Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-09-10

Governor Hill tnuS discussed Mdllle
present splendid financial condition:
1.-THE State Of Maine is in good
financial condition." said Governor
Hill, today land it seems to me that
the people are entitled to a fair state
ment of it's 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.
He 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 | have been
serving since the first day of January,
1901. that is what they would like to
know. today.
ITO tell them that the liabilities OF
the State are s3,S29, 331,3s, and that this
is $4,901, 438.15 less than the liabilities
were in 1882, conveys but little mean
ing to g average citizen. He will ask
what these liabilities are and 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 at it. l think it is the way
the average citizen will look at it.
Some people have an idea that the
States business is in a class by itself,
but every business man who has come
into the executive chair finds that it
differs in no wise from everyday busi-
ness. The State may be likened to a
large corporation in which the people
tho Ctnrk hnliarS They a1pct
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
give certain powers of appointment to
fill the minor executive positions and
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 gen.
eral manager are their servants and
can be superseded at any time the
stockholders think a change advisable.
Having relegated to these officers
the control of the State machinery the
people go about their business. They
expect from time to time report as
to how the machinery is running. They
want that report in the briefeSt clear
est form that 1t can be put. They are
entitled to such a report. 1t is such a
report that l 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 $3.922. 10S.50, but such is not the
case. The State. today, owes 81, 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.
eve find in the first place. after the
funded debt, the Trust funds held by
the State upon 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 ,SO639 and benefit
many institutions. There is the item
of SAP, 1871 for permanent Hool fund.
There is the item of land reserved for
public uses which the amour to s245,-
b25.4. The interest which the State
pays on these goes directly to the
schools. The Penobscot Indians have
a fund OF $73,S28.4S and the Passama-
Quoddy Indians have a fund Of $685.
994.53 There is a FOxcroft Academy
fund. a 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, a 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,
to the State School for Boys and all
the rest. The criticism might be made
that under the terms on which these
trusts were accepted the State paws too
high interest. but the TAXPAYER will
readily see that this criticism will not
stand analysis. The interest all goes
to State institutions. These institu-
lions use this interest money toward
their running expenses and II the State
cut down the interest it would have to
make the difference good by increased
appropriations to the different institu-
tions affected.
But none of these funds are Of a ma
ture which make them real liabilities.
The State would have them pay them il
they were demanded by those having
a legal right to make such demand.
but that demand will not be made. The
best interests of those concerned insure
the permanency Of existing conditions.
Therefore. We may deduct from the
book liabilities the sum Of $50. SO6. 80.
which will bring the total down to So
11430s.11.
Next we will take up the item of
$137 .406.02, which appears as a book liza
bility. This amount Is for securities
deposited by the Union Mutual Life In
surance Co. and the Maine State Re-
life Association. These securities are
deposited according to law for the pro-
lection Of policy holders in those COM
panies. They are nothing which the
state owes. for the securities them
selves are on deposit. Therefore, there
is an item Of $1s7. o. in the assets and
the two offset
Thus we have brought the book LA
bilftiee down to $2976 $1,000,
next In order come some current liza