Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-12-25
BANKRUPTCY
IS FEARED
\ =
DIRK Financial Prospects Ale
Seen BY Legislative Lead
er ID New York

HFtFaasH TN" 49,
pended For Non Revenue
Producing Construction
Albany, Dec. 24.-Harold j. Hin
man, minority leader in the assembly,
in q statement issued, blamed the de-
mocratic administration for sending
the state we'll along the road to bank
rnptcy. He charged that the party's
promise of retrenchment has ripened
into a twenty per cent increase in ex-
penditures above those approved by
Governor Hughes. He demanded a
drastic investigation into state finan-
ces, especially with regard to the
barge canal, the highways, and the
local indebtedness of counties. towns,
and villages.
What To Show For Expenditures.
with the close of the extra session
last week, in which the democratic
party made appropriations of $1,400, 900
for deficiencies accumulated during the
democratic administration, it is high
time that the public knew what has
been and is beng done with the mon.
eys of the state, and what it is going
to have to show for those moneys"
said Mr.. Human. He continued:
With the prospect of a new bond
issue of $4,000, 900 to complete the
barge canal, and the projects for adj
ditional appropriations for more can.
ais and the confessedly incomplete
system of highways, with the $780,
0O0. 900 already appropriated for it,
with the failure of the state to sell
its bonds last fall, the necessity that
arose of issuing sh0rt-term notes,
which fall due next February, and
the general business depression now
prevailing and the depreciation Of the
price of bonds of every description,
the question arises whether we are
approaching a condition which for a
time threatens the states credit and
which, If the states affairs continue
to be conducted as they have been
conducted during the last three years
by the democratic party, means state
80 - |fs-#|H
bankruptcy.
This was n of the reasons for the
introduction OF my resolution last
week calling upon State Engineer
Bensel to furnish to the next legisla-
ture a complete financial statement
relative to the canal expenditures,
awards of contracts, and the amount
necessary to complete the project.
3220,000,000 Of State Bonds Out.
The present authorized bonded in
d%ebtednes of the state is 100000, 900.
The total assessed valuation Of the
state is 81, OO0,O00,00O. The present
authorized bonded indebtedness,
therefore, means a 2 per cent mort
gage on every piece of property in
the state, or, more concretely means,
q $1,000 mortgage on every $4,000
farm in the state and a 500 mortgage
on every 5000 farm. Considering the
bonded Indebtedness of the cities,
towns villages, and counties of the
state, coupled with the state debt, the
mortgage may reach 10 per cent.
From the $780, 900, 900 for highways,
barge canals, and canal terminals, not
one bit Of revenue will come into the
treasury. To the original cost must
be added maintenance charges. Main
tanning the Erie canal is upwards Of
$1,O00,o00. Tie chances are that the
barge canal will cost much more as a
maintenance proposition.
But the cost Of maintaining either
the Erie canal or the barge canal will
be small in comparison with maintain
ing the highways. The cost of main
tanning highways properly built has
been estimated by expert engineers to
average $1,000 per mile per annum.
When we have built our contemplated
system of 10000 miles of highways
the state will, within a few years, be
called upon to expend $12 100000 per
annum for the maintenance and re-
pair of these highways. The interest
and sinking fund charges will make
the total cost of highways per year
$20,OOO,OOO.
The time for real economy and
sound finance in our government has
come full upon. US. The situation will
require courage as we'll as wisdom.
1t will require the wisdom, based
upon full knowledge, to Gull out the
useless and improper expenditures,
but. above all. the courage to refuse
to permit further raids for such pur-
poses.
CHRISTMAS CHEER PROVIDED
FOR ALL.
New York, Dec. 24.-New York went
hcme today bundleladen and happy
in the prospects Of as merry q Christ
mas as the city has enjoyed in many
years. The streets, the shops the
cars were crowded all day with per-
sons making their final purchases.
Tradesmen distributed gifts among
t11oir rpacfnV,orc orH npnn1oyorc hand.