The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-01-12
OFFICIAL s BEGIN
SURPL US
FDGHT
Prspare Briefs and Expect City
VIM Get. s.. So. c6f II
the Treasury.

a - - y :
Daniel j. Donovan, District Al.
ditor. today began the preparation
OF an opinion to uphold the report Of.
the auditing firm probing fiscal rela-
tons between the Federal and Dis
triet governments which informed o
joint Congressional committee yes
terday that the District government
has surplus Of IS, 502 ,O61 ~ in the
Treasury.
Possible Charges inferred.
Auditor Donovan win seek In his
opinion to convince Congress that
the Federal Government has no
valid claims against the District.
which claims would materially re
duce the surplus. The auditin;
firms report infers possible charge
against the District which you'll
bring down the surplus.
While Auditor Donovan is PR
pairing his opinion, others are prG
pairing briefs to submit to the corn
mittee. Among them are Earl Ti-s
gert, rel.r snting the Treasury. aiad
II. j.. lis;Ioway, representing tbs
DEPARTMENT Of Justice.
The Joint committee viii meet
Thursday, and these men wiz sub
NIT their opinions on the report
81 the auditing firm
Donovan Ii COnfident.
Auditor Donovan - confident that
he can convince the Congress
Committee that the District y ems
titled To the $5,5O2 ,O61 surplus, and
ne also feels that he can prove con-
clusively that the Federal Govern.
ment has no valid claims agalnst
the District
COMMITTEES where the Federal Gov
eminent might have possible
charge against the District Is the
fund Of $4,000 .O58 collected BY the
District from miscella ne0us receipts
from 1912 10 1922, and which was
placed. IN the Treasury entirely 20
the credit Of the District.
eff these collections were aps
norfioned as were other District re-
ceipts, the balance In the general
fund at June so, 1922, would have
been considerably less, the audit
ing firm declares.
It was pointed out that tn another
instance the entire receipts Of one
office goes to the credit Of the
United States. This ID the collec.
ton of fines in the District supralne
Court However. in this case tue
District must pay SO per cent %
the maintenance Of the cQuF
One. Ancient Claim
Another inferred claim dates back
TO 1873, when the Federal Govern
mefft entered into Il $3.50 fiscal re-
|IationSEip with the District At
that time the District had Outstand-
Ing q total of 81. 81, 1915 in I'M
collected taxes. As there was no
provision for pronorti0ning this
amount between the District ana
the Federal Government, it was
credited to the general fund tor the
District when collected.
The auditing firm makes no Oh
rect recommendation as to the ir-
ferred charges, and District OIL
Gals regard most of them as alb
surd. it is said.
The joint congressional COM
mittee win make its report to the
House ana Senate in the next sev.
reral weeks.
II Congress finally decides that
the surplus belongs to the District
q reduction in taxes beginning IN
July is likely to result, It was sald
today.
Harding's Aid Sought.
President Harding is to~be asked
by Washingtonians to recommend
to Congress that the unused Dis
trict surplus Of approximately S.
OOO, 900 in the Federal Treasury, be
used for betterment Of the District
school system.
The citizens committee OF five
on public schools, meeting In the
Franklin School last night, voted
that a committee be named to see
the President for this purpose.
The committee adopted resolutions
asking restoration in the District
bill of all items asked by the Board
of education in their estimates for
the next fiscal year