The Republican journal., 1881-02-17
The City Debt,


concerning the city bonds, recently pre-
scented to the Legislature, have been mis-
apprehended here and elsewhere. This
is not a step toward reputation; and
majority of the petitioners are decidedly
opposed to doing anything that can in
juriously affect the credit of the city. The
petition is almost Identical in language
with one sent to the legislature from
Rockland last year, and which was acted
upon tavorably. 1t is simply a business
like precaution, as we shall show. OF our
bonded indebtedness $1,000 of the war
debt becomes due Feb. Is, 1854, and
S23,200 April 5, 1885. In the latter year
STA 500 of railroad bonds become due
This Indebtedness, the greater portion of
it at least, must be met by the issue Of new
bonds; and the holders of these bonds,
we have reason to believe, will cheertully
accept a new issue at a lower rate of in
terest. The petition sent to the Legs-
lature asks for the passage of an act to
enable the city of Belfast to refund its
bonded debt, at or before maturity, and
to issue new bonds for that purpose pay
able at such time and in such manner as
may be determined 10y a majority of the
City Council of Belfast As above stated
50 900 of the bonded debt is due in 1884,
and Sl37 700 in 1885. The next session
Of the Legislature does not meet until
1893, and the wisdom of securing author
ity now to take such action us may be
necessary for the interests Of all concern
ed must therefore be apparent. Thus
empowered the City Government will be
able not only to refund the bonds which
fall due in ISS4-5 but to refund these or
other bonds before their maturity, at
lower rate Of interest, with the consent
Of their holders. While it is believed
a satisfactory arrangement of this nature
may he arrived at, and which would re-
lieye somewhat the burden of taxation.
there is no thought Of compulsion in the
matter Investors in this class of secur-
ties prefer long bond at low interest to
short bonds at higher rates. Govern
ment four per cent. bonds command a
premium and there is no reason why
our city bonds, with the railroad lease as
security to say nothing Of the personal
property, which under New England doc
trines may be held for municipal debts,
should not be equally desirable.
A correspondent of the kennebec Jour
nal who writes over the signature Of
"Bondholder," not only misapprehends
the nature of the legislation asked for,
but msrepresents the state of the case
nually from the Belfast and Moosehead
Lake Railroad, under a fifty years lease
to the Maine Central, the sum of 1896
600" and that cher interest charge on
the debt contracted on account Of said
road, is only q per cent, Oh something
over 500, 600 about $42 900" In
the succeeding issue of the kennebec
Journal, a Taxpayer of Belfast" sets
"Bondholder' right as follows "The
city of Belfast, for the past ten years, has
raised by taxation annually, sums from
S42,O 200 to S29, 600 (never less than the
latter sum- to make up the interest on
these bonds-in all sum of about S4OO,
600 raised 10y taxation for this purpose
S;'6, 900 is the whole sum for yearly rent
al, received by the B. and NJ l.. r. II.
from the NJ. c. r. r. There is a first
mortgage on the b. and NJ L. r. r., in
which the city has no interest, and there
are other preferred claims"