The Republican journal. [volume] (Belfast, Me.) 1829-current, 1883-05-24

The city of Helena, Arkansas, will probably
succeed in extricatne itself from an apparently
hopeless condition by an amicable arrangement
with its creditors. Thirteen years ago the peo-
PIE of the city were induced to subscribe Sl50.-
600 each for two railroads-the Arkansas Cen
tral and the Iron Mountain and Helena. In or
der to secure the bonds the speedy construction
of the roads was promised: but now thirteen
years after these promises were made, the Cen
tral has only been built half the distance and
the iron Mountain has but Just formed connec-
ton with the st. Louis, Iron Mountain and
Southern instead of having been completed a
dozen years ago, as promised. Helena has,
therefore. reapcd none of the advantages
which might have accrued from these railroad
connections, while $500, 600 have been added to
her liabilities. which amount to S495O00, the
outstanding bonds bearing six and eight per
cent. interest. The total valuation of property
i'll Helena is is follows:
PERSONAL property Observation-Disclosures 260, Sol
Real estate. NEUTRALITY-SUSPICIOUS. 70G,910
= = 49,
These figures show how impossible it is for
the city to pay what it owes, but they do not
show the darkest part of the picture. There
has been a reduction in the value of all kinds of
property since 1872 Of about - per cent, and
this decrease cannot be charged to underyalua-
ton, for this years assessment is on actual val
ues. and it is said that the property could be
bought for cash at the assessed value. 1t has
been computed that to pay what is due this
year would require an assessment of seventeen
and one-thrd per cent; State and county tax
added would run the assessment up to twenty
per cent. for this year. Then, if this were paid
it would require a tax Of four cents on the dol
lar afterward to meet the interest, which. with
the county and State tax, would make total
Of >iN and Il half per cent. simply for the pay
ment OF interest, making no provision for the
principal and leaving nothing for current ex-
pense> of the year
The people of Helena were determined to get
out Of their difficulty, and in an honorable man
ncr, and to that end a commission was created
authorized to make terms with the creditors
they propose to fund the entire debt now due,
Of whatever kind, at forty per cent; twenty
year bonds to be issued for the amount, in such
denominations as may suit the creditors; paya-
bic, principal and interest, in New York; the
new bonds to bear interest at three per cent
for the first ten years and four per cent. the
last ten, payable annually. The creditors have
agreed to settle at 80 cents on the dollar in 20
Year bonds at four per cent. interest for five
Years and six per cent thereafter and com
promise will urobahly no ptfactad
Eizebeth, New jersey, is in an equally bad
plight. and with less hope of relief. Her debt
Is due to eNtrayagant expenditures on public
improvements. 1t is the fable of the frog and
OK over again. Elizebeth tried to be a big city,
but ii is only little city with big debt. The
plan of scaling the debt one half and issuing
new per cent. bonds was tried, and was salts
factory to the creditors, but the city was unable
to carry it out. Creditors represented bv the
Singer Manufacturing company have claims
against the city, to pay which would require an
assessment of 10 per cent. upon all taxable
property in Elzebeth. The Supreme Court
has decided that these creditors are entitled to
mandamuses to compel the city to levy this tax
and pay the debt. but the demand is withheld
for the present. What the end will be remains
10 be seen, but real estate in Elizebcth is not
very desirable property just now. The debt of
the city is about S1,000,00G, its payment appar-
antly hopeless, and the tax payers are dcfying
the creditors to do their worst.