The Portland daily press., 1898-02-03
ANNEXATION.
TO the Editor of the Press:

4Ao VI tll0 tllu0Ad1lOhl6to 1t
now we'll under way, or at least it's pro
moters have been at work long enough
and have done enough claiming and de-
claiming to give the public pretty def
mite idea as to the nature OF the cam
paign they propose to conduct. or 1ts
High Priests and Soribes enough has al
ready been said, and in accordance with
the suggestion of the PRESS and PRO
gress," let us draw the kindly veil Of
charity over them all, and assume for the
future that sincerity hath abided with
them all from the beginning.
That they believe in the extravaganza
methods is very apparent. Elaborate
scenery and red lights. with considerable
shouting, and resorting to the popular
fads for advertising themselves. has char
acterized their efforts thus far. Some of
their methods employed to convince the
unsuspecting that all is going one way
are unique, to say the least, and many of
the statements 10 sde by them for the
purpose of convincing the unconvorted
might, If one was not disposed to be
charitable, seem to be intended to mis-
lead and deceive. But charity should
begin at home, 1t is said, so we purpose
to keep a stock on hand for either side.
The statement is frequently heard that
Portland is reducing her debt at the rate
of $780, 600 per year, made with the SEEM
ing intention Of giving the impression
that Portland is now actually reducing
her debt that amount each year from her
tax receipts and other ordinary income,
and that within few years Portland g
debt will be practically wiped out, and in
support of their assertion they tell us
that Portland's net debt in 1887 was
81, 933, 900, and in 1897 1t was 81 1865, 900, a
reduction Of 81 ZOO, 600 in ten years, or
$4,000 year. In truth, it has been
very appropriately remarked that figures
won't lie, but man can lie like the d.
with figures. The above figures look
we'll in print and sound we'll to the ear,
but when winnowed and the grain sepa-
rated from the cbaff, it will be found to
be like all the other annexation argu-
ments, mostly chaff.
What are the facts? Take the annual
reports of the city Of Portland for the
past ten years. In the net debt given In
the report for year 1886-S7 of $2, 933 200,
the. P. and o. stocks were not deducted
from the gross debt at all, which in re-
port of 1867 were estimated at 81, 17S, 900.
In 1887 the Gas stock was valued at
$S5 600, which is $780, 900 less than esti-
mated value in 1897. Nor had it th EN- o.
CURED to the city Fathers to estimate
city notes as assets, which makes differ
ence in the two methods of arriving at
the net debt of 200. So that in the
ten years mentioned the net debt was re-
duced by an expert system" of book
keeping and an increase in the estimate
of the value of her assets 81, 1853, 900, but
the actual reduction of her net debt from
her taxes and other income has been not
far from $3.50, 600, and some of the sources
from which she derived income to pay
even that much will not be open to her
for the future.
But the record of Portland's finances
for the past five years is even more sug-
gestive as to Portland's ability to cope
with her own financial question. March
81, 1899, her net debt was 81 1867, 600, and
March 31st, 1897, it is given as 81 1853, 700,
a decrease of sos, 000 or less than S22, 600
per year. and in the same time her gross
debt has decreased but $50, 900, Of $4,000
per year; and If the liabilities she had
then incurred by borrowing $50, 600 OF the
Fund, $40, 900 for land for park
schemes and 10000 for the fire boat and
widening of Oak street should be added,
all of which must be met by taxation in
the future, her gross debt has increased
in the past five years $50 900, and her net
debt S92, 600.
1t is generally admitted that, owing to
the fact that Portland does not possess
the borrowing power, since her gross debt
is so far above the five per cent. limit,
her finances have been q heavy burden
five years. and during that time she has
been straining every nerve to get within
the constitutional limit. But as matter
of fact her gross debt is now $725 900 above
the five per cent limit, and at the rate
she has reduced her gross debt for the
past five years, it will take her nearly
fifty years more before the borrowing
rower will be restored to her, unless she
disposes of some of her stock and applies
he proceeds in payment of her outstnnd-
ing bonds, when they come due. A
glance at her Table of Bonds printed in
her reports will show that not enough
como due if paid in that way to bring her
within the five per cent limit before 1907,
and though enough are optional after
1909, the probabilities are that she will
reserve her p. and O. stocks to meet the
fall due in 1907; so that the outlook for
Portland is ten years moro at least OF
nigh taxes and rigid economy.
Everyone on the inside of Portland's Il
nancial condition tells us that she cannot
meet her own needs, and that the idea OF
taking on Deering to increase the de-
mands upon her, is preposterous, one who
is in position to know Portland's hnan-
clal condition from Alpha to Omega, was
remarked to us only few days ago,
"Deering can do for herself in the next
ten years far more than Portland can do
for her."
Another trap set tor the unwar Is the
statement SO freely circulated that If Deer
ing had raised from taxation enough
money to meet her total expenditures for
this year, her tax rate would have been
S45 on $1,000 Such statements are evil
deptly made for the purpose of frighten-
ing people into believing that because
Deering has incurred some large expenses
for this year and next, that FER tax rate
is on the verge Of rise that will result
in the owners Of property in Deering
deciding their land outright to the city
rather than pay the taxes assessed thereon,
and feel like congratulating themselves
on the price they received for 1t.
We can scarcely believe any sano man