Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-05

70 their payment on the government ol
the United States than the three-siHty
i've bonds issued under authofhs Q, 'ite
act of June 2o 1874 served simply 70
preserve their status on the same oasis
as the original issue without addihS ~
| or subtracting from the obligations OF the
United States with reference thereto.
The bond in question We're issued unuer
| authority of section of the act OF June
! 20. 1874 ds Stat. 1i6). entitled An ae'
! for the government of the District OF Co
| luubia and for other purposes Wnlel
section is as follows, as AMENDED oy the
act of February 20. 1870:
THAT the sinking fund commisslon-
ers of said District are hereby continued.
and it shall be the duty OF said slnkins
fund commissioners to cause Donos oi
the District OF Columbia to be prepared
in sums of fifty and five hundred dollars,
bearing date August first. eighteen nun
dred and seventy-four, payable nity years
after date, bearing interest at the rate OF
three and sixty-five hundfeotns per
| centum per annum. payable semi-annu,
| ally, to be signed by the secretary ana
| the treasurer of said sinking fund COM
| missoners and counterslgned oy tne COIL
! troller of said District, and sealed as tne
| board NAV direct; which bonds shall be
| exempt from taxation by federal, state
| or municipal authority, engraved ana
| printed at the expense OF the Dlstrict OF
| Columbia, and in form not incohsistehI
| herewith. And the faith OF the Inited
| States is hereby pledged that the unlted
/ States will, by proper proportional ap-
propriations, as contemplated IN TINS ACT
! and by causing to be levied upon Tue
| property within said District such taxes
as will do so, provide the revenues neces-
sary to pay the interest on SAID ponds
/ as the same may become due and pay
| able and create sinking fund Tor tne
payment of the principal thereof at ma,
| turity. Said bonds shall be numbered
! consecutively. and registered in the OIL
! flee of the controller of said District, and
shall also be registered in the office OF the
! register of the Treasury of the Inlted
| States for which last named registration
| the Secretary of the Treasury shail make
such provision as may be necessary. Ana
! said commissioners shall use all neces-
Sarv means for the prevention OF any
unauthorized or fraudulent issue OF any
/ such bonds. And the said sinking fund
commissioners are hereby authorized TO
| exchange said bonds at par for like sums
of any class Of Indebtedness in the pre-
! ceding section of this act named, lnciud-
| ing sewer taxes or assessments paid evi-
/ denced by certificates of the auditlnS
board provided for i'll this act"
Governments Form Changed.
In considering the status of these
bonds.'' continues the controller, and
States and the District of Columbia, it
| may be best at this point to consider
such facts bearing thereon as appear
from the 2ct itself, it's history and the
objects to be accomplished by its enact
ment
For some three years .theretofore the
| District had been under a sort of ter
ritorial form of government, with an ex-
I slafi nd ,,ti,a
I officers and boards 1t is quite apparent
that Immediately before the passage of
the act OF 1874 a chaotic condition ex-
listed. Indebtedness had accumulated
there was no means available to care for
it or for the necessary expenses, and the
credit of the District was at low ebb.
From the provisions of the act itself il
! is apparent that there was a large float
ing debt. consisting of outstanding sewer
certificates, certificates Of the auditor of
the board of public works and of the
/ auditor and controller of the District
claims upon contracts, for private prop.
erty appropriated, for damages. etc. be-
sides then existent funded debt.
Congress evidently saw the necessity
of taking hold of the situation, provid-
ing for the ultimate payment of this
floating Indebtedness. for revenues to
mea current expenses and for a new
form of government for the District and
passed the act of June 20, 1874. to that
end.
1t is plainly apparent that that act
was not then regarded as the only legis-
lation necessary on the subject and that
II was temporary in its character bu,
that 1t was sufficient for present pur-
poses, and is all we have thus far before
Us for consideration in connection with
this question.
Bonds Were Not Sold.
The last clause of section gave tc
the sinking fund commissioners authority
to exchange these bonds for like sums o,
any class of Indebtedness in the preced
ing section of the act named, evidenced
| by certificates of the auditing boarc
therein provided for. There was n,
provision for their sale. therefore nc
question as TO who received the proceed.
OF e, the certificates for which the,
We're to be exchanged We're all certificate.
OF Indebtedness on the part of the Dis
trict and hence the conclusion is eyiden
| that the bonds were issued to pay debt.
| of the District and debts for which tn,
{ fContinued on Eleventh page