Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-29
MILLIONS IN DEBTS
ARE OWED TO D. c.
Some Accounts Have Run for
Is Years and Only a Few
Suits Have Been Filed.
BY WILL p. KENNEDY.

Millions of dollars are owing to the
District of Columbia in taxes, lighting
bills and other accounts receivable,
with no pressure through the courts
for payment. Some of these debts to
the municipal corporation have been
running for 16 years.
Official figures from the District
ledgers, the assessors and tax col
lector's records, court records and
sworn testimony before committees of
Congress show this.
One of the largest items-S967,-
1854. for arrears in taxes--covers
group of six large public service cor
porations-the Washington Terminal
Co, the Baltimore and Ohio Railroad,
the Georgetown Gas Light CO.. the
Washington Gas Light Co. and the
Potomac Electric Power Co., accord
ing to figures supplied by Tax Col
lector c. NJ. Towers.
Tunnel Cases, S91. 1886.
What are known as the tunnel
cases aggregate $97 1858. They
grew out of the cost of restoring to
grade certain railway tracks and re-
surfacing on First street caused by the
settling of the tunnel. They have
been running for nearly 10 years and
involve the Capital Traction and the
Washington Railway and Electric
companies, the Pennsylvania Railroad
Co, the Washington Terminal Co
and the Philadelphia, Baltimore and
Washington Railroad Co.
The Benning Road Fiaduct Bridge
claim totals 97,49S.31. and is half and
half against the Baltimore and Ohio
Railroad Co. and the Philadelphia.
Baltimore and Washington Railroad
Co.
The law authorizing the construc-
ton of this viaduct provided that the
Baltimore and Ohio and the Philadel-
phia. Baltimore and Washington Rail
road companies should pay ohe-half
the cost Of construction, according to
their respective widths of right of
way. When the work was done the
District billed each company for one
half of half the cost. Then the legal
representative of the Baltimore and
Ohio Railroad came in and said: How
Gomez He contended that based on
their relative widths of right of way
the Baltimore and Ohio Railroad
should pay only % per cent of one
half of the cost, while the Philadel-
phia, Baltimore and Washington Co.
should pay II per cent
District Enters Suit.
The District officials could not get the
railroad companies to agree on their
respective proportions of the half of
the cost-and so they have paid
nothing. The District then entered
suit against them, suing the Balti-
more and Ohio Railroad for so per
cent and the Philadelphia, Baltimore
nd Washington Co. for u per cent, in
order to have the District fully pro-
tected.
Another item of nearly $4,000 was
ordered off the city ledger on March
8, after having been carried for four
years and representing an account
that runs back seven years. This was
a claim against the J. ]. Whitehead
Co., Inc, and the Hartford Accident
and Indemnity Co., as surety, for the
collection and disposal of miscellane-
GUS refuse in the amount of $79.790.59
dated February IA, 1922. 1t Is ex-
planned that prior to July /, 1918,
when the refuse division of the Dis
trict administration was organized,
the miscellaneous refuse was collected
under contract. One John G.. Fair.
cloth, clerk to a Southern Congress
man, took a flyer on the contract and
was the lowest bidder. Against the
protest of Superintendent Paxton Of
the Street Cleaning Department, who
was then In charge OF the, work, FAR
cloth got the contract. One day the
sheriff of Arlington County seized his
trucks. Then Whitehead, from New
York, who had been in the metals
business, undertook to carry it out. but
in the end the District itself had to
take the work over and complete the
contract for a year and a half, which
was the basis Of the claim against the
bonding company.
Many Repairs Made.
Under that contract one concern ran
the trash collection end and another
concern ran the disposal, or sales,
end. Both Of these concerns were in
effect the same parties but distinct
corporations. The concern operating
the trash plant was the Washington
Reduction Co., which still owns it, and
the District rents this. When the
District first hired this plant con-
siderable repairs had to be made and
equipment installed, the cost of which
has been charged against the rental.
During that year and a half that
the District did the collection of trash
itself under the contract on which
Mr.. Whitehead fell down the District
fContinued on Page s, Column IL