CooMrvillMi Resources Lig*Frecf» Type I Ph 8Ju Bnfiered DUTH Congress, ) HOUSE OF REPRESENTATIVES. J Rkport M S€ssl07i. S I No. 2318. PAYMENT OF CERTAIN MONEYS ADVANCED BY MARY LAND AND VIRGINIA. FicBKrARY 23, 1909. — Ordered to be printed. Mr. Miller, from the Committee on Claims, submitted the following ADVERSE REPORT. [To accompany S. 5252.] The Committee on Claims, having had under consideration Senate bill 5'252, for the payment of certain moneys advanced by Maryland and Viro-inia to the United States, submit the foliowino- report: The committee recommend that the bill be adversely reported, and as this is a matter of interest to the people of two States, Maryland and Virginia, the committee think it proper that it should furnish the House with a complete statement of the facts in the case so as to jus- tify the House in approving- the report of the committee. This claim is based upon the action taken by the States of Maryland and Virginia prior to the establishment of the seat of Government at its present location. It is shown by an act of the general assembly of Virginia, passed December 3, 1789 (ISHenning, 33), that the establish- ment of a *■• situation for the seat of the General Governraeiiit, central and convenient to the citizens of the United States at large, having due regard to population, extent of territory, and a free navigation to the Atlantic Ocean through the Chesapeake Bay, as well as ready comnmnication with our fellow-citizens on the western frontier, '"* en- gaged the attention of the said general assembly, and on the 10th of December that general assembly passed the following: Resohi'd by the general ass^embly of Mrqwkt, That a copy of the foregoing act of the third of December, seventeen hundred and eij-^hty-nine, be transmitted to the general ap.«eml)ly of Maryland without delay, and that it be proposed to the said assembly to unite with this legislature in an application to Congress that in caso Congress shall deem it exjiedient to establish the permanent seat of government of the United States on the banks of the Potomac so as to include the cession of either State, or a part of the cession of both States, thi.s assembly will pass an act for advancing a sum of money, not exceeding one hundred and twenty thousand dollars, to the use of the General (government, to be applied in such manner as Congress shall direct, toward erecting public buildings, the said assembly of INIarylau't on their part advancing a sum not less than two-tifths of the sum advanced by this State for the like purpose. vi^n 2 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. The resolution of the general assembly of Virginia, of the date December 10, 1789, was not acted upon by the general assembly of Maryland until November, 1790, when the following action was taken: Whereas by a resolution of the general assembly of Virginia, passed on the 10th day of December, 1789, it was proposed to the general assembly of Maryland tliat the general assembly of Virsiinia will pass an act for advancing a sum of money, not less than one hundred and twenty thousand dollars, to the use of the General Gov- ernment, and to be applied in such manner as Congress shall direct, toward erecting public buildings, the assembly of Maryland on their part advancing a sum not less than three-fifths of the sum advanced by the said general assembly of Virginia; which resolut.on came so late to the last general assembly of Maryland that it could not be acted upon, and was therefore referrtd to this present session; and Whereas this general assembly doth highly approve of the object of said resolution, and is desirous of doing everything required on the part of Maryland for carrying the same into effect; on a second reading of said resolution, Rexo'red, That this house doth accede to the proposition contained in said resolu- tion of the assembly of Virginia, and will advance to the President of the United States, for the purposes mentioned in said resolution, the sum of seventy-two thou- sand dollars, payal)le to his order in three equal yearly payments. That preamble and resolution from the general asseml)ly of Mary- land was communicated to the general asseml^ly of Virginia, and on the 24th of December, 1790, the following act was passed: Whereas the general assembly of Maryland have acceded to a proposition of the general assembly of this Commonwealth contained in their resolution of the tenth day of December, seventeen hundred and eighty-nine, concerning an advance of money to the General Government to be applied toward erecting public buildings at the permanent seat of the Government of the United States, should the Congress deem it expedient to fix it on the bank of the Potomac; and whereas Congress has passed an act for establishing the said seat of Government on the Potomac: Jk it tnarted bij the gericral assemtdii, That one hundred and twenty thousand dollars shall be advanced by this Commonwealth to the General Government, payal)le in three equal yearly payments, and to be applied toward erecting public buildings at the permanent seat of the (Government of the United States on the bank of the Poto- mac; and the auditor of public accounts is hereby directed to issue his warrants on the treasurer to the amount of one hundred and twenty thousand dollars, payaV)lein the manner hereinbi^ore directed, to the order of the President of the United States. (See 13 Henning, 125.) If this were all there was to be considered in connection with the location of the capital it might be inferred that the States of Mary- land and Virginia intended the amounts of money respectively fur- nished by them, to wit, $72,000 and $120,000, to 'be a loan to the Government of the United States for the purpose described in the acts of their respective assemblies; but in order that the proper mean- ing of the language in said acts might be presented to the House the committee have thoroughly investigated all of the conditions existing at the time said action was taken, and present herewith as fully as possible the events of that period. Maryland, by an act of its general assembly passed December 23, 1788, directed its representatives in the House of Representatives of the Congress of the United States to cede to the Congress of the United States any district in said State, not exceeding 10 miles sqitare, which the Congress might fix upon and accept for the site of government; and Virginia by an act of its general assembly of date December 3, 1789, ceded a like tract of any lesser quantity of Virginia territory for the same purpose. AJJ ACT For establishing the temporary and permanent seat of the Government of the United States. Section 1. Be it enacted by the Senate and House of Representatives of the United States (ff America in Congress assembled, That a district of territory, not exceeding ten miles D. at n. PAYMPJNT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 6 square, to be located as liereafter direc-ted on the river Potomac, at some place between the mouths of the Eastern Branch and the Conocochcagiie, be, and the same is lierehv, accepted for tlie permanent seat of the Uoverninent of the United States: Prondtd iiev>'rtlit'U'iis, Tliat tlie ojieration of the laws of the State within such district shall not be affected by this acceptance, until the time lixed for the removal of the (iovernment thereto, and until Con^ire^s shall otherwi>e by law provide. Skc. 2. Atid heit further cnndeil, That the President of the United States be autlior- ized to appoint, and by snpi)lyin^' vacancies happening; from n fii.-als to act or other causes, to keep in appointment as lonji: as may he necessary three comndssioners, who, or any two of whom, shall, under the direction of the President, survey, and by proper metes and liounds define and linut a district of territory, under the linn- tations above mentioned; and the district so defined, limited, and located shall be deemed the district accepted by this act for the permanent seat of the Ciovernment of the United States. Sec. ;1 And be it (further) enacted. That the said comndssioners, or any two of them, shall have power to purchase or acicept such quantity of land on the eastern side of the said river, within the said district, as the President shall deem proper for the use of the United, States, and, accordinji to such plans as the President shall approve, the said commissioners, or any two of them, shall, prior to the first Monday in Decend^er in the year one thousaiKfeight hundred, provide suitable buildings for the accommodation "of (Jongress and of the President and for the jtublic offices of the Government of the United States. Sec. 4. And l,e it [further) emirted, That for defraying the expense of such pur- chases and linildings the President of the United States be authorized and requested to accept grants of monev. Sec. 5. And be it (further) enacted, That prior to the first Monday in December next all offices attached to the seat of the Government of the United States shall be removed to and until the saiil first Mondav in December in the year one thousand eight hundred shall remain at the city of Philadelphia, in the State of Pennsylvania, at which place the session of Congress next ensuing the present shall be held. Sec. H. And be it (further) enacted, That on the said first Monday in December, in the year one thousand eight hundred, the seat of the (Tovernment of the United States shall, bv virtue of this act, be transferred to the district and place aforesaid. And all offices- attached to thesaid seatof (iovernment shall accordingly be removed thereto by their respective holders, and shall, after the said day, cease to be exercised elsewhere; and that the necessary expense of such removal shall be defraved out of the duties on imposts and tonna-sase)id)/ed, That so much of the act entitled "An act for establishing the temporary and permanent seat of the Government of the United States" as reiiiiites that the whole of the district of territory, not exceeding ten miles .scjuare, to be located on the river i'otoniac, for the permanent seat of the Government of the United States, shall be located altove the mouth of the Eastern Branch, be and is hereby repealed, and that it shall be lawful for the President to make any part of the territory below the said limit, and above the mouth of Hunting Creek, a part of the said district, so as to include a convenient part of the Eastern Branch, and PAYMENT OF MONEYS ADVANCED HY MARYLAND AND VIKOINIA. 5 of the lands lyinlaces: l*hiladelplii;i, Lan- caster, Baitimon', New York City, Yorktown, Princeton, York, Trenton, and Annapolis, and at the time of the location of the capital the foUowiiio- places were tr\'in,o- to secure the same: Phihidelphia, Baltimore, Lancaster, York.* Princeton, Annapolis, Williamsburg, Trenton, New York City, Williamsport, Germantown, Carlisle. Har- risbuig, Readino-, Georgetown, and the present site. And the follow- ing places entered into competition, by bids and otherwise, for the location of the capital. We find the following language taken from the Congressional Proceedings of June 4, 1783: Be it reso/red, That copies of the act of the legislature of Maryland, relative to the cession of the city of Annapolis to Congress for their permanent residence; and also copies of the act of the legislature o: New York, relative to the cession of the town of Kingston for the same purpose, together with the i)apei's which accompanied both acts, be transmitted to the executives of the respective States, and that tlVey be informed by the President that Congress have assigned the first Monday in October next for taking the said offers into consideration. Maryland and New York were the first to enter the arena. Later, however, both Maryland and Virginia offered 10 square miles for capital purposes, and offered to advance and did advance. th(^ former $72,000 and the latter §120,000. On the 7th of April, 1788, New York appropriated its public buildings to the use of the new Congress. Philadelphia did likewise for that citv. Baltimore offered a large tract of land and i-aised <£30,000 in money, which was offered as an inducement to secure the capital at Baltimore, On Tuesday, September 8, 1789, a petition was presented by the inhabitants of Georgetown in the State of Maryland, ofiering to put themselves and theii' fortunes under the exclusive jurisdiction of Congress in case that town should be selected as the permanent seat of the (iovernment of the United States. A district 10 miles square, including the l)orough of Wilmington, in the State of Delaware, was offered, and when this offer was under consideration in Congress on Septeinber 17, 1789, the following was provided: That no cession be accepted until acts should be passed by the States of Maryland and Pennsylvania to open a water communication between the bays of Chesapeake and Delaware. On September 2(!, 1780, a ]:)etition was presented by the people of Germantown asking for the location of the capital at that place, and offering a district of 10 miles square. On August 22, 1789, a memorial of John Cox and others, of the States of New York and Pennsylvania, was presented to Congress, asking for the seat of government to be established on the banks of the Delaware, and offering a cession of a tract of land U) miles s<]uare, including the borough of Lancaster, and also at the same time nominated ^Vrigllts Ferry, on the Susquehanna, 6 PAYMENT OF MONEYS ADVANCED BY MAKYLAND AND VIRGINIA. Yorktown, west of the Susquehanna, Carlisle, west of the Susque- hanna, Harrisl)ui'o', west of the Susquehanna, Reading, on the Schuyl- kill, and Gerniantown, in the neighborhood of Philadelphia, as different places in Penns\'lvania which had been proposed for the permanent seat of government of the United States; and on September 21, 1789, IVlr. Morris introduced the resolution of the general assembly of the State of Pennsylvania of March 5, 17^9, making otier to Congress of the use of any or all of the public buildings in Philadelphia in case Congress should at any time incline to make choice of that city as a capital. The permanent seat of the Government was established by the act of July 1(), 1790 (1 Stat., 30), and under the fourth section of the act the President was ''authorized and requested to accept grants of money." On January S, 1796, President Washington transmitted to the Con- gress a memorial of the conunissioners of the city of Washington on the subject of the public buildings under their direction, and stating that he had accepted the grants of money and of lands stated in the memorial. The memorial contains the following: That the State of Virginia has paid one hundred and twenty thousand dollars, which had been previously offereil by an act of the legislature, on condition that Congress would establish the permanent seat of Government on the banks of the Potomac, to be applied, under the direction of the President of the United States, toward erecting the necessary buildings for the Federal overnment; and that the State of Maryland hath paid seventy-two thousand dollars for the same purpose. (American State Papers, vol. 1, p. 133.) Also on pages 243-2-16 of the same volume will be found a report of a committee of the House of Representatives, Fifth Congress, second session, containing an account of receipts and expenditures by the commissioners of the city of Washington from the time of their appoint- ment to the 18th of Ma}^, 179(5, in which the following entries appear: Donation by the State of Virginia, $120,000. Donation by the S.ate of Maryland, $72,000. We here quote from Spofford's History : The establishment of the national capital of the United States involves so many particulars of historical interest that no apology seems necessary for devoting to it the larger portion of this paper. In doing this it will be my aim to touch with the grc^atest brevity on tliose portions of the history which have tjeen fully bi-oughtout in the various publications on the subject, devoting the more attention to other individuals. The Continental Congress, during the progress of the Revolutionary struggle, was never long Hxed in any one location Its sessions were convened at eight different places in tour different'states, viz, Philadelphia, Baltimore, Lancaster, York, Prince- ton, Annapolis, Trenton, and New York City. The bill then (September 22, 1789) went to the Senate, where it was discussed three days, but as the Senate sat with closed doors no records of the debates in that body we're preserved prior to December, 1799. Here it was moved to strike out the words "in the State of Pennsylvania" from the bill, so that the jjlace selected might be on the Maryland bank of the Sus(|nelianna, if tlionght proper. This was lost- ayes 8, noes 10. A nidtion to substitute the Potomac for the Susquehanna was lo.st, vote not given. It was then moved to locate the pern:)anent capital in a district 10 miles S(juare at Gerinantown, Pa., on the Delaware, including such part of the Nurthern Liberties of L'hiladelphia as were not excepted by act of cession of that State. This was lost by a tie vote — 9 to 9, but \'ice-P.'-esident Adams voting yea set- tled the (juestion in the affirmative. In this vote the Northern and Eastern States were solid for Gerniantown, exceiit Maclay, of Pennsylvania, who voted against it, while the Southern States were solid against it, except the two Senators from Dela- ware. A ])roviso was adoi)ted recjuiring Pennsylvania to pay $100,000 toward the erection of the public buildings at Germantown, and the bill passed September 26 — yeas 10, nays 7. PAYMENT OF MONEYS ADVANCED HY MARYLAND AND VIRGINIA. 7 At the next meeting of ConKref^s, January 4, 17i)0, ntill at Now York, several months ehipseil before the quesiiim of the seat of tioverniiient was reopened. N'ery eny a h< avy majority in the House; that in the earlier stages of the secolid session, in ITiiO, Congress was tro closely absorbed with questions of revenue and public debt to consider tlie sulijectof the caj'ital city, and that finally, alter long and sometimes acrimonious debate, a site on the Potonlac was accepted by a majority of two votes in the Senate and three votes in the House. Tho.-^e votes, moreover, could not have been obtained had North Carolina not come into the Union in the meanwhile or had Pennsylvania sided with the northern vote as against the southern location. Mr. Jefferson has recorded in his Ana a remarkable piece of ])rivate history regardind their votes on what was known at that time as the assnmption act, i)roviding that the General (xovernment of the United States shonhl assnme the indebtedness of the several States. KviMitiiaily. through the successful etiorts of Jefferson, Hamilton, Madison, and Washing-ton, the assump- tion act was passed and the capital of tlie nation established where it is now located. The connnittee have called attention to the successful efi'orts of the distinguished gentlemen heretofore named for the reason, as appears from the public records of the time, that there can be no (piestion hut what this matter was successfully carried through and the compromise effected by the gentlemen named. We call particular attention to the statements of Mr. Maclay, of Pennsylvania, taken from his ]n-ivate' journal, in which he says: ''lam fully convinced that i'ennsylvania could do no better. It is in fact the interest of the President of the United States tnat pushes the Potomac, who by means of Jefferson, Madison, Carroll, and others urges the business, and if we had not closed with these terms a bargain would have been made for the tem- porary residence in New York." He again says: '"The President of the United States has, in my opinion, had great influence in this business." This was in reference to the compromise on the assun^ption act and the location of the capital. There is not, so far as the committee has been able to discover, any public record of any kind which shows that the advances made b}^ the States of Maryland and Virginia were regai'ded as loans. It is urged by those who favor this measure that the fact that John Marshall, afterwards Chief Justice of the United States, because he moved to strike out the word "grant " in the title of the act and insert the woi-d "advance," shows that it Avas intended that this was to be a loan in place of a donation or gift. The committee is satisfied that the reason Mr. Marshall made this motion was to have the title of the act con- form to the language in the body of said act, where the term "advance" appeared and not "grant." Mr. Marshall at the time knew that the President of the United States, or the commissioners themselves, had no authority whatever to borrow any money, but knew that Congress had alread}'^ provided, however, that the commissioners had authority to accept grants of money; and if it was the intention of the States of Maryland and Virginia that this money was to be regarded as a loan is it not strange that they did not require some evidence of indebted- ness on the part of the (Tovernment of the United States to either of said States, and that they did not rei(uire any security or any interest, while Maryland, a few yeai's later, when that State did loan S2()0,000 to the Government of the United States, demanded gilt-edged security and a rate of interest at 6 per centi! In all pul)lic documents, so far as the committee have been able to discover, this matter is referred to as a grant, gift, or donation, and nowhei'e is it referred to as a loan. General Washington calls it a "grant" when drawing his order on Virginia, and a "gift" when drawing on Maryland. The law of Maryland was the same as Virginia. fJeff'erson calls it at the time a "gift" in one letter and a "donation" in another. The conunissioners and others, when connnunicating with the authorities of \'ii'ginia. 10 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA, called it a "donation." It is designated as a "donation"' on their books. Mr. Randolph, then Secretary of State, called it a "donation." We call special attention to the language used by Mr. Meigs in a report from the committee. Mr. Meigs, in a report from the Committee on the Expenditures upon the Public Buildings, made to the House of Representatives March 21, 1820, remarks that— j It appears that the valuation of the public lots and actual amount of sales, added to the donations frum the i^'tates of Virginia and Maryland, exceed the national expenditure upon public buildings by nearly $400,000. (See American State Papers, vol. 11, Miscellaneous.) and again call attention to the statements heretofore referred to that at the time the commissioners of the city of Washington had entered .in the books of said city the following entries: Donation by the State of Virginia $120, 000 Donation by the State of Maryland 72, 000 We also call attention to the entry which appears on page 1 of Journal A and of date October 17, 1791, "that (it appears that) the State of Virginia subscribed the sum of $120,000 presumably toward the erection of the public buildings in the city of Washington," and it appears from subsequent entries that this entire amount subscribed was paid, as one William Deakins, jr., who was the treasurer of the federal commissioners appointed by President W^ashington to lay out the city and erect the public buildings, has charged himself with sundry payments made by the State of Virginia from time to time on account of its donation. Then, in that account there appear the fol- lowing statements: '•'To the State of Virginia received of Mr. Hopkins, part of its donation, $8,585," of date Mai'ch 2, 1795; and again in the same account, under date of March 21, 1796, there appears. "To State of Virginia received of John Hopkins the balance of the Virginia dona- tion, $1,312.06," and the total of all of the items in this account of William Deakins, jr., debtor to sundry accounts with the State of Vir- ginia, the total amount is $120,000. Your committee herewith adopts as a part of its report a portion of the report made b}^ the Committee on Claims of the United States Senate when this matter was before that body on Januar}' 30, 1852. New York and Pennsylvania had gratuitously furnished "elegant and convenient accommodations" for the use of the Government dur- ing the eleven years that it was located within their respective limits, as appears from the resolutions passed b}^ Congress on its removal. They had offered to continue to do so. IS'ew Jersey oflered accommo- dations at Trenton. The citizens of Baltimore, through their repre- sentative, proposed to furnish money for the erection of the necessary buildings in that to\\ n for the Federal Government. One hundred thousand dollars had been required to be paid by Pennsylvania, or its citizens, as a condition of the location of the Government in that State. This was the state of things when the propositions of Virginia and Maryland were brought forward, to advance $192,000, "to be applied toward erecting public buildings at the permanent scat of the Govern- ment of the United States, on the banks of the Potomac." On the 31st of May, 1790, a bill was introduced into the Senate to determine "the permanent seat of Congress and the Government of PAYMENT OF MONEYS ADVAN("EI> HY MARYLAND AND VIRGINIA. 11 the I'uitod States,''' On the ^Sth of rhine, this hill heino- under con- sideration, memorials were read from citizens of Baltimore and iidiah- itants of (ieorj^'etown for the selection of those places, and a motion heino" made to insert ''on the river Potomac at some place hetween the mouths of the Eastern Branch atid the Connog()clie((ue be, and the same is hereby, accepted for the {)ei'manent seat of the (Jovernment of the Unit(>d States/' It passed in tlii^ aliirmative. The bill was further amended as follows: And he it farther enaded, Tliat, for defra_vin^ the expense of wiich purcliases and buildinjis tlie President of the United folates be antliorized and requewted to accept grants of money, and cause to be borrowed a sum not exceeding one hundred thou- sand dollars at an interest not exceeding six per cent. In this form the bill was sent to a select committee consistino- of Messrs. Butler, of South Carolina; flohnson, of Connecticut; Henry, of Maryland; Lee, of Viroinia; and Dalton, of Massachusetts. In their report on this part of the bill is the following proposition: Your committee further recommend that such sums of money as ma}' be offered by the States for the carrying this bill into effect may be accepted of; then the bill will read thus: " and to accept grants of monej' or land." The bill was accordingly amended by striking out that part which authorized the borrowing of money for the erection of the public build- ings — 3'eas 19, nays 7. A motion was subsequently made to restore the clause "'and cause to be borrowed a sum not exceeding one hun- dred thousand dollars at an interest not exceeding six per cent," and it was negatived without a division. The "act for establishing the temporary and permanent seat of the Government of the United States"" passed and was approved by the President on the Itlth of July, 17!»(>, fixing the "permanent seat"' on the banks of the Potomac, in accordance with the propositions of the legislatures of the States of Maryland and Virginia — and the "tem- porary seat" at Philadelphia. In the act, as passed, no authority was granted to borrow money or contract for or accept a loan on any terms, either with or without interest. On the contrary, such authorit}^ was expressly denied. It is a gencM'al rule that all are bound to take notice of the provisions of a public law. P)V the fourth section of the act the President was "authorized and recjuested to accept grants of mone}'." And to this acceptance of grants his authority was clearly limited. It is not to be presumed that the authorities of Virginia did not know or understand the provisions of this law. Did President Washington transcend these limits, as prescribed by Congress, when he received from the States of Virginia and Maryland the several sums of mone}^ appropriated by their respective let^isiatures "to be applied toward erecting puldic buildings at the permanent seat of the Government of the I'nited States on the bank of the Potomac?" On the 22d of .January, 1T!»1, as appears by the manuscript records in theolliceof the Conuuissioner of Put)lic Buildings. Pi-esident AVash- ington appointed Thomas Johnson and Daniid Carroll, of Maryland, and David Stuart, of Virginia, conunissioners under the act of IGth of Jul}^ 1T*J0, and on the '24th day of the same month he issued his proc- lamation tixing the "location of one part of the said district of ten miles square" on the Virginia side of the Potomac, and the "other part" on the Maryland side. The commi^ioners met on the 12th of April, 1791, and proceeded to execute the duties of their trust. Their 12 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. first object was to locate the city, acquire tlie title to the soil, and fix the sites for the principal public edifices. And having" accomplished these preliminaries they applied to the President for the necessary funds to carry on their operations. As many of the public lots as could be properly disposed of were directed to be sold, and the proceeds to be placed in the Treasury, and application was made to the President for orders on the States of Maryland and Virginia for the payment of the installments pledged by those States. In a letter of President Wash- ington, addressed to the commissioners, from Richmond, dated 18th of April, 1791, he says: Agreeable to the assurance given to Mr. Carroll, I applied, immediately upon my arrival in this city, to Governor Randolph for $2,000 for federal purposes under your direction; although by the law of this State the payments of the $120,000 are to be made by installments the governor is well disposed to advance the money at earlier periods. P. S. — Since writing the foregoing I have again conversed with Governor Randolph, and have drawn upon him, payable to your order, for $40,000, being the first installment. Governor Randolph also wrote to the commissioners acknowledging the receipt of the order and sajang that he would meet it as fast as the state oi the treasury would allow, and that $1,000 would be paid immediately. 'i'he ommissioners also addressed a communication to the governor of Maryland asking for the payment of "money granted" by that State. On the 6th of June, 1T92, the commissioners wrote to the governor of Virginia a>: follows: "There remains behind a part of the Virginia donation, which was receivable for the past year, and urging thi neces- sity of innnsdiate payment." The following, in reference to the second installment of Virginia, appears upon the records of proceedings of the board of commissioners of the federal city, viz: Received sundry letters, and among them oue from the Secretary of State, inclos- ing the following order: "Philadelphia, Norember 13, 1792. "Sir: Be pleased to pay to Messrs. Johnson, Stuart, and Carroll, commissioners of the federal buildings on the Potomac, or to their order, or to the order of any two of them, the second installment of the moneys granted by the State of Virginia toward the said buildings. "George Washixgton. "The Treasurer op Virginia." On the President's order the connnissioners made the following indorsement, and delivered it to their treasurer, to wit: "Pay the contents to Col. William Deakins, or order. "Daviu Stuart, "Daniel Carroll, " Commissioners." This order was forwarded to the commissioners inclosed in a letter from Thomas Jcficrson, then Secretary of State, in which he .says, " I have the honor to inclose you the President's order on the treasurer of Virginia for the second installment of the money given by that State (see manuscript letter of Mr. flefi'erson, dated the loth of November, PAYMENT OF MONEYS ADVANCKD l^Y MARYLAND AND VTROINIA. 13 1792, on tile in tho office of Commissioner of Public P)uil(lin(,'-s). A similar record appeal's in reference to the payments of Maryland, viz (recordsof proceedings of the hoard of commissioners, pp. 70 and 170): riiiLAUiCLi'iiiA, Derciiihcr ^7, 17!>1. Sir: Re pleased to pay to Tlioiiuis Johnson, David Stuart, and Daniel Carroll, eeqs. Conimissioiiers of the Federal District, or to their order, or to the order of any two of them, $LM,000, <^iven hy the asHeinl)ly of Maryland toward defrayinj,' the expenses of the public buildinga within said district. GeoKGE WASniNOTON. To Thomas Howard, Esq., Treai^tmr of the Western Shore of Mari/land. This order was indorsed by thecommissioners to William Deakins, jr.. their tn^isurer, and upon it the money appears to have been paid. This \yould seem to settle very clearly the understandino- of (leneral Washinoton, Mr. JclTerson. and of the executive officers of Maryland and \'iroinia of the nature of the " advance" made by those States. A isin)ilar order for "the third installment of the sura given by the assem bly of Maryland,'"' etc., was given by General Washington, dated Mai'ch 2, 1793. ■ ■ On the 7th of February, 1793, the commissioners, in a commimi- cation to Mr. Jetierson, say: "'We have as yet received oidy §10,000 on the President's second draft on Virginia. " We have to-day written to the executive of Virginia requesting a payment of the balance.'' They also addressed urgent memorials to the governor and to the assembly of \'irginia earnestly and repeatedly soliciting the payment of installment.s of the " donation of Virginia" and the '' Virginia dona- tion toward erecting the public buildings." In the records and books, and in the correspondence of the commissioners, whether with the President, the governor of Virginia, the general assembly of that State, or with other persons, whenever this fund is alluded to, it is designated as the "donation," "grant," or "gift" of Virginia. Mr. Edmund Randolph, Secretary of State, in a letter to the com- missioners dated August 21, 1791, says, "I have this day written to the governor and treasurer of Virginia, stimulating them to the pay- ment of the arrears of the donation. Perhaps you had better add a representation of the necessity of the federal city for such a supply." The foregoing history of the early legislation upon the subject clearly proves, in the judgment of the committee, that Virginia intended the said sum of $12W,0'^>'* ii« fi gift or donation, and not alone, because — 1. No time or manner of repayment is provided for. 2. The President of the United States had no authority to borrow money or contract foi- a loan. He was only authorized to accept grants of money. 3. The oti'er of Virginia of the said sum was conditional, provided the seat of government was located near or within her territorial lim- its; and it was made after Penns3dvania and Baltlmoi-e had oti'ered donations or gifts, and when there was a strong probability that Ger- mantown would be agreed upon as a site. There is no reason to infer that \'irginia would have advanced that or any other sum if the seat of government had remained at Philadelphia or had been located at Gerraantown. 14 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. In view of the foregoing history, fact:«i, and considerations, the com- mittee conclude and decide that if the United States could be sued the claimants could not recover, either in a court of law or equity. The question then arises whether, considering the sum advanced to be a "gift" or "donation," it should be repaid. As such its repay- ment is not asked, and therefore the connnittee do not undertake to decide the question, but refer it to the judgment of the Senate. The committee, however, are unanimously of opinion that if, look- ing to all the circumstances of the advance made by Virginia, and viewing it as a ''donation" or "grant," the Senate should determine that it is just and proper to repay the same, then the sum of $72,000 advanced by Maryland should also be repaid, and a reasonable com- pensation made to the States of New York and Pennsylvania for the use of theii- pu!>lic ])uildings by Congress and the public officers prior to the removal of the seat of government to Washington. The records show that Congress and the public officers occupied the public buildings litted up by and belonging to the State or city of New York, for a period of about one year atid six months, and the public buildings in Philadelphia, then belonging to the State of Pennsylvania, from the 6th of December, 1790, to about the close of the year 1800, a period of about ten years. It is believed that |20,000 would be a reasonable compensation to bo offered to New York, and $100,000 to the State of Pennsylvania. It does not appear that either State ever received anything more than thanks. At that time the State of Virginia was not making any claim in her own name for reimbursement, as the State had transferred its interest in the matter to the Orange and Alexandria Railroad Company, and said railroad company in its own name was asking to be awarded $120,000 for the use and benefit of said railroad company. !r The committee also call the attention of the House to the fact that the State of Virginia is not now claiming that the United States Gov- ernment owes her any amount whatever. The claim that is before Congress at this time is presented on behalf of the Mount Vernon Association, and they ask this donation at the hands of the Govern- ment for the erection of a public highway between Washington City and Mount Vernon. Your committee is clearly of the opinion that there is no legal or equitable liability on the part of the (jovernment of the United States in favor of either the State of Maryland or Virginia, and from the evidence presented in this case the conuuittee are unanimously of the opinion that neither Maryland nor Virginia at the time that these moneys were advanced expected that this act would create any liability on the part of the Government of the United States to return any of the moneys to either of the States, and that their sole object in offer- ing to advance the moneys heretofore referred to and to grant lands was for the purpose of securing the location of the capital within their territory, which they believed would be of great benefit to their peo- ple, and that in making the offer which they did they were simply try- ing to meet the competition of other States which were trying to secure the capital foi' the benefit of their people. The committee regard it as remarkable that these States should now claim that this was a loan in view of the fact that no one was seeking PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 15 to borrow monoy from thoiii at the time, to wit. in i7l>i», aiul that at that time the records of the department show that the State of Vir- g'inia was indebted to the United States in the simi of mori; than ^200,000; and althouoii since that time there liave been settlements at various times between the (general Uovornment and these two States, yet at no time from 17l»() until now has either of these States in any of the settlements that have ever been made chiimed that they were entitled to credit in said settlements by reason of the advances of money made for public buildino- purposes in Washino-ton. o LIBRftRY OF CONGRESS Illllllllillllllllllllllll'lllllllllll 014 369 537 2 • / ConMnvttoa Resources Ug-Frec« Type I LIBRARY OF CONGRESS 014 369 537 2 #