The Washington herald., 1921-04-26
Focht Claim That Treas.
ury Balance Is Wiped
Out Meets Denial.
OFFICIAL REPORTS
CITED AS EVIDENCE
Money Intended for Use
In Public School Build
ing Plans.

oficials of the District govern
ment showed surprise yesterday
upon learning of the startling state
ment made by Chairman Focht OF
the House District Committee, that
the 100000 credited to the Dis
trict of Columbia in the Treasury,
representing money paid in by prop
erty owners in the District, had
been wiped off the books.
Th statement of the Representa-
tive came also as surprise to
thousands of District taxpayers who
have been expecting that the funds
in the Treasury would be used in
carrying out the public school build
ing program. as well as other devel-
opments in the National Capital.
Seek Base for Claim.
District officials are anxious to
learn on what ground Chairman
Focht bases his claim that the al
legged s4,oOO,OOO surplus was merely
a matter of bookkeeping and is
nonexistant."
The annual report of the District
auditor for the fiscal year ending
June so, 1920, showed that the Dis
trict had actually in cash in the
treasury. over and above all appro-
I riations and other charges against
il, the sum of s4,64S.666.69. This
amount had accumulated since the
beginning of the fiscal year 1916
and June 30. 1920.
Records of Treasury.
That this sum is existant is
proven not only by books of the
District government. but by the
records of the Treasury as well, ac-
cording to Daniel ]. Donovan, Dis
trict auditor.
account Is stated between the
United States and District of Co
lumbia by a representative of the
| Treasury Department acting inde-
pendently in his Investigation of
any District books and ascertaining
his information from purely Treas
| ury Department records The last
report for the fiscal year 1920. made
by a representative of the Treasury,
proved the existance of the Dis
| trict's surplus of over $4,000. 900 as
claimed Auditor Donovan stated.
1t has been contended by certain
members of Congress that while the
/ District may in fact have paid more
money into the Treasury than the
appropriation totals warranted
such moneys became the property
OF the United States and were not
considered as surplus revenue OF
the District or in any way belong
ing to the District or available to
meet appropriations for the munich
| pal needs.
Omcial Opinion.
The whole question of District
revenues in the Treasury was con-
sidered in April 1908 by the Comp
| troller of the Treasury, who stated
in his decision that:
{ THE revenues derived from tax
! alton and other wise within the
District of Columbia belong to the
United States to be used for the
purposes of local government in said
! District"
The Comptroller further ruled that
"the account with the Distinct of
Columbia was to be kept as a per-
: sonal account between the United
| States and the District of Columbia
and that all revenues received shall
be treated as payments on account
! and be credited to the District as
SUCH"
Question Discussed.
During the last sessi oof Congress
the question as to the existence OF
surplus revenues of the District in
the Treasury came up in connec-
tion with the amendments added to
the District appropriation bill for
1922 by the Senate when It was
proposed to use the surplus rev.
enues of the District in the Treas
ury for the extraordinary school
building program.
The question, as to whether the
District had the surplus revenues
in the Treasury was presented to
the Secretary of Treasury at that
time and this inquiry brought the
answer that such was the fact.
yesterday becomes a reality it will
mean that the District tax rate will
go upu to a maximum of per cent