Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1910-06-21
REPLY OF EX-MAYOR
Says He Never Disputed
Finance Commissions State
WHEN A DEBT is NOT A DEBT
Where Ii Is Offset By Asset-BorrOw.
ing Money o. ReaIizabIe Asset


In reply to Mr.. Gott that Ex-
Mayor Claude has failed absolutely
TO show that the statement issued by
the Finance Commission to be in
correct" | would say that | have
never disputed their statement and to
the contrary consider the statement
frank and correct account, as far as
s.can judge. and compliment the
Commission on the clearness with
which the facts are presented. | con-
gratulate the city upon its increased
revenue. All have said is that it
is the best argument | have seen
against another bond issue.
have never disputed the fact that
the city could carry another bond is
sue, without increasing the tax rate;
but, is it good policy to do so? When
you show so clearly that you can
carry out these improvements without
burdening the city with more debt?
AS to til charges of inaccu icy by
Mr. Riley will say that can never
accept his view that $S,O0O a there
about of back taxes at the eAl of the
present year, or the coming year will
not be available for any purp ,se dur
ing the year of the levy. The amount
of uncollected taxes is a variable,
during each month in the year. At
the beginning of each fiscal year
budget is made up for the expnses of
that year and tentative plan of i'm
provements for which the money
levied is to be used. The taxes un-
collected bear interest at per cent,
and if money is not at hand to pay
the running expenses and for the i'm
provements, within the amount of the
levy is it perfectly proper and bust
nesslike to borrow. Borrowing money
on a realizable asset, where the debt is
offset is not considered a debt, in
the parlance of city finances, but
where the city creates a debt not
covered by taxes or other resources
tiou process of collection then a float
ing debt is created. No city can run
without temporary loans and they
are no termed debts or considered as
such. Now with regard to the note
of $7,761.41 negotiated to pay for
the engine house. Quoting from
Mr.. Riley under the caption charges
of inaccuracy by former Mayor
Claude
Mr.. Riley says this note is carried by
the city, so that the whole ind ebt
edness still exists. 1t is fact
stated by the finance commission. and
which Treasurer Gott will verify to
any one.
Just look over and read in the
same paper Treasurer Colts verih-
cation of Mr.. Riey's statement:
Mr.. Gott So that the amount now
due in the banks on said note is So,
761.41, which, for all intents and
purposes actually represents the orig
inal Rescue Hose Company's debt eX-
cept the amount of 1000, which has
actually been paid thereon.
Oh. this engine house debt; what
bugaboo.
In the Treasurer statement it said
to be $7,761.41; in the Mayors
statement 50, 761.41, and in the bond
issue ordinance $7,957.41, and in an
other statement $5,761.41. This is
what caused me to say the statements
appeared to he juggled.
The note of $7,761.4l contract price
of the Rescue Hose House, was a
demand note made by our Board in
the Farmers National Bank. The
| balance due on this note in said bank
is today $2,761.41.
The $4,000 note for current expen-
ses of this Board was placed in the
Annapolis Banking and Trust Com
pany, yet it is attributed to the same
debt. Like the comets tail some of it
dropped off and it was seen in the
Eas when, according to all calculations
it should have been in the West
Notice Mr. Gott uses the words banks
in speaking of the Engine House debt.
Now as Treasurer Gott has answer
ed Mr.. Riley, let's reply to Mr.. Gott's
charges against me of inaccuracies.
Mr.. Gott knows the first car over
the W., B. and A. did not run until
April, 1908, that the discount on tax
bills was not done away with until
1908. that Murray Hill was not re-
assessed until 1908, yet he states that
we received this revenue from July,
1907. | believe the people to be able
to judge which was right, Mr. Gott
or myself.
l recommended the bond issue of
1908 because / thought it necessary.
The defeat of it convinced me of
my error, because we got along so
we'll without it.
During May and June the city
usually receives about $40, 900 from
other sources than the levy. The
Treasurer in his letter yesterday did
not state the cash now in the treasury
and the amount in other fiscal Office rs
hands not yet turned in.
GORDON II. CLAUDE.