Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1907-01-18
The Financial Condition Of Maryland


The report of DR.. Gordon T. Atkinson
Comptroller Of the Treasury Of the State Of
Maryland, for the fiscal year ending Sep
TENDER 80, 1905, was submitted to the Gov
ernor Monday. Never since the department
was established has more satisfactory state
ment of the financial affairs of the State been
made. For the first time in nearly three
quarters of century, the State is practical
ly out Of debt, the sinking fund securities
and other available assets being far more
than sufficient to pay off the entire amount.
The amount of State bonds remaining un-
paid is, or was on the Let Of last October
$6,167 ,926.13. OF these, $3,167 ,S64.7S is
owned by the State and In the sinking funds,
leaving outstanding SOCIOLOGICAL. Against
these there are Baltimore city and other mu-
nicipal bonds and cash In the sinking funds
amounting to $5S5,OO0, leaving balance of
2,425, e67 Al, which is Offset by the North
ern Central annuity Of 100000, and 1t is be-
lieved that this could readily be sold for
more than enough to extinguish the whole
amount. But as the annual interest upon
outstanding bonds is only about $941OOo q
year, which is amply provided by the an
nuity and the interest on the municipal
bonds In the sinking fund, nothing espe'
cially would be gained by the sale OF the
annuity and other securities for the imme-
diate payment of the outstanding debt.
The ordinary receipts Of the Treasury in
| 1906 were "a, 104 ,415. 05-the largest, 1t is
believed, in the history Of the State. This
increase was partly due to the high rate of
taxation last year-23t cents-and to the
increase of the assessable basis for 1905 to
$73S, 782 900, the hgh-water mark. The
Legislature In 1905 increased the rate
of taxation upon the gross receipts of cor
porations, and this act added 100000 to
the States revenues from this source. From
other sources there were increased receipts,
demonstrating, to the satisfaction of the
Comptroller, not only that the State has in
creased in wealth, but shat wealth, under
wise and just revenue measures, has con-
tributed its share toward the prosperity of
| the Commonwealth"
The most important financial transaction
during the year was the sale of the States
stock in the Washington Branch of the Bal
timore and Ohio Railroad. The State in
vested in this enterprise $500,0 900, the amount
Of ita holdings being subsequently increased
by stock dividend Of $50, 900, and after re-
ceiving 10 per cent interest on its invest
ment for many years, and for long time
great annual sum from the capitation tax, it
finally sold its stock for $4,000 900, or five
| times the original Investment. The highest
dividend ever received was 10 per cent per
annum. The sale for $4,000 effected an
annual saving Of sc, 760, that being the inter-
est on the bonds received for the stock and
cancelled. That is to say, the amount OF the
| annual saving by the sale equals an annual
dividend of nearly IA per cent on the stock.
When 1t is considered that in 10 years the
stock had paid only one dividend and that
per cent, that the State was minority
stakeholder and that the value of the stock
was threatened by the probable diversion Of
traffic from the branch because ef the Wash
lngton terminal, there would seem to be
room for only one opinion as to the wisdom
of the sale. The sale enabled the Legisla-
ture to reduce the rate of State taxes from
231 cents to 16 cents, the lowest In many
years, all of which Is devoted TO public edu.
cation. The disbursements from the State
Treasury to the City Of Baltimore and the
counties for the public schools was 81 ,105,-
| 40669.
The penitentiarY contin ues TO make re.
markable exhibit. Last year the labor of
the inmates not only supported the instltu-
ton but paid net revenue of $50 ,492 on
into the State Treasury. And while accom-
plishing all this the prisoners are credited
with all earnings made while working extra
bours, so that when they are discharged
they usually have a considerable sum to
carry with them. The Maryland Peniten.
tiary is model institution.
Two features OF the States affairs are not
80 pleasing. The receipts Of the oyster fund
are not sufficient to support the oyster navy,
and the taxpayers all over the State are
compelled to pay part Of the cost of pro-
tecting the beds from the depredat;ons OF
oystermen and to keep dredgers off the tom
gers bars. The amount appropriated out
OF the general treasury for this purpose last
winter was $4,000, which the Comptroller
believes will be insufficient
The Legislature at the last session was
extravagant beyond all precedent. Not only
was there general reckessness in making
appropriations, but the legislative expenses,
including the Baltimore and Ohio investi-
CATION, went up to nearly 1920 900. In these
expenditures there should be a drastic re.
form.
Upon the whole, there never was more
satisfactory report upon the finances of
Maryland submitted by a Comptroller, and
for this Comptroller Atkinson is TO be con-
graduated. He gracefully shares the credit
which comes for the safe and judicious
management Of affairs with his co-workers.
"Whatever good you may find in this ex-
hibit," he says, in concluding the report,
"must be equally shared with my CO aborer,
Hon. Murray Vandiver, State Treasurer, to-
gether with my chief clerk, Mr.. Harry j.
Hopkins, and the other employees Of my
Office" Acknowledgment is also made OF
the Governors "wise and kindly Interest"
In the operations of the Treasury Depart
ment.-BaLt0. Sun.
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