Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-04
District Officials Think Read
justment of Account Will
Be Brought About.
AUDITOR NOW TO CREDIT
CITY AND U. S. EQUALLY
Decision of Controller Downey
Leaves No Other Course Open for
Present, It Is Pointed Out.

Market Company decision handed
down yesterday by Controller of the
Treasury George E. Downey, in which
it is held that the District of Column
bia has had improper use of about
sl6o,00o of rentals from the property
leased by the company was the prob
lem that confronted District officials
today.
As far as the immediate effect OF the
decision is concerned no other course
is open to the District auditor, 1t is
pointed out, but hereafter to credit
the market rentals to the revenues OF
the United States and the District OF
Columbia in equal parts
There is no doubt in the minds OF
the local government heads but that
eventually. and probably at the COM
ing session of Congress. effort Will De
made to bring about a read)ustment
of the account between the District ana
United States whereby local revenues
will be charged with the entire mar.
ket rentals paid between 1879 and 1883
and one-half of the rentals paid from
the latter date to the present time.
making a total of $160,000 that the
municipality Will be called upon to
make good on account of the alleged
improper use of funds.
Question Referred to Controller.
The question as to whether the mar
ket company rentals belonged to the
United States or the District of Column
bia reached the controller of the Treas
ury by reference of the assistant sec
rotary of the Treasury October %,
1914, on account of a deposit made by
the collector of taxes of the District
in the Treasury of $1.S75 for the quar-
terly rent due by the market COM
pany for the quarter ended September
=, 1914.
Previously the House District COM
mittee. through an expert accountant,
had Investigated the receipt and dis
position of these market moneys.
Controller Downey reviews ella borate-
transactions between the local and fed
eral governments. He begins with the
Incorporation of the company and
traces the developments by which it
is stated the improper use of the
rentals came about
Congress Provides Land.
Congress. by an act passed in 1870.
incorporated the Washington Market
Company, and authorized the use by
that company of the reservation be-
tween B street and Pennsylvania ave-
nue. and Louisiana avenue and 7th and
9th streets. for the purpose of locating
and constructing market building.
thereon. This act provided for an an
nual rental of $4,000. to be paid to the
city of Washington to be set apart and
expended under the direction of the
city government for the support and
relief of the poor of the city and OF
the District of Columbia. The leg1sla-
tive assembly of the District in 1871
reduced the yearly payment OF the
market cOmnanv to 100000,
Congress, by an act passed In 1873.
authorized the purchase by the United
States of the interest of the District of
Columbia in the present city hall build
This sum was to be applied by the Dis
trict to the erection of a suitable build
ing for municipal offices. and the gov
ernor and board of public works were
obtain sufficient land for the purpose of
erecting the building fronting on Penn
sylyania avenue and Louisiana avenue
between It'll and 9Th streets. Pursuant
to this authority the local authorities
entered into an agreement with the
Washington Market Company, under
which the company released and con-
veyed to the District of Columbia the
reservation now fronting the market
between eth and 9th streets. in con-
sideration of this release to the United
States of this ground the annual rental
Of the market company was reduced to
$500, the agreement covering which
took effect April 1, 1873.
All the rentals paid by the market
company from 1870 until 1873, aggre-
eating about 100000. were disbursed
by the municipal officers for the benefit
Of the poor.
Looked Upon as District Fund.
Following the passage of the organic
act of 1878, and down to the present
time, the annual rentals of $500 re-
ceived from the Washington Market
Company have been paid to the collector
of taxes and covered into the United
States Treasury wholly as revenue of the
District of Columbia. Congress. there
fore. in making appropriations during
this entire period has matched these
moneys by the corresponding contribu-
ton from federal revenues. and in effect
condoned the practice of considering
the moneys as District revenue.
Under the recent decision of the con-
troller of the Treasur. this practice
in treating the rentals received from
the market company as belonging en-
tirely to the District of Columbia is
held to be improper. The controller
decides that from 1879 to 1883 the
United States was entitled to credit
In Its revenues for the entire amount
of these rentals and that the District
of Columbia should not have been
credited with any part: although &c :.
matter of fact the District considered
the rentals as belonging entirely ~
its own revenues and they were So
treated and looked upon by the AZ
thorfties of the Treasury Deparfnent
Commencing with 1888 and down TO ths
present time the controller holds tba
the United States and the District ~
Columbia should receive equal credit
IN the disposition of the rentals Nd
by the market company N
Provisions Inconsistent
While it is decided that the rsr,,,.
can still be paid to the District Their,
are provisions in the organic act which
are held to be inconsistent with III.
application of the funds to the ,,,rnos.
contemplated by the act of 1870 7, =
provided by the organic act tina, ex
penses OF the government of tho Dis.
trict OF Columbia shall be estiynatal
annually and that so per centum of ~
approved estimates shall he annror.;
ated by Congress and the remaininp <,
per centum paid from revenues ~ ~
District. The expense of snnnor,ins
and relieving the poor of the bistrins
is held to be securely within +bis -
vision. The United States thus assn ~
the obligation of paying one-hair O.
such expenses. "
No such obligation existed nr;o, q
the passage of the organic act. and ~
rental payments therefore, il is heiI
constituted a voluntary contributio
by the United States which the CONT
have decided was revocable at tn