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


Statement of the Case.
when the appropriation bill for in
terest and sinking fund on the luhoeu
delhi of the District of Columbia was be-
fore Congress in 191:; question was
raised as to whether the government was
T., any way liable as principal Tor sueh
Indebtedness. 1t was claimed pS solne
r,ent was not liable as principal, put
only as a guarantor, and that "Hne ,de
laws provided for the payment OF inter
esf upon the bonds of the Dlstrlct, anu
fu- their final redemption, such PAY men
~ Interest and of bonds should be
charged against the District ana reIuhu-
-. to the government by the blstriGt.
while other members just as Nigofousis
insisted that by action OIL oohsress SUI
sro11ent TO the issuing OF said bolds tne
oyernrnent became liable for nan
II the bonded Indebtedness OF the
District as well as for the current eA-
l,anses On account of this controversy
congress added to the paragraph appro-
~;.tino money for payfnent of the inter
ST and sinking fund on the funded dept
ri the District the following language.
namely: which sum shall be pald ou'
" funds and accounted for IN Ic :icco.uaiics &c
vim the acts of Congress in r. alton
tberato., If this language serves any pur-
.,se at all it is to raise the question,
,,as the money appropriated for me IN,
1,rest and sinking fund on the iunoeo
iebt of the District OF Columbia Deen
aid out Of funds and accounted Tor IN
,1cordance with the acts of Congress i'll
gclation thereto?
Question Important One.
1T is a most important question to the
.s.rict. TO the government and to 'ne
'-.l,tod States Treasury. The supcoin'
.;-;rr c,. appropriations has called or
ii. Office for information. asking VIVA
instruction has been placed upon tht
language quoted, and if the appropriation
for interest and sinking fund on The
funded debt of tie District has been palt
according TO custom. and this office ha:
repIied stating that there has been III
change in the payment of interest alit
sinking fund, that the same mas peei
paid according to custom
This leaves the question unsettled, aiit
therefore respectfully request that th'
s:tlne be submitted to the honorable, th'
controller of the Treasury Tor occasion
LDou all the questions involving III any
way liz, liability of the government fo
NO 1,aymept of the funded Indebtedness
o. iutep.st on the funded indebtedness!
Of the District of Columbia. and Tor
construction upon all the acts OF on
:.ress relating to said interest and sinking
20 state specifically the Liability of TN
government and of the District in rela
ton thereto
The controller then quotes the half
and half clause OF the APPROPRIATION ac
and also the paragraph relating to sink
ing fund payments.
Review of the Legislation.
The controller states that able brief:
have been filed with him and proceeds as
follows with his decision:
THE funded debt for which this ap
proprsation was made. as shown by III,
r.eport Of the treasurer of the United
States on the sinking fund and the fund
ed debt of the District of Columbia fol
the fiscal wear ended June 80 l3l2 con
sists entirely OF what are commonly
known as the three-sixty-ive fundin:
bonds of the District of Columbia.
These bonds were issued TO th
amount of ST.. 49,, necessarily afte
June ~. lsI4 and presumably befor
the passage of the joint resolution o
March IA, 1876. prohibiting further IS
suance.
by the act of June is, 1880. furthe
issuance of these bonds We're authorized
TO the amount of s1,2I6, 1.a-that is. t
the extent of the difference betweeI
the amount already issued and the gros:
limited amount of s15,1oNo; but tn
amount actually issued was S1,2ai ,o5u
leaving s2..o0 authorized. but not is
sued. This last issue was authorized
10 meet claims against the District o
Columbia arising out of contracts o
the old board OF public works and eX
tensions thereof by the Commissioner;
of the District and claims arising ou
of contracts made by the District Com
inissioners and claims for work don,
and accepted previous to March IA
1876, the date of the passage of til,
Joint resolution referred to. jurisdiction
to determine all these claims being b,
the act conferred on the Court of Claims
with further references in that connec
ton indicating that this later jssu
of these bonds was for the final con
summation of the purposes for whicl
these bonds We're originally authorized.
Character Not Changed.
Thus the whole issue stands on til
same footing and the proriso in sectio
o. that
The bonds issued by authority of thi
act shall be of no more binding force a