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

Controller Downey's decision that the
Secretary of the Treasury has no power
to reimburse the United States directly
from local funds in his care for the Dis
trict's share of the interest on the 500
bonds for the years 1877 and 1878. with
out legislation. supplements his ruling oil
last January, in which he held that the
United States has. since 1873. been
obliged to pay half OF the interest on the
entire funded debt. It had been DIS
covered in the course of long and
expensive inquiry that, owing to the
faulty bookkeeping of the United States,
the advances of money by the federal
government to pay the Districts half or
this interest for two years had never
been refunded. Now the controller de-
clarcs that unless and until Congress
grants specific authority the Secretary OF
the Urea sury cannot refund the amount
10 tie United States.
This decision strengthens tn. colten-
tlon OF the District that the United states
.,ssuinetl definitely and deliberately half
the burden of National Capital nlainte-
rance when in 1878 it adopted an organic
act for the District government. The
controller III both of his formal rulings
so regards the legislation of thirty-siN
and one-half years ago. Under them
there can be no revival OF the former
claim that the District owes the United
States that part of the sinking fund for
The retirement of bonds which was COLI
tributed by the federal government IN
der the half-and-half clause. There re-
mains now only the equitable considera-
ticn of whether Congress should require
r.-fr of fv,f.r ol,,,
is'.-S which has stood all these years
without claim until very recently.
For thirty-siX years Uncle Sam has had
this matter exclusively in his hands, and
has treated the transaction of the inter-
est on the $50 bonds as disposed of in
the compromise settlement of 1878. when
the Districts bankruptcy was adjusted.
There has never been a question CT proof
Oh such a clearing adjustment until
lately, when interests avowedIy hostile to
the organic act became active and for
reted out details of federal bookkeeping
which after the lapse Of years technically
showed District Indebtedness. The
United States, having full charge of the
books and OF the appropriations. accent
ed the account as closed. Now. DENYING
That the statute Of limitations applies in
" 4 n
collect q claim that, under every con-
siderauon OF equity, should be regarded
as outiawed.
II the municipal expenditures between
1917 and 1878 are TO be readjusted on the
half-and-half basis, all the items of this
account should be stated and considered
and not merely the item of interest in the
800 bonds. The Board Of Trade 1nuni-
a.
ciusively that in such full accounting for
the four years the United States paid less
Than half OF the municipal expenses, and
that on an equitable reimbursement it
would be indebted to the District.
li old claims and equities prior to 1878
are to be revived in favor of the United
States, then they must also. in consist
ency and fairness. be revived in favor of
Washington. II the District of TODAY is
10 be held responsible for any neglected
debts OF the District he ore the act of
settlement it must also have the benefit
o. old Washington's unsatisfied equities
and partly unpaid credits. Official re-
ports and records state in plain terms
that there stands unsatisfied to date an
epuit1l,e claim of SIC, 15077o.14 in faycr
Of the District. the excess of local expendi-
lures for national aud local purposes
within tiIs jurisdiction from 1890 to 1876.
This Calm is stronger even than that
now advanced by certain legislators for i
refund o. interest paid more than thirty
SIX years ago, for it has been formally
nctcd many times in terms of a demand
for settlement, whereas the present fed
eT;,l claim was not stated for more than
. third of L century after the transaction