, 1874-01-14

property Of railroads aided cannot be estnated 1t th
time, for want Of the necessary data
| The aggregate amount needed to pay inter
est Registered bonds Of 1863 in 1874 il
! nearly sl,27o,oco, being somewhat more thar
| one year'1 interest on the entire debt Thh
excess Is due to the fact that the evy must Be las
enough to provide for interest due in 1873 certain
bonds regtstercd too late for the levy OF 1872
TIE IEv1Es or 1872 AND 49, 73.
It will be eeep that the items Of State reyenuetaz
on fncreascd valuation and On property OF railroads
] aid ed, will amount to much more under the levy oi
1873 than than that under 1874 The increase est
mated benefits Of 1873 over the total Of benefits Of 1917
is due to the fact that tie assessment Of 1s7:
is largely increased by the operations Of the
Law, approved March so 1873: and although the Aud
these benefits will be, he Is not ALLOW ed to take them
into account in making tue levy Of special bond taxes.
main III the State Treasury 10 The credit Of the eeye1n1
local bond furds; and II not used, to retire
the principal Of registered bonds, will be considered in
making the next levy.
THE Use OF 6URPLusEs.
While the duty Of the Auditor, under the law as
amended is plai in Ill matters pertaining to the lesy
and collection Of special bond tAxes there has been
some question about tho duty ct Treasurer and
Auditor with reference to the surplus remaining in
the time OF making the next levy. The rule Of action
has been to be governed by the expressed wishes Of
the locality issuing the bonds Whether The The SURPLUS
levy for tho following year; and when tho
local authorities Lave expressed preference ior up
s hss eaured he o the
county, township city OF town to procure the bonds
and present them for payment, and has III 90 case
aforesaid For the propficy Of this Interpretation Of
80 much Of the Inv in regard to his ducs the Treas
has hsa til: ssa # the dSu5s ass o Of
the wisest business policy dictates that the
counties, etc., should Use at least some
portion OF their benefits IN payingod the principal Of
their registered debt and uf without considerable
increase Of their burden Of taxation, make some
progress IN the direction Of its entire exungulshmeut.
by the authorities Of the municipality that Issued
thc and By them presented to the State Treasury for
tion Of Inv had by the Treasurer the only way In
which the law can be executed without deyolviug
upon the State officers . duty, II they should
bonds, which 1t would be impossible for them 10
cute without exposing themselves 10 uncharable cri
clam, matter how wisely and carefully they nsy
perform IT, would respectfully suggest that you
recommend, that If the Legislature has any doubt
concerning the correctness Of the present nerpIeta
question the right Of the county, city, township
town 10 have entire control Of a matters pertaining
to the purchase and redemption Of their bonds.
N1uscTIoSs UPON THE AuD1ToE.
was restrained by injunction from making levy
OF tax to pay interest bonds Issued by Tic iacor
pog1tsd ted 4on e Brighten IN the cosnt Of 5sFsey
also enjo1ned from making levy to Pay interest on
part Of the bonds issued by the Townships Of Brr-
Ac'u AAu G.IlNGu0t Itofia toLut5. III soAt JULIET
cases where lave not been enjoined from making
levy, tho County Clerk has been eujo1ned from |
extending. the tax or the County Collector
from collecting il, pending tic decision Of
questions affecting tho vandity Of the bonds and |
their right to registration. This policy OF employing
the machinery Ut the State Government to levy and
collect ta1es to pay the principal aud interest Of
THE RAILROAD DEBT MUNICIPALITIES
has assumed proportions which were not thought Of
by those who devised 1t. The very fact that sys
tenn Of registration gives ia this Class Of municipal in
debtedness superior credit, which found for 1t
ready sale, and made 1t eagerly sought for by in
yestors doubt stimulated its issue, and induced
some localities to incur debts beyond the dictates
Df prudent economy. Fortunately, our amended |
Constitution in time to prevent wha. might. have
become great calamity and all approving
Tue Weldon Of that provision which forhtdR municipal
donations to private corporations.
The provision Of the law Of April IL, 1867, which
gives to the localities eauing these registered bonds
tion 1868, applies for the FIRST ten years: and In
hat time, il tho policy which have recommended Of
pp!ying these benefits to the payment Of principal
nould be generally followed. the debts will be very
much reduced.
THE STATES CREDIT.
The course et the State III reference to this nnunic
pal debt LaA done much to edd to her credit and
leyeop her and the fact that Con-
utution, which vas framed and adopted in the year
wy modified limited its application to Indebtedness
1Icaay authorized by Law, and that the two Legsla
urea, which have convened Eince 1870, have only con-
idered the luw with view to perfect ia machinery
nd assist in It's execution, to show that, far
its operations it has had the approval Of the people
1 the Stats lSgned). G. E. LIPp1ScoTT,
Auditor Public Accounts.