Evening star., 1914-01-22

acts Of June 20. 1871; June 23. 1874: Feb
ruary 1, 1875. and April 30. 1878. your
committee believe to be absolutely es-
sential to proper action on H. j.. lo'.
It nowhere appears that such knowledge
was in possession of the House of Rep
resolution.
Misled by Report.
''On the other hand, the chairman of
the committee in the course Of the de-
bate said: More than million dollars
has been found, and there is no man
today who will dispute the fact that
the District of Columbia owes the fed
eral government this money. page H..
Congressional Record) From the state
ment of the chairman and from the re-
port of the committee it appears clearly
evident that the committee and the House
were misled by the accountants report,
and that they acted without knowledge
that the District had good and COM
pletc legal defense and set-off against
II. j. 1O7 in the acts of 1874 and 1878
and the related acts.
Concerning comment made by the ac-
countants that at various times the Dis
trict of Columbia had to its credit on the
books of the Treasury after the payment
of all outstanding checks certain sums
(which could have been applied as re-
endorsement on account of the 81 ,oh3.-
.17a4 advanced by the Secretary of the
Treasury for the payment of interest on
the 36' bonds for the fiscal Years 1877
and 1878, but instead went into the
general fund and helped to swell the
revenues of the District of Columbia for
the fiscal year 1870. by reason of Which
the United States was compelled to con-
tribute a like sum from its revenues,
the report states: 9
The latter part of this gratuitous COM
ment is wholly erroneous, and arises
from a mistaken Interpretation of the re-
quirements of the organic act. an in
depreciation with which Chairman John
son is in accord, but which is absolutely
contrary to the letter and spirit of that
act.
Not Compelled to Aid.
1.-THE United States was not compelled
to contribute a like sum from its rev.
enues and did not do it, and 1t never has
regulated its contributions toward the
expenses of the District wholly by the
revenues Of the District; nor does the
organic act require it to do SO. 1t does
not require, as is so often enormously
stated. that District dollars shall be
matched by United States dollars, but
requires exactly the contrary-that United
States dollars appropriated toward the
expenses Of the District shall be matched
by District dollars; and that the tax
levy on private property and privileges
in the District shall be regulated and
limited thereby, provided that the total
amount of the tax levy shall not exceed
the rate OF $50 on the hundred dollars
In any one year.
THE fact that at the close of the fiscal
balance as s233O5.4O (Mayes' report,
page 12) shows how hard pressed they
really were for means to take care of
current expenses, particularly of the
schools, many of which for lack Of means
were kept open only half of each day.
Had But Small Sums.
sums OF money to their credit at all
times, because they were forbidden by
law to incur any debt. but these balances
were small working balances. insignifi-
cant in amount compared with the con-
tracts and other obligations outstanding,
amounting to hundreds of thousands of
dollars, and which at the end Of those
years were reduced.
THE attempt. as his report clearly un-
dertakes to do, to make use of those
small credits to show that after paying
all needed expenses for schools, police
and fire department there were surplus
revenues during those two years of over
81 100000 which might have been used to
reimburse the Treasury for the interest
advanced upon the 3.65 bonds, is not just
to the Commissioners nor to the Secre-
tary of the Treasury of that remote pc
riod, who were far better Informed of
the conditions then existing than ac
countants of the present day can possi-
bly, be. Had the $1.S0O,00O. being the
total deposits during those two years in
excess OF the amounts which the law re-
fire