppose that the states would
invoke it in the case of a just and
legal debt.
Before giving a formal opinion or
statement | prefer to read through the
various statutes affecting the debts, and
] will then take suitable action and have
something TO say"
Think Success Doubtful.
Older employees of the treasurers of
fee familiar with the deposit of gov
ernment funds with the states in 1886,
and efforts which have been made since
then TO obtain restitution, today ex-
pressed themselves as being doubtful
of the success of any new effort to get
the money back.
Members of Congress-" one of these
employees said, ARE unlikely to vote for
a measure to return the money. since
it's return would mean loss to their
home states.
In the case of Kentucky it would seem
to be proper thing for Representative
Johnson, chairman of the House District
committee, to take up in the state of
Kentucky the advisability of that state
making restitution to the United States
of this 81. 433, 757 30. upon the high moral
grounds upon which he has based recent
charges against the citizens of the Dis
trict of Columbia In connection with
claims of the United States said to have
been contracted before the adoption of
the organic law of the District
Theree years ago, 1t is said at the
Treasury Department, the Governor of
kentucky and the governors of the other
states i'm debt to the federal government
We're notified that the debts Were being
still carried on the books of the treas
urer of the United States. but no militant
representative of Kentucky or any other
state has ever constituted himself col
lector for the United States to the detri-
ment of his own home state.
Til. report of the treasurer of the
United States for the fiscal year ending
June 80, 1910, states: