The Washington times., 1922-06-21
FACES
Loss" Of FUNDS
||NH0UsEACTlON
conferess Insist Inquiry Into
Surplus Monies Oats Back
To 1874.

The District surplus Of .000, 900
in the Federal Treasury apparently
IA endangered by the action. last
night. of the conferees on the Dis
trict appropriation bill. ~
Led by Congressman Ben johnson,
the House conferees appeared to
have scored another victory, over the
Senate conferes. This Is the way
they have done II:
BY having an investigation OF the
District finances date back to 1874,
instead of 1879 when the half and
half law was passed, an entirely
different aspect is given to the fiscal
relationship between the District
and the Federal Government.
There is q "joker," apparently In
the new provision In the District bill.
During the five years In question,
between 1874 and 1879. there were a
number Of financial transactions be-
thorities which may cloud the clear
tive surplus In the Federal Treasury.
..... Insistcnt on Stand.
The House conferees, determined
to prevent the District from obtain
ing the use of the 5000 900 surplus,
insisted upon making the Inquiry
into local finances retroactive 10
1874. II Is pointed out that q sink
ing fund was authorized by law I'm
1878. A year later Congress au-
thorized the District to float an issue
Of s1,200,000 twenty-year bonds.
About s1,1o0,000 worth of these
bonds was issued by the District
government. Under the act .au-
thorizing the bond issue, It was pro-
vided that either the principal. in
terest or any expense attached to
the issue Of these bonds was to be
charged up against the United
States. However. the House con-
ferees claim that money. from the
sinking fund, one-half of which was
contributed by the Federal Govern
ment. was used to retire this issue
The right Of the District to its
accumulated surplus in the Federal
Treasury win be shattered In all
probability II this contention proves
to be valid. E a 80
ps Action Likely Today. )
The amendment to the District
appropriation bill providing for its
restoration probably win be brought
before the Senate late this after
noon for final action. The amend
ment provides that a joint select
committee, composed Of three SEN
ators and three Congressmen, be
created to ascertain what sums
have been expended since July 1.
1874. by the United States and by
the Dfstrict of Columbia. respec-
lively. whether for the purpose Of
mainta1NtpU Of building. or beau
tifyinx ~ said District. or for
the purpoee 6f conducting It's gov
ernment or III elemental activities
and s9epri6G Or for the furnishing
of conSsQje4leee comforts and ne
cessities 20 the people Of said Dis
trict." =. ES
The -sssessdment provides that
neither the cost of construction
erected or, owned by the United
States for the purpose Of transact
ing therein the business of the
Government Of the United States
shall be considered by said COM
mittee."
. Wording Of Amendment.
The purpose Of the investigation
IL stated In this way: ....... ..'...
In the event any money may be
or at any time has been by Congress
or otherwise found due either legally
or morally, from one to the other, on
account Of loans. advancemcnts, OF
improvements made, upon which in
terest has not been paid by either
to the other, then such sums as have
been or may be found.du from one
to the other. shall be considered rs
bearing interest at the rate of per
cent per year from the time when
the principal should either legally
or morally be paid until actually
paid. And the committee also shall
ascertain and report what surplus,
II any, the; District Of Columbia has
to It's credit on the boks OF the
Treasury of the United States which
has been acquired from taxation or
from licenses" .
The committe IL directed to make
it's report to Congress not later than
February, 1898; II Ia empowered to
compel the attendance Of witnesses;
II is authorized to hire accountants
at q salary not to exceed $25 q day.
II is provided that these accountants
cannot be employees Of either the Dis.
trict or Federal Government. The
Attorney General is authorized to
assign an attorney to represent the
United States Government at the
hearings to be held by the commit