Evening Star Newspaper, January 21, 1923, Page 8

TWEEDALE ANALYZES ‘SURPLUS REPORT OF OFFICIALACCOUNTANTS (Continued from First Page.) to/ cover the perlod for the fiscal years 1874-to 1911, inclusive, ‘to ac- Gept the report.of the accountants employed by the Speclal Committee Investigating the.Affairs of the Dis- trict of Columbia under House Reso- 1utions No. 1564 and 200 of the Bixty- second Congress, and ‘House Reso- lution No. 203 ‘of the Sixty-third Congress (H. R. Doc. 1627). ‘This report stated the balance in the gen- eral fund of the District of Columbla on July 1, 1911. If this conclusion is- correct’ and these accounts with their certified balance is to be ac- cepted as conclusive then no consid- eration should be . glven to any items contained in the report of Haskins and Sells which cover any of the period previous to July 1, 1911, for by so doing, the implication is at least raised that.the previous re- ports contained errors, omissions or inaccuracies of fact. Detailed Audit Tm) *The - impracticability of making a dotailed audit at this time over a period of approximately fifty years— 1674 to 1922—and the enormous ex- pense that would be entalled therefor i$ apparent to all. g “The -majority of the subsidiary records are long since destroyed, be- ihg of no further use. and the in- dividuals who had charge of the a counts and an_ immediate and ac- gprate knowledge of the “facts. having long since passed away. it is absolutely impossible to ascertain the true facts upon which fo predicate sueh an account, and an zccount based upon insufficient. incomplete and an inaccurate statement of facts would he most unjust and in- equifable to all parties. - Piirthermore. there must _come wometime, either now. or _in the tuture, when the account between the District of Columbie and the United States will be considered as full and finally settled. To open up said account from vear to year would serve no good purpose whatsoever. Bearing in mind, however, the pos- ibility that the settlement suggested in the preceding paragraphs may not be favorably considered, there follows herewith a memorandum with re- spect to certain Items contained in the Haskins and Sells report, and also a memorandum of items suggested by the Citizens' Committes, which have been omitted from the report of Messrs. Haskins and Sells, and on which items in the judgment of the indersigned the District of Columbia i3 entitled to receive large credits should the detailed audit above re- ferred to be made. (Mr, Tweedale takes up in order the specific items in the report of the o al accountants, as follows:) 1. DRAWBACK CERTIFICATES. (Pages 4 und 5.) These certificates were issued by the District of Columbia in refund or abatement of general taxes where special {mprovement taxes prior to ne 19, 1378, had been found to be excessive or crroneous and .such c tificates were receivable by the Dis- trict of Columbia In payment of ge: eral taxes in like manner as money would have been received in payment of such taxes. The Act of Congress of July 9, 1886, provided that 50% of all ‘such drawback theretofore or thereafter received in payment of general taxes should be considered as money and credited to the District and said drawbacks so received were, in absolute conformity with the Act of Congress, so credited; there can, therefore, be no reason either in law or equity for disturbing the disposi- tion of these moneys. It was a proper settiement. 2. ASSETS OF THE DISTRICT OF COLUMBIA JULY 1, 1878, (Page 10.) The accountants state that it is their opinion that consideration should be given by the Committee to assets of the District of Columbia at July 1, 1878, which were subscquently col- lected and deposited to the credit of the General Fund of the District of Columbla. It would seem that the assets of the District of Columbia on the above date regardless of when collected were distinctly the property of the District of Columbia, and Congress in the Organic Act of June 11, 1878, 80 declared. Bection three of said Act provides: “That as soon as the Commis- sioners appointed and detafled as aforesaid shall have taken and subscribed the oath or af- firmation hereinbefore required, all the powers, rights, duties and privileges lawfully exer- cised by, and all property, es- tate and effects now vested by law in the Commissioners ap- pointed under the provisions of the Act of Congress approved June 20, 1874, shall be trans- ferred and vested in and im- posed upon said Commission- raEcl s In a word, all properties of the Di: trict of Columbia of whatsoever ni ture were vested in Commissioners of #aid District for the sole use and benefit of said District. The Act of June 11, 1878, further es- tablishes the fact that the Commis- sioners were to take title not only to the physical assets, cash property, eto., of the District of Columbia, but to amounts and counts due - said District, the fellowing language be- -acticable. ing used: “And the Commissioners ,of the District of Columbia . shall take possession and su- pervision of all the offices, books, papers, records, moneys, credits, securities, assets, and accounts belonging or apper- taining to the business or in- terests of the Govermment of ‘Kho District of Columbia . .” . . all taxes heretofore law- tully assessed and due, or to b come due shall be collected pursuant to law.” It 1s, therefore, apparent taxes und other assets of tfl“b?sl! trict of Columbia outstanding July 1, 1878, were properly subsequently col- lected and deposited in the Treasury of the United States to the credlt of the District of Columbia. 3. PURCHASE OF CONSTRU N \KA’I'EMAI-—APPROPB.IATH)NCT!'!OI; (Page 12.) IMBURSABLE. of public works, w2 the execut aying of sewers,construction o - walks, street paving, etc., it is fiz:é‘: - 'ary for the Distfiet to carry on hand a.considerable imount of building and constructich material—cement, Dipe, brick, steel, curbing, etc. In or. der that the District might have a cash purchase fund for the acquisi- tion of this material a reimbursable appropriation was made, being b d one-half to the revenues of the United States and one-half to tae re¥enues of the District of Columbia. 8 the actual materials are used on the public works, the several appro- priations charged therewith are deb- ited and transfer vouchers passed in the . Treasury Department debiting sa&ld appropriations and crediting the account of the special reimbursable fund fof the purchase of construction materials. The balance remaining to the credit of said fund is then avafl- able for the purchase of such further may be required. -will be apparent, therefore, that this is nothing more than a cash oper- ating fund and any balance remain- ingto the credit of the same in excess of-the operative requiremnts would infre to the credit of the District of mbla and the United States, re- vel. n: er of prices does not affect r the United States or the Dis- of Columbia o ‘way or the other in their fiscal relations; in that neither party makes any contribution thereto! other than the amount orig- inally appropriated therefor. As a matter of practice, the Purchasing Officer of the District inventories stock on band at the beginning -of each year at the then contract rice, in order to secure uniformity the price of materials jssued. cash. balance to the credit df the miscellaneous trust fund deposits ac- count “Trash-reduction plant,” June 30, 1922, which sum was covered into tlie Treasury to the jolnt credit of the District of .Colmbia : and the United . States on August 31, 1932, being' included in a balance of $30,000. This accouht'should not be treated by the accountants, .in that the physical deposit was not made,until date subsequent to the time they were auditing, to wit., June 30, 1922, and, therefore, the Treasury .could not admit- credit for moneys it had not received. Deposit having been made in "August closes. the matter, the United States and the District re. ceiving their due share of said money. 5. 'DISPOSITION OF CERTAIN RE- CEIPTS, $6,300,068.57. (Page 14.) ‘The accountants state if the fore- going sum, consisting .of receipts from licepses; privileges, etc., had been .apportioned as were - certain other receipts from District sources, the balance in the general fund at June 30, 1922, would have been con- siderably less. The detalls are as follows: Motor vehicle ta, Special reimbur Folice Court Snes Juvenile Court fines Do licenses .. Elevator operators Engincers' licen 3 Insurance licenses and transfers. . Miscallancous licenkes . Motor vehicle oferators Plumbers’ licenses ... Tnsurance tazes on atrict .. Market rents. excinsive of W ington Market «Company Total . What the accountants have in mind, it is believed, is the language used in the Act of 1923, which uses the words “taxatien” and = “Hcemwes” whereas the general fund of the Dis- trict is made up not only of taxation and licenses but in ‘accordance with the specific language of the Act of Congress of June 11, 1878, is made up of moneys received on account of assessments levied upen the taxable property and privileges in sald Dis- trict. ‘With respect to this matter the Organic Act of June 11, 1878, provides as follows: “To the extent to which Con- gress shall approve of such estimates_(for the expenses of the government of the District of Columbla) Congress shail appropriate the amount of fifty per centum thereof.” “And the remaining fifty. per centum of such approved es- timates shall be levied and assessed upon the taxable prop- erty and -privileges in said District other than the property of the United States and of the District of Columbla.” The moneys collected on aceount of the foregoing taxes and privileges, together with the appropriations to bfqmade by Congress as afore- said . . ., - . . shall be paid into the Treasury of the United States and the same disbursed for the expenses of said District . . Tt is apparent from the foregoin that the Congress which enlrleg !hE Act of June 11, 1878, intended that the District’s proportion of appropria- tions was to be paid from its own funds, derived not only from “taxa- tion” but from all the “privileges coming under the Municipal Govern- ment as well. Using the word “privilege” in its ordinary accepted sense would in- dicate the moneys received by the municipality. for “fees,” for bullding permits, water connections, ralling permits, licenses for the operation of automobiles and other vehicles, and charges for those other services and privileges ordinarily _pertaining to municipal goveérnment and the ac- tivities incident thereto. It s a point well settled in municipal law, that where fees, taxes, or other moneys have been volun- tarily pald into the public treasury, that no recovery can be had by the payer in the Courts; relief, if any, must come by legislative Act. o reason for this is that the govern- ment must know at sometime what moneys are its own. By a llke parity of reasoning, the principle must ap- ply to moneys recelved by the Dis- trict. These moneys should not “long ::i':t"’:‘rd!" be taken from the Dis- reasury and give F'elderu Government, © @ '° the t is, therefore, submitted t! moneys collected by the Dlstr’l‘c‘: f‘o‘: taxes, privileges or municipal sery- ices, in the ordinary exer e 'y cise of the may be only disbursed therefrom the language of the Act of Gongress creating said municipal cofporation, the District of Columbla, “for the expenses of sald District.” will readily be seen, theref that_ neither legally nor morally 1s the United States entitled to any por« tion of any moneys deposited by the District of Columbla to the credit of its general fund in absolute ao- cordance ‘with the soveral Acts o ess, including tl Congresn. 8 the Organic Act 6. CERTAIN DISBUR! N’ NOT INCLUDED IN THE E’x‘!"l’;fi‘;zg OF THE DISTRICT (Page 15). The aceountants called atte: the fact that certain oMcers ag oy United States Army are assigned from time to time in supervision of certain interests of the District Gov- ernment and state no consideration has been given to the.above expend! tures nor to the compensation of cer. tain other Army officers and em- ployes of the United States rendering service to the District and the com- pensation of clerks and supervisors of the General Accounting Office of the United States for services in connection with District matters. This notation in order to be prop- erly considered is divided, first, the expenditures on account of the Army pay and allowances of Army Officers detalled by the President to'the Dis- trict of Columbia, and, second, the gompenration of clerk.l' and ‘super- visors of e eneral Accounti Office of the United States. At With respect to the assignment of Army Officers, attention is invited to the fact that certain Officers have in times past been assigned from time time to military schools and academies .in the various States to supervision of National engineering projects, reclamation work, high- ways and work on rivers and harbors within the boundaries of the various States. At no time have the State governments been . called’ upon to reimburse the United States on ac- count of the salaries of the Officers o h Tespect to_ th Y spect to_the . compens: of - clerks and lupervl;oyl’ o(“{g: General _Accounting Office of the United States for services in con- nection with District matters, atten- tion is invited again to the Organic Act_of Junpe 11, 1878, wherein will })e found the following provision of aw: ~ ‘And the accounts of eaid Commissioners, and col- tectors, and all other ofcers required to account..shall be Mtdod!b{h th;\rleeounfin‘ offt- cers o .. eas Depart. ment of the United States.” This clearly indicates that .the ing and yeritying the accounts of the Municfpal government of the Dis- trict presented to them for settlement in accordance with existing law. Congress has specifically .provided in the Act approved March & 1881, at: . the Engineer Commis., shall be entitled &.B‘Vfl pensation, “dp . ‘addjtion to his Army,pay and allowanoce, as | will make his compensatign equal to $5000 per annum Pursuant to thé provislons of: law in those cases where the Officer detailed to serve as Engineer Commissioner did not: receive: Army. pay and allowance in the aggregate of $5000 ) per -annum, the deficiency has been ‘appropriated: for.” The' sum 50 pajd amounts to very little in that the officers assigned to this duty havé beenof high rank. g The - “Assistants to .the En Commissioner” * by gned to assist charge of his dutles have been de- tailed to the District in like manner as! Army . Qfficers - are .detalled :for military service to the several State governments. It would, : therefore, seem that neither in law nor in equity are any moneys due the United States from the District of Columbla on this account. .. . - REIMBURSEMENT - OF EL- DRED ‘G, DAVIS—3$634.33. (Page 17.) This is @ payment in the nature of a relief bill similar to thousands of bills of 1lKe”nature, passed by ‘Caon- gress for the ‘use and benefit of Mr. Davis and With which the Distriot Columbia goévernment -or -the tax- payers had nothing to do. The specific Act of Congress Te- ferred to directed that the Secretary of the Treasury should reimburse Mr. Davis the amount specified in the Act. ) 9. ADDITIONAL GROUND _ FOR NATIONAL ZOOLOGICAL PARK. (Page 19.) Appropriation of $80,000 and 32,500 charged wholly to the revenues of the United States. G {"'Not only this sum we submit should be charged. wholly against the United States, but in justice and equity, there should be refunded to the District of Columbia the moneys heretofore con- tributed by it _toward the establish: ment of this Park. It is distinctly National fn character arid one over which the District has neither super- vislon nor say in any manner what- ever. It comes under the Smith- sonian Institution, a Federal Estab- lothed with the power of regmlating and controlling its maintenance and en- largement. There is no more reason for requiring the District to con- [*ribute towards the enlargement, es- tablishment or maintenance of this institution than it is towards the maintenance of the National Museum. They are distinctly Federal in char- acter, of historical and educational interest to the Nation as a whole and should be maintained and estab- lished by the Federal government. We submit, therefore, that not only should the items referred to be charged wholly to the revenues of the United States but the District of Columbia should in equity be reim- bursed for the moneys heretofors charged against it for its establish- ment and maintenance. 10. OLD PERSONAL BALANCES CARRIED ON TREASURY DEPART- MENT LEDGERS. (Page 20.) These balances in no wise affect the fiscal relations of the District of Columbla and the United States hav- ing arisen as follows: When requisitions are drawn on appropriations in_the Treasury De- partment. the amounts thereof are charged to the individual disbursing officers in what are knovn as “per- sonal account.” When the public creditors are paid therefrom, the vouchers of said disbursing officers are transmitted to the Treasury and “personal” credit givem to said dis- bursing officers. in _their account therefor. Any balances remaining in the hands of the Disbursing Officers are “repaid” and credit given there- for, thus closing their personal respective accounts. 1t would appear, therefore, than all that is necessary in order to get these accounts off the ledgers of the Treasury is for the Accounting Officers to pass the necessary credits based upon the receipted vouchers and repayments long since made by the persons directly accountable therefor. As I have above indicated, this does fiscal relations of the oer to the District of Columbla by the Treasury are taken up and Included mu;he District account at the time made. 11. DISTRICT OF COLU A ‘JIJNI: 10, 1878—81,200,000, ‘The accountants call attention to the bonds ssued under the authority of Congress by Act approved June 10, *1879, redeemable twenty years after date, ¥ This matter has been presented to and considered by a Committee of Congress examining into the affairs of the District of Columbla, and as no actlon had been taken it was be- lleved the matter had been finally settled. In a report submitted to the Wash- ington Board of Trade by Colonel George Truesdell, Chajrman of the Standing Commijtee on Municipal Finance, and unanimously adopted by the Board January 19, 1912, the fol- lowing statement is made in regard to these bond: t i said that ‘it is the unexpected that always happens.’ Congress gave a very forceful illustration of the truth of this old adage in the Act of June 10, 1879, uuthorizing the issue of $1.200,000 six per cent twenty-year bonds to redeem funded indebtedness of the District cr of the late corpora- tions of Washington and Georgetown due January 1 and March 1, 1879, and certain pleasure bonds, with the fol. lowing proviso: ‘PROVIDED, That. this Act shall not be construed to make the Goverpment of the United States liable for either the prin- cipal or interest of said bonds, " or any part thereof.’ “Under the provision of this Act bonds to the amount of $1.089.300 were issued to redeem $990,776.67 of pleasure bonds and for reimbursing the United States for the amount of $281,500 advanced to redeem the city of Washington ten-year bonds, and the city of Georgetown steam force- pump bonds. (Second Annual Report, Treasurer of the United States, on the sinking fund, November 29, 1379). “The proviso in this Act ig incon- sistent with the Act of June 20, 1878, and the Act of March 3, 1879, ap- propriating from the Public Treasury for interest and sinking fund re- quirements on the old funded debts of ‘Washington and Georgetown, as well as on the 3.65 bonds. Otherwise, it 1s not inco: ith any lous legislation, except the Act of 1878, which limited the amount to be rajsed by taxation to fifty per cent of the ap- roved estimates. All of the previous legislation on the debt concerned only the unfunded debt created by the Board of PubMc Works, the other old debts of the corporations of Washington and Georgetown were evidenced by bonds, stocks, c., re- quiring no action by Congress, prior to the Act of June 10, 1879, except as to payment of interest. “The proviso to the Act of June 10, 1879, taken by itself being later than the Acts of June 11, and June 20, 1878, d March 3, 1879, which have been ennulptl of the old e considered to in- icy on the part hat old. fui United States has-undertaken in ex- |th actly the same way as the State Gov- ernments have undertaken for {ts own protection the handling of the |that auditing, the acoounting and the finances of the municipal government: of the District of Columbia, and in performing this duty it is acting for itself and not on acoount of thé gov- ernment of the District of Columbia 3 1y indicates an isolated and final pro- test against the liability of the United States for any of that It never was repealed except by implica- tion and stands as ing: what it to be, the last seriou n of the b [der .the Aot of that provi had 1ife enough n it to force enoush | behind it, to command the respeét of Congress. -It was never violated by anybody, nor construed by anybody, bécause ‘no one ever -had ‘an oppor- tunity to violate or construe it. Con- gress. absolutely ignored it by cifically np{roxm- ng for' the. inter st.and sinking -fund. which inelud e bonds, and 'Mu' the principal | d became due Congres: Act of Mareh them to: my with « proceeds - of funding bonds bearing . the sam. dorsement _as the 3.65 bonds; these ten-year bonds were long Zgo redeemed, understhe oferation: of the. sinking fund, as.have all other bonds, except, the. 3.65 bonds." R nihDernsmy hinine o T -OF THE UNITED STATES. (Page 35.) The accountants’ <rej refers ‘t ndling of, the. re- imBurdement of $281,500 to' the United States. w2 <y 3 If we have the facts.correct’in this case @1l that hap was’the Tréas. urer of the United'States as’ex-officio commissioner ‘of the-sipking-fund. of the District merely used temporarily $281,600 of United States moneys in connection with' the sinking fund operation and, -reimbu: subsequently from., apptopriations made by Congress for inter¢st and sinking fund payable by ‘the Diatrict Columbia.- The fact’that said appro- pristions were pavable in sccordan; with- law; one-half by ‘each of tfie parties'does ot afféct the propriety of the settlement. There is no incon- sistency in such settlement. . 13. SURPLUS FEES RECORDER OF DEEDS AND REGISTER OF WILLS. (Pages 43 to ) ‘With respect to the surplus.fees of the Recorder of Deeds and the Regis- ter of Wills, which are paid solely by property owners or residents of the District of Columbia,. it is the con- tention ot the citizens of the' District of Columbia that as these offices are self-supporting. the revenues of each being suffiglent to pay .the an- nual expenditures, and as Congress is not called upon to maks coptributions oh thé “half-and-half "of 'any ®other basis, that all‘surplus-fees of both of these offices should .not only now but ‘during all the previous period have _been turned in exclusively to the credit of the District of Columbia. 14, INTEREST CHARGES. (Page 3.) The accountants state “no. consid- eration has been given by us to the computation -of interest as provided for by the Act of Congress creating as we understand that the question of Interest will re- celve the attention of your committee after considering all'facts developed by_its inquiry.” . his statement of the accéuntants has reference to the following pro- vision of the law: , 4 " And in event any money may be, ‘or at any time has been by Congress or .otherwise. found due, either legally or morally, from one to the other, o account of loans, advancements, or im- provements made, upon which in- terest has not been paid by either to the other, then such sums as have been or may be foul\1 due from one to the other, shall bu considered as bearing: interest at the rate of 3 per centum per an- num from the time when' the principal should, either legally or morally, have been paid, until actually paid.” With respect to this legislation, the position taken by the Citizens’ Joint Committee on Fiscal Relations is that no interest of any kind should be charge? on any claim against the District of Columbia wherethe Con- gress of the United States through its appropriate Committee or other- wise has determined that certain sums of money should be paid by the District to the United States and has passed legislation making a full and final settlement of the amount due in each particular case. In other words, where Congress, which has complete jurisdiction of the finances of the Government of the District of Columbia on its own volition examines and states an ac- count and finds & certain amount due the United States from the District of Columbla and - without recourse passes an Act taking the money from the Treasury of the District of ‘olumbia and places it in - the reasury of the United States with- out interest, that settlement in all equity and fairness should be considered as a final and complete settlement of that claim, and there- after no Interest charge should be made on account of that item. ‘This method of settlement in the payment of claims {s one that ha beep recognized by the Courts of the United Statas almost unanimously. Where a plaintiff secures 3 judgmant in settlement of a claim and falls to include therein interest on sald judgment he is forever barred from again claiming interest. Moreover, to charge interest on claims that have already been adjudi- cated by Congress when the sole re- sponsibility for a large part of these claims was due to the.action of the ‘ongress itself would be unjust, in- equitable and unconscjonable. 'here have been taken from the revenues of the District of Columbia and turned over to the United States by specific ‘Acts of Congress the sum o{ $3,349,544.98. Among ° the {items making up this sum {s the amount reimbursed the United States on ac- count of the hospital for the insane from 1879 to 1912, $1,003,290.35. The greater part of this amount was oc- casjoned by the fallure of Congress to pass deficiency appropriation Acts that were duly presented to that body by the Municipal authorities of the District of Columbia based upon esti- mates submitted by the authorities of the Government Hospital for the In- ne, It cannot be conceived that because of the failure of Congress to author- ize-the payment.of ‘moneys from mu- nicipal funds that it would now, seek to obtain interest on the sums' that should at that time been appropriated. MEMORANDUM OF _ITEMS SUG- GESTED BY THE CITIZENS’ GOM- MITTEE OMITTED FROM THE - PORT OF HASKINS AND SELLS ON WHICH IT IS BELIEVED THE DISTRICT OF COLUMBIA IS EN- TITLED TO LARGE CREDIT. Bearing In mind the possibility that our recommendation of a settlement may not be adopted by the Joint Con- gressional Committee and in .order that the record may contain some of the various items which the District of Columbla considers should be analyzed and on which, in case of a detailed examination of the records from 1874 to date, it is belleve District of Columbia will receiv large additional credits, the follow- lns‘umu are submitted for considera. tion. INTEREST, * In order-to set out the equitable terest allowance on: Tencnl ae- count of the District of Columbla, the following statement is presented showing cash d:d’u!t'l in the Treas- ury of the United States to the oredit of the general fund of the District of Columbia on account of taxes and other revenues being the surplus bal- ance at the close of each fiscal year, or -on the -other hand- being the amount due the United States and nting _the deficlency ‘in the revenues for that year: T BALANCB DUE. District of Columbia {(Surplus.) $112,210.64 re- in- Fiseal' 1893, 1894, i 1997 1907, 1008... 1909, 1910, 1811, ‘ll'o. inclusive, w 3 |Bress; there existed a deficiency does :mot embrace the money in the hands of the Treasury belonging to e will be observed that ith tl Kel 1892, ad a bal the fiscal Columbia from 1901 ‘to 1913, ‘inclusive, ue to.the large . expenditures for the coustruction of extsaordinary fin- provements on a cash basis, .which have ‘been duly authorized by Con- n es of the District of Co- bia “which was met by advances from the United. States Treasury to the general fund of the District of Columbia and ‘upon 'which . interest wus charged in aceofdance with law at the rate of 2 per cent per annum. The total amount charged: to District revenues on account of this interest item~was $565,076.68. ' ° While the United: States “govern- ‘ment: recelved this.large amount of interest, no allowsnce has been made toithe District for, the large sums of suBplus revenues -belonging to the Distriet in the Treasury of the United Btates for the period between 1891 and 1900, and 1914 and 1922. Should ‘interest 'be allowed on. these balances which it would appear in all equity they are,entitled to the DI trict _would recelve a credit of bi tween, $900,000. and $1;000,000. Moreover, this, statement . relates only to the moneys In the general fund of the.District of Columbia. It the District in the trust and special funds which according.to the report of the auditor of the District of Co- lumbla ended June 30, 1922, amounted to 3671,801.94, and aiso the amount standing to the credit of the disburs- ing officer of the District of Columbia in- the hands of the treasurer of the United States which according to the report of the auditor of the District of Columbla on June 30,.1922, amounted to $1,080,600.95; These sums are rep- resentative of the balances that have existed during the years which have preceded, and interest should be al- lowed on all sums in these accounts to the credit of the District of Co- lumbia. In addition to tbe foregoing. there ave certain large sums of money in the hands of the treasurer of the United - States representing __the mount of unpald checks, which amount constitutes-a large cash bal- ance belonging to the District of Co- lumbla. Interest on similar funds in other munlipal jurisdictions is_al- ways allowed, by the banks having municipal funds on deposit. The inequity of charging Interest against the District is turther demon- strated when it is borné in mind that for a long perod of years the Secre- tary of the Treasury permitted tax- moneys to remain.on deposit a cer- tain length of time with the National Banks of this city. So long as the money_remained on “deposit the Na- tional Banks were required to pay to the Secretary of the Treasury interest at the-rate of 2 per cent upon sich bal- ance. Without checking up the amount thus paid to the Secretary of the Treasury for use of this money by the National Barks in the District, we think we are safe_in asserting that this amounts to several hundred thousand dollars. Although this was derived from District taxes and was clearly District money, the federal government reaped a profit therefrom and-has given no credit therefor to the District. In equity and good con- science, the District should be credit- ed” with the amount of interest 5o collected by the federal government. PPROPRIATIONS _ CHARGEABLE A %BHOL!.Y TO THE REVENUES OF THE DISTRICT OF COLUMBIA. There has been a list prepared show- ing the appropriations that have been made payable wholly from the rev- enues of the District of Columbta. This list totals $4,198.608.39. It In cludes appropriations for street ex- tensions and other misc€llaneous ob- jects. g It is recommended that all appro- priations from the revenues of the District of Columbia which have here- tofore been made other than that pro- vided in the Organic Act of June 11, 1373, namely, 50% from the revenues of thie-United States and 505 from. the revenues of the District of Columbia should be examined, and where a ‘de- parture from the principles established By Congress in the Organic Act is found to exist the District should be credited with an amount equal to the appropriation from the revenues of the United States. The provislons of the Organic Act, to which reference is made, follows: “To the extent ‘to which Con- gress shall approve of such esti- mates (for the expenses of the government of the District of Columbia) Congress shall appro- priate the amount of fifty per centum thereof. ‘And the remaining fifty per centurh of such approved esti- tes shall be levied and at sed upon the taxable property and privileges in sald District other than the property of the United States and of the District of Columbia. As illustrative of the appropriations le wholly from District revenue, attention is invited to the following ap- ations: PUBLIC PLAYGROUNDS, COMMU. CENTERS AND MINIMUM ‘WAGE BOARD EXPENSES. Reference to the Auditor of the Dis- trict of Columbia’s Annual Reports for the flscal years 1811-1922, inclu- sive, will show that the total expenses, including salaries-and maintenance of the following ordinary municipal ac- tivities have been paid wholly from District revenues: Public Playgrounds. .$542,755.00 Community Centers. 35,000.00 Minimum Wage Board 15,000.00 $592,755.00 Tt-is submitted that these is no dif- ference in the service rendersd by the municipality In providing public play- grounds to keep the child from the street, and providing him with a play- ground on the public school grounds, with the attendant teachers or in- It is 3 as necessary to care for a child’s’ welfare by providing him or her safe and adequate play space as is to provide for his or her educa- tion; and being services of like kind it would seem that the appropria- t! ded . for sald purposes should be borre in like proportion, that is, payable jointly by the United ‘States and the ‘District of Columbia. In fact, the appropriations for play- grounds for the fiscal years 1917 and 1918, were made by Congress payable Jointly. ¥ By a like parity of reasoning. the operation of the community centers, whioh are recognised munioipal or civio activity .in all up-to-date cities, and the expenses of the Minimum Wage should be payable joint- 1y by the United States and the Dis- trict of Columbia—both items being no_more or no less than “general ex- penses of the District of Columbia” as contemplated by the Organic Act. rou%m FIREMEN’S FUNDS. The sums constituting these funds while taken wholly from the reve- nues of the District of Columbla are not included in_the list before men- tioned as appropriations _payable from the revenues of the District of Columbia. ‘The expense 3f the police and fire departments, including salaries of policemen and firemen are paid af other general expenses of the gov- ernment of the District of Columbia. Th nsions and relief, paid from the Policemen’s and Firemen’s Rellef Fund—exoepting the m con- tributed thereto by the poli en and firemen 1ves of retentions from their ourrent pay—have been paid wholly from the revenues of the Dis- trict of Columbia. F 1t is not apparent how there can be any: difference betweep the pay- ment of a salary to a icemdn or fireman during his days of- active el salary being paid with the understanding that when the man is no longer able to perform active duty he will ‘be retired or pensioned —and the payment of a pension or ‘allawance after retirement. -Not only is the foregoing logio] absolutely. true, but the very Aot of | Congress - making - appro ons for priati m‘flm‘h 'S¢ suid Distriot. and Firemen's Relief Funds of the District of Columbia: Policemen's Rellef Fund: ' 1886-1912 . $1,055,342,67 1913-1916 365,321.67 Firemen's Relief Fund: 1886-1912 408,398.99 1913-1916 B 181,469.75 Policemen’s and Firemen’s Relief Fund (combined 1917-1922 1,065,139.77 * TOTAL PAID FROM DISTRICT REVE- NUES e $3,065,672.85 It is submitted that the foregoing payments have béen made on account of “general expenses” of the District, therefore the United States shouid pay its proportionate part and re- imburse the District therefor. ADJUSTMENT OF THE FINANCES OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA DUR- ING THE PERIOD FROM JUNE 20, 1874, 'TO JUNE 11, 1878, The Act approved June 20, 1874, providing for a temporary form of Rovernment for the District of Co- lumbia contemplated that the Com- mission authorized by said Act to recommend a permanent .form of Government for said District should report at least not later than begin- ning of the next session of Congress, If that had occurred and the recom. mendation was the same as was adopted by Congress in the Organic Act dated June 11, 1878, all the ex- penditures for the period from July 1, 1874, to June 30, 1878, would have been paid one-haif from the United States and one-half from the Dis- frict of Columbia revenues. The resylt of the provisions of the Act of June 11, 1578, with respect to the bonded indebtedness of the Dis- trict during this period as finally construed by the fiscal officers of the United States Government was to the effect that one-half of said bonded and one-half from the revenues of the District of Columbia is, therefore, suggested if the accounts of the District are to be re- opened that by a proper statem of the accounts between 1874 and 1878 a large credit will- be estab- lished which will inure to the ben- efit of the District of Columbia. DISTRICT REVENUES APPLIED TO WATER FUND. 1t is belleved that a credit will be established to the general fund of the District of Columbia if an ex- haustive examination is made of the moneys contributed to this project from the revenues of the District of Columbia, the revenues of the United States and the payments from water users, provided there is also taken into consideration the amount of water used by the Federal govern- ment, the government of the Dis- triet of Columbia and by individuals. SUPREME COURT FINES. While this matter has been con- sidered by a previous Committee of Congress it is believed that equit- ably and morally the District of Co- lumbia should be credited with re nues derived from fines. POLICE COURT FINE:! This matter has received the con- sideration of previous Committees of Congress and reimbursement has been made from the general revenue fund of the District to the United States government of $211,450.12. This matter has been ably argued by the Auditor of the District of Co- Jumbia and it is belicved that a careful consideration of the argu- ments on behalf of the District in “Hahn-}-Special‘s"V Setting a New Standard of Value n Young WOmet_'l.S’ Spring Shoes At ail our stores, but only a few of the $5.95 styles at ‘“City Club Shop.”. “City Club Shop” this case would result in the reim- bursement to the District of Colum- bia of the amount heretofore charged thereto from a legal as well as an equitable standpeint, KEY BRIDGE. The cost of the erection of this bridge was charge¢ to the District and the Federal Government par- tially on a fifty-fifty basis and par- tially on a sixty-forty basis. There 18 no more reason why this charge should be made against the District than it should be against the State of Virginia or the Federal Govern- ment. It was generally known and commonly stated that one of the ob- Jects of the maintenance of the said bridge was for the purpose of ready access to the city for troops stationed at Fort Myer in case of emergency. The State of Virginia profits equally |as well in the maintenance of the {said bridge. Under the ¢ircumstances, we submit that in equity-the cost of this construction should not be chargeable to the District of Co- lumbia. L The items preceding have been sub- mitted for consideration only on the theory that a detallgd examination of the affairs of the Government of the | District of Columbis ate to be made from June 30, 1874, to. June 30, 1922, land that the recommendation that a | settlement based upon the findings of {the accountants which confirms the certificate of the Comptroller Gen- jeral of the United States and { Auditor of the District of Columbia is not adopted. T feel that the Committee is war- ranted in recommending earnestly that this method of closing the dis- putes between the United States and District Governments should be made, not only in view of the great length of time it will take to make this de- tafled examination but also on ac- [count of. the enormous expense con- nected therewith. This review of the report of Messrs. Haskins and Sells and the financi {was made under the greatest | the availability of records required to ! e it a proper detailed analysis. Thanks of the Committee are due to Mr. Sidney Roche and Mr, H. Allen, who have devoted time without ! measure in assisting in this work. Thanking you and the members of your Committee for your kind as- sistance, I remain, Very respectfully, ALONZO TWEEDALE, Chairman, Committee on Accounting and Aud#ting. e HONOR LATE ASSOCIATE. Memorial services for the late Leigh Robinson, former president of the board of trustees of the Con- federate Memorial Home, who died last year, will be held at the home, 1322 Vermont avenue, Friday evening |at 8 o'clock. The various southern organizations are expected to attend. Action to this effect was taken at a lrecenl meeting of the board of trus- tees. Mr. Robinson was president of the board from its beginning in 1901. Mrs. Frank Odenheimer, past president general of the United Daughters of the Confederacy, will represent that organization: Capt. Fred Beall and Col. James T. Petty, the Confederate Veterans, and Edwin C. Dutton, the Sons of Confederate Veterans. Dr. Wythe Cook, Mr, Robinson’s successor as president of the board of trustees, will preside. The committee in charge of affairs consists of Col. James T. Petty, Mrs. *E. C. Fred and F. R. Fravel, We're going to make $5.95 stand for the Best Women’s Shoe Proposition in town this spring. . Style, Novelty, Beauty, Quality and Value —all joinec - to- gether in the best looking new Spring Shoes women have been offered at— Ten styles pictured, featuring new Street and Sports Oxfords, with dainty Pumps and Colonials for dress wear. All leathers All fabrics All sizes Cor. 7th & K Sts. 414 9tk St. 1318 G St. condition of the District of Coiumbia | Carolina of | cold. T i pressure due to the lack of time and | VY Office 1914-16 Pa. Ave. 233 Pa. Ave. S.E. SURPLS COMMITE CLERK IS AFPONTED C. Brooks Fry of Denver to Aid in Audit of D. C. Accounts From 1874 to 1911. C. Brooks Fry of Denver, Col been appointed clerk to the Jjoint congressional committee investigat ing the surplus revenues of the Dis- trict. The appointment was made formally at vesterday's meeting of the committee, when it was decided that an audit of the District's ac- counts from 1574 up to 1911 would be necessary, completing the audit up to date. The committee will ask for further time to make its report. Under ex- isting_law it was to report the first Monday in February. The de- termination of the committee to have the apdit go back to 1574 nece will throw” the report of the comm tee over until the meets next December. tee will report “progres: makes ite request for further time A meeting of the committee will called by Senator Phipps, chairn some time this week. Part of Fry's duties will be to look after matters for the committee here dur ing the recess of Congress has o commit when Winter resort iu the Blue yon. A e celebrated thermal heli of dge mountains of wesiern Nor ekt place in the world 1o c Rooklets and information, Souther 1425 F st. nw. Phone Main Advertisement x| OLD YEAR ENDED IN RUSH OF BUSINESS, U. S. SAYS Exceptional activity in all lines of business for the closing month 1922 is shown by a survey af domestic businees conditions jssued yesterda by the Department of Commerce. A new record since 1920 in pig iron pro duction, a larger output of coal and coke, heavy car loadings, a December record for building activities, a marked increase in receipts of foreign wools and a heavy consumption of silk, together with the heaviest vol- ume of retail salas ever re among the favorable factors shown Unfilled orders of the United States Steel Corporation fell off. but offic consider th indication tained product and better liveries. Steel ingot production clined slightly. Production duri December totaled 3,178,000 tons, com- pared with 3,303,000 for November Sales in Decembe largest mail order hou try totaled $32,185.000 more than in $700,000 more than 1 Sales of three ten-cent store chains totaled $43.447 in Decen ber, compared w 2,000 in De cember, 1921, and 574,000 in the same month of 1920, 727 72 Y Clearance Sale of short lines and discontinued styles continues. 7227, 227 Y