Evening star., 1923-02-05

III interest Is que Dy the terIls
Of the contract. the payment of the
recovery: but IL II Is not due by the
terms Of the contract, the payment
OF the principal sum Is bar to
recovery.
1.-The reason for the rule is that
interest being a mere incident to the
debit cannot exist without It, and the
debt being extinguished. the interest
also"
THE relation between the District
OF Columbia and the federal govern
ment Is such that the District of CO.
lumbia can only act as Congress acts
for 1t. In the matter Of payments or
dsn ands. Congress has acted in the
matter Of requiring the District OF
Columbia to pay back certain items.
In one instance Congress required 2
per cent interest on an item. and the
interest was paid. with the item.
I'm other Instances Congress re-
qufred the payment of principal with
out requiring the payment OF inter-
est. There WAS no contract obliga-
ton nor statute obligation to take
the place Of the contract Obligation
prescribing interest. There was no
interest separate and distinct from
the principal obligation"
should he Treated as Final.
Your committee recommends that
! In all such cases where the Congress
has acted and enforced collections of
the principal sum. such action should
be treated as final. and no interest
whatever be charged at this time.
As to the other matters concerning
this report. your committee takes the
same view. though for different rea-
sons.
The argument has been made. with
! much force. that IL the United states
has on hand money belonging to the
demand deposit. which would not be
j due until demand Is requested in ac-
, cordance with the law. Legally.
therefore. interest could not be
charged prior to such demand. TAX
ing this view of the matter. 1t would.
, Of course. be inequitable to make in
terest charges against the District
government If interest was not col
lected when the balance was in the
Districts favor.
Furthermore II equitable principles
be held to apply the doctrine OF dila-
tory creditor could certainly be urged
against the United States in any at
tempt to collect interest from the
District of Columbia, even though
time limitations may not run against
the federal government
Legal and equitable considerations.
so far as they may be held to apply
to the peculiar relationship existing
, between these two governments. cause
this committee TO recommend that.
in making any settlement upon the
| basis of facts disclosed in this report,
no interest should be held to be due
from the one government to the other
Title vi. Conclusion.
Before concluding part one of its
report. your committee wishes to call
| attention to part two thereof. This
contains. as required under the. pro-
visions of the act by which the com
mittee was created. a statement OF
the sums which have been expended
by the United States and the Dis
! trict of Columbia, respectively, from
July l, 1874 to June 80. 1922. inclu-
! sive. for the purposes enum Grated. as
| ascertained through the authorized
/ inquiry into all matters pertaining to
! the fiscal relations between the two
governments. In our opinion, the
| statement in question shows clearly
| for the purposes required. the rela-
! tive participation or contributions by
! the United States and tho District.
! Part 2 also contains the interes,
/ tables called for by the act of June
90. 1922. Among other valuable mat
/ ters can be found in part 2 a state
ment Of estimates submitted by the
/ District Commissioners for the past ter
| fiscal years together with the &C.
| counts actually allotted in the annual
| district appropriation btliS. II viii
be noted that the estimates tota
| s172.1E.s32.63. and tho appropria.
tions, si47.oSe.I56.0s. One-half OF the
! difference of S25.02s.77S.5b Cor s12.-
S14,3ss27D may be contrasted with
+, the total amount OF the free surplus
now under consideration. namely
! $4,6Tl 1851
I Clear CnderstandinG Possible.
II is believed that from the foregoing
statements made by your committee q
! clear understanding of the situation
az revealed by its investiga ton. may be
| secured, and confirmation of some may
be found in the documents which have
/ been ordered to be printed Among these
| documents are: The reports Of MeSsrs
Iiaskins & Sells. containing tabulations
| of Messrs Galloway. Taggart. Donovan
| Hodgson and the citizens joint com
| inittee: also your committees hearings
| and other papers.
| To summarize: Your committee rec
, ommends. that the Senate and House o!
Representatives recognize the existence
OF free surplus in the United States
! Treasury to the credit OF the District OF
| Columbia as of June so, 1922, In the
| sum Of s4.6I1. 1857.
/ That there shall also be cred
iited the sum of.................. OF. 66o.4i
! IN