And Whereas no part of the sum so actually expended for the benefit of the United States and at its request has been reimbursed the State of California, although the costs, charges, and expenses, including interest (the Supreme Court of the United States in the New York case (160 U. S. 598), having held interest paid by a State on moneys borrowed a proper cost or charge) incurred by other States in aid of the Government during the War between the States have been paid said States; and Whereas the validity, equity, and justness of these expenditures made by the State of California in aid of the Federal Government in times of great stress have often been admitted and never successfully disputed; and Whereas the Senate, after thorough investigation, has repeatedly passed bills providing for the reimbursement of the State of California, and the committees of the House of Representatives have likewise favorably reported bills for such reimbursement; and Whereas the Seventieth Congress, after many years of consideration, passed, and the President approved, an act providing for the reimbursement of the State of Nevada for costs, charges, and expenses incurred in aid of the Government during the War between the States identical in character and authorized under exactly similar circumstances as were the expenditures made by the State of California, thus recognizing the validity and merit of such expenditures; and Whereas it is deemed appropriate to quote, from among the many statesmen in Congress who have considered and assisted in establishing the justice of the reimbursement of California, three United States Senators who, on account of their prominence, experience, and rank, are most competent to speak again in behalf of our State, namely: Senator Hawley, of Connecticut (Chairman of the Committee on Military Affairs): "There is no sort of question as to its justice." Senator Eugene Hale, of Maine (Chairman of the Committee on Appropriations): "The Senate is committed to these State claims by vote, by sentiment, and it is only a question of time when they will pass." Senator Teller, of Colorado (Chairman of the Committee on Claims): "If there are any claims that are just and proper which the United States ought to pay, this is one of them. It is as sacred an obligation, in my judgment, as the national bonds." And Whereas the State of California has been so long deprived of its rights respecting these expenditures upon part of which it is still paying interest, and as the State is now in such urgent need of the sum due from the United States, that it is believed if the attention of the Congress is again invited to this obligation, it will appreciate the justice of the State's request for reimbursement at this time: Now, therefore, be it Resolved by the Assembly of the State of California (the Senate concurring), That we respectfully request our Senators and Representatives in the Congress of the United States to use all honorable means to secure the enactment by that body of a law providing for the reimbursement of the State of California in accordance with the accounting rendered by the Comptroller General of the United States hereinabove referred to. A complete exposition of the merits and justice of the reimbursement of the State of California, as well as the legal, equitable, and moral aspects of the case, is embodied in your committee's report submitted in the Seventy-second Congress on S. 1317, being Senate Report No. 351, and same is hereby adopted and made a part of this report. In an appendix to this report is incorporated for the convenience of Congress extracts from the hearings held by the Judiciary Committee of the House of Representatives on S. 1317, Seventy-second Congress, second session, which your committee believe will add to the knowledge of the Senate on the subject matter under consideration. One of the outstanding facts in this case is that the State of California is today paying interest on $840,000 of the $2,800,000 of bonds which the State in 1863 and 1864 issued and sold in good faith, on the promise of reimbursement, to raise the money the State expended in aid of the National Government at a time when the Government was in dire distress and urgently called upon California "by independent and separate activities to support and aid the Federal Government in its arduous responsibilities. (S. Rept. 351, 72d Cong., 1st sess., p. 10.) That California did her full duty toward the Federal Government under abnormal conditions is undisputed; that every dollar expended by the State in aid of the United States was honestly expended and actually paid out of the State treasury is conclusively vouched for by a Federal audit (supra, p. 26); that California is not claiming reimbursement of a dollar the State has not actually expended in such aid is certified to by the report of the Comptroller General (supra, p. 4). Your committee, therefore, report the bill back favorably, with the recommendation that it do pass. Senate Report No. 351, Seventy-second Congress, first session, is as follows: Senate Report No. 351, Seventy-second Congress, first session The Committee on the Judiciary, to whom was referred the bill (S. 1317) for the relief of the State of California, after a further hearing in addition to the one held in the Seventy-first Congress, and after careful consideration of the law, equity, and facts involved, report the same favorably to the Senate and recommend that the bill do pass. A similar bill passed the Senate March 2, 1931, but too late for action in the House of Representatives before final adjournment of Congress on March 4. Such latest passage increased the number of times similar relief measures have passed the Senate to six. The California State Legislature, in appealing to Congress to reimburse the State, passed a memorial in the following words: Whereas the State of California has not been reimbursed for moneys actually expended by the State for costs, charges, and expenses incurred in enrolling, equipping, transporting, and paying its volunteer troops during the War between the States in response to the urgent calls of and under proper requisitions made by the commanding general of the military department of the Pacific under direct authority of the President and the Secretary of War, upon the understanding that all such costs, charges, and expenses actually incurred in raising troops for the United States would be reimbursed to the State, as shown by the letter from the Secretary of State, Hon. Wm. H. Seward, addressed to the Governor of California, dated October 14, 1861, wherein he stated: "The President has directed me to invite your consideration to the subject of the improvement and perfection of the defenses of the State over which you preside and to ask you to submit the subject to the consideration of the legislature when it shall have assembled. Such proceedings by the State would require only a temporary use of its means. The expenditures ought to be made the subject of conference with the Federal authorities. Being thus made with the concurrence of the Government for general defense, there is every reason to believe that Congress would sanction what the State should do and would provide for its reimbursement"; and Whereas the record shows that the expenditures by the State of California on behalf of the United States were made with the knowledge, cooperation, and approval of the commanding general of the Department of the Pacific representing the Federal authorities; and Whereas the expenditures made by the State of California for and on account of the United States and at its most urgent calls, are set forth by the Comptroller General of the United States under date of August 14, 1930, in pursuance of a resolution of the Senate passed May 28, 1930, as follows: Grand total sum actually expended by and not repaid to the State of California on July 1, 1889, stated in the account set forth in the report of the Secretary of War made in pursuance of resolution of the Senate of Feb. 27, 1889, printed in Senate Executive Document No. 11, Fifty-first Congress, first session.$4, 420, 891. 16 Plus interest certified by the treasurer of the State of California as actually paid by said State on the sums so advanced and expended from July 1, 1889, to Dec. 31, 1929, $571,104.17 interest on moneys borrowed through the sale of State bonds issued under authority of the act of the Legislature of the State of California of Apr. 27, 1863; and $1,470,150 interest on moneys similarly borrowed to carry out the provisions of the act of the legislature of said State of Apr. 4, 1864.. Balance due the State of California. (S. Doc. No. 220, 71st Cong., 3d sess.) And 2, 041, 254 17 6, 462, 145. 35 Whereas no part of the sum so actually expended for the benefit of the United States and at its request has been reimbursed the State of California, although the costs, charges, and expenses, including interest (the Supreme Court of the United States in the New York case, 160 U. S. 598, having held interest paid by a State on moneys borrowed a proper cost or charge) incurred by other States in aid of the Government during the War between the States have been paid said States; and Whereas the validity, equity, and justness of these expenditures made by the State of California in aid of the Federal Government in times of great stress have often been admitted and never successfully disputed; and Whereas the Senate after thorough investigation has repeatedly passed bills providing for the reimbursement of the State of California, and the committees of the House of Representatives have likewise favorably reported bills for such reimbursement; and Whereas the Seventieth Congress, after many years of consideration, passed and the President approved an act providing for the reimbursement of the State of Nevada for costs, charges, and expenses incurred in aid of the Government during the War between the States identical in character and authorized under exactly similar circumstances as were the expenditures made by the State of California, thus recognizing the validity and merit of such expenditures; and Whereas it is deemed appropriate to quote, from among the many statesmen in Congress who have considered and assisted in establishing the justice of the reimbursement of California, three United States Senators who, on account of their prominence, experience, and rank, are most competent to speak again in behalf of our State, namely: Senator Hawley, of Connecticut (chairman of the Committee on Military Affairs): "There is no sort of question as to its justice.' Senator Eugene Hale, of Maine (chairman of the Committee on Appropriations): "The Senate is committed to these State claims by vote, by sentiment, and it is only a question of time when they will pass. Senator TELLER, of Colorado (chairman of the Committee on Claims): "If there are any claims that are just and proper which the United States ought to pay, this is one of them. It is as sacred an obligation, in my judgment, as the national bonds." And Whereas the State of California has been so long deprived of its rights respecting these expenditures upon part of which it is still paying interest, and as the State is now in such urgent need of the sum due from the United States, that it is believed if the attention of the Congress is again invited to this obligation, it will appreciate the justice of the State's request for reimbursement at this time: Now, therefore, be it Resolved by the Assembly of the State of California (the Senate concurring), That we respectfully request our Senators and Representatives in the Congress of the United States to use all honorable means to secure the enactment by that body of a law providing for the reimbursement of the State of California in accordance with the accounting rendered by the Comptroller General of the United States hereinabove referred to. Your committee deems that its report No. 1834, Seventy-first Congress, third session, contains a full and clear exposition of the legal and equitable considerations involved in the case of the reimbursement of the State of California for moneys actually expended by that State in aid of the Federal Government at its (the Federal Government's) urgent calls during the War between the States, based on the report of the Comptroller General of the United States dated August 14, 1930, made in pursuance of Senate Resolution No. 277 and printed in Senate Document No. 220, Seventy-first Congress, third session, and for that reason your committee adopts said report and makes same a part hereof. A perusal of this report will demonstrate the merit and justice of the reimbursement of California as provided for in the pending bill, especially in view of the fact that the State now is annually paying interest on $840,000 of the $2,800,000 of bonds issued in 1863 and 1864 to raise the money thus used in aiding the Government of the United States and which $840,000 bonds are still outstanding and unredeemed. (See affidavit of State treasurer, S. Rept. No. 1834, Seventy-first Congress, third session, p. 39.) Senate Report No. 1834, Seventy-first Congress, third session, is as follows: [Senate Report No. 1834, Seventy-first Congress, third session] The Committee on the Judiciary, to whom was referred the bill (S. 5080) for the relief of the State of California, after a hearing and careful consideration thereof, reports the same favorably to the Senate and recommends that the bill do pass. The bill reads as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he hereby is, authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, the net balance due the State of California of $6,462,145.33 as certified by the Comptroller General of the United States, August 14, 1930, and printed in Senate Document Numbered 220, Seventy-first Congress, third session, the same to be accepted in full settlement of all advances and expenditures and interest thereon made by said State. There is attached hereto the memorial passed by the Legislature of the State of California, January 22, 1931, urging Congress to reimburse the State (Appendix A). The accounting rendered by the Comptroller General under date of August 14, 1930, in pursuance of Senate Resolution 277, Seventyfirst Congress, printed as Senate Document No. 220, Seventy-first Congress, third session, upon which the reimbursement of California is based, is made a part of the report of your committee (Appendix B). In order fully to acquaint the Senate with the facts in the case of the State of California and the legal and equitable obligations and considerations involved, justifying reimbursement, the following complete statement is submitted: REPORT OF THE COMPTROLLER GENERAL Under a resolution of the Senate (S. Res. 277, 71st Cong.) the Comptroller General, under date of August 14, 1930, rendered the account between the State of California and the United States for moneys advanced and actually expended in aid of the Government during the war between the States. The report of the Comptroller General is as follows: The PRESIDENT OF THE SENATE. WASHINGTON, D. C., August 14, 1930. SIR: There has been received Senate Resolution 277, Seventy-first Congress, directing me * * to reopen and restate the account of the State of California for moneys advanced and expended in aid of the Government of the United States during the war between the States, and on such restatement (1) to accept as a basis of calculation the grand total sum actually expended by and not repaid the State of California on July 1, 1889, stated in the account set forth in the report of the Secretary of War made in pursuance of resolution of the Senate of February 27, 1889, printed in Senate Executive Document No. 11, Fifty-first Congress, first session, page 27; (2) to add to such sum the interest certified by the treasurer of the State of California as actually paid by said State on the sums so advanced and expended from July 1, 1889, to December 31, 1929; (3) to deduct from the total sum so stated the amounts repaid by the United States to the State of California since July 1, 1889, and certify to the Senate the balance found due the State of California." Complying therewith I have the honor to certify that-computed as directed in said resolution-the balance found due to the State of California for moneys advanced and expended in aid of the Government of the United States during the war between the States, would be $6,462,145.33, ascertained as follows: 1. Accepted as "besis of calculation the grand total sum actually expended by and not repaid the State of California on July ment No. 11, Fifty-first Congress, first session, page 27" $4, 420, 891. 16 2. Plus "interest certified by the treasurer of the State of Califor nia as actually paid by said State on the sums so advanced 8. Less amount "repaid by the United States to the State of Cali- Balance due the State of California computed as di- 2,041, 254. 17 6, 462 145. 33 Copies are attached, marked respectively "Exhibits A, B, and C," of the documents which pursuant to said Senate Resolution No. 277 form the basis for this computation, as follows: Exhibit A. Extract from Senate Document No. 11, Fifty-first Congress, first session, page 27, entitled "Recapitulation." (See "Senate Executive Documents, first session, Fifty-first Congress, Nos. 11 to 16 inclusive, vol. 2, 1889-90, Senate Library.") |