Evening star., 1945-04-04
Charter Group
Hits Bond Bill
|As5Hodge-Podge )
Committee Replies
To Shows Attack
On Veto Request


postwar construction in Montgomery
County, now before Gov. O'Conor,
as "hodge-podge and a poor SUBJ
stitute for measure which could
be enacted later when the facts are
known and the costs could be esti-
mated with some degree OF accuracy"
Answering a recent statement by
Lacy Shaw, president of the County
Commissioners, that approval by the
Governor Of a request by the Charter
Committee that the bill be vetoed
would result In a 40 per cent increase
in the county tax rate, the committee
declared:
TT is apparent from Mr.. Shaw's
statement that he has no real un-
derstanding of the basic objections
by the Charter Committee to the
BILL although he heard these objec-
tions presented to the county's
representatives in the State Legisla-
ture."
Deferred Bonds Not Banned.
One of the many defects in the
bill, according to the Charter Com
mittee, is the lack of any prohibi-
ton against the issuance of de-
ferred bonds. This would permit
issuance Of all the bonds in such a
manner that the first installment
on them would not be paid for many
years, the committee asserted.
"Such practices in the past are
responsible for the fact that so much
Of our annual budget must 60 to-
ward paying interest,"" the commit
tee said. IAN example Is the $4,000
bond issue in 1927 to defray the cost
Of the county jail. The first in
stallment has not yet been paid and
does not become due until 1855. As
result Of this highly improper
practice, the interest on these bonds
will amount to some $63 900, a fig
ure substantially in excess of the
principal"
Another objection made by the
committee to the bill is that there
is no requirement to make the bonds
'callable" at any time. Because Of
the lack of such a provision in pre-
vious bond issues, the committee
explained, county taxpayers are
paying annually between 100000
and $2O0, 900 more than they would
have to pay If the bonds could have
been called and new securities
issued at the current low interest
rates.
Further INTO Hole"
In reply to Mr.. Shaw's declaration
that q veto of the bill would prevent
the commissioners from refunding
bonds maturing in the next "a
months, thus requiring an increase
in the tax rate, the committee said:
I'm making this statement, Mr..
Shaw Is admitting that the county.
as administered at present, Is not
able to pay OH the bonds which
were issued for the presumed life of
the assets, as those bonds become
due. As an alternative, he asks
that the county put itself still
further into the financial hole"
The committee also charged that
the bonds would be used by county
Democrats in their fight to defeat
the Charter movement. The group
added that If real" county home
rule bill had been passed by the
Legislature, there would have been
no conceivable justification" for
enacting any bond bill at Anna
polls.
1T is clear to everyone" the COM
mittee stated, that if it becomes
feasible to begin postwar construc-
ton prior to January, 1947, the date
of the next regular session of the
Legislature, there will be special
session to consider such construc-
ton throughout the State and the
means Of financing it.
1T would be much better to de-
eide at that future time on the de-
tails of such construction and the
necessary costs, than to give at this
time blanket approval of all sorts
of construction, at least one of
which is in fulflllment of a pre-
election deal"