The Portland daily press., 1882-03-23

Net debt at date without deduction of
value of Portland & Ogdensburg rail-

ROAD STOCK ana DOnuS .So;ooA, fsOO
The gross debt has been reduced during the
past year $67 900 by the payment of that
amount of municipal bonds, and will be fur
Their reduced by transfer of unexpended bal
ances and surplus income at the close of the
financial year March 81, 1882, the exact amount
of which cannot be given until the books are
made up but will probably exceed $S,000
The city has no floating debt and the expen-
ditures of the past municipal year will not ex-
coed the appropriations
An examination of the above figures shows
that our municipal debt proper is 1896, 800. OF
the balance SO 600 is due to aid extended
to railroads, of which $751;, 900 is we'll secured
by mortgage and sinking fund of the Atlantic
& st. Lawrence railroad, and for the remain
der we hold as security Z, 143 shares OF the
stock, and 81 100000 of the mortgage bonds OF
the Portland & Ogdensburg railroad which are
first lien on the mountain section and a
second lien on that part of the road which ex-
tends from Portland to North Conway.
April /, 1871 the total debt of the city was
Sc ,050,200 In that year statute was passed
prohibiting the creation of any further munich
pal debt, not to be paid by taxes of the year in
which it is incurred, $50 long as the aggregate
debts and liabilities of said city exceed five per
cent" of its valuation. This prohibition, how
ever does not extend to any loan made for the
purpose of renewing any existing Indebtedness.
This act was passed on application OF the city
pursuant to the recommendation contained IN
the report of the commissioners appointed by
the city in 1876, to examine into the affairs OF
the Portland and Rochester and Portland and
Ogdensburg railroads This report first aroused
our citizens to a realization OF the unfortunate
financial condition into which we had drifted
and the necessity of a more economical admin
istration of our municipal affairs. A constitu-
tional amendment of like character applicable
to all towns and cities in the State was adopted
the same year. This legislation marks new
era in our municipal finances. Since 1877, our
municipal Indebtedness has been reduced 81,
429, 700, or at the rate of nearly 100000 year.
Our appropriations during the past year were
smaller than they have been for ten years, and
the rate of taxation was lower than at any time
since 1864, The stimulus which this lower
rate of taxation has already given to all our
municipal interests is a matter of common re-
mark, and demonstrates that the future growth
and prosperity of our city depends largely upon
still further reduction OF the burdens which
have SO long rested on property and capital in
our midst. I deem it OF paramount Importance
that the rate of taxation should be kept down,
and notwithstanding some additional and unex-
pected burdens are thrown upon us this year
that the rate should not be increased.
The State tax will be the same as last year
| the county tax will be nearly 900 less From
| the best Information have been able to obtain
as to the probable requirements OF the different
departments of the municipal government
| am of the opinion that no increased appro
| priations as whole will be required. Some,
| think, may be reduced.
| Nearly 100000 of our municipal debt falls
| due this year. This can be renewed at lower
rate of interest. A four per cent bond in oul
| present financial condition should sell at par
| We have no floating debt and can create none
We are bound to live within our income
| By the refusal of the Grand Trunk Railway
| to pay the interest on our bonds issued in ex.
tension of the original loan to the Atlantic &
| St. Lawrence railroad, an additional burden is
| thrown upon the city to the extent of the an
nual interest S47 ,220. The history OF this mat
| ter is as follows:
sued in aid of the Atlantic & st. Lawrence
railroad were about to fall due in 1868, it was
| found that the sinking funds established fol
| their payment would be insufficient for thai
| purpose and the railroad company requested
| the city to extend the balance of their obliga
| tions amounting to $7S7, 900 on the ground tina
| they were not able to meet the same. Legisla
tive sanction was sought and obtained, ant
| Oct. 81, 1868, an agreement was entered int
between the city and the Atlantic & st. Law
renee railroad company by which the cit!
agreed to extend for the term OF eighteen year
so much of its loan to the railroad as Woult
| not be paid by the sinking funds
The agreement further specifies that sit i
understood by the parties that the city will b.
obliged to issues its new bonds to an amour
equal to the unsatsfied balances of the com
| pany's obligations, and the cit.
engages that it will offer to the railroad com
pany the option of procuring the negotiation
of the same at reasonable times and at tn
most favorable rates to be obtained in tn
market and the parties to this instru
ment further agree that their intention is t
provide for the ultimate payment of all thu
balances of the company's obligations afore
said in the manner which shall be least bul
densome and most advantageous to the par
ties, but aoithoud pecugiaTy Toss or detrtnseat
the city IN any event.
In accordance with this agreement the cit
issued its bonds to the amount OF S7o7 ,0O
payable in eighteen years from their date wit
six per cent interest and negotiated them wit
the aid of the railroad company. Proyisio
was also made in the agreement for payment
by the railroad company of the semi-annus
interest due on the bonds, and for annual pay
ments into the sinking fund. These payment
were regularly made until 1884, when the con
pany rendered to the city the sum of 1923
431. 10, which with the amount in the sinkin
| fund was claimed to be in full of the unsati