Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-03
Controller DoWney Holds Funds
Collected Since 1879 Were
Not Properly Credited.
DECISION MAY SET ASIDE
EXCESS DISTRICT REVENUE
Sustains Contention of Chairman
Ben Johnson of House Dis
trict Committee

The whole of the rentals from the
property leased by the Washington
Market Company. from the fiscal year
1870 to July is. 1883, should have been
depesited in the United states Treas
,,ry 10 the credit of the United States
instead of to the credit of the general
fund District OF Columbia Rentals
after the latter date should have been
placed to the credit OF the un'ted
States and the District of Columbia In
coma, psrts. in accordance with the
terms of the law passed that day.
This is the opinion of the controller
of the Treasury. George L. Downey.
passing upon the question, ionE stand
ing of the ownership OF these funds
This decision means that the District
of Columbia has had the improper use
of 100000 of funds of the United
States, sustaining the contention OF
Chairman Ben Johnson of the House
District committee.
In the opinion of officials of the Dis
tT-irt of Columbia. this decision will prob
ably result in setting aside excess revenues
of the District of Columbia for the repay
mcnt of this account 10 the United States
Al act of Congress will he necessary 10
decide the course to be pursued
Disposition of Present Rental.
The reference to the controller of the
Treasury regards only the disposition of
the current quarterly rental of S1,S15.
He directs that this be paid into the
Treasury and posted to the credit of
the United States and the District OF
Columbia in equal parts. He takes no
part in correcting any erroneous ac-
ton on rental collections which may
have been taken heretofore. as all
prior accounts in which these rentals are
involved have now been settled more
than one year. and the settlements are
therefore beyond his jurisdiction to re-
wise.
The committee on the District of
Columbia employed an expert account
ant to investigate the payment and dis
position of these rentals. The account
ant reported that all moneys thus paid
10 the District of Columbia to and in
GLIDING the fiscal year 1878 were de-
voted to the purposes specified in the
act Of 1870, but that since said fiscal
year the said moneys have not been
50 applied. but have been treated as
belonging absolutely and benefic1ally to
the District of Columbia and have been
paid into the Treasury and credited to
the District of Columbia as a District
Of Columbia revenue"
sThis change IN the method of han
Ding and disposal Of these moneys.
comments Controller Downey. was
perhaps due to the presumed erect OF
the so-called organic act of 1873
District Has No Title.
The District of Columbia had no title
to or interest in the land upon which
the market company's buildings were
located, states Controller Downey. This
land belonged wholly and uncondition-
ally to the United States.
Controller Downey reviews the var1-
Gus laws affecting the disposition OF
these rental monies, and continues:
There is nothing in the organic act
that is inconsistent with the continuing
payment of this rental to the D1strlct
of Columbia by the market company,
nor is there anything in said act that
changes the chara cter of the rental as
a revenue of the United States. Being a
federal revenue the provisions in the
organic act relating to the collection
and disposition of revenues of the Dis
trict of Columbia have no applicat tion
to this rental.
Superseded by Organic Act.
while the rental might still be paid
to and received by the District of Co
Iumbia there are provisions in the or
ganic act which are inconsistent with
the application of the funds to the
purposes contemplated by the act of
1870, and to the extent of this incon-
sistency the original statute and agree
ment have been superseded by the or
ganic act"
Deciding the disposition of the cur
rent rental, the controller of the Treas
ury continues, concluding his argu-
Inent:
The auditor may reopen such of the
settlements of the general account be-
tween the United States and the Dis
trict of Columbia as he himself has
made. and he may readjust credits
OF account of these quarterly pay
Ineuts in accordance with this decis-
ion. but under the well established
ru1e that an executive officer may not
review the acts of a predecessor for
the purpose of correcting errors of law
only, the auditor may not reopen for
1uch purposes any settlements of
these accounts made by a predecessor
in office"