Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-05

out of the proportional sum which the
United States may contribute toward
the expenses of the District OF Co
lumbia, in pursuance of the act OF
Congress approved June II, 1878. for the
fiscal year ending June 80, 1879 and an
nually thereafter, such sums as VIII.
with interest thereon at the rate of
3 65-1O0 per centum per annum. be
sufficient to pay the principal of the
3.G5 bonds of the District of Columbia,
issued under the act of Congress APP
proved June 90, 1874. at maturity
The appropriation of 81 155,S53.5o Tor
interest and sinking fund included IN
terest on the old debt of Washington
and Georgetown and interest on the
3.65 bonds, aggregating the sum OF
s983.314.12. 1t included also for sink
ing fund on entire debt, S1t2 26?. Az
Total amount for interest and sinking
fund, $1,155,S5355 The proviso to
this appropriation made permanent
provision. however. only for the sink
ing fund for the 3.65 bonds, while the
amount appropriated for the fsca! year
ending June 80, 1879, 1,155,5S3.55. in
Guided sinking fund and interest re-
ouirements for the old debt of Wash
ing and Georgetown as We'll
Opposition Overcome.
The proposition to commit the United
States by means OF the appropriations ana
the creation of a sinking fund for the
$50 bonds, to the payment of one-haif
the District debt, although it was ohl!
fulfilling the pledge made in the act OF
1874, in accordance with the % per
centum clause of the act of 1873. met
with vigorous opposition in the House
of Representatives on the part OF sew
eral members, among them Mr.. Black
burn, who, AS chairman of the commit
tee for the District of Columbia. had re-
ported from the District committee ana
champiOned on the floor OF the House tile
btll for a permanent government, passed
June H. 1878, which established the equal
division of expenses of the District gov
eminent between the United States and
the District of Columbia: Mr. BLACK
burns position on the $50 bonds was,
however. entirely different from that
which Mr.. johnson is understood to oc-
cupy. Mr.. Blackburn commended that the
United States was bound to pay the III
terest. or one-half the interest, on the
awful issue of the 1863 bonds, but was
not bound to pay one dollar of the prln-
cipal. He claimed, moreover that all or
the bonds in excess of the so. Cc0.WO debt
limitation We're issued without authority
of law and We're fraudulent. 1t was
not his purpose to saddle the District OF
Columbia or the United States with any
part of this debt in excess of the S1Uooo,-
600, but to repudiate it on the ground
that it was fraudulent. and that the
holders of such bonds in excess OF the
first Sl0.O00,OOO debt limitation had
bought those bonds with notice.
He said in part:
This is a permanent provision for the
payment of permanent debt.
THE estimates submitted TO this Con-
2ress by the Commissioners of the Dis
trict of Columbia show conclusively that
in it's present Impoverished condition,
brought about by maladministration. it
is not proper or justifiable for you to
fasten upon il this additional burden.
Now when you agree TO this conference
report you agree simply to fasten upon
the oyertaXed, overburdened and we'll
nigh bankrupt people OF the District of
Columbia u debt to run forty-two Years
that they cannot meet, also to faSten
upon the government of the nlted States
ne-half of an obligation of S2200o.ooo.
not once cent of which the government
ever owed or is Obliged by law to pay,
and SS,OOo.0o0 of which L deny that any
body owes
Half Payment a Compromise.
Mr.. Abram S. Hewitt of New York. Mr.
Hunton, Mr.. Buckner and Mr.. Eugene
Hale insisted upon the liability of the
United States under its pledge. Mr.. Hale
of the appropriation committee said:
Il do not know that by the act which
has been cited and read the government
is committed to the payment of the in
terest upon these bonds, and to the pro-
vision for Il sinking fund. | know in ad-
dition TO that year by year Congress has
been making appropriations, with little or
no objection, for tie payment of interest.
know further. Mr.. Speaker. that as
Years run by when this debt natures
there will he more and more pressure
upon the government if this measure does
not pass here and now, to pay the whole
of this debt; and if we do not now pro-
vide a sinking fund, the government ap-
propriating 80 per cent of it, but leave it
TO the termination of the bonds. the gov
eminent Will in the end pay the whole
of it."
The yeas and nays were ordered and
there were 1iS yeas and 1O7 nays, SO the
report was agreed to.
Thus it appears that the appropriation
in that act of 81, lJJ $3.50 for interest
and sinking fund for the whole District
debt of about $a2,000Oo0, old and new
and which carried with il Il provision for
"a permanent annual appropriation for Il
sinking fund for the $50 bonds, was thor
oughly and vigorously discussed and the
attention of tthe House called to the fact
by Mr.. Blackburn, that it was "a per-
manent provision for the payment of a
permanent debt" and, if the conference
report was agreed to. would fasten one
half of this debt upon the District of
Columbia and the other half upon the
United States Nevertheless, it was
agreed to by large majority, and the
Congress failed once in all the inter-
veninS years to appropriate one-half the
interest and sinking fund not only for
the 3.6o bonds, but for the old funded
debt also.
Johnson VS.. Blackburn.
AIR. Johnson appears to agree with Mr..
Blackburn in one respect only-that the
United States is not liable for any part
of the District debt and that there is a
considerable portion of that debt which
was incurred without authority of law.
He is understood to contend. however
that the 1865 bonds, into which the debt
was funded, are good and binding upon
the people Of the District, who had no
voice in creating the debt. except as to
the old debt and the first S4OOO.O0O of the
new debt, but net binding upon the
United States. Mr.. Blackburn admitted
that the United States Avas committed to
the payment of one-half the interest on
the 800 bonds under the act of 1871
while Mir. Johnson is understood to CON
tend that the United States by that act
only guaranteed that taxes would be lev
| led sufficient to pay the interest. He is
| also understood to contend that the act
| of 1878 is not an organic act, and that it
may be amended from time to time like
any other act, and that the 30 per centum
| feature is only applicable to and bindin;,