Jasper County Democrat, Volume 15, Number 60, Rensselaer, Jasper County, 30 October 1912 — STATE FINANCES HEBE EXPLAINED [ARTICLE]

STATE FINANCES HEBE EXPLAINED

records of the two parties ARE NOW BEFORE THE TAXPAYING PUBLIC.

PARTY DECEIT EXPOSED Records Show Democrats Have Paid Republican Bills, Liquidated Part Of State Debt, and Reduced the Tax Rate. The average man Is too busy with his personal affairs to make an exhaustive study of the state finances. Because of the average man’s lack of information regarding finances; the manner in which money is appropriated, the methods prescribed by law for it® expenditure, and the real source of responsibility regarding the state finances, the Republicans and Bull Mooeers have made a persistent attempt to the people by the following methods: 1. By deliberate misstatements of facts. 2. By the suppression of essential facts. 3. By the telling of half-truths. To understand the state finances certain things must be borne in mind. Among these are the following facts: 1. Governor Marshall took office January 1, 1909. 2. William H. O’Brien, Democratic auditor of state, took office December 1, 1910. 8. William H. Vollmer, Democratic treasurer of state, took office Febo ruary 10, 1911. 4- That prior to January 1, 1909, the state had been under the absolute control of the Republican party - for sixteen years. B. That the General Assembly of 1909 was only one-half Democratic, the Republicans having control of the senate. 8. That the General Assembly was, in 1911, for the first time In sixteen years, entirely Democratic, and the Democratic party is entitled to credit and is responsible for whatever legislation that was enacted that year. 7. That the fiscal year for state business ends on the 30th day of September of each year. 3. That the General Assembly of 1909 appropriated all the money that was expended by the state of Indiana for the fiscal years ending September 30, 1910, and September 30, 1911 $- That no money whatever was expended by the state of Indiana in the fiscal years ending September 30, 1910, and September 30, 191fL, except as said money was appropriated and authorised to be expended by the General Assembly. 10. That no money can be expended from the treasury of the state of Indiana by an officer or person, unless said money is appropriated by an act passed by the general asembly. IX.That the handling of the finances of the state of Indiana is done through a board of finance, which by law is composed of the governor, the auditor and the treasurer of state. That the said board of finance was controlled by the Republicans for many years up to December 1, 1910. In other words, H. O’Brien, Democratic auditor of state, took office December 1, 1910. Up to that time ■' Oscar Hadly had for four years I been treasurer of state. When Mr. O’Brien took office he and Governor Marshall constituted a majority of the board of finance and, therefore, the Democrats are responsible for the acts of the state board of finance from and after December 1, 1910, and not before. 12. That the practice of the finance

board calling upon county treasurers for advance payments has been in vogue in Indiana every year since the year 1851, excepting only the years of 1858 and 1859. 13. The General Assembly of 1907 appropriated all money for the fiscal years ending September 30, 1908, and September 30, 1909, so that whatever money was expended for the various institutions, offices and commissions in the state of Indiana for the first eight months that Governor Marshall held ofoffice as governor was appropriated and authorized by the Re-' publican legislature of 1907. That in the election of 1908 the only state officers elected by Democrats were governor, lieutenant governor and superintendent of public instruction. The Republican candidates for all other state offices were elected in the general election of 1908. 14. That in the general assembly of 1909 the Democratic House of Representatives passed an appropriation bill appropriating money for the two fiscal years ending September 30, 1911; that after said appropriation bill was passed by the House of Representatives it was sent to the senate, which was controlled by the Republicans, and the Republican Senate increased the amount of appropriation as passed by the House $511,000.00, and the Republican senate compelled the Democratic House to accept this increase of $511,000.00. 15. The Legislature of 1909 appropriated money for the fiscal year ending September 30, 1910. In addition to the money that was expended in the fiscal year ending September 30, 1910, appropriated by the Legislature of 1909, was an expenditure of $213,982.73, that was appropriated by the Republican Legislature at a special session, held in September, 1908. IS- On September 30, 1910, the close of the last full Republican administration, there was in the general fund of the state treasury $92,768.35, but thdre was then due and . unpaid $103,000.00, coliseum bonds and interest. Two months intervened before the Democrats came into posession of the board of finance and assumed responsibility for the first time. During those two months advance payments were called for in October to the amount of $216,100,00, and in November to the amount of $228,200.00. These two advance payments, together with the $92,768.35 left in the fund, amounted to $537,068.35, and yet during the last two months of Republican control all of this was expended with the exception of a paltry $9,463.91, which was all that was turned over to the Democrats. When the Democrats assumed responsibility they found, then, $9,463.91 in the treasury to pay the state bills and they found unpaid, and due, the following bills that the Republicans had let go by for the Democrats to pay: I ' Current bills ....$195,000 '< Coliseum bonds.. 103,000 Vincennes University—interest ... 14,000 Total $312,000 Thus wae the Democratic party handicapped at the beginning as *■ • result of Republican mismanagement. Ten months were left to the Democrats of that fiscal year and during those ten months the Democrats not only met and paid ail these Republican bills, but paid the final construction expenses of the new Southeastern Hospital, the Tuberculosis Hospital, the Village of Epileptics, and the School for the Deaf. Small wonder that the Democrats made no payment on the state debt when they had hundreds of thousands of dollars to pay on bills that Republican, made and should have paid! Then came the Democrats’ inning. On September 30, 1912, the

r ; first full fiscal year of Democratic i control of finance* came to a dose. Every current bill was paid. Two new state institutions were maintained at a cost of $226,674.57. ’• A town and township deficiency fund of $52,184.30 was paid. One hundred and fifty thousand dollars on the state debt, which was not due until 1915, was paid. This saved the tax payers over $5,000 in interest. And at the close of the fiscal year on September 30, 1912, there was left in the general fund of the treasury, after all bills were paid, after $150,000 on the state debt was paid, $132,658. Just compare the records of the last year of Republican control with the first full year of Democratic control. 17. But that is not all. This remarkable record was made in the face of the fact that the Democrats reduced the total state tax levy 1% cents, which meant a saving to the tax payers of $280,000 a year. In other words, the Democrats reduced the taxes and had thousands of dollars more in the treasury than the Republicans had with a higher tax rate and with $312,000 in unpaid bills. IS. Much ha* been said concerning payments on the state debt and Mr. Durbin boasts about the recordpaying year of his administration. , That year almost $700,000 was turned over to the state by the United States on the war claim and this money, with the raising or saving of which Durbin had nothing to do was applied to the state debt. As a matter of fact it was the wisdom of the Democrats during the Matthews administration which created the state debt sinking fund for the ultimate liquidation of the state debt. This fund was suspended during Han- , ly’s administration on the ground that Durbin had paid on the debt to the neglect of current expenses, and that the close of the Durbin administration found the state Buffering from an enormous deficiency. The Republicans, in control of the finance board, paid nothing on the state debt during the years 1907, 1908, 1909 and 1910. The Democrats then returned to power and after paying all the unpaid Republican bills, they paid in 1911 $103,000, Coliseum bonds, and $150,000 in 1912 on the state debt ( If left in power the Democrats will continue paying on the state debt and there will be no suspension of the sinking fund to meet extravagant expenditures of the people’s money. 19. Much buncombe has been resorted to by thfe Republicans regarding the “great building period” under Hanly’s administration. If credit is due them at all it is for authorizing the building because the paying of the bills was saddled onto the Democrats. The special session of the Republican Legislature of 1908 saddled onto the Democrats the following obligations, which had to be met in 1910: Southeastern H05pita1..5160,130.67 School for the Deaf.... 79,084.37 Epileptic Vi11age....... 4,471.45 Girls’ School (store house) 866.18 T0ta1.5244,552.67 The Republicans appropriated ' ( the money and the democrats paid the bills for “the Great Republi- , can Building Period.” 20. It is true the Democrats increased appropriations in some particulars, but the money was well ■pent Do the farmers object to this: The Democrats gave $75;000 for the agricultural experiments at Purdue University where the Republicans only gave $25,000. Is this money well spent? Do the enlightened people of Indiana object to this: The Democrats gave to the adddttional maintenance from the general fund annually to Purdue University $17,500, to the State University $17,500, to the State Normal, $12,500, while the Republicans gave absolutely nothing. I* this money well spent? M. The Republican* try to deceive the

people by showing that the state benevolent institutions are costing - more now than during Durbin’s administration. This i* true, and why? 1. There are several more state institutions to maintain, and the more institutions the greater the cost. 2. There are many hundreds more inmates In the state institutions now than during Durbin’s time and the more people to feed and clothe the greater the cost. 3. The cost of food and clothing is many per cent higher now, as every man knows, than during Durbin’s time, and the increased price paid by private citizens for food and clothing hits the state the same as it hits a private citizen. How Would Durbin Reduce the Expenses of the State Institutions? 22. The Republicans have charged falsely that the Democrats have been extravagant in expenditures. Does this look like it? The first full year of Democratic control, closing September 30, 1912, shows net disbursements in general fund of $2,937,070.48, or $755,804.86 less than the last full Republican year. 23. Regarding extravagance in expenditure it must be kept in mind that state officials only spend the money appropriated by the legislature. Bearing in mind that the legislature of 1907 was Republican, that of 1909 bad a Republican Senate which raised the appropriation bill of the House almost a million dollars and succeeded in forcing an, increase over the bill fathered by the Democratic House of about $500,000, and that the legislature jof 1911 was Democratic, study these appropriations: Appropriations, 1907.. $4,524,089.01 Appropriations, 1909.. 4,844,158.98 1 Appropriations, 1911.. 4,177,866.00 24. The year 1908 was entirely Republican. There can be no dispute about that. They had all the state offices and had the legislature of 1907, which was Republican in both branches. The total disbursements of the general fund for that year were: (These figures taken from John C. Billheimer, Republican auditor’s report:) Total General Fund, BToss ...$6,497,077.25 Less advance pay- t ment* .. 1,772,823.86

Less transfer war- ► rants 830,720.81 Less board, commission and departmental expenses not paid from state funds 200,696.78 Total to be deducted.. 52,804,241.40 Leaves total net disbursements, General Fund.. . $3,692,835.85 The first full Democratic year 1* 1912. The Democrat* bad all of the state offices, and In 1911 the General Assembly was Democratic for the first time In sixteen years. The total disbursements of the General Fund for 1912: Total General Fund, gross $6,048,127.07 Less advance payments 1,720,661.00 Less transfer warrants 1,045,931.16 Less board, commission and departmental expenses not paid from state funds 344,464.43 Total to be deducted. .$3,111,056,59 Leaves total net disbursements, General Fund $2,937,070.48 This shows $755,804.86 less expenditures in the Democratic fiscal year of 1912 than the Republican year of 1908. 25. In 1906, 1907 and 1908 the 3-cent Sinking Fund was discontinued, but 3 cents was added to the General Fund by the Republican Legislature. The amount that the General Fund was increased by raising the levy from 9 cents to 12 cents was as follows: 1906 ....$494,132.25 1907 .... 512,919.20 1908 .... 539,674.74 Total ... $1,546,726.19 What is the difference between th* Republican mod* of getting money into the General Fund and the transferring from the Sinking Fund to the General Fund? 26. In order to conceal the deficiency at the close of the fiscal year September 30, 1909, the Republican state officers carried over the August and September (1909) bills and paid them in October, 1909, or the next fiscal year. The amount of these “held-over” bills total $213,982.73. K The Republican and Bull Moose press and orators have for months charged, and are now charging, that the Democratic party has in-

creased the salaries of officers and employes and increased the number of commissions and the general expenses of the state govern- ' ' meat If a man’s living expenses for each of the years 1908, 1909, 1910 and 1911 were one thousand dollars and bis living expenses for the year 1912 were only five hundred dollars, it is plain he lived more economically in the year 1912 than in any of the years 1908, 1909, 1910 and 1911. As with the man, so with the state. If the state spent less in the fiscal year ending September 30, 1912, than it spent in any of the fiscal years ending September 30, 1908, 1909, 1910 and 1911, no one can truthfully charge that the Democrats, who had full control in the fiscal year ending September 30, 1912, were more extravagant in that fiscal year than those who had control of our state finances In any of the previous years above named. Now, in spite of the oft-repeated charges of the Republican and Bull Moose press and orators that the Democrats have increased the salaries of officers and employes, and increased the number of commissions and the general expenses of the state government, the Democrats, during the fiscal year ending September 30, 1912, expended from the general fund but $2,937,070.48, while the Republicans, during the fiscal year ending September 30, 1908, expended from the general fund $3,692,835.85. In other words, in spite of the charges of extravagance against L i Democrats, the Democratic I gdminlatraUon for the fiscal year | fading September 80, 1912, cost ♦751,804.89 leas than It oost the J Bepublioana during the fiscal year I ending September 30, 1908. *UUCPAYKR-~ | Tsm are In position to determine •»r youraelf whether there has been a reduction in the state tax Pale. Look on the back of your tax receipt and compare the first year of Democratic control with the last year of Republican control. You will find a reduction of cents. WILLIAM H. O’BRIEN, of State. WILLIAM H. VOLLMER, Treasurer of State.