Evening star., 1934-12-08
S453,49 COUNTY
DEFICIT IS DENIED
Minority Montgomry Heads
Say Shortage Is Far Under
Fusion Claim.
BY JACK ALLEN,
Stan Correspondent of The Star.


ROCKVILLE, Md. December g.
Firm denial that Montgomery County
faces an operating deficit of $453,-
45437 for the current fiscal year was
made in a statement issued here today
by County Commissioners Robert D.
Hagner and Richard H. Lansdale,
Democratic organization members who
comprise the minority group on the
County Board.
They asserted that the only deficit
to be incurred will come through fail
ure to receive $l26,000 estimated by
the retiring board as available from
the State gas tax and the amount of
profits from the liquor dispensary sys-
tenn fall short of $l50000, the estimate
of the former board The latter
profits have already reached 100000
this year. with seven months remain
ing in which to realize 10000.
Hagner and Lansdale charged that
the alleged estimated deficiency dis
closed two days ago by the three Fu-
sion party members Of the board was
created by listing for payment in cash
S102 900 general county bonds and
Gates of Indebtedness issued against
street assessments that mature before
June 30.
Held Not of Current Deficit.
These certificates. they stated. are
by law to be paid from street assess
mentS to be collected during the next
10 years and consequently cannot be
described as current operating
deficit. 1t was the purpose of the
previous Democratic Board of County
Commissioners to extend the certifi-
Gates to the extent that the street
assessments remained outstanding and
to extend the SIO2 900 in general
county bonds under authority granted
by the State Legislature in 1888.
"On November 26 when the Fusion
members Of the Board of County
Commissioners took office" the two
Democratic commissioners said, "the
county had S738 1879 cash in 10
county banks, which is enough money
to pay all interest on county bonds
and certificates of Indebtedness due
this fiscal year or until June 30. 1885,
as well as to finish paving for new
tod4lly SNllOOl 1lON CtIi
struction and to meet all salaries and
other operating expenses well into the
month of May.
In fact. each of the 63 budget or
levy accounts stood with plus
balance, which meant that there were
no overdrafts in any county fund
when the three Fusion commissioners
took Office last week"
Bonds Were Extended.
Returning to the question of extend
ing bonds and street assessment Ger
tlflcates, Hagner and LanSdale pointed
out that 1888 900 worth of general
county bonds maturing in 1888 were
extended by the previous county board
as refunding 20-year serial bonds,
while Sl93,000 worth of bonds matur-
ing this year were taken care of in the
same manner.
In addition" they declared, during
the past II months the preceding
board was able to refund approx
mately S650,000 of short-term county
and suburban district certificates as
10 to 20 year serial county bonds and
in each case reduced the interest rate
paid by the taxpayers from to 2
per cent.
Not to have these maturing bonds
or certificates extended would have
added l cent to the county's direct
tax rate for each $4,000. 1t is
recognized throughout the world in
this period of general depression that
maturing public obligations. whether
snort term or long term, should be
extended wherever possible for the
present relief of the taxpayers.
Bond Sales Brought Par.
When the Fusion commissioners
took Office, per cent Montgomery
County bonds were selling at par on
the general resale financial markets
OF Washington, New York, Baltimore,
Philadelphia and Chicago. The pre-
cedlng Democratic board had sold sew
eral issues of 10 to 90 year county
serial bonds during the Summer of
1884 with both and 4i2 per cent
coupons of interest rate The sale of
these issues had included thorough
investigation of every feature Of tie
financial condition of the county by
several leading national firms of in
vestment bankers who specialize in
State, municipal and county bond
issues"
They asserted, in conclusion. that
the statement made public by the
three Fusion commissioners was an
"unVarranted assault upon the finan-
cial condition of the county and that