The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-09-26


be added the guarantee of the
Parkersburg Railroad, amounting
n, to 100000 90
The guarantee of the York and Cum
berand Railroad, called in the
Mayors communication the Cum
-, berland Valley Railroad, 100000 90
The additional stock for water to
make up S3,OOO,0OO, 1854. .OG
SIG, TIA, ,SS9. II
This amount corresponds with that stated in the
Mayors communication. The sum of SIC, ,774, $50 II
is now conceded to be the total Of the funded or
manent liabilities ot the city, on or about the com
mencement of the year 1860. To this amount of
Sl6,74, ,SS9.l7 may be added the amount assumed
for the Western Railroad the increase of the water
debt, the cost of the Parks, City Hail. and Aims
house, and there be no doubt that these various
matters, if all carried out, will make the funded or
permanent city debt not far, il any, short of 500
900, 600.
The statements made in the address in respect to
the city debt fully sustained and in every par
ticuar. The sinking fund referred to in the May
or's communication is undoubtedly wise and proper,
and It's elect most beneficial but this fund can ONLY
be continued and increased by increasing the annual
expenses of the city.
In the Mayors communication will be found the
statement that the interest paid by the city during
the past fiscal year does not exceed saw 81 g6 I93 "a
or the interest on 1924, ,SS9l7 The only obser,
vatiOn to be made this point is that it is hoped
that this may continue to be the case bat when it
Is seen that the item of 1000 for the Parkers-
burg Railroad is not embraced in this So 274 SS9 IL
1t cannot but be feared that favorable state OF
things will not long continue. In the address it
must be remembered that the following sentence is
to be found. at is true that the interest on
large part of the city debt is at present paid bv
different Companies, and may never have to be paid
by the city itself, but even with this abatement
formidable debt remains and the annual expenses
which by reckless extravaganza are increasing
yearly, require the hand Of reform. Heavy as our
taxation is il does ma tha IN o,l
the deficiency is yearly increasing,
Here it may be said with truth, that city with
a debt of nearly SIT 600, ,0G0, and of the population
and resources Of Baltimore has certainly reached
the extreme point to which its liabilities should be
extended. There may arise general depression
OF trade, or business, or one Of those monetary
pressures which have so often occurred or in this
country some internal dssensions may take place
and change the whole current of events In such
condition, what would be the situation of Balti-
MORE if forced to pay the interest on all the rail
road operations for which the city is liable? The
answer is obvious to all who will consider the uues-
ton. | may be called an alarmist, or may be
spoken of as behind the times but, in my view the
operations Cf the city, commenced since the first OF
this year, have been most unwise and iniudicious,
and it is hoped that the people will be saved from
what fear may be the consequences, in the shape
of a large increase of city taxes and monetary
trouble and difficulty.
| may here refer to what believe to be the fact
that the city authorities have already exceeded the
powers granted them by the Legislature. The
water debt is limited to So 900, ,G00 and it is now
certain that this amount will not suffice The sur
plus required cannot be raised by a loan, and il
must necessarily be raised by direct taxation. The
city had power to borrow 81 100000 for purposes
public Improvement. Under this grant of power
the parks are to be purchased and improved, the
water-works are to be completed the City Hall is
to be built, and have no knowledge as to any
special legislation as to the Almshouse. 1t is man.
iest that this million of dollars will not suffice ia
la 4 4, Al.
rowed for that purpose and to pay for the water
works, the parks, the City Hall and AlmshOuse.--
1t is true that application may be made to the Leg
islature to this defect of power but to act in
anticipation of such legislation is neither wise nor
Justlhable. In the absence OF special legislation
the city taxes must be increased to meet whatever
deficiency may arise from the want of power to
borrow and it must be clear that in this view it is
almost impossible to anticipate the extent to which
these taxes NAV be increased. The million of dol
lars being borrowed and proving to be insufficient
to pay, nothing will be left but to increase taxa
ton or fail to pay until additional power to raise
money be granted by the Legislature. To antici
pate such grant of power can never be right anC
nothing predicated upon it should be done, or car
be justified in public agents.
ASSETS IN THE HANDS OF THE CITY AND SURPLUS IN FA
OF THE CITY.
There are, says the Mayor in his communication
in the hands of the Register 81 900 of the divi
dend bonds of the Baltimore and Ohio Railroad
Company, and 4 note of the same company fo
S94 800. 1t is also understood that cash paymen
of S94, 500 has lately been made by this company
These amounts were recovered in the settlemen
lately made, by which the city authorities under
took, far they could do so to legaIize this
measure of the extra dividend. This subject NAV
now be reviewed. On the 10th December, 1856
resolutions were passed, approved by Thomas
Swami, Mayor, from the preamble of which We
make the following extracts:-"Whereas the ex
perence of railroad companies has shown that the
issuing of bonds for the payment of dividends nomi
nally earned but really consumed in the cOnstruc
tion, and keeping up of the roads is unwise iniu
dcious, and ultimately preiudcial to the real inter
ests of the stockholders" The resolution itsel
then adopted was against the receipt of the extrf
dividend. On the 9Th and 18th of January, 1857
additional resolutions, approved by Thomas Swami
Mayor one instructing the City Directors to Op
pose the extra dividend and The other directing the
City Counsellor to oppose the cOnsummation there
of, by proceedings in Court, were passed.
On the 10th January, 1857, a bill duly sworn tt
by the Register, was filed in the Circuit Court by
the Mayor and City Council, to obtain an iniunc
tiOn to prevent the carrying into effect of the eXtr
dividend This bill alleges that the CITY owns stock
to the amount of S3,500,000, and is a creditor t,
the amount of S5,00O,O00, and had owned II, Al
shares of dividend stock which it had sold. Thi
bill alleges that the city would by the operation
the extra dividend, be excluded from all participa
tOn in the surplus profits of the Baltimore and Ohit
Railroad Company, in respect to the l., All shares
held by it when the said profits were earned. Th
bill also contains the following allegations, "Tha
on the 18th December, 1856, when the resolution
for an extra dividend, it called, was passed
it appears by the preamble that not one dollar o
the surplus profits of the three millions proposed
to be divided had then, has any existence
but the whole OF said profits had long since been
expended in the construction of the road, other
wise applied to the legitimate objects of the char
ter by the company-that the company had
power authority under its charter
to pledge the credit of the company to- satisfy
gindry indebtedness, to create obligations
on behalf of persons, binding upon the company
and bearing interest to 1ohom they nothing, a.
the said board of directors have declared they will
do in said resolution and certificates, and which il
leges follows, under the oath of the same officer
''Your orators further charge that SO far as th,
said transaction can be regarded as going to tn,
establishment of an indebtedness, acIere none !,
truth erists, and 'Casting, and nisapplyinq the re
sources of The company satisfying the same, YOU
orators will be greatly damniGed in their securt,
| as mortgages and as stockholders" This iniunc
| tion was obtained in January, 1857, and after
| long and expensive litigation (this case havin!
gone to the Court of Appeals the city authorities
| or rather portion of them with most unusua
haste, and without getting the appreciation of tn
| Second Branch of the City Council, although will
| the consent, and at the instance of Mayor Swami
abandoned this case, ,and make the settlement by re
| ceiving, what the city might have done in 1851
| the certificates of the extra dividend bonds
the payment of cash and note being for interest o
| these certificates. Such is the character of thi
| proceeding, shown by the action of the city au
| thorities. In the communication of Mayor Swan
it will be found that the principal item of asset