Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1907-10-04

Close OF t0ht ADMINISTRATOR, Wnen bue eso-
publicana went In, the debt, less the sink
ing funds, was $5,i42.OoO, showing de-
crease in four years of $3.50, 59S.09, or at
the rate Of $465, 100 D year.
When the Republican administration be-
gan, three months after the close of the
fiscal year, the debt. less the sinking fund,
was about $751; $4,000. On January /, 1900,
when the Democrats returned, the debt, less
the sinking fund, was $5,015, 526, decrease
Of $127,0OO But new bonds had been is
sued for the penitentiary, the Fifth Regi-
ment Armory, etc., amounting to $500, 600.
Add this sum to the amount OF the decrease
in the total debt and we find that in four
years the Republican administration paid
81 ,0S7, 900, with greatly increased revenues
arising from the reassessment of 1896. That
is debt payment Of $250O0O year, or not
much more than half 90 much as was paid
by the preceding four Democratic years.
In the six years from the close Of the
Lowndes administr alton TO the end Of 1905,
which was before the sale OF the Washing
ton Branch stock, the State debt, less the
sinking fund, had gone mp from $5,015.OO0
to $5,225, 339.13, an increase Of $210, 600.
But In those six years bonds were issued for
various State buildings to the amount of
$4,2S5, 900. So, even by leaving out the
amount received for the sale Of the Chesa-,
peake and Ohio canal stock, there was an.
actual debt payment Of $843,O0o year. In
the following year, In addition to the 3d.
100000 received for the Washington Branch
stock, the sum of $448, 790.44 was carried to-
| the sinking fund and the debt nearly cam
celed or put into, the sinking funds, and for
the first time In over o half century no tax
was levied for the public debt. In all these
figures we find nothing to sustain the asser-
ton that the Republicans put the State
finances on businesslike basis.
Recurring to Mr.. Gathers assertion that
the Republicans "inaugursted and sanction
cd by the legislative act Of 1906" the policy
of selling the assets of the State for the pay
ment Of the debt, we find the following
facts: The Constitution Of 1857 empowered
the Board Of Public Works to sell or ex.
change for State bonds all the States inter-
est as stakeholder or creditor except the
Washington Branch stock. And 1t was
also provided that If the interest in the
three canals was sold the sale must be rati.
fed by the General Assembly at the sue
ceeding session before 1t could become effec
tive. In 1890 the Legislature Democrat
ic Legislature-passed an enabling act tc
amend this clause Of the Constitution. Il
was ratified in 1891 and gave the Board o.
Public Works power TO sell all the States
interests in works OF internal improvement
and banks, subject TO such regulations al
the Legislature might prescribe, receiving
10 payment State bonds. The Legislature
then, In 1892, enacted law (Chapter $40.
prescribing the conditions Of sale, but no
applying them to the Washington Branch
stock. In 1895 the Legislature-one hous'
Democratic and one house Republican
enacted Chapter 172, repeating the act o
1892 and re. enacting it so as to include thu
Washington Branch stock. This is the &C
|
Inauguration of the policy Of disposlng o.
the assets of the State. But when it cam
to the sale Of the Washington Branch stock
in 1895, it was believed that the act Of 1891
was detective and deemed necessary to pas
new law, Chapter 1856 Of the acts of tia
year, and under that act the Washington
Branch stock was sold.
This sale was the most brilliant financia
transaction Of the State Treasury in recen
years. The State invested half million
dollars In Washington Branch stock ant
J got out Of ii $5 for each dollar invested
The sale Of the States stock In the Balti
more and Potomac, road parallel to thu
! Washington Branch, by the Lowndes ad
, ministration was not so brilliant. The Statt
invested s175,O 900 in that road and got on
of 1t by the sale 10 cents for each dollar in
, vested. This stock had never paid any divi
, dends, and In 1899 the General Assembly
by joint resolution No. is, ordered thu
Comptroller Of the Treasury to discontinu,
the annual publication Of list Of nonpro
ductive stocks and about 400 WORTHLESS
claims against tax collectors, some Of then
J going back as far as 1910. But the Penn
sylvania company, looking forward to re
J organizing the Baltimore and Potomac an
} needing this stock, the offer Of 10 cents o.
: the dollar was made and accepted.
. Upon the whole, 1t may be said that sine
the appointment of Edwin Brown as Treas
urer, In 1890, the finances Of Maryland hav
been admirably managed--as well, perhaps
/ as those of any State in the Union; and W
find no single fact to sustain the claim mad
, by Mr. Gather In his speech. --Balto. San