The herald., 1897-08-16
FINANcIERING IN ARIZONA
THE REVENUES ARE RUNNING
BEHIND
An Immense Floating Debt in Terri
torial Warrants Drawing the
Highest Interest


Phoenix and the Indications are that
the boards session will be the longest
known to the body since the territorial
organization. Before the members Is
problem that has vexed mankind ever
since Eden's gateway was barred. They
are trying to find some way to make
both ends meet.
For Arizona is not in very thrifty
condition financially. To be sure, ter
ritorial warrants are at par, but then
they bring 10 per cent per annum inter-
est. Even with such interest, however,
it is doubtful If they long hold to the
par line, for they are increasing at the
rate of something over $4,000 year.
Arizonas bonded debt stands at $727,
600. Most of this has been refunded and
bears 5 per cent interest Some of it
bears per cent, including $40 900 in bonds
issued for the building Of the territorial
insane asylum, and now two years over
due. On top the bonded debt comes the
sum of $3.50, 900 or more due in 10 per cent
warrants.
STARTED WRONG
zona ever got into debt. This cannot now
be remeded. The second is that the ter
ritory's revenue is not sufficient to meet
the expenses Of government by fully
$40, 900, to which must be added the $25, 900
interest on warrants that would never
have been issued had the revenues been
kept up to the expenditures or the ex-
penditures down to the revenue.
A number of years ago, during the
governorship of Lewis Wolfly bill was
sent through congress permitting Ari-
zona to fund her territorial and county
Indebtedness and providing for loan
commission consisting of the governor
the secretary Of territory and the terri
torial treasurer. During the terms of
Governors Wolf1y and Murphy such
county and municipal bonds were fioa ted
at per cent, to run fifty years, to the
amount Of $1,374 800, in addition to the
territory's three-quarters Of million
Later arrangements were made for the
issuance of $150 900 additional territorial
bonds, "to clear off all outstanding in
debtedness." The bonds were signed and
were transmitted to London, where a
purchaser was believed to be ready for
them But the London man would
not touch them, and back they
came to New York. at an expense
for expressage of $500. Since that
time the necessary amount for the clear
ing Of outstanding indebtedness has in
creased almost as much again.
The fact is that for six years the ter
ritorial loan commission has not done
thing, save only to expend $4,000 Of the
peoples money under the head Of ex-
pense.
THE GOVERNOR ACTIVE
I called on Governor McCord today
and talked territorial finance with him.
The governor Is fully alive to the in
correctness Of the situation and it was
through his recommendation that the
board of equalization was set on the
track Of added revenue.
"It's condition we have to remedy in
some way" said the executive. II can
not see how the expense can be materi-
ally decreased, but we can raise more
revenue. How this is to be- done is the
business of the board of equalization. 1t
is possible there might be change in
the railway assessments. On personal
property in this town alone am sure
unassessed. would dislike to see the
rate of taxation generally raised; it is
burdensome enough at present. But the
board has agreed that before adjourn
ment some action must be taken so
that the territory shall pay as it goes"
SHRINKING VALUATIONS
The governor laid much stress on the
fact that the assessment roll of the ter
ritory had been decreasing for years.
Taking down some reports, he showed
where the assessed valuation in 1883 was
$36, OOO GOO, in 1898, $2S, 900, ,O0O and in 1894,
$27, 100000. This year it is $29 900, 900. All
the territorial institutions save the peni-
tentiary, are supported by a special tax
of so many cents on the hundred dollars
of valuation. Thus as the valuation
shrunk the revenues of the institutions
shrunk, till nearly all were compelled to
draw upon the overburdened general
fund. This, too, despite the fact that the
territory is gaining in population and
that all the public institutions must do
double the service required of them fif-
teen years ago.
l do not see how the board can well
raise the rates of taxation or the valua-
ton of lands and live stock. In some
counties Of Arizona the rate is as high
as Az per cent. In Maricopa, the
wealthiest. it is 2.40 or more. Cattle
and horses are assessed at the market
price or more, and the only refuge the
grower has is to lie about the number he
has on the range. AS showing that
this is done. the board of supervisors
of Yavapai county has made the aston
ishng discovery that more cattle had
been shipped last year from their coun-
ty than had in all been returned to the
assessor The railroad highest assessed
is the Southern Pacific, at $4,000 a mile.
These assessments are likely to be
raised.
PHILOSOPHY UPSET
One point there is that appears decid-
ly queer in the whole business. Arizona
is mining country, above all else, yet
the mines pay very little indeed toward
the governments support For instance,
the United Verde mine at Jerome, own
ed by Clark of Montana, is rated worth
$50, 000 900, million more than the total
valuation of the territory in which it
is situated This is a denial of the old
physical axiom that a part may not be
greater than the whole, Yavapai coun-
ty, in which this wonderful mine is sit
uated, has a total valuation of only 3d.
100000. 1t is interesting to contemplate