Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-08-29
Ably Discusses Finances
Of the State
Which He Shows to Be in Good
Condition.
A Gratifying Showing for the Splendid
Results of Republican Rule, Giving
Facts and Figures Which the Demo-
Gratis Cannot JuggIe.

In an interview published in the Sat
urday evenings Lewiston Journal.
Governor Hill thus discussed Names
present splendid financial conditions:
The State of Maine is in good
financial condition." said Governor
Hill, today, and it seems to me that
the people are entitled to a fair state
ment of its resources and liabilities
The business man who investigates
mercantile concern endeavors to get
at exact conditions. He asks for no
comparisons. He wants no balance
sheet made up to show what might be-
lie is after the simple facts which will
tell him just where the concern stands
IF | know the people OF my native
State, the people whom I have been
serving since the inst day Of January.
1901. that is what they would like to
know, today.
ITO tell them that the liabilities of
the state are $3.S29,331. sc, and that this
is S4,90l 43S.15 less than the liabilities
were in 1882. conveys but little mean
ing to the average citizen. He will ask
what these liabilities are ana will
moreover wish to know what the State
has as an offset in the shape of re-
sources.
This would be business mans way
of looking ut it. | think ii is the way
the average citizen will look at il.
Some people have an idea that the
States business is in Il class by itself.
but every business man who has come
into the executive chair finds that it
differs in no wise from everyday BUSH
ness. The State may be lilened to a
large corporation in which the people
are the stockholders. They elect GER
tain directors who sit in the Legisla-
ture and they elect a general manager
who fills the executive chair. TO these
directors and the general manager they
giVo certain powers of appointment to
fill the minor executive positions ana
leave to them the problem of running
the State machinery in the most APP
proved and consistently economical
way. The stockholders never for a
moment relinquish their control of the
situation. The directors and the gem
eral manager are their servants and
can be superseded at any time the
stockholders think a change advisable |
Having relegated to these officers |
people 80 about their business. They |
expect from time to time a report as
TO now the machinery is running. They |
want that report in the briefest, clear
est form that it can be put. They are
entitled to such a report. 1t is such n
report that | am going to give in this
interview.
Il have said that the unexplained
statement of liabilities is misleading.
In the first place it gives the impress
sion that the State of Name, today.
owes 1892, 10S.50. but such is not the
case. The State. today owes $1,653. 900.
and not a penny more. The remaining
$2,269. 10S.50 figure as liabilities on the
treasurer's books but it is wholly a
matter of book keeping.
I'VE find in the first place, after the
funded debt, the Trust funds held by
the State uDOn which interest is paid
The average citizen will ask what these {
funds are for and it will perhaps best
tell the story to say that they are held
by the State precisely as a college holds
endowment funds. The State pays in ;
terest on them and turns the interest
into the stipulated channels. These
funds aggregate 1907, S06.39 and benefit {
many institutions. There is the item
of SAP, 1871 for permanent school fund
There is the item of land reserved for
public uses which the amounts to $245.-
525.47. The interest which the State
pays on these goes directly to the
schools. The Penobscot Indians have
Il fund Of s73,S2S.4S and the Passama-
quoddy Indians have n fund of s33.-
994.53. There is n FOxcroft Academy
fund. n Hebron Academy fund, a Houl-
ton Academy fund, a fund for a school {
district up in Madison, a Sanford lega- ,
cy to the State School for Boys, Mad ,
awaska Territory school fund and a
legacy to the Insane hospital.
ION these funds the States pays in
terest, to the schools, to the academies,
Continued on page 3D.