Evening star., 1923-01-20

the District OF Columbia has been vio-
lated.
Legal But Improper.
1T seems that the plan is to pro-
vide for the levying of suficent
money which together with the other
revenues of the District will equal
the Districts proportion of the ex-
penses OF it's government And that
the purpose ts that the tax levy
should be hxed at a sum sufficient to
produce that amount and no more.
and that ifFany~fyuYplua does exist it
should only be such surplus as re-
suits from an inability to calculate
with exactness the tax levy necessary
to produce this result.
1T ls hard to see how any such err
rors in calculation should have re-
suited in the accumulation OF approx
mately $5.oo0.00o in the period Of time
since 1914. However, ! do not say
that such is Impossible It is my con-
clusion. therefore, that IL any such
surplus does exist 1t may correctly
be said that 1t legally exists, but i'm
properly exists"
Mr.. Galloway commented in CON
siderable detail on the report OF the
expert accountants employed by the
committee. He goes particularly into
the legal phases of the matters dis
cussed.
He calls attention to the fact that
no consideration to the question of
interest that may be due the federal
government for advances made to the
District. or the other way round, and.
after. quoting from the act creating
the joint committee regarding pos
sible interest that might be due, says:
Hard to Determine.
"It occurs to me that this clause
is not capable of literal administra-
tion for several reasons, among
which are the following: 1t seems TO
contemplate the calculation by your
committee of interest upon sums
which Congress may in the future
find due and this would require you
to do thing which Is physically
impossible.
1T also requires a determination of
whether anything is legally or moral
ly due from the District to the United
States. or vice versa. This in itself
ie a difficult question and 1t is very
probable that to literally fulfill such
requirements the committee might
have to determine the daily balance
in favor of either of these. AS the
state of the account between the
District and the United States changes
daily and is constantly varying, to
determine these daily balances would
he practically an endless task. II
anything Is due from one to the other
the audit does not purport to show
when the same became due.
'It may be contended that if there
is any money now in the hands OF the
United States belonging to the District
that such is merely a deposit, perhaps
a demand deposit, and is not due to
the District until payment Is requested
as authorized by law and therefore, le-
gally, there Is nothing due from the
United States to the District upon which
interest could be so calculated until
after a proper demand has been made
by the District for tire money. in ac-
cordance with the methods that the
District Is authorized by law to with
draw such money from the Treasury.
Another question in this connection Is
whether any such balance could in any
| sense be considered as loan or ad-
vancement as is enumerated in the
act authorizing interest
Army Offcers' Pay.
Taking up the report of the ac-
countants item by item. Mr.. Galloway
refers to that part of the auditors
, report which discusses the fact that
! certain officers of the Army have
been, detailed for the performance of
| services for the District of Columbia
and their compensation paid wholly
| out of revenues of the United States
and certain employees of the Treasury
Department have done a great
amount of work upon District Of Co
| lumbia accounts, their compensation
for such work being paid by the
| United States.
THE report infers," says Mr.. Gallo
way, that this should be considered in
| arriving at any balance in the ac-
| counts. From a legal standpoint,
| these questions are also settled, as
| there are specific statutes providing
| for the payment of these Army
| officers and for their assignment to
4 District duties and specific statutes
creating the positions OF the Treasury
Department employees, who were re-
| quired to keep these District acA
counts. Again, II may be said that
the committee and Congress my feel
| that a moral question exists. upon
| wbich question / should express no
| opinion" I
Views ON Bonus.
Mr.. Galloway, commeting upon
| that part of the auditors report in
which reference Is made to the pay
| ment from funds of the United States
| of the bonus of certain employees
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