Evening star., 1948-03-31
Credit Survey
Report.Studied
ByMonfgomery
Findings Propose
Referendum on
Bond Issues

Recommendations by Moody's In
vestors' Service for improving Mont
gomery County, credit rating, one
Of which calls for a referendum on
future bond issues, were being stud
led today by the county commits
sioners.
The suggestions were presented to
the board at its meeting yesterday
in the Rockville Courthouse by
County Supervisor Irving G. Nc
Nayr, who conferred with the firm
Monday in New York.
The commissioners also approved
an ordinance regulating private
schools and adopted proposals by
County Engineer Blanton S. Bar.
nett, jr., for improving roads in the
Silver Spring and rural areas.
In reporting on his conference
with Moody's. Mr.. McNayr said rep
resentatives of the firm told him
one OF their principal reasons fol
rating Montgomery County's credit
below that of Prince Georges County
was the practice by Montgomery
offcials during the last eight year.
Of refunding county bonds by Dor.
rowing money to pay off maturing
obligations.
Practice Changed.
Mr. McNayr said he informed thu
firms representatives that the COM
missioners last year decided not te
resort to such a practice in the
future. Their reply, according tt
the county supervisor, was thai
"one year doesn't wipe out the bae
practice of eight years"
In addition to recommending thai
county officials hold a referendum
before issuing bonds, Mr.. McNayl
told the board, Moodys representa-.
tives advised that:
l. No bonds be issued until after
July 1.-The beginning of the 1948-s
fiscal year. This conflicts with a
request by the Board of Education
that 100000 worth of bonds be
issued Immediately to cover costs OF
a school construction program, now
under way. A $4,000 900 bond issue
for schools and roads was authorized
by the commissioners last October
2. The commissioners should issue
bonds only in proportion to those
being paid off. For example, If the
county plans to pay off 81 000, 900 in
obligations which became due in any
particular year, it should not issue
more than 100000 in new bonds
3. The county should not 60 on a
pay-as-you-go basis, since that
would shove the tax rate up toe
high"
Mr.. McNayr said he could get nc
definite opinion on whether the
county's credit rating would drop If
the $3,000,000 school bond issue was
approved.
Board President Brooke Johns
predicted that the county would
have to pay as high as 3.5 per cent
interest on future bond issues, com
pared with 2.75 per cent on the
$2.S00,000 issue sold last fall.
He then asked Mr.. McNayr
whether the Washington Subur-
ban Sanitary Commission, whose
bonds are guaranteed jointly by the
Montgomery and Prince Georges
County commissioners, plans to is
sue any additional bonds.
Mr.. McNayr replied that the COM
mission is awaiting a legal ruling
on the matter since it may already
have reached It's limit under the
law.
School Fee Fixed.
The school ordinance fixes $50
annual fee for a permit to any
boarding school having more than
six resident pupils and $40 for all
other schools. 1t becomes effec-
tive May 10 and affects approx
mately SO schools.
Commissioner Charles H. Jami-
son, Catholic, refused to vote on
the question. explaining that Arch
bishop Patrick OBoyle of Wash
ington has opposed any tax on
private educational institutions,
Mr.. Jamison said Archbishop
O'Boyle told him no other Mary
land county has SUCH levy.
No permit would be issued to a
private school unless the application
is accompanied by approval cer-
tifcates from the building inspector
Tor the area, the fire department
nearest the school and the county
e7nitation department.
Violators of the ordinance would
e subject to maximum fine of S25
: not more than 10 days in Jail IN
efault of payment of the fine.
In approving Mr. Barnett's road
Improvement recommendations. the
commissioners were told streets in
re Silver Spring area are being
pounded to pieces" by construction
'rcks weighing up to Is tons each.
ne roads were built to withstand
gressures Of up to 8 tons, Mr.. Bar
nett said.
Load Limit Sought.
He asked that the board fix load
limit on all streets used for hauling
building materials or that builders
be required to restore them to their
original condition at no. expense to
the county.
Installation Of curbs and cutters
on o front foot benefit assessment
basis should be promoted, Mr.. Bar
nett said, and water drainage prob
lens at street intersections should
be corrected by the installation of
culverts.
In the rural areas, Mr.. Barnett
recommended that heavy construc-
ton be curtailed until all roadside
drainage bitches have been cleaned
and all unsurfaced roads have been
rebuilt according to county stand
ards. A bridge maintenance crew
should be set up, Mr.. Barnett sug-
gested.
The commissioners approved the
resurfacing of Az miles of the
road from Hunting Hill to Travilah
mt an estimated cost of $40. 900
and Z miles of the Shady Grove
road at an estimated cost of $40, 900.
They said the county's $500, 900
bodybuilding program would be de-
layed about two months as a re-
suit OF their approval of MIR. Bar
nett's recommendations.
ST ,704 Gifts Reported |