Evening star., 1923-01-18

office has Increased its balance to the
credit of the general fund to S15SO'-
404.05. thus leaving discrepancy OF
only $704.2S. Efforts are sull being
made to locate this latter dinerence'
which arises solely through the pres
ent system of divided responsibility IN
the expenditure of District approprla-
tions.
Fixed Obligations.
The accountants (on page OF the
report) reproduce a statement pre-
pared by the auditor of the District
OF Columbia. showing that the only
fixed obligations against the general
fund balance on June 80. lSS2. were
the unexpended balances of appro-
priations, the Districts liability for
which amounted to S2,077 1854, leaV-
ing free and unencumbered surplus
revenues to tho credit of the District
in the Treasury on that date or $5,5O2,-
061.34. But from this amount the ac-
CountantS, again using figures OF the
auditor of the District deduct $50
SOB 50, arising as the result or Ger
tain items treated in one fiscal year
for tax rate purposes and in another
year for accounting purposes, thus
giving tho District net free sur
rlus on that date of $4,776.457.6o, sub
icct to an INDICATED difference OF
SS90.25.
In view of the fact that the inves-
tiEation by your committee does not
extend beyond June 80, l9@2. II II SUD
n1itted the only item your commute
should deal with in csta bIlShinS ~ ii,S :.
actual free and uneuCumhcred surplus
- the credit Of the District on thdl
date is So, 5,502, ,06l.34. as the transac-
tIons embraced i'll the item OF Ho.2'-
6oS.69. will take place pasnE IN tbc ,5c
fiscal year 1873 anu p"+' 'lS 80
fiscal year 1924. -, A.
"As far az the report deals Win - ~,
balance to the credit OF inc ~ 100
fund OF the District on June oV, :.
substantially verifies and proves W lWile
.,rrectness of the statement OF ac-
,nunt made BY the controller gen
rails OFFICE of the fiscal relations DC
tween the United States and INC Dls-
trict of Columbia to June ""' ,bo
well as the ledger accounts or IhS
once Of the auditor of the District oi
Columbia. 80
"Ihe accountants (pages 1 and . oi
the reporD state that they acc. aGctpCa" ~,
at the starting point of the lnVestleh-
ton, July /, 1911, a halanc" owing
iha United States by the District OF
1855, 5,0s1.S1. This was the balan't
,prtified to be due at that time ny
tho auditor for the state and otheI
denartments (since merged into tn"
general accounting Office. the duHii"I
for the District, and later Ncrlll'u a
correct by the Mayes invest : d lioi,
'The accountants Con page ol INC
report) invite attention to "crta am
credits treated as cash by the biS-
trict. amounting to $30l.4l2;SV ariS
ing from what are termeu ,
hack certificates These CertihcateS
as stated by the accountants, Wer :
tssued under authority of an act OF
Congress approved june - IH'', II. l.
instances where special lIhpIoH eltsS- IS-S
asseSSmentS made prior to June 100
mad been found to be excessive -
erroneous That act permitted tht
acceptancc of these C"rtIhcatSS III IN
payment of taxes for certain !,.C,,.,'G go = :
ard q later act of Congress approved
JuIy o 1886. provided that all Such
certificates heretofore or theTealte
received in payment of general taxes
should be considered as Wph,S an"
credited to the District as SuCh'
Drawback Certificates.
The District did here mere!% VIVA,
Congress expressly gave II the tis,'t -
Go vet the accountants set mp inc io'd
rF S25I4l2qO in drawback certlil'dl"s
credited 10 the District as riSn brtWst'
1879 and 1900, as an interehtIhI i"yua
ICE to the United states, ana on i' li,a
Might now be corrected by Chdlsi"t
that sum back against the DiStriCL
Tlis whole question OF dra "nach CT
tificates was fully considered III tn'
Mayes report, and As Congress- on W.
lseis Of that report. required no REM
hurSemeut from the District TO th+
United states it is fair to assume tn'
committeein charge of that inNeStlga-
ton rejected any reconlmenIaal'oi
seeking 10 accomplish that result.
The accountants con page ~ OF tht
report and again on page 45) reler te
the uncollected taxes owing the pls
trict on July /, 1878, when the presen,
form of government came into being
Such taxes. including penalties, are re
norted by them as having been collect
ed and credited to the District on anc
after July L.. 1878; in the s sum 10 o. :,
SI622 1875. The Inference here again
is that the United States has III
equitable considera tion in tins sum, ap
parentIy on the assumption that thf
United States under the terms or the
organic act agreed TO pay 80 pei
oentum of appropriations of the Dis
trict on the basis of moneys accrulnE
and collected on and after July !. 1878
and that any money owing the DlStrlc'
nrior to that date. but thereafter collect
ed could not be set up against the con-
tribution by the United States TINS
is another matter very fully covered
in the MayeS report, and, with the
question of drawback certificates, Is
merely a rehash Of those subjects IL
tho report of the present accountants
The accountants overlook the very
material fact that as "A result of the
Mayes and Spalding reports Congress
required the District to transfer from
its revenues to the credit of the rev.
enucs of the United States s2,444, l4S. 4
Of which amount the sum of $1,OO9.-
6T2.73 represented reimbursementS tC
the United States on account of loans
20 the District between 1874 and 1873
Tho uncollected taxes on July I, 1878
would properly be subject to such re-
Endorsements as Set-off. Moreover
the controller of the Treasury has con.
sidered this particular feature of the
accountants report in very able anG
exhaustive decision. (See 81, control.
ler's decisions, page 4o3)
The Mayes Report
I'm the NIayes report the following
statement Is made.
Ion July I, 1873, there was due the
IT, nS NalI n frnV bn fry-
payers, on account of unpaid taxes
nearly $1,500,000, of which sum abou
% per cent was due for taxes for The
fiscal years 1875 to 1878, inclusive
Hundreds of thousands of dollars o1
this sum were afterward collected by
the District officials and paid int
tho Treasury Of the United States q
meet that so per ceutum of expense!
Of the District OF Columbia for th'
fiscal years 1879 to 1911, inclusive
which expenses Congress, in the &C
Of June II, 1873, said should be me
from taxes thereafter levied and as
seBsed upon the taxable property ant
privileges of said District, and no
from taxes heretofore so levied ant
assessed
IN commenting on this statemen
the controller says:
"Page 60 Of the report shows fur
ther that $361,7 of these bacl
taxes was collected during the fisca
year 1879, of which $346,676.49 wa
collected on account of taxes Levied
for the fiscal years 1875 to 1878, in
elusive. No other specific collection o
these back taxes is shown. though tn
accountants have stated general.
that hundreds of thousands of dollar
were in fact collected, nor does tht
trict's floating indebtedness outstand
!nR on July I, 1878, which was sub
sequently paid. 1t is not in reason t
assume that all of the floating In