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 Appropria tions): "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 bereinabove 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. Doc. 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 16* * * 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 8. Less amount "repaid by the United States to the State of Cali- Balance due the State of California computed as di- $4, 420, 891. 16 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, Serate 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, 1930. Respectfully, J. R. MCCARL, Comptroller General of the United States. The total sum advanced by the State of California in aid of the Amount expended in organizing volunteers (Abstract M)- Amount expended in bounty to enlisted men (Abstract Q) Total expenses of volunteers, and not repaid the State by Amount expended in payment of interest on moneys borrowed to Aggregate expenses incurred on account of volunteers, Amount expended on account of militia.. Grand total of expenses on account of volunteers and $24, 260. 00 38, 083. 17 5, 639. 34 23, 277. 34 1, 459, 270. 21 900, 839. 50 2, 451, 369. 56 1, 500, 545. 86 3, 951, 915. 42 468, 976. 54 4, 420, 891. 96 FOUNDATION FOR REIMBURSEMENT The legal and equitable considerations upon which reimbursement of the State of California is based have their foundation in the conditions existing and the events which took place in the Pacific coast region during the period comprising the years from 1861 to 1865. GEOGRAPHICAL AND HISTORICAL California was ceded to the United States by Mexico by treaty in the year 1848. The discovery of gold in California on January 21, 1848, at Sutter's mill, on the American River, by James W. Marshall, resulted in an enormous immigration to California from other States during the years immediately succeeding the year 1848. California was admitted as a State to the Union by the act of Congress approved September 7, 1850. The population of California came from all over the United States and from many other countries, attracted by the lure of gold, the spirit of adventure, and the hope of acquiring a fortune. The population so drawn from other States in the early years of California reflected the sentiments, opinions, habits, and the characteristics of practically all sections of the United States. A large percentage of this population was from the Southern States, and this portion of the population naturally reflected the opinions and ideas then prevalent in those States respecting the questions which at that time were the subjects of much acrimonious debate in and out of the Halls of the Congress of the United States. California was isolated from the seat of government of the United States by a distance of approximately 3,000 miles. There were no railroads in operation west of the Missouri River, and the territory intervening between the Missouri River and the State of California was occupied by powerful Indian tribes, restive and resentful of the western migration of the whites. The western route followed the Overland Trail made by the emigrant trains from St. Joseph, Mo., to San Francisco, a distance of over 1,600 miles. In crossing the Sierra Nevada Mountains into California snows often blocked the trail for nearly six months of every year. Gen. George Wright, who was the ranking officer on the Pacific coast during the period from October 18, 1861, until May, 1864, in a letter written by him to the War Department on October 27, 1862, refers to California as one of the "remote possessions of the United States." Major General McDowell, who succeeded General Wright, wrote to the Secretary of War on February 11, 1865, as follows: This command is so far removed from the seat of government as to resemble in many respects, so far as my position is concerned, a province or colony; the more so since our overland communications are temporarily obstructed. DISAFFECTED citizenSHIP At the outbreak of the Civil War it appeared as if a successful effort would be made to divide California into two States, one of which the southern-would be devoted to the interests of the Confederacy. There was, therefore, great anxiety on the part of the Government to hold California in the Union. On April 25, 1861, Brig. Gen. E. V. Sumner relieved Gen. A. S. Johnston and became the ranking Army officer on the Pacific coast. He reported to The Adjutant General at Washington on the 28th, as follows: There is a strong Union feeling with the majority of the people of this State, but the secessionists are much the most active and zealous party, which gives them more influence than they ought to have from their numbers. * * The troops now here will hold their positions and all the Government property, but if there should be a general uprising of the people, they could not, of course, put it down. I think the course of events at the East will control events here. So long as the General Government is sustained and holds the capital the secessionists can not carry this State out of the Union. (Sen. Ex. Doc. 70, 51st Cong., 1st sess.) On April 30, 1861, General Sumner wrote to The Adjutant General that he had found it necessary to withdraw the troops from Fort Mojave and place them at Los Angeles. He further stated that there was more danger of disaffection at Los Angeles than at any other place in the State; that there were a number of influential men there who were decided secessionists and he believed that if the Government had any difficulty that it would begin there. On June 10, 1861, General Sumner reported to The Adjutant General at Washington: * ** I believe there is a large majority of Union men in the State, but they are supine from confidence, while there is an active and zealous party of secessionists. * * * I have checked them in the southern part of the State by placing a strong command at Los Angeles, and they are now trying to organize in Nevada Territory, but I am moving reinforcements rapidly to Fort Churchill, which will put down this movement. |