Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-10-17
SEN. EATON REPLIES
TO GOVERNOR BAXTER
FAT C0NT|NG. fund?
Oct. Is, 1923.

Oct. Is, 1923.
Editor. Kennebcc Journal,
Augusta, Maine.
Dear SIR
Enclosed you will find statement
that / have prepared in reply to re-
cent one by Governor Baxter regard
ing my connection with the Appro-
priation Committee of the S1St LeGis-
lature and the State tax rate. / shall
be very glad if you will print this in
your issues of Wednesday, October
18th, and give it equal prominence to
that you accorded the statement of
Governor Baxter.
Very truly yours.
FREDERIC O. EATON
The Statement
4 recent statement made by Gov
ernor Baxter and given to the public
press, which he intended, ! suppose,
as a reply to my criticism of his hav-
ing added one quarter of a mill more
than was necessary to the State tax
rate for the fiscal year ending June
so, 1924. contains the following: In
view of the comments of Senator
Eaton, I propose to tell the whole
truth about his financial accomplish
ments. and his connection With the
appropriation bills and State tax rate.
| did not intend to do this, but he
has made it necessary"
Evidently Governor Baxter forgot
to include in his statement certain
incidents which have a bearing upon
the matter in question. and which
occurred during the last day of the
legisla tive session, April :, 1923.
shall relate these incidents in order
to give the public, whom Governor
Dr., l., -
part of the story. more light upon
this matter.
/ do not claim to possess superior
knowledge, and / resent the unjust
statement made by Governor Baxter
that Senator Eaton seemed to feel
that he solely was responsible for the
States finances ! do. however. feel
responsible, with other members of
the SlSt Legislature. for the appro-
priation bills passed, and / object
strenuously to tax rate which. taken
together with the indirect income re-
ceived by the State. is greater than
is necessary to produce sufficient
revenue TO pay those bills. The
raising of more revenue by the meth
Cd of direct taxation than is needed
for the purpose of defraying the bills
incurred by Legislative authority.
only adds to a Contingent Fund.
which many believe is of unduly
large proportions now. and places at
the disposal of the Chief Executive
of the State an opportunity of dis
bursting that money for overdrafts of
appropriations by various State de-
partments and institutions and for
other purposes without legislative
authority therefor. Such a practice
is unfair to the taxpayers of the
Il i I
be allowed. SO long as they are al
lowed there is no incentive by the
heads of departments and institutions
to live within the appropriations
granted by the Legislature.
The best definition | have heard of
Economy" is this; Economy is wise
expenditure" The Slst Legislator of
Maine was an economical one for it
provided by its appropria ton bills
for a wise expenditure of the public
funds.
Regarding the conference in the
Office of Governor Baxter at . A. NJ.
on the morning of April eth, 1923. The
Governor is mistaken when he says
that i Figured the State would re-
ceive from inheritance taxes s275,000
year more than the budget COM
mittce expected ii TO receive from
that source" l did say that the
state could got along on Il seven mill
tax rate for the period from July I.
1928 to June 30. 1924: and' on six and
three quarters mill tax rate for tho
period from July /, 1924 to June So
1925 providing certain items of in
direct revenue which the budget
committee left out, were added. and
certain other items of indirect
revenue were increased over
the budget committees estimates,
because the actual receipts from in
direct revenue for the year ending
Dec. 31.1922. which figures were not
available at the time the budget COM
mittee made its estima ties. would in
dictate there were good reasons for
doing SO. These additions to the
budget committees estimates of in
direct revenue were made up as fol-
lows:-
1st year End year
Dog License Receipts,
tomitted from bud
get altogcthcr) $35, 900 S3J, 900
Fees from Seed Ccrti-
fcation. (proviGcd
Additional Fees from
Fish & Game DEBT.
account change in
Inheritance
= taxes 10000 10000
Tax on Railroad Com
panics 10000 10000
Total S3JO,O0O S350.0OO
This increased the estimate of rev.
"rue to be received by the State
from collateral inheritance taxes
rom s560,000 (the budget figures) to
100000 per year or n net increase for
his item of 100000 per year-not
$4,000 per year as claimed by Cow
'rnor Baxter in his statement.
After tconSidera BILE discussion the
Governor finally agreed. in the pres
@nce of the others, to Il tax rate of
seven mills for the first yearly peri
cd and rate of six and three quar-
tiers mills for the second yearly peri
cd. The tax acts were prepared bv
the proper committee upon that basis |
were Immediately introduced and
passed bott houses Of tho LccisJa-
ture. Late in tic afternoon Of the
Same day, which was the day OF final