Evening star., 1923-01-20

peIioo, including interest on the funded
4ol. December, 1910.
controller Downey's decision, apply
ing the half and half principle to the
FUNDED debt interest expense between
1874 and 1873 is so worded as by clear
implication to apply to all District
expenses within the same period.
The 1874 declaration OF proportion
ate contribution by the nation on q
ratio TO be afterwards fixed applied
10 all expenses of the District, In
cluding interest and sinking fund
payments on the funded debt, and not
10 the extent only of interest and
sinking fund payments on the funded
dept, Controller Downey's vivid de-
scription OF chaotic conditions in the
1874 and 1878 covers all expenditures
in that period and not merely ex-
penditures in connection with the
funded debt. The same reasoning
which caused the latter expense TO be
readJusted on the fifty per cent basis,
though in respect to the two items in
question full reimbursement by the
District had been directed, compeIs by
clear and direct implication a read
Justment on the nifty per cent basis
OF the school and Jail expenses OF that
period, OF which full reimbursement
was directed by the original acts, and
which were not long ago fully reim-
burSed.
What Restatement Would show.
When the accounts of 1S74-7S have
been reStated and balanced, whatever
the District has paid more than one-half
of the aggregate expenditures should
be entered as an additional District
credit in the Treasury account. If re-
statement of the account shows that the
United States has paid more than one =
half or the aggregate expenditure, this
excess payment should be entered as
n Al 90 hn fri f., Az
account.
Our figures show a balance due the
District of several million dollars as d
result OF this restatement of account.
:. If, however. there is not to be
this general restatement of account for
this period and the items are to be con-
sidered separately, then such items, for
example, as those for schools and for
completion of the Jail. which were re-
paid in full by the taxpayers of 1919
20, should be repaid one-half to the Dis
trict, since the principle applied by Con-
troller Downey's decisions to the inter
est. etc. on the funded debt applies
equitably and consistently to such other
District expenses as those of schools
and Of jail construction. One-half Of
these items should be entered as an
additional credit of the District in the
Treasury account:
3. All the exactions from taxpayers
or recent years to reimburse the United
states for alleged indebtednesses OF the
District existing in l874-78 should be
reimbursed in full to the District, and
the amount should be entered in full as
another District credit in the Treasury
account.
The act of 1878 was a settlement in
bankruptcy $50 to- speak) which
roughly balancing. outside of the spe-
cif1c provisions OF the organic act
concerning the funded debt, and
wiped the slate clean of past debts
and credits l2l Controllers Decisions,
4o5 and 406).
Slate Wiped Clean.
Controller Downey. December, 1914
(2i Controllers Decisions, pages
$3.50. says: But perfect fairness in
the treatment of the question sub
mitted requires the suggestion that
there are plausible grounds for an
assumption against the present ex.
tstence of any Indebtedness because
OF the advances made under the au-
thority OF the two acts in question.
There is very reasonable
ground for assuming that when Con-
gress passed the act of 1873, the or
gantc act, 1t was intended to wipe
the slate clean SO far as the ante
cedent period of uncertainty was
Legislation during the period be-
tween the acts of 1874 and 1878 had
not been after any determined or
systematic plan. The necessities Of
the District had been met as circum-
stances for the time being seemed to
require. The nearest approach to a
plan seems to be found in an appar-
ent intention to require the applica-
tion OF District revenues to District
needs, and to furnish from the fed
erai Treasury whatever additional
might be required. The organic act
took no account of and made no pro-
vision for the payment OF any in
debtedness growing out OF the trans
between the Government and the
District, and that condition was per-
mitted to contipue for 35 years.
|. . While these conditions may
| in a measure tend to support a con-
tention that the debt, if existent. had
been released, l do not find in them
justification for so holding.
! There are apparent other reasons
why the matter should be handled
by Congress, where power lies to do
what the circum stances of the case
may seem to require. unlimited by
the necessity of technical construc-
tion of the fragmentarY and unsys-
; tematic legislation of the period in
yolved. If there are reasons for as
Suming that the Congress which
passed the act of 1878 did mot intend
to require an accounting as to ante
cedeRt transactions there is now au-
thority in Congress not found else
where so to conclude and act Then
every equitable consideration, as
well as the cold facts, may properly
ciuSion reached which not only must
be deemed authorized because with
authority. but which can be justified
because it is the deliberate con-
ciusioR of competent men authorized
to act, inspired only by right mo-
tives unhampered by necessity OF
technical construction and desirous
only Of accomplishing right and
justice"
Moral and Lcgnl Debts.
The law creating this joint congress
sional committee specifically broadens
the scope of the committees juris-
diction to consider whether there is
Indebtedness by one party to the
other morally as we'll as legally. So
that this tribunal is specifically en-
powered to respond to Controller
Downey5 suggestion that, "unham-
pered by necessity for technical con
struction and desirous only of ac-
complishing right and justice" 1t
Representing Congress) should as a
court of equity examine thoroughly
and thoughtfuily the Districts con-
tention on this point. in respect 10
''There is very reasonable ground for
assuming that when Congress passed
the act OF 1878, the organic act, ii
was INTENDED to wipe the slate clean
so far az the antecedent period OF
uncertainty was concerned and to
take a fresh start"
The entire amount of the latter
day exactions OF ancient alleged
debts from modern tax payers should
be refunded on the ground that the
act of 1873, as interpreted by con-
temporary Congresses and Presidents
and by Controller Downey, was in
effect settlement in bankruptcy OF
the past debts and credits of the
District, was treated as such by