Evening star., 1925-06-11
The District Surplus Decision.

Controller General McCarl has de.
cided. with unexpected promptness.
that the funds in the Treasury which
have been claimed by the District
as a surplus credit. amounting to
ss19,373.s3, In fact belong to the Cap
itai community and are available for
appropriation as District revenues.
This decision was hoped for In season
for the framing of the next District
appropriation bill. and fortunately
comes in time for the consideration
Of estimates. 1t supplements the
prior decision of the controller gen.
eral to the same effect, that certain
funds accommodating in the Treasury
from District revenues not appro-
priated are credits to Washington.
That decision has been recognized in
the appropriation of a portion of the
already declared and established sur
plus for extraordinary school devel-
opment purposes. This present addi-
tion to the accredited surplus estab-
fishes a total credit Of available Dis.
naes, of s5.257, ,52S.75, and q balance
after deduction of appropriations
already made, Of SCISSORS.
In theory there could never have
been a surplus OF District revenues.
under the organic act of 1873 or It's
amendment, If the strict letter of the
law were followed. 1t was ir1itially
provided that ito the extent to which
Congress should approve Of said esti.
mates Submitted by the Commission.
ers,, Congress shall appropriate the
amount Of so percentun thereof and
the remaining so percentum shall be
levied and assessed upon the taxable
property and privileges in the Dis
trict not belonging to the United
States. In short. the District reve.
nues were to be raised only in the
exact amount necessary to meet the
requisition of one-half Of the total
sppfopri iations. In practice, however,
the appropriations came to be based
not upon the amount the Government
was willing to spend, but upon the
revenues. Then came the time when
the District raised more than Con.
gress was willing should be spent at
the established ratio. Thus surplus
of District funds accumulated. De-
mand was made by the District for
the expenditure of these funds upon
the equitable and legally established
ratio OF half and half, later made so.
40 per cent. A counterclaim was set
up by certain critics Of the fiscal
policy Of the Government relating to
the maintenance of the District and
the District was mulcted in large
sums for items of doubtful equity.
Eventually the question of the sur.
plus was referred to the controller,
who ruled that to the great body Of
the surplus then In the Treasury the
District was clearly entitled. The
District claimed that in the appro-
priation Of this money, thus declared
TO belong to 1t, Congress should OBJ
serve the ratio principle which pre-
vailed at the time 1t was raised by
taxation.
A congressional committee exam
ined the question and reported in
favor OF the District equities in the
surplus, but certain items were held
apart for further examination. The
present decision relates to them and
is a complete verification OF the Dis
trict's title to this credit. Remains
now only the proper disposition of
this money, which stands as a Dis.
trict asset and which should be ap-
propriated upon the precise conditions
that prevailed at the time Of the pay.
ment of these funds by the District
taxpayers.
In the preparation of this case and
its presentation to the controller gen.
eral, Auditor D. J. Donovan has
rendered the District a most valuable
service, which Is highly appreciated.
He has steadfastly throughout the
surplus controversy maintained the
position that the Districts title to
these funds was clearly founded in
law. In the examination Of the &C.
count he has been diligent and skillful
and this present decision, which com.
pietes the legal procedure with re.
gard to the unexpended District reve.
nues, Is a vindication of his jealous
and capable management Of the case.