Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-01-24
lFrOm the brief of the citizens
joint committee submitted to the
congressional joint surplus COM
niittee, January, 1921

There are no offsets I'm the shape of
period since 1878 or the period be-
tween 1874 and 1873 to make
reduction of the amount of the Dis
trict's present tn:r surplus.
This conclusion may be justified in
either of two ways:
l.
Accountants Mayes and Spalding
have stated the account between the
United States and the District from
1874 to 1911 with the exhaustive full
ness so far as credits of the United
States are concerned; and Congress
has passed Judgment upon these al
legged credits, and rejecting some,
has confirmed others, wholly or in
part. and in all cases has rejected
or failed to approve interest claims
in respect to these alleged debts; and
has compelled the District to reim-
burse to the United States the full
amounts found to be due in examina-
ton by Congress of these claims of
indebtedness.
The District claims that Account
ants Mayes and Spalding, while stat
ing fully every possible credit of the
United States, neglected or omitted
to state with the same careful full
ness the credits of the District.
If the conclusions of Congress on
the findings of Accountants Mayes
and Spalding are to be treated as
final adjudica lions. disposing of
claims to District credits. and not to
be reopened, they must also be treat
ed as final adjudlcations in their re-
fusal to allow the United States in
terest upon any of these ancient al
legRd debts.
Haskins and Sells, the congress
sional joint committees accountants,
have stated the account between the
United States and the District from
1911 to date, and If the accounts for
the period 1874 to 1911. as stated by
Accountants Mayes and Spalding, are
to be accepted as conclusive. the
finding of Accountants Haskins &
Sells OF a net balance today to the
credit of the District is a finding
that the United States is indebted
legally and morally to the District
in this amount as a minimum.
II the interest were allowed the Dis
trict on its SURPRISES of accumulated
taxes corresponding to the interest
which the United States collected
from II on advances to meet District
deficits in seven years between 1900
and 1910, the surplus balance found
due by Haskins and Sells would be
correspondingly augmented.
Ii the congressional Joint committee
adopts this method of answering the
queries propounded by law concern
Ing the statement of accounts since
1874, concerning the surplus to the
Districts credit In the Treasury, and
concerning the amount legally and
morally due from one party to the
other after allowance IN made for
equitable interest charges. 1T can re-
port quickly and definitely to Con-
gress Its conclusion and Congress,
ny adopting its report, will recog-
nize as available for appropriation
the DISTRICTS surplus determined
by the Controller General and the
congregational joint COmmfttee's Off
ctai accountants, will wine the sIntr
clean of all the bitter contentious and
Fecrfmlnntions over contradictory
claims of indebtednesS of the past
nnd will give the District n fresh
start to test fairly Its financial veal
or woe under it's new organic act of
1922.
III the statements of accounts from
1874 10 1911 by Accountants Mayes and
SpaldiBg is disregarded becauSe II
does not state fully District credits
or for any other reason and II the
districts account for this period is
reopered and reStated fully, taking
into account Gas the law OF 1ec2 re-
quireh) equitable and moral, as well
as legal Indebtedness, the Districts
surplus will not suffer reduction but
will be Increased by the discovery of
additional District credits, both legal
and equitable.
Through statistics compiled by the
District auditor and by the citizens
committees accountants we demon
strate that in equity there should be
added to the District credits several
million dollars
We consider first the accounts and
equities of the period from 1873 to
date; second, of the period between,
1874 and 1878; third, of the period
prior to 1874, so far as 1T furnishes
surviving equities subsequent to that
date.
ACCOUNTS AND EQUITIES OF THE
PERIOD FROM 1878 To DATE.
The law of 1878 contemplated ad-
vances by the United States to the
District OF Columbia, to be reimbursed
in the current year No equitable or
moral obligation in favor of the
United States can arise from faith
fully carrying out the law of 1878, in
accordance with its terms. There can
be no obligation of the District, for
example, to pay interest on advances
which are contemplated and COM
manded by the law itself. On the
other hand there Is an equitable or
moral obligation by the United States
to make good by reimbursements
(perhaps with interest) any violations
by itself of its self-imposed obliga-
lions under the law of 1873, which re-
NAMED the permanent, substantive
fiscal law of the District, until it was
In effect repealed by the new fiscal
law Of June 20. 1922. GO Controllers
Decisions 440, January 3, 1914)
There should be a balancing of ac-
counts on the half and half basis dur
ing this period. Amy money collected
under the organic act to be spent on
the half and half basis and actually
spent on any other basis, Gas with full
cost from District tax money!, should
be restored one-half to the Districts
credit, and entered in the Treasury
account.
An equitable restatement of the &C
count between the United States and
the District takes note of and cor
reefs:
l. Items which should be stated on
the half and half basis and which are
charged full cost against the Dis
trict, including the cost of street ex-
tension and, IN part, of street i'm
provement outside of Boundary Street
of the original city. This inequity in
wolves an unjust limitation of the
application of the act of 1878 to the
bounds of the original Washington
and a resembling of it in certain par
ticulars so far as all of the District
outside of the original city is con-
cerned.
IL Items which should be stated
wholly as national expenses, but
which are actually stated on the half
and half basis, or with the unjust i'm
position of even more than half cost
upon the District as taxpayers or