The Portland daily press., 1867-09-14

Saturday Morning, Sep ember IA, 1867
Financial Condition Of the City.
PORTLAND.


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Financial Condition Of the City.
On the 3lst of March last, the aggregate
debt of the City OF Portland amounted to
Sl,3l5,600. Against this amount the au-
ditor's report shows 100 shares in the Port
land Gas Light Company, selling in the mar
ket at premium, but worth al the par value
OF $50 share, SS5OOO; $4,000 of trust
'unds' ON which the city pays only the interest;
and Sl50,IS3 to the credit of the committee
on the reduction of the city debt. These
items amount to $247, 1888, which being sub
tracted from the aggregate given above leaves
an actual debt of $1,067 SIT. This debt is
protected not only by the property owned by
the city in its corporate capacity, which alone
would nearly or quite cover it, but by the real
and personal property Of the citizens of Port
land, which is all liable to attachment in sat
isfaction of the debts of the corporation, The
valuation OF real and personal estate for mu-
nieipal taxation this year gives an aggregate
OF $2S,313,S45, which is doubtless under
rather than over the market valne of the
property assessed. For debt of one million,
then, property worth about thirty millions
is legally holden.
The payment of the debt was provided for
several years ago, during the administration
of Mayor Mcclellan by the establishment of a
permanent sinking fund.- from which has ac-
crued the balance mentioned above as stand
ing to the credit OF the committee on the re-
ft11,ft offI fI,.nI Inhf NJ -
ed all balances OF money unappropriated, re-
naming in the treasury at the end of any fl
nancal year; all excesses OF income over the
original estimates; all balances OF appropria-
tions. remaining on the books of the auditor;
all receipts for premiums on city notes; all
cash receipts for real estate, excepting burial
lots in the public cemeteries all receipts from
the sale of stocks, bonds or notes owned by
the city; and finally, such part OF the annual
tax, not less than tioe per cent. of the eristing
debt, as the city council shall from year to
year set apart for this purpose. The fund
thus constituted will be amply sufficient to
pay the city debt, as iG falls due.
There are some other liabilities, not inclu-
ded in the statement above, but they are pro-
vided for independently. The city loaned its
credit to the Atlantic and st. Lawrence Rail
road, Company, in 1S48 and subsequently for
S2,OOO,Oo0, and to the Portland and Rochester
Railroad Company this yearf or $250,OCo. In
each case the city is secured by sinking fund
and by first mortgage ON the road. The
sinking fund TO provide for the liability on ac-
count of the Atlantic and ST. Lawrence rail-
road already amounts to 81, 100000, which aIe
in the hands of the city treasurer The city
has also voted, on certain conditions, TO in
crease its loan of credit to the Portland and
Rochester Railroad Company to 100000, and
to make an equal loan ofcredt to the Portland
d Ogdensburg Railroad Company. The condi-
tions in these cases have not been complied
with; until they are, there will be 10 increase
of the city's liabilities; and when they are,
the city will be adequately secured Finally,
there is the liability on account OF the build
ing fund loan, which cannot yet be determin-
ed but will be amply secured by mortgage on
real estate within the city limits.
1t will be seen from these statements that
all the liabilities of the city are not only Sc
eased- by the entire wealth oil the communi-
ty, every dollar OF which is holden for the
debts OF the community, but by special pro-
visions looking to the ultimate and not very
remote extinction of the entire debt. The
financial system now prevailing was adopted
at the gloomiest period of the war; il was
backed up by adequate taxation; and the re-
suit is that the city passed safely through
that trying period. adding only $4,000 to its
debt. Few cities have done as well. ....
No less remarkable is the unexpected re-
bound of the valuation OF the city, which
forms the real basis of its corporate solvency,
after the depression occasioned by the fire
last year. The valuation is made on the LIST
of April, and the following statement win ex-
hibit clearly the astonishingy rapid recovery
from that great disaster:
Valuation 1866 1867
Real Estate A TX oQl I'm q IA QSf K0n
Personal Estate 13 7o4,4i ii 362 ,345
Total go 2s,OOl,115 2s,sls,s45
1t would appear from these figures. that
the decrease in consequence of the fire is only
so9o,2'o, but in this case as in many others
appearances are deceitful. In the first place,
there is included in the personal estate taxed
this year ss17,3s5 representing shares in the
national banks owned by non-residents and
not included in the valuation of the city here
tofore. Deducting this item we find decrease
OF 81 ,5O7 ,655, which must be charged directly
to the fire. The recovery in the valuation OF
real estate is genuine and permanent; all
last tall and winter and spring the work of
rebuilding went on apace but the money for
labor and materials, say two millions, must
also be charged to the account of the fire.
These two millions have been partly raised by
the sale of United States securities, partly
borrowed from the savings banks, partly bor-
rowed abroad. The total drawback on ac-
count of the fire amounts then to three mil
lions and half, without considering the nat
ural increase of the valuation which would
have been about million more.
While the actual loss is SO great the fact
remains unchanged that the tangible, taxable
property of the city was last April only few
thousands less than year before. This fact.
coupled with the excellent management o
the debt, places the finances of the city on a
solid and every way satisfactory footing.