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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 tho

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.

$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 December 31, 1929, $571, 104.17 interest on moneys borrowed through the sale of Stato bonds issued under authority of the act of the Legislature of the State of California of April 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 April 4, 1864..

2, 041, 254. 17 Balance due the State of California.....

6, 462, 145. 35 (8. Doc. No. 220, 71st Cong., 3d sess.) 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. 8. 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."

Senate 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 timo: 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 accordanco with the accounting rendered by the Comptroller General of the United States

hereinabove referred to, and that his excellency the Governor of the State of California be requested to forward to the President of the Senate, the Speaker of the House of Representatives, and to each of our Senators and Representatives in Congress a properly certified copy of this resolution.

EDGAR C. LEVEY,

Speaker of the Assembly. FRANK F. MERRIAM,

President of the Senate. Attest: (BEAL.)

FRANK C. JORDAN,

Secretary of State.

APPENDIX B

*

(Bonato Document No. 220, Seventy-first Congress, third session)
COMPTROLLER GENERAL OF THE UNITED STATES,

Washington, August 14, 1930. The PRESIDENT OF THE SENATE.

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 Senato Executive Document Numbered 11, Fiftyfirst 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 balanco 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 “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 Feb. 27, 1889, printed in Senate Executive Docu-

ment No. 11, Fifty-first Congress, first session, p. 27"-- $4, 420, 891. 16 2. Plus “interest certified by the treasurer of the State of Cali

fornia as actually paid by said State on the sums so ad-
vanced 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 an 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 Stato
of Apr. 4, 1864)-

2, 041, 254. 17 8. Less amount “repaid by the United States to the State of

California since July, 1, 1889", (no evidence of any such re-
payment found by this office in its records or those of the
Division of Bookkeeping and Warrants, Treasury Depart-
ment, or by the treasurer of the State of California as per
his report to Hon. Hirath W. Johnson in letter of latter to
Comptroller General of the United States of July 17, 1930).
Balance due the State of California, computed as directed

by Senate Resolution No. 277, Seventy-first Congress.. 6, 462, 145 83

Copies are attached, marked, respectively, “Exhibit A,” “Exhibit B,” and "Exhibit C,” of the doouments 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.").

Exhibit'B. Affidavit of treasurer of the State of California, Charles G. Johnson, dated June 11, 1930.

Exhibit C. Letter of Hon. Hiram W. Johnson to Comptroller General of the United States, July 17, 1934 Respectfully

J. R. McCARL Comptrollor General of the United States.

EXHIBIT A

Recapitulation Amount expended in recruiting California volunteers (Abstract F). $24, 260.00 Amount expended in payment of adjutant general, eto. (Abstract H).

38, 083. 17 Amount expended in organizing volunteers (Abstract M).

5, 639. 34 Amount expended in pay of volunteer officers (Abstract N).

23, 277. 34 Amount expended in extra pay to enlisted men of California volunteers (Abstract P)--

1, 459, 270. 21 Amount expended in bounty to enlisted men (Abstract Q).

900, 839. 50 Total expenses of volunteers, and not repaid the State by the United States...

2, 451, 369. 56 Amount expended in payment of interest on moneys horrowed to

carry out the provisions of the acts of Apr. 27, 1863, and Apr. 4, 1864..

1, 500, 545. 86 Aggregate expenses incurred on account of volunteers, principal and interest...

8, 951, 915. 42 Amount expended on account of militia...

468, 976. 54 Grand total of expenses on account of volunteers and militia...

4, 420, 891 96

EXHIBIT B

AFFIDAVIT STATE OF CALIFORNIA,

County of Sacramento, 88: Charles G. Johnson, being first duly sworn, on oath, deposes and says that he is the duly elected, qualified, and acting State treasurer of the State of California; that as such treasurer he is the custodian and has the possession and control of the official records of the treasurer's office of said State which relate to all moneys borrowed by the said State of California, including those records relating to interest paid by the said State of California on the principal sum or sums so borrowed, either by the sale or the exchange of State bonds of and issued by the State of California.

That the amount of money actually paid by the State of California between July 1, 1889, and December 31, 1929, as interest on money borrowed by said State by the sale of State bonds issued under authority of an act of the legislature thereof, approved April 27, 1863, an act entitled, "An act for the relief of enlisted men of the California volunteers in the service of the United States," and which bonds to the amount of $239,500 were, on January 2, 1873, converted into or exchanged with other State bonds issued by the Stató of California under the authority of an act of the legislature thereof, approved April 2, 1870, an act entitled, "An act to provide for the payment of the funded indebtedness of the State of California, and to contraot å funded debt for that purpose," and which

bonds 80 converted or exchanged, with the exception of bonds to the amount of $4,500, of which $4,000 were redeemed September 15, 1881, and $500 was redeemed April 30, 1891, were not redeemed or paid by said State prior to December 31, 1929, but are still outstanding at 6 per cent per annum, aggregated $571,104.17.

That the amount of money actually paid by the State of California between July 1, 1889, and December 31, 1929, as interest on money borrowed by said State by the sale of State bonds issued under authority of an act of the legislature thereof, approved April 4, 1864, an act entitled "An act granting bounties to the volunteers of this state enlisted in the service of the United States, for issuing bonds to provide for the payment of the same, and to levy a tax to pay such bonds,” and which bonds to the amount of $605,000 were on January 2, 1873, converted into or exchanged with other State bonds issued by the State of California under the authority of an act of the legislature thereof, approved April 2, 1870, an act entitled, “An act to provide for the payment of the funded indebtedness of the State of California, and to contract a funded debt for that purpose,' and which bonds so converted or exchanged were not redeemed or paid by said State prior to December 31, 1929, but are still outstanding, at 6 per cent per annum, aggregated $1,470,150. Dated this 11th day of June, 1930.

CHAS. G. JOHNSON,

State Treasurer. Subscribed and sworn to before me this 11th day of June, 1930. (SEAL)

CHAS. J. HAGERTY, Deputy Secretary of State of the State of California.

EXHIBIT O

UNITED STATES SENATE, July 17, 1950. Hon. J. R. McCARLY Comptroller General of the United States,

Washington, D. C. DEAR SIR: The treasurer of the State of California. Charles G. Johnson, has reported:

"We can not find any record of any payments made by the United States to the State of California on account of the Civil War claims between the dates of July 1, 1889, and December 31, 1929."

In view of this statement, which, of course, you will want to verify, and as you now have the affidavit of the treasurer showing the amount of interest paid by California on moneys borrowed in aid of the Federal Government, I sincerely trust you may find it convenient to submit your statement of account, as suggested by the resolution, as soon as possible. Sincerely yours,

HIBAM W. JOHNSON.

APPENDIX C

Extracts from Hearings held by tho Judiciary Committee of the House of Representatives Feb. 22, 1933

on 8. 1317, 72d Cong.)

STATEMENT OF Hon. CLARENCE F. LEA, A REPRESENTATIVE IN CONGRESS FROM

THE STATE OF CALIFORNIA Mr. LEA. Mr. Chairman and gentlemen of the committee, the reimbursement of California for moneys expended by the State of California for the maintenance of the national defense during the Civil War is of long standing. I think it must be conceded, however, if there is any objection to the age of the claim, that objection should not operate against the creditor.

Over 60 years ago California presented to the Government its request for payment, which has been renewed at intervals since that time.

Six times a bill providing for the payment to the State has passed the Senate and a number of times committees of the House have reported in its favor. But such a bill has not so far secured completed action in Congress.

Naturally, the first question that arises in connection with the case is as to the authority that California had to incur these expenses and charge them against the Federal Government. The surrounding circumstances of these expenditures are many and somewhat peculiar, but I shall not attempt to go into the details of those particular features which, perhaps, will be discussed by other colleagues who will follow me.

Senate Report No. 351 of this Congress is an exhaustive treatment of this case, and I shall refer to or produce excerpts of this report, in a number of instances in attempting to define briefly what this case is and the basis on which it rests.

In 1861 Secretary of State Seward wrote a letter to the Governor of California which might be quoted as a preliminary intervention of the Federal Government into this situation. In that letter the Secretary of State said_and I shall quote brief excerpts from the letter:

In previous wars loyal States have applied themselves by independent and separate activities to support and aid the Federal Government in its arduous responsibilities.

*

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.”

That letter was dated October 14, 1861.

The Governor, under date of November 12, 1861, which was within a month of the receipt of this letter, replied, stating that the defenses of California were absolutely inadequate to the protection of the coast and interior of the State and that the matter would be presented to the legislature.

The legislature assembled in January 1862, probably on the first Monday of triat month, following these communications; and on the 8th day of January the Governor presented to the Legislature of California a message in which he urged that they take action in reference to the defense of California, with the result that on the 24th of April 1862 a law was passed providing for the organization and support of the militia of the State of California.

During the succeeding years of the war, California enrolled 13,250 militia and raised 15,725 volunteers. The militia, however, I assume, were largely men who went from the militia to the volunteers. The militia was a sort of a local base of training and of course performed the ordinary functions of militia; but frequently, as I understand it, members passed on into the volunteers.

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