Middletown transcript., 1870-10-08
STATE FINANCES.

Owing to the fact that the laws of this
State do not require State and County
Treasurers to publish, at brief intervals,
exhibits showing the condition of their
trusts, the public are seldom in possession
of data with which to meet the false re-
presentations of malicious partisans who,
for the sake of gratifying contemplate
spleen, do not hesitate to malign the re-
putation of worthy men and faithful public
officers and bring discredit upon the in-
tegrity Of the State. We know that GER
tain parties have been busy lately in croat-
ing an impression that our State and coun-
ty finances have been mismauaged, and we
find this venom transferred to the columns
of the opposition newspapers, which make
themselves convenient vehicles for all
kinds of miserable calumny Ordinarily
We would let such Misrepresentation pass
as unworthy of notice, but as they have
been started afresh on the eve of an import
ant political campaign, we deem few
words in explanation of the finances of the
State necessary and appropriate.
1t should be understood that the actual
debt of this State is about $1,110,O 900.
This debt was incurred to raise funds to
relieve the people of this State from the
federal conscription-t assist citizens
drafted into the army to relieve themselves
by paying communication money or by pro-
curing substitutes We need not now
discuss the wisdom Of that measure. All
who were so unfortunate as to be drafted
duly realized its benefcence In addition
n tho tpsk Al
credit is pledged to the amount of $780,
0OO in aid of the Junction and Breakwa-
ter Railroad; but as the road is mortgaged
to the State for the payment of the prin-
cipal and interest of the bonds issued, and
the company's works, if put under the
hammer to-day, would doubtless sell for
more than enough to pay off the mort
gage, this should not be considered as
State debt. The railroad company pays
the interest on this debt 1t is in fact the
debt of the railroad company, for which
tho State is merely surety. The States
credit was extended to the Delaware Rail-
road in 1855 to the extent of Sl70, 900,
but that loan is never mentioned now in
connection with the State debt. The
railroad company promptly pays the in
terest and will be ready to pay the princi-
pal at maturity. There is then, really,
but 81, ,1I0, 900 of State debt. To meet
the interest on this debt and to gradually
sink the principal the Legislature in Au-
gust, 1864, laid tax upon the railroad
and steamboat companies in the State at
the rate Of ten cents for each passenger
carried. This tax the railroad companies,
represented by the Philadelphia, Whining
ton and Baltimore Railroad Company, paid
for some time, under protest, but finally,
under the influence of a hue and cry a
galnst taxing passengers passing through
the State, lowered their fares and announc-
ed their determination not to pay the
State tax. Proceedings are now pending
in our courts to compel the rebellious COM
prny to comply with the requirements of
the law. The refusal of this company to
pay the tax, which it took care to collect
with hundred per cent, additional out of
all passengers, imposed upon the Logisla-
ture which met in January, 1869, the
duty Of framing a tax bill to meet the i'm
mediate requirements Of tho treasury. The
measure adopted has, to gomo extent, an
swered the purpose for which it was in
tended, as it has been the means of secur-
ing funds sufficient to pay the interest on
the State debt.
1t has been reported, and we see it so
stated in the Smyrna Times of this week,
that the interest on the State debt has not
been paid. This is a mistake, or a mis-
statement. The interest has always been
promptly paid, and we may add without
oyerruning the States account in bank,
without borrowing from either banks or
individuals, or paying one cent of inter-
est. 1t is true that owing to the failure
of the Philadelphia, Wilmington and Bal
timore Railroad Company to pay its taxes
the funds in the treasury have been ex-
tremely low, and that at this time, because
1t is not the time Of year for making pay
ments, the States margin is small, yet we
can assure the public, on the best authori-
ty, that the State Treasurer has funds to
his credit sufficient to meet all drafts likely
to be made upon him, and a reserve of
$49, 600, in Railroad Bonds, which can
be turned into cash at any time. The
School fund is intact, and all dividends
have been promptly paid. The State in
due time will obtain judgement against
the Philadelphia, Wilmington and Balti-
more Railroad Company and will doubt
less recover not only the taxes collected
out of passengers and held by the company,
but all back taxes, amounting in the ag-
gregate to near a quarter of million of
dollars. To recover the sum of $40, 900
collected by this railroad company out of
peach shippers last year, being the State
tax of cent basket on peaches carried
over the road, action will be commenced
in the u S. Circuit Court, to be held in
Wilmington this month.
From what we have said the reader can
judge whether there has been any mis-
management of the State finances. We
think they have been managed with great
skill and judgement, and very successfully
when all the facts are taken into consider
alton.
In regard to the finances of Kent coun-