Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1934-05-17
by William Bruckart

Democratic are more than likely go
ing to continue to elect Democrats,
but the political accidents" that elect
ed many others Of the vast majority In
the house are going to send many
home because they come from over
whelmingly Republican communities.
The Republican leaders are asserting
they will pick up eighty or ninety
seats from the Democrats next No
vember. There can be no doubt that
they will gain some, but eighty or
ninety is a high figure in anybody's
language.
1t seems to me that Representative
rather signal honor
First Termer' in his first term as
Wins Honor a member of the
house Of representa-
tives by obtaining passage of the leg
islation that has come to be known as
the municipal bankruptcy bill. 1t is
something like twenty years since a
freshman" member of the house Of
representatives has sponsored a piece
Of legislation Of national scope that
was passed and become a law. Plenty
of new members have introduced bills,
nationwide in their effect, but as far
as my research has disclosed, none has
been successful in the last twenty
years.
Mr.. Wilcox won membership in the
house by defeating Mrs. Ruth Bryan
Owen, daughter of the famed William
Jennings Bryan, for the Democratic
nomination in his district where the
nomination is tantamount to an cleo
ton. So he was given baptism of fire
before he ever reached the house it.
self. Whether it was the political
prestige won by licking an outstand-
ing Democratic woman, or for other
reasons. the fact remains that Mr.. Will
cox finally forced through a piece of
legislation that constitutes something
entirely new in our national structure
of laws.
The measure, as l said, is national
in scope and it probably will affect
the financial status of some $500 COM
munities which the bill calls taxing
districts. This list of taxing districts
includes municipalities, counties, bor-
oughs, villages, parishes, townships,
and incorporated taxing districts such
as schools, drainage, irrigation, levee,
sewer, paving, sanitary, port, or any
other districts in which improvements
have been made in bonds and sold to
pay for them. In order to take adj
vantage of the provisions of the law,
the taxing district must declare itself
to be insolvent and unable to pay the
interest or principal of the debt. The
officials of the taxing district may pc
tition federal court for the right to
arrange its debt on new basis, but
the court must be shown that at least
three-fourths in number and amount
Of holders of the bonds are willing to
agree to the terms of a compromise.
If they do agree, then the court may
issue decree that will compel the re-
naming bondholders to accept the set
Element
What happens, of course. is that the
taxing district will be able to replace
the defaulted bonds with fresh series.
probably at lower interest rate. The
taxing district gets out of the predic-
ament of what amounts to bankruptcy.
and the bondholders get new securities
which are marketable and have some
thing like their face value because the
interest will be paid. This privilege
is extended for only two years, but it
is the general understanding that the
communities concerned will be able
to accomplish settlements. with their
creditors much sooner than that, and
it is obviously hoped also that i'm
proved financial conditions through
out the nation will make the Job of
rearranging the debts easier than It
was a few years ago.
The bill did not get through con-
gress without a fight. It had plenty
of opposition from members who con.
tended 1t was step toward repudia-
ton of debts, thing always to be alb
horred. There was argument also that
by granting permission for the munich
palities and taxing districts to force
such compromise as will result, the
congress was making such securities
less attractive to investors.
One Of the obvious results of having
the spotlight turned onto an individual
or a fact or an is
kidding sue is plenty of COM
the MIRA ment. People talk
about it. Sometimes,
however, the talk develops jibes and
jests and ofttimes they are not pleas
ant for the ardent advocates of
proposition to swallow. For instance.
until recently discussion of NRA had
been confined to serious argument.
very often Of a heated character.
Lately, however, jokes and puns about
MIRA have been emerging with greater
frequency and there are now a con.
siderable number Of them. The lat.
est, and one Of the best that l have
heard, runs as follows:
N. r. A. me down to sleep,
pray Thee, Lord. my codes to keep
If 1 should bust before I wake,
A. F. of L. my plant will take.
heard already that the American