The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-01-06

| Therefore, that either Congressional APP
preparation for this interest must be
made or that there must DO Default In
| tho payment OF Interest to which the
| faith OF the United states u pledged.
n the requisite sum be appropriated by
Congress, Il is advisable that the In
terest should be paid in the Treasury OF
/ the United States and the coupons cam
celed there. According TO law, these
bonds are registered in the office OF
the registrar of the United States Treas
ury II might also be provided that such
sum as may be appropriated for this
Justed hereafter as a part Of the proper
proportional sum To be paid by the
United States toward the expenses OF
the government Of the District Of Co
lunbia and OF the interest on it's funded
debt"
The future legislation" contemplated
In the report just quoted must be read
In connection with the act OF June q.
1874, providing that a proper proper
tional sum" shall be paid by the Uni
ted States, the same TO be considered
and adjusted hereafter, and In view Of
the fact that Congress had already APP
pointed a committee to ascertain what
was proper proportion for the Cow
eminent to pay: and that the report OF
that committee was the basis Of what Is
called the organic act OF ISIS, known as
the hAlf-and-half plan.
The following from the remarks OF
Senator Thurman OF Ohio made in
January. 1876, In the senate of the Uni
ted States. Is convincing:
"One word as to this guarantee, and
thon L will relieve the Senate from
any further observations of mine.
This guarantee is as plain us words
can make II. IT was maturely con-
sidered, and was q subject OF much
! 1t. There were Senators who thought
IL ought to be an absolute guarantee
on the part OF the Government to pay
the interest and also the principal.
and all the contractors were clamor-
ouF for such u guarantee. The COM
mittee would not yield. It would only
make a qualified guarantee. and that
guarantee was in these words:
a. And the faith of the United States
Is hereby pledged that the United
states will by proper proportional ap-
preparations as contemplated, in this
act and by causing to be levied upon
The property within said District such
taxes as will provide the revenues
necessary to pay the interest on Faid
| bonds as the same may become due
and payable, and create a sinking
fund for the payment OF the principal
This act contemplated that the
| General Government should pay
proportional part of the expenses OF
the government within this District.
and that proportional part OF It. V
i
by the Joint committee that was to
/ frame a permanent form OF govern
ment for the District; and here Is n
pledge that the Government OF the
United States will ny that proper
tional part What It should be was
not determined by this act; II was 20
be the subject of investigation: but
| whenever found. hero is the pledge
ments out OF the nuhlic treasury in
this District. contribute to pay the in
| terest on these 8 81 bonds and pro :
vide q sinking fund for the liduida-
tion of the principal
Reference is ais" made to the act OF
| March ~, 1876. nineteenth statute,
cage 211; to the net of July 81, 1876,
and of March 2. 1871.
The act of April 30, 1873. was fol.
4 lowed by the Fo-called organic act"
OF June II. 1878. providing for the
payment of the debt OF the District
by definite apportionment OF 90 PEI
cent, respectively. bylthe United Statoa
and the District OF Columbia.
The Comptroller of the Treasury OF
the United States in an OFFICIAL opinion
/ rendered January 3. 1914. on this aues-
ton. reaches the following conclusions1
ut remains for us, upon the premises
thus, as ] believe. satisfactorily estab-
lished to predicate proper conclusions:
! Il. The Indebtedness represented by
the 1855 bonds was Indebtedness OF the
/ District of Columbia and not In any
part the indebtedness Of the United
States, and the bonds Of the District OF
Columbia.
2. To restore the credit OF the Disc
trict Of Columbia. make acceptable to
creditors Of the District ass bonds by
a guaranty Of payment and assume this
to-be-determined equitable proportion to
be contributed by the United States to-
ward the expenses of the District, the
United States covenanted with the holds
- = - 49,
vide. by taxation on the property with
in the District, a portion OF the reve-
nueE necessary to pay the interest on
and principal of these bonds. and that
It would provide the other portion. TO
be determined. by appropriation out of
the revenues Of the United States.
''3. BY the organic act OF June II,
1873, the portion to be provided by taxa
ton on the property and privileges IN
the District was declared to be SO per
out of the funds % the United States
80 per cent. and that has ever since
remained and now is the law.
~ The liability of the United States
to the holders of the S.6S bonds is
therefore that Of guaTantor that one.
half of the principal and interest OF
these bonds will be paid out of the
revenues OF the District, derived from
taxation on the property and privileges
in the District. and that Of a promisor
-
the other half by appropriations Out
/, | OF the Treasury OF the United States
''I have, therefore. tn advise YOU thai
under the act making appropriations
to pTOvidC for the expenses OF the gov
! ernmcnt Of the District Of Columbia 70
= the fiscal year ending June thirtieth
? nineteen hundred and fourteen. and fo
, other PURPOSES 81 Stat. 9SS. paymon
TO be made during snid year OF interes
i on and sinking fund for the payment o
! the funded debt in question should b'
! made within the limits OF the amour
: appropriated for said TS;rposes. Will
; moneys withdrawn from the TTeasur!
of the United States by the Treasure
In accordance with section of tho &C
/ of March ?, 1854 Cs2 stat. 40l, alll - pc
: cent thereof cha rged Ia the revenues D
the District Of Columbia and 60 per cen
. thereof charged to the amount appro
= Tri4ted for the expenses OF tho DiStric
: from the moneys Of the United State
and the money so paid should he &C
| counted for accordingly
On December II, 1915. the Conmtrolle
| If the Treasury rendered anothor Of
> fetal opinion m this same matter. al
= herring to and rSaffir~1ing his conclu
sions as last above cIted
II Is our opinion that the original IN
. tent. the understanding Of members o
!, Congress. the Cnyarying practice 0f tn
years, the provisions OF the variou
laws OF appropriation, the law defnitel
= fixing the respective arportionment o
:, payment. and, above oil. the t;stic
: NJ the matter as affecting the Genera