Evening star., 1923-01-20
lcentinued from First PaEe.l

nue. under the organic act OF
1873 for the fiscal years 1900
TO 1890. inclusive, makes the
same conclusive demonstration.
3. Congress in 1903 recognized
that there could be and would
be such things as surplus rev.
enueE OF the District by direct
ing that the advances which il
was then making to meet Dis
trict tax deficits should be re
inburSed TO said Treasury from
time to time out Of the surplus
revenues OF the District of Co.
lumbia-"
T. After District deficits had
heen converted into surpluses
Congress recognized the exist
ence of such surpluses in the
Treasury by applying portions
OF these surpluseS to the pay
nnent of alleged ancient indebt-
ednesses of the District to the
United States, by law specif1-
cally transferring TO the United
States sums from 1.-The amount
in the Treasury of the United
states to the credit of the Dis
trict of Columbia"
5. Tho United States has rec
oSniZed credit items in its
favor aocruing from deficits In
District tax-reVenue created by
the operation OF the half and
half law and has reimbursed it.
SELF from District revenues
with interest for advances to
meet these deflefts. 1t cannot,
legally or eQuitably, refuse to
recognize the corresponding
debit items in the shape of sur
pluSes of collected and unex-
pended District taxes.
6. The United States recog-
nj Ju vol h
in dealing with surpluses or
deficits, in applying for two
years (fiscal years 1921 and
1929 the temporary siXty-forty
ratio in District appropriation
bills, by carrying over sur
pluses or deficits into the sue
ceeding year.
2. The legal obligation thus
created and thus demonstrated
TO exist is not weakened, but
strengthened by equitable and
moral considerations. The
United States is. beyond the
shadow OF a doubt. morally as
we'll legally indebted.
6. The existence of this Dis
trict Treasury credit Is now
recognized aad confirmed by the
Controller General of the United
states and by the oflcial ac-
countants OF the congressional
Joint committee.
The legal and moral obli-
CATION thus demonstrated to
exist is equitably satisfied only
plus in accordance with the
half and half law under which
ii was accumulated to meet
the Districts half OF the ex-
pense of neglected municipal
needs OF the war time, which
neglects permitted It's accumu-
lation. Application of surplus
under any other ratio is in
equitable.
Part IL
ThePe are NO offsets In the shape o
Z nited States credits either In tn
period since 1878 or the period be
tween 1874 and 1878 60 make n ne
reductions of the amount OF the Dis
tTict's present tax surplus.
This conclusion may be justified Il
either of two ways:
Accountants Mayes and Spaldini
have stated the account between tn
United States and the District fror
1874 to 1911 with the exhaustive SulI
ness so far as credits OF the Unite
States are concerned; and Congress
has passed judgment upon these al
legged credits, and, rejecting some
has confirmed others, wholly or i
part, and in all cases has rejecte
or failed TO approve interest claim
has compelled the District to REIN
burse to the United States the full
amounts found to be due in eXamina
ton by Congress Of these claims o
The District claims that Account
ants Mayes and Spalding, while stat
ing fully every possible credit of tn
United States, neglected or omitte,
to state with the same careful full
ness the credits of the District
II the conclusions of Congress ol
he findings of Accountants Maye
Ind Spalding are to be treated q
anal adjudications. disposing o
claims to District credits, and not L
De reopened. they must also be treat
"a as final authorizations in their re
'usal 10 allow the United States in
terest upon any Of these ancient al
legged debts.
Haskins and Sells, the congres
sional joint committees accountants
have stated the account between tn
United States and the District from
.9l1 to date, and II the accounts 70
the period 1874 to 1911, as stated b.
Mayes and SpaidinE, ar
TO be accepted aS conclusive, tn
anding of Accountants Hasktns
Sells of a net balance today TO tn
credit of the District is findini
that the United States is indebted
legally and morally to the Distric
In this amount as a minimum.
If interest were allowed the Dis
rict on its SurpluseS of accumulate
taxes corresponding to the interes
which the United States collected
from it on advances to meet Distric
deficits In seven years between leo
due by Haskins and Sells would b
augmented.
II the congressional joint cOmrnitte,
adopts this method OF answering tn
taeries prOpoHnded by law concern
IRR the statemeAt OF accounts sine
1874, eOncerninE the surplus to fh'
Districts credit i'm the Treasury, RRi
the amount legally ani
due from one party to tn,
otheF after allowance Is made 10
equitable interest charges, ii can re
port quickly and definItely to Con
yPess its conclusion, and Congress-
By adopting it's report, will recOS
nlEe as available for appropriation
the Districts surplus as determined
By the Comptroller General and tn
Joint Committees on
:ial accountants, will wipe the alat
,lean Of all the bitter contentious ant
over contradictGR,
,laims of Indebtedness Of the pas
and will give the District a eresl
start to test fairly its financial wca
or woe under its Aew organic act o
1872.
II the statement of accounts from
LS74 to 1911 by Accountants Mayes an,
spaIdinG g. dikregardcd because !
Hoes net state fully District credit
" for Ray other reason, and IL tn
Districts account for this pcrtsd
roOpeaed and restated fully, taI<ini
Ato account (as the law Of 1872 re
4uIresl equitable and moral, aa wei
aS legal tnaebtednesses, the Dtstrtct'
Surplus will not suffer reduction bu
viii be Increased by the discovery o
District credits. beth lega
md equitable.
Through statistics, compiled by tn
auditor and by the citizens
N m m faA'a accountants Wa demon