St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-06-04

inflicted. During the past year extern
sive street franchises have been granted
on favorable terms to the city, The
bonded pledge of the street railway COM
pany under these franchises juStifies the
belief that Nov. of the present year
will witness the completion Of the
greater portion of the work contem-
plated, our citizens enjoying rapid tran
sit facilities from the center of the city
in all directions, and closer commune
cation with our enterprising sister city.
In the upper portion of the city, and
spanning the Mississippi river from
bluff to bluff, there has been completed
magnificent bridge. The necessity
for this up town bridge, and the various
features and conditions involved in its
erection. have been agitated and dis
cuSsed for the past twenty-five years.
Satisfied Of the needs of the district,
and of the eminent propriety OF the
project. | have succeeded in Secur-
ing to the city the structure indicated,
and after having devoted during the past
six years all my energies to its ac-
compliShment, Notwithstanding the adj
verse criticism heaped on me in regard
to it during the recent campaign, | re-
gard it as the greatest accomplishment
of nv life. and in coming years the peo-
pie of ST. Paul will appreciate the wis
dom of the undertaking. 1t opens up
for settlement the most beautiful resi-
dence portion of our city, and the ap-
preparation of $4,000 to open the road
to Mendoza, which will connect with
this bridge, gives us the most beautiful
and attractive driveway in the city, be-
sides lnSuring a commerce with this
city along the valley of the Minnesota
rivt xx,hi hoc
verified in another direction.
We approach the question of finances
with reluctance, for the reason that we
differ radically with our city comptroller
and, probably, with many others of our
citizens, as to the necessity and pro-
priety of a further issue of our city
bonds after the present year. Our
bonded debt at present, including city,
board of education and county bonds,
amounts to 50, 307. 800, and the further
issue, under the act of 1889, amounting
to S479, 900, being added to the present
Indebtedness, will make the total bonded
Indebtedness 50. 7S6, 800. There was prob
ably a necessity for the creation of
this large debt Oh account of our mar
velOus growth, demanding large OUTLAWS
to keep pace with it. In our opinion,
the necessity no longer exists; we are
fast approaching the danger point. and
ought to call halt. Our total valua-
ton of real and personal property
amounts to S127, 900 for 1889, and the re-
assessment for 1890 will, in our opinion,
reduce this sum greatly. 1t is true that
our bonds are largely sought after, and
command a handsome premium, and
will, no doubt, continue to, even though
our Indebtedness should be increased to
80 nm QnO | cIlhpoit fhic RI
you as business men: Ought a city of
100000 inhabitants and an assessment
roll of S125, 100000, increase its debt and
burden its taxpayers simply because its
credit is first-class, and will continue
so? We would therefore recommend to
the common council that our indebted
ness be not increased for at least two
years. At the end of that time we can
determine beyond question whether our
needs will neceSsitate further in
crease. We would also recommend an
annual tax levy of at least mill on the
dollar for the purpose Of gradually eX-
tinguishing our public debt. We sub
nit, and make part of this report, a
communication, dated May %, 1880.
from the city comptroller, addressed to
the mayor, on the financial outlook,
which reads as follows:
The present bonded Indebtedness of the
city of st. Paul amounts to S7,212, $40; that
of the board of education amounts to $780,
900; united total, $S,Q62, $40. The certif-
Gates of Indebtedness issued for special city
purposes amount to S248.000. The certifi-
Gates of Indebtedness of the board of educa-
ton, amounting to S55l, 1000, issued for
school expenses in anticipation of the col
lection of the taxes levied in advance for the
purpose, are not considered in any other light
than theoretical debts. The city certificates
are also theoretical debts. The city
assets are estimated conseryatively at So :
500, 900, and those of the board of education
at 81, 500, 900, making the united assets Sl2-
100000. There is 50, 100000 of the city
debt representing the purchase and extern
sion of the water works 60 10, 600 for the
purchase and s., $50, 600 for the extension).
II city having an assessed valuation of
S125, 000, 600 and whose bonded debt is So
100000, being per cent of said valuation,
without any assets, and bearing per cent in
terest annually, amounting to S43I, 300, pay
able semi-annually, promptly when due, is
considered in the financial world as having
a 'gilt-edged credit, then what must be the
financial standing of the city of st. Paul,
whose bond debt is 81, 212, $40, representing
shade under 8 per cent of the assessed yalu-
alton, and large assets, and whose annual in
terest is only 1888. 725. SIS, paid semi annual
ly, promptly when due (S110, 200 of which is
paid out of the revenue of the water works,
and the balance of S243, 525. 55 by direct tax
.
the debt of the city of st. Paul in
comparison equivalent to $3,378,9 36, with
out considering her assets a shade
over per cent of the assessed valuation,
which is conservatively estimated at about
80 per cent of the actual cash value, but in
considering the valuable assets, makes the
| debt practically nothing, and the financial
| standing of the city of st. Paul unsurpassed
| by any other city in the country; which is
| fully sustained by the large premium re-
| ceived upon the thirty-year per cent bonds
| recently sold. Considerable has been said
| relative to the debt Of cities exceeding the D
per cent limit of assessed valuation of prop
! erty This D per cent limit does not apply to
| St. Paul The natural impression that such
| limitation produces i'll the minds OF men il
| that cities are absolutely financially secure.
| but it is my opinion, after having given
| the matter most careful thought during my
| many years of Office, that such restriction
| will generally prove calamitous as it is
| natural for cities in selling bonds under 1t to
| initiate the aggregate assessed valuation OF
| property for the purpose of paying for jun
| kets representing no assets.
| Each issue of the bonded debt of st. Paul
| was issued directly under special legislation,
| being the true policy. placing complete
| check and limit upon the power to issue
| bonds or increase the debt, giving citizens
| and taxpayers the opportunity to consider
| debt of cities like st. Paul, limited in the
! power to issue by special legislative acts
| with the debt of the cities issuing bonds
| under the per cent limit of assessed valua
| ton of property, it will be readily noticed
| that the cities like st. Paul are blessed with
| large assets as an offset to their debt, while
the per cent limit are the reverse owing
| TO the habit of issuing bonds haphazardly,
| through their municipal governments with
| out giving citizens and taxpayers the oppor-
| tunity to consider the necessity, resulting in
excessive taxation and being compelled tc
| issue bonds under peculiar headings for the
| purpose of concealment in providing for the
| payment of portion of the current ex-
| penses, and other things of their city govern
| ments, which makes their taxation extremely
| distressing, particularly in times of business
| depression.
One of the very great mistaken views in
the financial management of most cities is in
the false practice of taxing property annu
| ally for sinking fund for the redemption OF
| bonds. No sinking fund can be created
| without distressing taxpayers; it means
more taxation necessarily, while at the same
| time no evidence can be produced whereby
| the bonded debts of such cities have been re-
deemed, but. on the contrary, have been in
| creased in much greater proportion
| than the debt of the city of st
Paul. whose true policy has been