Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-18


Stunning. in the opinion of George E Dow
ney, controller of the Treasury, that when
Congress passed the organic act of 1878.
establishing the half-and-half system of
meeting expenses of the District of Co
lumbia, it intended to wipe the slate
clean OF all prior Indebtedness due the
United states from the District of CO.
lumbia and take a fresh start
whether that be true or not, the con-
trolier of the Treasury advises the Sec
retary of the Treasury it will be uniaw-
full for him to cover into the United
States Treasury any funds of the Dis
trict of Columbia in the custody of the
treasurer of the United States, as an act
of reimbursement of the United States
for any assumed Indebtedness of the Dis
trict of Columbia to the United States.
The funds Of the District of Columbia are
available only for applicatio to current
appropriations, and to be checked ont h,-
the Commissioners of the District of Co
lunbia through the proper disbursine
officers designated for that duty. Even
In the exaction OF reimbursements. Con-
gress has always placed the duty unon
the Commissioners.
II there is money due to the United
as Controller Downey views the sitna, :,
tlon, only Congress can fairly Judge
whetner that is so, and whether it
should be repaid and under what con-
oitions- There is no doubt in his mind
that the District of Columbia. was in
debt to the United States prior to +be
enactment of the organic act; but the
organic act was federal acceptance OF
the oDl1gation to pay half the interest
on the 3-63 bonds of the District of Co
n or
ehect, concedinG the principle and the
pfopflety OF its application to past
transactions on this account
Sum Advanced by United States.
The sum of s1,00S, ,25724, representing
the amount advanced from the United
States Treasury for the payment of in
terest charges on these bonds due In
1877 and 1S7S--alleged to be the debt
due as set forth in the statement pre-
pared by the House committee on the
District of Colum umbia-ControlIer Dow
ney regards as having been cut in half
by the circumstances attending the
adoption of the organic act, and recos-
milton therein of the half-and-half
principle as properly applicable to this
account. BY the same reasoning. he
finds that the entire debt of the Dis
trict of Columbia for the entire period
antedating the organic act, on account
of interest on the 3.65 bonds. was
s5s6. .OS7.221s.
In determining this as the amount of
the debt the controller does not pass
upon the aspect of the case regarding
the possibility that the indebtedness
was forgiven TO the District of Column
bia by Congress He does not regard
himself as justified in reaching this
iinding. believing that Congress itself
alone has the right to declare whether
this was the purpose. Only Congress.
too. he suggests. can determine how
any existing Indebtedness can be ad-
justed.
"Chaos of conditions and an absence
of fixed purpose in legislation" Con-
troller Downey finds, Characterize the
period between 1874 and 1873. before
the organic act was passed. The reIa-
tive obligations of the United States
and the District of Columbia were then
unsolved. The organic act was an ad-
justment of these obligations, and the
circumstances attending it's enactment
may be viewed as Indicating a pur-
tied by the adoption Of the new sys-
tenn.
Asks for Specific Opinion.
The opinion of the controller of the
Treasury Is submitted on a reference
from Assistant Secretary Malburn of
the Treasury Department. The refer
ence asks specifically for an opinion
in the matter of IAN alleged indebted
ness of the District of Columbia to the
United States on account of interest on
the 3.65 bonds of the District of Column
bia which accrued during the fiscal
years 1877 and 1878, and was paid with
money advanced by the United States
which has not been reimbursed from
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