Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-08-29
GOVERNOR HILL
Continued from page ~

10 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 pays too
high interest, but the taxpayer will
readily see that this criticism will not
stand analy sis. The interest all goes
to State institutions. These institu-
tons use this interest money toward
their running expenses and if 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 Il ma
ture which make them real liabilities
The State would have them pay them if
they We're demanded by those having
legal right to make such demand.
but that demand will not be made. The
best interests of those concerned insure
the Dcrmancncy of existing conditions.
Therefore. we may deduct from the
book liabilities the sum of $500. S06. 80
which will bring the total down to So
14,302.11.
Next we will take up the item Of
Sl}1 ,4OG.O2. which appears as Il book liza
hility. This amount is for securities
deposited by the Union Mutual Life In
surance 60. and the Maine State Re
life Association. These securities are
deposited according to law for the pro-
lection of policy holders in those com
nanieS. They are nothing which the
state owes. for the securities them
selves are on deposit. Therefore, there
is an item of S137, 406. OF in the assets and
the two Offset.
Thus we have brought the book LA
biliies down to s2,976. $4,000.
Next in order come some current LA
biliticS which in now wise affect the
permanent financial standing of the
State. There is an item of $500 592 ~
for school fund and mill tax. an item Of
Sl10.1S5.S2 for railroad and telegraph
fax, and items for dog licenses, SOL
dier's pensions, interest on Madawa ska
territory school fund and warrants
drawn and not paid. These amount to
$l.025, 4S544. To them may be added
$3S.4l065 for county taxes collected by
the State and yet to be turned over to
the counties. This makes a total of
s1063. S96.09. For the school fund and
mill tax, the dog license money and all
the rest of the items included in this
group the State is simply the clearing
house. 1t takes in, counts up and gives
out again. These were the open ac-
counts of the ledger at the close of the
year.
"As an offset on the other side of the
book. the State had cash in the treas
ury to the amount Of $637.67S3S and had
a balance due on state taxes amounting
to $4,000, making a total of $1,497,-
G7S.3S--every cent of which was a good
as wheat.
Thus, on comparing these current
liabilities with these current assets we
find that the State was actually $780,
1879 ahead.
1T is therefore perfectly fair to dis
regard the items Of s1.063 5000 which
appear i'm the book of liabilities. De
Quoting this amount, we have left the
sum of S1,9130OO. which is just the
amount of the States bonded debt
Thus the States actual liabilities on
Jan. /, 1903. looking at them from a
business point of view were S1,913,000.
Since january list. we nave been using
portion Of that si33, Isl. g Current as
setsl in reducing the States bonded debt.
The graduated scale of payments for re
firing the bonded deb calls for Il pay
mont o; $7O,pJ in 1904. OF this amount
Sh.HU came due on the first day OF June. |
This amount was paid ana further bonds
were bought 10 the amount OF $4,000, 50
that the net iHdCDt, dneSs of ne SiatC
has been reduced to $lG'S,0-O-a reduction
for the current year OF $:oU.pb.
This sum represents the actual indcbt |
cdneSS Of Sta :. today. and | have rIcd
to make my analysis sufficiently clear I"
he followed by any business man who |
giGh tn NJ, u
stands; financially.
AS | said In tn" first place, the State |
OF Maine is in good financial condition
There is money enough III the treas |
ury 80 that between now and the first day |
Of January. 1908. We shall be abundantiy |
able To retire another quarter millOn OF |
the States bonded debt, if sufficient bonds |
are offered at Il reasonable h8dIc. lnIs |
would bring the total bonded debt down |
to a little over million four hundred |
thousand.
The necessities of the State are nov |
amply provided for a,I AZ the necessi- |
ties increase they will be supplied viii |
the necessary funds by the natural IN |
crease in the resources through establish |
ID channels. All this will be done and yet |
there will be cash balance of nearly hall |
"A million each year. Now unless the Statc |
is going on buying bonds with this surplus |
and the State win not find the bond |
holders anxious to sell-thcrc Is no reason |
for allowing II to accumulate.
Consequently unless bonds are to be |
bought, the tax rate should DC reduced 80 |
that this surplus may not accumulate.
There is not the slightest reason why tho |
State tax rate should not go to two mills.
Mess We t.uv bonds. the present rae of |
two ard thrce-quarters mills Is going to
nile up a surplus for which there Is no
necessity ] reiterate that this reduction
to two mills can be made without cars-
ing the slightest Inconvenience TO q SIN
gle interest Of the State.
1.-THE people have 1t always in theil
power to cut that two mills or two
and three-auarters mills to one mil.
or to nothing by simply wfhdraw W
ing State support from the schools,
the hospitals the agricultural interests
tho unfortunates and the veterans
Of the Civil war But my knowledge OF
+ he peopIe of Maine leads me to the un-
mistakable belief that they will never
consent to curtail wise ard liberal appro-
priaticns for all these interests.
''The State Is liberal but no extrnva
CANT In aiding these varied institutions.
IL disburses its assistance through exec
Itiye officers who are giving faithful ser
vice and in many instances. receiving leFs
paw than they would for mercantile wor':
recurring equal capabili'y. The state o.
Maine getss honest service and conducts
It's business at cheaper rate than coulG
he equalled by business concern doing
business of equal magnitude.
'.Once more say that Maine Is in COCO
financial condition"