Evening star., 1924-05-12

owners in the District, which have not
been appropriated by Congress under
the $3.50 or 60-40 proportion between
the federal and District governments
He explained why the special joint
committee had not gone back to July
suit Of demands by Representative
Ben Johnson, Democrat, of Kentucky,
while chairman of the House District
committee "a fine tooth comb" in
Vestlgatlon of the fiscal relations, as
thoroughly as is humanity possible,
was made by firm of auditors not
residents of the District, which con-
Sumed two and one-half years and as
result of which the District paid
into the federal Treasury claims of
about two and one-half million dol
lars found to be due the national gov
ernment from the District munich
pallty, most of which represented
loans made by the United States to
the District between the years 1874
and 1878, when the District was bank
rupt and had an Indebtedness of S25,-
GOT. 600. 1t was during that period,
Maj. Donovan said, that Washington,
which had previously been an eyesore
as result of extensive public work,
for the Capital City as designed by
George Washington and IEnfant.
All of Debt Paid Back.
Maj. Donovan also explained that in
addition to this two and a half million
dollars the District owed the federal
government something like $5,000,0 900
as result of loans during the period
between 1902. and 1910. when Con-
gress made appropriation for perma-
nent improvement, at time when the
District revenues were not sufficient
to meet its share of expenditures on
the $3.50 basis. That represented
money actually borrowed from the
federal Treasury, all of which had
been paid back. with interest, as re-
quired by law before 1920.
Maj. Donovan said that the joint select
committee, after examining the balanc-
ing Of the books as between the Dis
trict and federal government At that
| time, decided that as the fisc9 ~,''3tions
previous to 1911 had been - rough
there was no need Of waStu 'ne or
money in making that investigation all
over again.
Questioned by Representative Kunz,
Maj Donovan said that he had never
talked with Representative Blanton
about the surplus, and that he was
sorry Mr.. Blanton had withdrawn, be-
| cause he believed he entertained er-
roneouS ideas, as a result of miSln-
formation. which he thought he could
correct.
d
Beers, as to whether the District now
owes any money to the United States,
Maj Donovan replied, Not one red
cent" He explained that the District
of Columbia has fully and completely
discharged its obligations it owed to
the United States.
Declares Inquiry Thorough.
By request of members of the COM
mittee, Maj. Donovan discussed the
minority report of former Represent
ative Evans, which complained, first,
that the special committee had not
gone back in its investigation over
the ground covered by the previous
resentative Ben Johnson, and, second,
that il had not covered the scope
which Representative Evans believed
the law directed He explained that
there was a contention that the cost
of all improvements in the District
OF Columbia, including such struc-
lures as the Congressional Library
and the Lincoln Memorial and other
purely national institutions in the
National Capital, should be charged as
local improvements to be paid for on
the general $3.50 or 6040 proportion
as between the federal and local gov
ernmentS
Representative Guy U. Hardy of
joint special committee, was then in
vited to testify. He pointed out that
after considerable time and careful
questioning of witnesses the joint
committee had made its report, signed
by three senators, and two members
of the House, that the United States
Treasury actually owed the District
of Columbia $4.43S,154.92. He said the
special committee had gone into the
investigation broadly and fairly, and
pmnInUad q n n
of accountants.
IF we had gone into this question
in as thorough and detailed a way
as some members of Congress would
have wished, it would have taken
years to complete the investigation,
and it would have cost more than a
million dollars. The committee un-
dertook to go into every important
matter that was brought before it,"
said Representative Hardy.
Cites Other Claims.
He said the committee decided that
when balance was struck and the
District had paid into the federal
treasury more than seven and a half
million dollars it was fairly to be
supposed that the account was closed
up to 1915.
When his attention was called by
Representative Kunz to the claims
of Representative Blanton that other
auditors had told him they could
show many millions of dollars due
to the United States Treasury from
the District, Representative Hardy
said that the special committee had
questioned one or two such claimants
After considerable pressing, when the
committee asked one Of them if he
knew OF any further claims that the
United States had against the Dis
trict he said thew might amount fo