Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1886-10-09
STATE FINANCES.
sUCCINCT STATEMENT OF OUR
FISCAL LAFFAIRS-THE VAR
IOUS FUNDS, TAXABLE
WEALTH, ETC.
An Absolutely Reliable History of
the Railroad and Other Indebt-
edness of tho State.

An Absolutely Reliable History o.
the Railroad and Other Indebt-
edness of the State.
High License System.
Major John L. Clarke, chief clerk il
the Office of the state auditor, furnishes
the following valuable letter:
| STATE OF Missouri, }
OFFICE OF STATE AUDITOR, :
CRY OF JEFFERSON, Sept. II, 's6. }
10 Hon. Charles S. Bryan, CasScille,
| Missouri:
| DEAR SIR:-I am In receipt of your
letter of the Sth inst, requesting GER
tain information regarding the fiscal
affairs of Missouri, the condition CT
the state, county and township school
funds, the taxable wealth of the state,
etc., to which have the honor to SUBJ
init the following reply:
On January l, 1886, our total bonded
debt amounted to $ll, ,306, 900. Since
January l., bonds amounting to $717,-
900 have been redeemed. Provision
has also been made for the retirement
of bonds maturing Move aber 10, 1886,
and amounting to 2,00U, SO that on
January l, 1887, the bonded debt will
be reduced to SIC, 1927 900.
Within the year 1886, six per cent.
state bonds aggregating 81, $50 900 will
have been funded with 81 per cent 5-20
bonds, sold at a premium SO large as to
virtually reduce the interest rate to
three per cent. per annum. In 1887 six
per cent. bonds, amounting to $3'720,-
900 will mature. In 1883, bonds az
gregating 1882 900 also mature. The
surplus revenue in these years will ell
able the fund commissioners to redeem
at least 81 ,652 900 of these bonds.
Thus, in the years 1886, 1887 and 1888,
bOuds amounting to 81, ,43l 900 will be
redeemed, while Sc, $50 900 six per
cent. bonds will have been funded into
like amount of 81 per cents. This
large reduction of interest will SO in
crease our surplus revenue as to insure
the speedy redemption of the entire
debt. If extravagant legislation is
avoided and the present rate OF state
taxation maintained, the bonded debt
of Missouri will be wholly extinguish-
ed on or before the expiration of ten
years from this date.
Missourians have just cause to be
proud OF the credit and standing OF
their state abroad as evinced in the sale
OF her 81 per cent. bonds. On the 18th
of last January $3.50, 900 of these bonds
sold for 1862 ,538 SO, or at premium
OF $12,538 90, while another lot of
100000 sold August II, for S719,-
22S 81, or at premium of 1922 81.
Contrasted with the value OF Mis-
souri, bonds but few years ago, this
result is all the more gratifying. In
1870 six per cent. Missouri bonds were
worth only 81 cents on the dollar, and
that without reference to date Of ma
turity. In 1871 they sold as high as
S93 cents. In 1873 the fund commits
sioners sold bonds at 921 cents. In 1875
at 90. % per cent. In 1876 at $lO3 90.
ln 1879 the market value of bonds hav-
ing ten years to run was 1893. In 1881
they were quoted at ITO In 1882 they
were worth 1904. In 1SS4-5 six
per cent. Missouri bond having ten
years to run was worth 1851 In Au-
gust, 1886, 100000 in 81 per cent. 5-2O
bonds sold for $719,223 81. as before
stated. On the 1st day of January,
1868, the bonded debt amounted TO
323 3,215, 900. On January l, 1871, to
$2O 1889 900. January l, 1873, it ag-
gregated $21 ,76S,OOO. including S3,
OOO, 200 bonds issued to the Hannibal &
st. Joseph railroad company and school
fund certificate of indebtedness for
$4,000
You ask me to state the amount of
bonds issued by the state to aid in con-
structing railroads. when said rail-
road companies defaulted in the pay
ment of their interest and the amount
realized by the state Aom the sale of
roads to which the state had loaned its
credit. In reply, permit me to say that
bonds amounting to 1923, ,701 900 were
issued to aid in the construction of
railroads as follows:
Pacific railroad. 81, ,OOO. 900
Pacific railrOad-southwest branch. 4,hOO, 900
North Missouri railroad ...... 4.35O, 200
st. LOUIS h Iron Mountain railroad. 8, 30, 900
Hannibal 4 st. Joseph railroad -. 3.O0O,COO
Cairo 4 Fulton railroad. ........... 65O,OOO
Platte county railroad. ....... 100000
Total ................. S23. FOL 900
The North Missouri and st. Louis
and Iron Mountain railroad companies
defaulted In payment {, interest due
January /, 1859. The Pacific and
Cairo and Fulton railroad companies
January l 5, 1860. The southwest branch
and Platte county July l, 1861.
The whole amount realized from the
sale of these railroads, including inter-
est paid into the state treasury by each
company between the time when it be.
came delinquent and the date of sale.
was So, 6,l3l ,496. This statement does
10 hal e.
railroad, as that company paid in full |
the face value of its bonds or $4,000
600, but it does include all the other |
roads named.
The Pacific railroad was sold to the |
Pacific railroad company by authority
OF all act OF the general assembly ap- |
proved March 81, 1868, for the sum of
50 100000, the amount specified in the
act. Under an act approved March II,
1868, the state released its lien upon
the North Missouri railroad, to Henry
L. Blow, john F. Roe, Gerard Il
Allen, John FL. Beach, Solon Humph-
reys, Robert Lenox Kennedy and their
associates tor the SUN of 100000.
On the 18th of November, 1866, the
St. Louis Il Iron Mountain and Cairo
Fulton railroads were sold by com
hissloners appointed by the governor
IS provided i'll an act of the general as
'embly approved March 10, 1866. John
logel, Samuel Simmons, Joseph G..
Read and A. j. Mackay became the
purchasers for the sum OF 5000, 900
he st. Louis and Iron Mountain bring
ng $3.50, 900, and the Cairo & Fulton
s35O,OOo. These gentlemen paid into
he state treasury January Z, 1867, in
bonds and coupons of the state, the
'um OF 1925, 200, that sum being the
irst payment required in accordance
With the terms OF sale. Subsequently
lessrs Fogel, Simmons. Read and
Mackey sold the roads to Hon. Thomas
Allen.
BY an act approved March Il. 1868,
he title to the st. Louis s. Iron Noun
ain railroad was confirmed to Thomas
Allen, his heirs and assigns, and by the
'ighth section of said act the unpaid
balance of the purchase price due
rom Mr.. Allen was appropriated 10
he building OF railroad from Pilot
Anob to the state line of Arkansas, so :
hat all the state realized from the sale
II the st. Louis & Iron Mountain, and 5
jairo & Fulton roads was S225. 200
An act approved February 10. 1866.