Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-16
ONEITEM OF INTEREST ONLY
Report of Accountant Submitted to
Subcommittee of House.
RELATES TO 3.e5 BOND ISSUE
First of Series Of Statements in Pro-
gram Of Chairman Ben
johnson.

|
trict of Columbia committee OF the
House. to go to the bottom OF the ac-
counts between the United States and
the District Of Columbia was taken at
meeting Of special subcommittee Of
the District committee yesterday. Scott
Mayes, an accountant from Kentucky,
who has been delving into Treasury Iedg-
ers. reported that on one item Of inter-
est alone the District owes the United
States s1,O03, ,257.24 The subcommittee.
composed Of Representatives Johnson.
Oldfeld and LObeck. learned from MIR.
Mayes that the Treasury of the United
States had neglected to take over the
money that should have been paid to 1t
by the District Of Columbia. and that In
the general routine Of accounting mat
ters the sum involved has never been
returned to the United States.
This is the first Of a series of reports
expected since July 1, 1911, when Mr.
Mayes was authorized by Congress to
make his investigation. This one item
covers only q single phase of the mat
ter-the interest on 1865 bonds In one
special year. Mr.. Mayes blames the
Treasury severely in his detailed state
ment. The report is signed by Scott
Mayes and his assistant, j. r. Mayes.
Issue of Bonds in 1874.
The issue of 1865 bonds was authorized
June 20. 1874, and they bore the date Au-
gust /, 1874. Interest was paid three
times by distinct acts OF Congress-; the
fourth payment is the one which causes
| the trouble. Mr.. Mayes' report states
! that a law was passed July 81. 1876. pro-
viding that the Secretary of the Treasury
shall reserve from the expenses OF the
District not required for the actual ex-
! penses Of schools, police and fire depart
| ments a sum sufficient to meet the IN
| terest on these bonds. That act says that
| II there Is not enough money on hand
the Treasury Of the United States snail
| advance the sums and that the same
| shall be reimbursed to the United states
| from time to time. as such revenues may
| be paid into said Treasury. until the fui
| amount shall have been refunded.
| The Treasury accounts appended TO the
report show that 81 .0O9, "a was paie
| by the Treasury as interest on tnos'
| bonds in the fiscal year beginning July 1
1875 and the report states that none o
| 1t has ever been repaid. On this snow.
| ing. the report states, the District o.
!! Columbia owes that amount TO the Cniteo
| States. Extracts from early acts arr
| made q part of the report to snow tna'
| the Commissioners once apportioneo tneli
| expenditures SO as to take care or tne
| repayment to the United States Treasury
| of the amount in question. but that IN
reality the matter has been IoreoIeeh ~
| the years following.
| Mr.. Mayes report also shows that since
the issue of the 3.65 bonds there has been
| turned over to the treasurer or tne
| United States for paying this interes,
| $50 1O6.46 OF this sum. he says the
| United States and the District of Co
| lumbia each contributed one-half OF $l6,
| 313 1888 %, the last named sum being the
| interest accruing from July ], 1878, to
June 80, 1911, the point at which the ac-
| count reported by Mr.. Mayes stops
Interest Payments Prior to 1873.
The interest paid prior to July 1, 1878
according to the accountants statement
is $1,755, 723 o. OF this sum he says that
s1S6, 1890 was not paid by either the
United States or the District OF Column
bia, but was required to be deposited by
the holders Of board Of audit certificates
at the time those certificates were eX-
sents the interest coupons attached to the
bond to which the holder Of the board of
audit certificate was not entitled.
This, according to the report by Mr..
Mayes, leaves the sum Of 81 o69 ,3sOO3 In
terest on 365 bonds from the date of is
sue to July 1, 1873, which was paid by
the United States and the District of
Columbia in the following manner:
BY the United States, $1S2. 500 from ap-
propriation, February II, 1875; SIS. 900
from an appropriation of March 3. 1875,
and 81 ,OOS ,257.2 advanced to the District
of Columbia in pursuance Of the acts of
Congress July 81, 1876. and March ,.
1877, which amount the accountant claims
is now due to the United States because
the act authorizing the advances to be
made by the Secretary of the Treasury
required that the amount so advanced
should be paid back to the United States
Treasury out of the District Of Columbia
revenues. The remainder Of the 1,569.
SsOO3 was paid by the District Of Column
bfa: This payment was required by Con-
gress under joint resolution of March IA.
1876.
From Two Viewpoints.
eff" says the report, ''the mandatory
provisions Of the acts Of July 1s, 1876, and
March 3, 1877. which require the reim-
bursement of 1.OO3, ,257.24 to the United
States, are to be ignored, and In lieu
thereof is to be substituted the contention
that the United States is to pay one
half of the interest on these bonds, then
the District of Columbia would owe the
United States $3.50. .O67 .221z. If the con-
tention of others that all debts owing by
the District Of Columbia June IL. 1878 the
the District of Columbia and one-half by
the. United States. Is to be substituted
for the mandatory provisions of the said
acts of Congress, then in that event the
District of Columbia would owe the
Irnited States on account of interest pay
ments on the 365 bonds. ne-half OK
81 .OO3 257.24, or the sum of $5O1 .62S.62"