The Portland daily press., 1879-11-22
WIsCASSET'S DEBT.
The Bondholders Inclined to Accept so
49, Cents on the Dollar.

An informal meeting of the bondholders of
OF the town of Wiscasset in this state was held
in Boston Thursday. The call for the meeting
was addressed to all the towns bondholders,
but the most of those who were present are
residents of Boston and vicinity The fnan-
cial condition of the town is as follows: The
bonded debt amounts to 1886 900, and, as now
arranged, is payable as follows: $l0,250 each
year from 1880 to 1884 inclusive; $14,250 in
1885; $10,250 each year from 1886 to 1888, in
elusive; $15,250 in 1889; S4250 in 1890; $780,
$50 in 1891: $50 in 1892; $3.50 each year
from 1893 to 1892 inclusive; $43,500 in 1902.
Besides the above, there is a floating debt, con-
sisting of notes overdue, unpaid orders and
miscellaneous items, amounting to $25, 24l.5l,
making the total debt, $261 ,S4l.51. In 1865
the valuation of the town was $769,153, but
two disastrous fires, one in 1866 and one in
1870, have since destroyed the principal part
of the business portion of the place, and last
year the valuation was only $573,S99. In 1867
the town debt, resulting chiefly from the war,
was about $4,000 In the same year the citi-
Zens of the town, hoping to increase the bust
ness and restore prosperity, embarked, in
connection with the neighboriag cities and
towns, in the Knox and Lincoln Railroad, by
subscription of $4,000 to its capital stock and
a loan Of the credit of the town to the amount
of $85,000, issuing bonds for these amounts. In
1870 q second call for $31 800, and, in 1871.
third call for $43500 were made for further
aid to the road, which sums it was deemed
necessary to furnish in order to save the
amount previously invested; and these sums
were accordingly furnished by the issue of
more bonds. The railroad failed to pay the
full amount of interest on the bonds thus
issued, and the citizens of the town, hoping for
an increase of the earnings of the road, and
then already feeling the burden of heavy tax
alton, adopted the method of borrowing money
to pay the defaulted interest, and this process
continued from 1878 to 1877, inclusive;
and, in 1873, the amount thus called for was
raised by taxation, the whole amount thus paid
to the present time being S31 ,457.
In these and other ways a debt has accumu-
lated until 1T now amounts to the S26l ,o4l
above stated, all, excepting $2S39, bearing
interest at 6 per cent. per annun. The pay
inent by direct taxation in 97o of the defaulted
interest on the railroad aid bonds, interest on
municipal debt, and $1,000 of the principal,
with ordinary town charges, made the rate of
taxation At $40 mills on 81. The slectmen of
the town say that the valuation has heretofore
been kept up to the highest possible point, that
a fair valuation to-day would probably not
much exceed 100000, and that, ultimately,
nothing will be left but the impoverished
real estate as security for the debt, which
may be regarded as amounting to
fully fifty per cent. of the valuation.
On the superstition that the interest is to be
paid tIess what may be expected from the rail
ROAD and 5000 per annum of the principal,
witt ordinary town charges at the lowest posi-
bic rate, the taxes will be at the rate of about
81 per cent. per annun1.
The seectmen say that it is impossible for
the citizens of a town possessing no special adj
vaatages for making money to pay taxes at the
rate of 81 per cent. for any considerable num-
Der Of years; and though the interest would be
less as the debt diminished, yet they believe
that, under such taxation, the valuation would
be reduced much more rapidly than the amount
OF interest, and that the taxation rate would
increase rather than diminish. The expert
ence of the past year has, they say demonStra-
ted the impossibility of collecting even the ex-
cessively high rate of that year any longer.
The most stringent measures for the collection
of taxes were adopted Various parcels of real
estate We're sold for taxes, ami portion OF
them were bid IN by the town for want of pur-
chasers, and only two Of the whole number
have been redeemed. In other cases, personal
property was distrained and sold: citizens were
arrested and ilnprisoned; small farmers sold or
mortgaged their only remaining live stock,
while others were obliged to strip the wood
and timber from their farms.
The proposition of the town, to pay 80 cents
on S1-paynent to be made in municipal bonds
of the town in lieu of the bonds now held, the
bonds to bear per cent. interest, and the in
terest to be paid annually or semi-annually-
was discussed at the meeting and considered at
considerable length, and the prevailing senti-
ment seemed to be that the proposition of the
town should be accepted. and that measures
ought to be taken to insure concert of action in
the matter on the part of all the creditors.
fgca Al fam frn1G If IN
town, was present at the meeting, and he and
another Maine party, who was present at the
meeting, are to see that the official authorities
of Wiscasset also take whatever action may be
necessary on their part to bring about the
prompt adjustment of the towns affairs.