Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-25
rrnoM A srArr CORRESPONDENT J

HARRISBURG, March 24-Besides the
appropriation bills, the most important
work of the present week in the Legislature
will be the passage by both Houses of the
Grand Army's soldiers orphans bill. 1t
has passed second reading in the Senate
and will pass second reading iE the House
tomorrow night and third reading on Tues
day. From present appearances, that fea-
ture of the bill which creates a commission
to take charge of the orphans now in the
schools will remain unchanged.
At least two members of the legislative
joint committee on the subject objected to
giving the G. A. r. control of the commits
sion by giving it five members in addition
to the Department Commander, but the ma
iority are very we'll satisfied to have it that
way,
The general revenue bill will probably
come up in the Senate during the week, but
it is not expected it will be materially
amended. One amendment, however, has
already been prepared, with the approval of
the Auditor General, to provide for a pro
rata division of the tax on gross receipts, In
the case of natural gas companies that di-
vide business between them by the one sup
plying gas to the other.
wHERRY ON HIS METTLE.
What should be the sensation of to-
morrow night is Mr.. Wherry's speech on
the sinking fund operations. The members
await it with some degree of interest
Whether Hon. Henry Hall will care TO take
up the fight for the Sinking Fund Commits
sioners, as he did for the general revenue
bill from practically the same quarter, is a
question, as his health lately has been none
too good. His pluck, however, is much
more robust than his health.
Something ought to develop Monday
night or Tuesday concerning the charges
made against the management of the West
ern Penitentiary. The management has
plenty of friends here to see that it is fairly
treated. They are not confined to the Allie
gheny members. Senator Reyburn, Chair
man of the Senate Appropriations Commit
tes, says the latest allegations are all news
to him.
Mr.. Wherry has reprimed his gun and is
ready to fire off the sinking fund load to-
morrow night when he calls up his resolu-
tion. In answer to Governor Beavers state
ment published in Saturdays DISPATCH,
Mr.. Wherry has this to say:
IN ANSWER TO BEAVER.
The Governor says that the sinking fund
commission bought Government As when they
were selling for less than State5's If he means
that they were selling for less in actual pre-
mium, the statement is utterly incorrect. The
United States As were bought for 10 and up,
and the State SIS have never been as high as
that. If he means that the As were selling at
a rate which realized more per cent per annum
upon the investment than the SIS, he might
have added that the As during nearly all the
transactions of the two fiscal years lSS6-7-S and
9weTe selling at a rate which would have real
ICED much higher per centage per annum
than the As at the market rate, or rather at
that which the State bought them.
This is just what was the trouble. The
States 5s were bought at much higher pre-
MUM upon the basis of interest realized, than
Government As, and this was, in part, the way
money was lost. The Governors statement
that the 81. 600 of bonds were sold in 1889
because the sale of $4,000 of them, for IN
stance, bearing but per cent interest could
purchase $4,000 of the State bonds, upon
which per cent was being paid, is an Ingeni-
Gus statement.
As a matter of fact not one dollar of the
money realized from the sale ever went to buy
a State bond, but was put into the already
large cash surplus, where it remains to the
present day.
A POOR ARGUMENT.
As to his statement that the United States
buys its own bonds at large premium, this is on.
lypartially true, but ifit were wholly true itis
poor argument, for the United States has no
option. 1t can't do anything else with its surplus
whereas the State, to avoid the danger of
putting the Sinking Fund Commission at the
mercy Of the holders of State bonds, passed
law under the direct provisions of the State
Constitution giving them specifically the option
of buying United States bonds, and made it
their duty to do 50, duty which they have
almost criminally disregarded.
If it is true that the Commission is now buy
ing State bonds at l07 it is doing right, for at
that rate the investment pays them over per
cent 1t is curious that not until the racket
about the mismanagement of the funds was
raised, have the Commissioners been doing
such good business for the State