The Indianapolis journal., 1899-01-30

bonds (mortgagee. Spanish Bank of the
Island of Cuba) S6,72l, 900; loan Of Oct. l9,
1892, fifty-year per cent (mOrtagee, Bank
of Commerce, United Railways and Regla
warehouses;, $2,SS2,O00; notes. $23. S3094;
floating debt for salaries materials, interest
and sinking fund. 81, 2,450 0647S; total, s12,076,-
S95.72. At the close of the year the floating
debt was still greater, and the total debt
was about Sl2, COO.
THE mortgage for the loan of 1889 to the
Spanish Bank is a document of 15S printed
pages, including the index. 1t recites that
in 1877 the city borrowed from the Spanish
Bank sum of money which, together with
its interest, amounted in 1889 to So III, ,653 %:
that the city was in arrears for interest and
sinking fund and that lawsuits had been
In progress 10 compel the city to pay; that
the city also desired funds to complete the
water works and for other purposes, and
II was agreed that the city should issue
s., 900 per cent fifty-year bonds to take
up the debts and finish the water works,
the expense of which was estimated at 81
$4,000. and that the balance of the loan,
which was taken at 80, be turned over to the
city Tor general purposes. There was
further provision that the loan might be in
creased to 100000, and this was done"
EVERYTHING MORTGAGED.
The city mortgaged the Canal de Vento,
the Aqueduct Ferdinand VII, the Christina
slaughter house. the Tacon and Colon mar
kets, with all their revenues and fifty houses
which it owns in various parts of the city.
The Canal de Vento alone is estimated at
$5,MO0O0 ''The $7OOOOOO loan." continued
Mr.. Conant, has been reduced by the op-
erations of a sinking fund to $6,721,0Oo. The
mortgage of 1891 for 100000, now reduced
to S2S82,O00. has the same property as Sc
curity. The arrears of interest and sinking
iund on the two loans is $S43, 800, which flg-
uTes as part of the floating debt. The float
ing debt arises from the failure to pay any
salaries. contractors or for materials during
practically the whole of 1898, and for some
debts of preceding years. The floating debt
iC YAriV faIiH oHIf off f1ay
nicipality, and should be funded. But be-
fore making new loan" Mr.. Conant says,
for paying these debts. a court of claims
should be formed before which all the mu-
nlcipaitys creditors should prove their
claims"
Mr.. Conant then argues: For city of the
size and wealth of Havana a debt of $l2,-
600 Is not excessive. Under q stable gov
errment and an honest administration of
the citys affairs, it is probable that its gen
eral credit is still sufficient to float an addi-
tional loan. How large such a loan could
be made, | am not prepared to say without
much further study The representatives OF
| Dady & Co. express their willingness to take
| pay for their sewerage and paving scheme
! say $l250o,000. in general city bonds, which
| would of course, be junior to the bonds al
| ready issued and they say that they have
| already made arrangements with tinanciers
| in New York TO dispose of these bonds as
| fast as received. This project alone would
| double the present city debt and add more
than one-third to its present annual ex-
pense."
REVENUES OF THE CITY.
The revenue of the city is derived entirely
from licenses and indirect taxation. Real
| estate is not directly taxed and the mu-
/ nicipality does not directly receive anything
| from real estate. The island imposes, among
! other taxes, a tax of II per cent. on the
| estimated rental of all houses in the city
and country, and it pays to the city of
| Havana IS per cent. of the amount thus
! collected on rents within the city limits.
| The island also levieS a tax on industry,
commerce and professions, and il pays to
| the city of Havana 70 per cent. of all such
| taxes collected within the city limits. The
| other sources of city revenues, which are
| directly collected by the municipality are
| the rent of houses owned by the munich
| pality, revenue of the water works, slaugh-
| ter-hOuse and markets, taxes on meat coke
! nesses of all kinds and various minor
| licenses The total estimated revenue for
! 1898 is slightly in excess of $2O00,OO0. The
| tax on meat amounted to $685. 900.
"amount to between IS and $40 a head on a
| population estimated at between 100000 and
| $4,000. In American cities 80 per cent. or
! more of the revenues is derived from a
! direct tax on the assessed value of real
! estate, including vacant property. in New
! York the revenue IS about $2S per head. In
| Boston it is about $40, in Philadelphia about
| SIS, in Chicago about $12 per head"
Crhese figures are approximate only, Mr..
| Conant says, and were based on census
| statistics of 1S90) New York is, of course,
| a city of exceptional wealth, and while the
revenue per head is large the taxation in
| proportion to the true value of property is
| probably less than in any city in the cOun-
| try. 1 am inclined to think, although
! further study might modify this opinion,
that the wealth of Havana is such that a
| judicious system of taxation would yield a
| revenue of $l5 per head or upward of $780,
| 000 and this if honestly and judiciously
! collected and expended would probably be
! twice the actual net revenue now enjoyed
! by the city. The collection of taxes of all
| kinds was farmed out on basis of per
! cent. commission for collection"
! General Ludlow has been Informed by
! others that about one-half the city's $2,0O0-
coo has been going to the Bank of Spain in
| Cuba and the Bank of Commerce in interest
on bonds interest on floating debt, per-
! centages in discounting notes and revenues,
and in paying for collection of taxes. OF
| the remainder, only $19.9l4 was spent. on the
| fire department, and $96,546 on schools.