Evening star., 1916-01-06

| form or government Tor tne bistficl
and here is a pledge that the govern.
ment of the United States will pay that
proportional part. What it should be
was not determined by this act; II was was
to be the subject of investigation; bu,
whenever found, here is the pledge
that the government would. by pay
ments out of the public Treasury IN TINS
District, contribute to pay the interest,"
on these 1865 bonds and provide a sink
ing fund for the liquidation OF the
principal"
Reference is also made to the act OF
March IA, 1876, 18th Statutes, page 211,
to the act of July 81. 1876, and OF
The act Of April 80. 1878. was fol-
lowed by the so-called organic act OF
June IL. 1878. providing for the pay
ment Of the debt of the District by
definite apportionment Of SO per cent,
the District Of Columbia.
Controllers Opinion.
The controller of the Treasury of the
United States in an official opinion rem
dered January 3, 1914, on this question
reaches the following conclusions:
1T remains for US, upon the premises.
thus. as l believe, satisfactorily estab-
lished, to predicate proper conclusions.
y. The Indebtedness represented by
the 3.65 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 Dis
trict of Columbia. make acceptable to
creditors of the District 3.65 bonds by a
guaranty of payment and assume the
| to be contributed by the United States
| toward the expenses of the District,
the United States covenanted with the
holders of these bonds that it would
| provide, by taxation on the property
| within the District, a portion of the
| revenues necessary to pay the interest
on and principal of these bonds, and
| that it would provide the other por-
| ton. to be determined. by appropria-
ton out of the revenues of the United
States
"3. By the organic act of June II, 1873,
the portion to be provided by taxation
on the property and privileges in the
District was declared to be SO per cent
and the portion to be apportioned out
of the funds of the United States SO
per cent, and that has ever since re-
mained and now is the law
~. The liability of the United States
to the holders of the 3.65 bonds is there
fore that Of a guarantor 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 that it
will provide for the payment of the
other half by appropriations out of the
Treasury of the United States
7 have. therefore. to advise you that
under the act making appropriations
to provide for the expenses Of the gov
ernment Of the District of Columbia for
the fiscal year ending June 80, 1914
and for other purposes (37 Stat. 93S).
payment to be made during said year
of interest on and sinking fund for the
payment OF the funded debt in question
should be made. within the limits of
the amount appropriated for said pur-
pose. with moneys withdrawn from the
Treasury of the United States by the
treasurer in accordance with section .
of the act of March 3. 1883 (22 Stat
41O), and so per cent thereof charged
to the revenues of the District of CO.
to the amount appropriated for the ex-
penses of the District from the moneys
Of the United States, and the money so
paid should be accounted for accord
ingly"
Controllers Second Opinion.
On December Is. 1914, the controller
of the Treasury rendered another off,
cial opinion on this same matter, ad-
herring to and reaffirming his conclu-
sions as last above cited.
1t is our opinion that the original in
tent, the understanding of members
of Congress the unvarying practice of
the years. the provisions of the various
laws of appropriation. the law definite
ly fixing the respective apportionment
of payment, and above all, the justice
of the matter as affecting the general
government. the holders of the bonds
and the District of Columbia lead GER
terest on the funded debt be continued
to be paid SO per cent from the reve-
nues of the District Of Columbia and
so per cent by appropriation from the
moneys of the United States.
The committee next determined the
question of the proper proportion of
the expenses of the government of the
District OF Colurnbia. or any branch
thereof. which shall be borne by said
District and the United States respec-
lively.
No Reason for Arbitrary Rule.
We find, after a most careful consid-
Grafton Of all of the evidence and cir
cumstances as shown to exist at this
time. that there is no reason for any
arbitrary rule of proportionate contrf-
button for the expenses of the District
of Columbia by the residents thereof
and by the people of the United States
who reside outside the District of Co
lumbia; that the correct rule should be
that the responsibility in taxation of
the residents of the District of Column
bia be as fixed and certain as the re-
sponsibility of residents of other Amer
ican cities comparable with the city of
Washington; that with the payment of
such taxes as may be equitably and
properly assessed against privately
owned taxable property the financial
responsibility of the residents of the
District should be concluded; that the
present assessment valuation of pri-
vately owned real estate in Washing
ton Is fair and reasonable.
District Money as a Trust Fund.
That the sum of money collected as
such taxes be paid into the Treasury
of the United States, there to be in
corporated into a trust fund for the
benefit of the District of Columbia, and
that the revenues thus collected be ex-
pended in the government of the Dis
trio. of Columbia and for no other pur-
pose: that the United States pay from
it's moneys all the balance of whatever
sum is deemed necessary to appropriate
for the proper municipal expenses of
the District of Columbia after consid-
Grafton Of the reports and estimates of
the Commissioners of the District of
Columbia and the needs of said Dis
trict; and as a conclusion. which should
be of the greatest weight, we urge
upon Congress that Its appropriations
for the expenses Of the District of Co
lumbia should always be in such sum
as will not only continue the city of
Washington and the District of Column
bia in every respect as the splendid
and beautiful central residence of this
great nation, but also cause 1T to be-
bn n lint SaaI