Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-05-18
THE LiTEsT MUNICIPAL BANKRuPrCl.

THE LiTEsT MUNICIPAL BANKRUPTCY.
The latest city hat finds itself unable to
pny lis debts is Helena, Arkansas. The MS
tory Of the case presents very much the usual
appearance. A bakers dozen Of years ago
the towns nilamcd imagination saw Itself
leap from 4 country village TO great metro
polls, and the municipality forthwith pro-
cccded TO bond itself for the purpose OF st.
curing additional railroad facilities. But the
town didn't jump so much in fact ms it did
in imagination, aud bankruptcy is tho result.
At tie time mcntioncd-thirtccn years ago
tic city subscribed $3.50 600 each for two
lailroads-,hc Arkansas Central and the
Iron Mountain aud Helena. The first named
road was to give them connection on the
west with Little Rock, the capital of the
State, while the lion Mountain was TO bind
them to st. Louis on the north. or course
the promises that secured the bonds were for
spccdy construction of both roads. How
the promises were kept is shown by The iact
that now thirteen years after they were
made, the Arkansas Central has only been
built half the distance, aud the Iron
Mountain has but Just formed cornec-
tlon with the st. Louis, Iron Mountain
and Southern. The railroads there
fore have no. helped tie town one
particle, and in every respect it is IA 'holsand
times wolsc eff than before their construc
ton The present liabilities of the city are
S42j 00O-the original amount having been
swcled by unpaid coupons-and the pros
poets OF a payment in full may be imagined
when it is known that the entire assessed
valuation of Helena, both real and personal
estate, is only 5000 Blu! even this does
not show the whole case. Onerous taxation
is reducing the value Of all kinds of prop
orty, and every year shows a large decrease
in the assessed valuation. 1t has been COM
putcd that to pay that part of the debt that
is due this year would require an assessment
of seventeen aud one-third per cent; State
and county tax added would run the assess
ment up TO twenty PER cent for this year
Then, if this were paid, it would require II
tax of four cents on the dollar stterward TO
meet the interest, which, with the county and
Slate tax, would make total of six and n
Lalf per cent simply for the payment of in
tcrest, making no provision for the principal
and leaving nothing for curren, expenses Of
the city.
The lesson taught by the experience Of He
.cna ia unfortunately no new one, as regards
municipalities and indeed in the last analy-
sis itresolvcs itself into the time honored
principle, Do not so beyond your means.
This State is not without similar municipal
expcriences-as witness some Of those un-
lucky towns which aided the Portland and
Ogdensburg railroad and the Harlem EXcn-
sion road. The lesson, i.oweyer,ia apparent
" one that will never be learned, for town
after town follows in the thorny read that
leads to bankruptcy and reputation with a
readiness and oheerfulness that arc indeed
surprising. Ii is on this account that the
failure is much to be regretted of that propos-
ed Constitutional amendment which forbade
towns to pledge their credit in aid of lsil-
rcads. That amendment was of thousand
times the value of all the rest combined but
the last Lcgislaturc-wbch was by no means
miracle of meteorological it and passed
only an amendment already provided for in
the Constitution and another in which not
single human being took The faintcst inter-
est.
But an other poin, IS enforced by these
constantly recurring municipal bankruptcies,
and that is the desirabilily and the necessity
of y return 10 the true theory of u municipal
ity-thst those who pay the taxes should
As an almost universal rule the majority
which decides in favor of bonding town is
made up of those who have no real property
within it, who pay only slight pol-tax, and
who have nothing directly at stake OF
course such people can joyously vote in
favor of bonding, for whatever may he the
ultimate result. it makes but sn inappreciablc
difference to them-not more than dollar
or two. But the property owners, whose
money is thus voted away, are the men who
have to endure the burden and the heat OF
the day, and the irresponsible chaps who
voted it have no responsibility and bear no
share in the financial consequences. Ihc fact
is, municipality ought TO be run just like
any joiut-stock entcrprisc-only those VI o
hold stock ought to Lave the privilege
of voting. To be sure, the other class pay a
poll-tax, but don't they get the full return of
their money in the schools and the fire and
police departments and so on, without also
claiming the right of voting away other peo-
pies money?