Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1889-02-19

gentlemen. this Discretionary power ahouid
/ be vested in the Treasurer, because II 10 not
20 vested, combination might be formed
which might prevent the State from obtaining
the highest price for ifa bonds Eos, cir,
the Committee have no pride Of opinion
about their plan. They have done the very
best they could. They have pre-
s~nted TO the Legislature . plan, after
full and minute consideration. and
| they are unanimously agreed that, taking all
things into consideration, the life Of the bond
the fact that posterity should bear Q portion
| Of this debt, the present favorable condition
Of the money market, the fact tnas this plan
received the warm and earnest approval Of
so successful. sound. able and upright bust
ness man - the late Governor Bodsell
that it vas the plan favored
and urged by the late Safe
! Treasurer, now the Chief Executive Of the
State. from the fact that it vas the plan IA
vored and urged BY the present State Treas-
orer, that II will meet with the approval of
the Legislature. But. gentlemen, il it does
not, If there 10 some better plan. hope and
trust. and 1 know but express the wishes Of
the Committee, that some plan may be
agreed upon. and that right speedily. 1t 10 .
sell-kno~n fact in financial circles that the
money market, since the first of December.
has been in a favorable condition for the sale
OF public bonds. Ii is in the best CONDITION
for the sale Of public bonds that has ever
been In the history Of this country, and il
does seem IS if the State of Maine ought TO
take advantage of the present situation.
Why sir, only a few weeks ago the State
Treasurer of Massachusetts, acting under
discretionary authority conferred upon him
By the Legislature of Massachusetts, which
authorized him 10 negotiate . loan, to adver-
tlse il or not as in his discretion he thought
best effected. I say. a sale Of Massachusetts,
bonds unparalleled for price in the history OF
the world, commanding higher price for
the oonIs of the State of Massachusetts than
the government Of the United States has ever
been able to command. He awarded q bid
for loan OF $500 600. after having sdver-
tised il, To the Oh OF bidder, which COM
manded high premium. Believing that he
could do better by private sale than by pub
lie adv. rise me ut. he sold loan Of tsl5, 900
to bankers in New York at such high rate,
bond bearing 8 per cent. interest. but At
such a high rate that to the purchaser the
bond wall only pay an interest Of 2 $500
per cent. Now, since then there has been &
slight change in the money market, and one
net so favorable for the sale of our Maine
bonds. Our Maine bonds and in fact all
bonds bearing the low rates of interest which
State bonds will now command, are neces
EARLY purchased by large trust estates and
by the large savings banks. AS per cent.
bond will not be sold 10 parties
in Maine, because our savings banks
have not yet got down to per
cent basis. None of them are paying
less THAI per cent. Our bonds now out
standing are held mostly by New York saw
logs banks Toda, they would command q
larger premium, one. it is believed, so large
that it would more than pay the first install
ment of principal and interest. By
the law of the State of New
have very limited field from which to
purchase bonds. but, sir, there is PROPOSE
ton now pending before the New York legis-
iature which tends TO st fen rates, because
it enlArges tie field for the New York saw
ings banks. 1t sstlll bill which permits the
savings banks OF New York to purchase the
bonds of the larger cities of the country
and these bonds bear larger rates of int rest,
:, ., and some of them 6 per cent. These
bonds have been bought by brokers and
bankers, who can afford to sell them At 4
rate to the savings banks that would net them
more than per cent, and il it becomes
law before our bonds are put
upon the market. our bonds must
be upon the market competing with these
bonds. Therefore, Mr. Speaker and gentle
men of the House, there is every reason, in
the opinion of ihe Committee, Why the Legis-
lature should act not only uuderstandingly
but promptly, and | trusr that this bill may
receive the favorable consideration of this
legislature; but if it should not trust then
some gentlemen will give to this question
some consideration and frame q bill which
] hall ~ thH e
the legislature but with the approval of the
people.
| Mr.. Chaplin of Bridgton said that he no.
ticed in the 3lst line rs read by the clerk it
was "shall advertise" In the printed docu-
ment it was may advertise" and he had no.
ticed that the gentleman fr m Augusta in his
ca mment had spoken of its being changed.
He wished to inquire which it was.
Mr.. Manley explained that House Docu-
ment 81 was the bill as originally reported
The bull before the House now in new
draft changes the last sentence of section l,
50 that 1t may read the treasurer, with the
approval of the Governor in writing shall
have the right t. negotiate the sale of bonds
aforesaid. or shall advertise, &C."
! This explanation was satisfactory to Mr..
Chaplin.
Bill an act to provide against the danger
OF the spread of small po1 from paper mills
| Bill an act to amend section l of chapter
/ 20 of the Revised Statutes relating to the
descent of real estate.
Bill an act to repeal chapter 1928 of the
Public Laws of 1887 relating to county roads
in unlncorporated townships.
Bill an act additional to section 81 of
chapter 40 of tn, Revised Statutes relating
to m irine Insurance.
. X, II n ant 70, a,l & Oh,
81 of the Revised Statutes relating to the
endorsement of writs and other processes.
| TAKEN FROM THE TABLE AND PASSED. TO
| BE ENGRossEp.
! On motion of Mr.. Peaks of Dover, House
document III. I'll an act to incorporate the
State of Maine Fire Insurance Company,
was taken from the table, corrected BY sign
| ing the name of "Louis C. Stearns" and
changing the name of George 0. Warren to
George NJ. Warren, and passed to be en-
crossed.
On motion of Mr.. Spotford of Bucksport
Bill an act to incorporate the Phillips &
8angely Railroad Company.
Ga Motion of Mr.. SpoffordSBill an act
to incorporate the Saco River Telegraph &
Telephone Company.
On motion OF Mr.. Spot ord, bill an act to
Incorporate the Hartand and Pittsfield rele-
graph aud Telephone Company.
On motion OF Mr.. Spoffori, bill an act to
authorize the Portland Railroad Company to
operate its RAILROAD by electricity.
On mo ion of Mr.. Spofford bill an act to
amend chapter ~ Of The Private and Special
LAYS of 1887, entitled an act to incorporate
the Wsterule and Fairfield Railroad Com
pany.
On motion of Mr.. Spoffori, bill an act to
incorporate the Thonaston LIMERICK Rail
road Company.
On motion Of Ms. Hovey of Pittsfeld, bill
an act TO authorize Phineas Richardson, Jr.
to dredge, bars and navigate Kennebago lake
in Franklin county by steam.
On motion of Mr.. Hinckley of Blue Hill,
bill an act in amendment of chapter III of
the acts of the year lss7 Incorporating the
Dirigo Mutual Accident Association.
PASSED TO BE ENAcTEp.
Bill an act to incorporate the Waterville
Loan. Trust and Safe Deposit Company.
Bill an act to incorporate the trustees of