Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-19
immersion respecting

conveys fair impression respecting
the latter?" .. s,;a.
"From 1915 to 1921 the indirect
faxes of the State were very iarse,
due to the unprecedented business
boom attending the prosecution o.
the World War. This prosperous
business period was reflected IN the
indirect taxes of the State( SUCH as
those from railroads, BANKS tele-
nhones and the State at that time
had sufficient funds to cover all its
reserves excepting the lnolah trust
funds and the permanent school
funds before referred to. lhere may
have been times when even thesS
were fully recovered by the Aa.se
cash balance in the treasury. me
period Of business deflatlon, Whlch
began about 1921 had its sure reflex
in the indirect taxes of the State and
the result was, that in the two cal
cndar years. 1921 and 1922, the
State failed 10 collect the amount or
revenue it had estimated would pc
collected by some $7S6,OOO. THESE
two wears also witnessed material
reduction in the State tax rate, and
these two combined factors natur-
ally reduced the amount OF aVallaDle
cash in the treasury. The state, now
ever, has always paid Its bllls
promptly during the past four years
and the governor and council ana
treasurer have not found 1t neces-
sary even to take advantage of the
provisions Of law authorizing them
to negotiate a temporary loan.
Have the expenditures during the
past six months of the last calendar
year been excessively large for such
period ?"
"In comparing the expenditures Of
the first half CT any calendar year
with the last half 1t is well to re-
member that the last half Of the year
is the period in which the heaviest
expenditures are incurred. The
State school fund of approximately
one million nine hundred thousand
dollars and the railroad and tele-
graph taxes of over $15O,OOO always
come in this period, last half of the
year. 1t is also true that we pay GU,
probably from seventy to eighty per
cent Of all the money expended for
State highways in that part of the
year between July l and Dec. 31st.
Say three and a half million dollars,
or around five million dollars an
nually expended, are paid out be-
tween July 1 and Dec. 81.
Where is all this, Mr.. Hayford,
is there any evidence of unwise or
improper use of the States funds?"
"Of course you understand that
the auditors duty is to make sure
that the bills submitted to him are
correct: with regard to those / have
approved 1t goes without the saying
that I nave found them correct"
so far as payments from the
State contingent fund go, the State
Auditor has no authority over this
fund, whatever. The matter of e.
pcnditures from this fund Is left By
statute entirely in the hands of the
Governor and Council 1t is not with
in the province of the State Auditor.
as understand it, to attempt in any
way to dictate or to appear to die
tate respecting the policy of any
State Department., but it is his duty
to ascertain the correctness Of the
bills and the legality of the expendi-
ture.
There has been much said in the
public press. indicating differences Of
opinion regarding emergency expen-
ditureS. One opinion seems to be that
some of these expenditures should
rot have been made without author
ity from the Legislature. that the
emergency has not been sufficient to
warrant the use of the contingent
fund. AS l have said, have no con-
trol over that fund. / have endeavor-
ed. however to keep informed res
pccting all the State expenditures,
and l am convinced that, taken as a
whole, the State has received good
value for the money expended; that,
in short there Is nothing in all this
which need cause the people of the
State apprehension. or which is IN
precedented"
So much for getting at the facts,
for being assured that the State is
not financially wrecked, so much to
allay any apprehension of the vast
ing of huge sums of the States
funds.
There are impressions abroad,
which perhaps are we'll expressed in
the following comment. finch how
ever is not one made by the State
Auditor: Governor Baxter wanted
certain things done as he thought
they should De done and wanted all
The money he could get with which
20 do them before mis- term expired.
AS it was. he had a lot of advice to
leave over fer the incoming Lcgisla-
f11re -