New-York tribune., 1918-02-09
Fundamental Soundness

Fundamental Soundness
AS an indication of the fundamental
soundness Of Montreal bonds as Sc
curty, however, it needs only to be
pointed out that the oity's debt amounts
to only 100000, 1000. The fact that es-
sential conditions in Montreal warrant
financial stability and clean annual
balance sheet is all the more exasper-
ating to the city's leading fnanciers.
For two years now Montreal has
faced big deficit when the books were
made up for the year. Last year closed
with a deficit of $2,772,32o. AS an in
dication of what was responsible for
this state of affairs, the following
figures are significant. In 1910 the
total revenues of the city were s6,615,-
701, whereas the estimate for 1918 is
$13,6O0,oO0, under the following heads:
Realty and special taxes. .... $9,270, 900
water tax ......... ...... -. 1855, 900
BUSINESS tax ...... 4 ,O24,OOO
Revenue available in October. 1,483,OO
Tramway percentage .... 100000
Available in December 267 ,OOO
Hence it will be seen that the deficit
was not due to hesitation on the part
Of the civic administration to impose
taxes. Matters have reached an acute
stage because the city has a large loan
maturing next May.
Payroll Is Heavy
Against revenues stand two important
items-salaries and interest charges,
the latter amounting to $5,OOO,OO0. Sal
aries have almost doubled since 1912,
when they totalled s2,615.o0O. In 1916
they were s4.570Oo0 and in 1917 they
were $4.035,0 ,000 while the budget for
1913 calls for s4,103 900 for salaries.
The s5,000,00O for interest charges
refers to the debt of S1O2,O0O,O0O. In
1918. however, an additional $71O,943
has been asked for, to take care of in
terest charges and sinking funds. to
be devoted to special loans that must
be floated this year.
The City of Montreal had loan
falling due on December 81, 1917,
amounting to s6,9oO,OoO, for whch it
had no funds. Because the Dominion
government WAS floating the Victory
Loan in December, the Federal au-
Jhorlties refused to allow Montreal to
float a public loan in order to refund
the maturing obligation, with the re-
suit that the Bank of Montreal had to
take up the city's loan for that
amount, charging the city almost per
cent. (The rate Of interest was 6 per
cent and the selling price of the bonds
is 92.S5o The bank has the city's
note as security. The loan falls due
December I, 1922.
Montreal, however, faces further
obligation. This is a S6,1OO,00O loan
falling due on May /, 1918. Now that
the Victory Lean is out Of the way it is
not unlikely that the city will float a
public loan to cover both the loan
from the Bank Of Moitreal and the one
falling due IN May. The government
will undoubtedly grant this and similar
! important issues.
Business Men Disguised
Mayor Martin of Montreal is. in
genious, if not wise One method he
devised to save money, and which was
shelved when proposed, was to do away
with the fire department. of the city
| and substitute 2 policy of insurance
against fires.
Montreavs leading business men and
business organizations have become
thoroughly disgusted with the manner
IN which the city's affairs have been
handled. The BOARD of Trade, the
Citizens Association and other bodies
have made urgent apeals to the Quebec
Legislature that the administration of
the city might be taken out OF an
elected body's hands, and that a COM
mission might be appointed with a
general manager, with the provision
that it should be tie executive BODY
and an elected Council should be merely
further urged that the ward" method
Of electing councillors should be super
sedeA by a process Of selection of coun-
cellors for each ward by leading city
organizations.
Such steps would be drastic-even
lnlmical to democratic principles
Nevertheless, the best thinking men
Of Montreal do not trust the people to
elect the Council any longer, because if
the selection is referred to them thev
will doubtless return the same GROUP
of men who administer the affairs OF
the city now.
Anncxations Are Suggested
Another scheme is on foot by which
the present administration hopes to
lroiit. This involves the annexation
Of the Municipalities of Westmount
Outremont, Ferelun and Masonneuve
with Montreal proper. These mum.
cipalities are right in the heart Of
Montreal, and their status as separate
municipalities appears an anomaly
Nevertheless, at the proposal of annex.
alton, thunder of protest has arisen
from three of the four municipalities
! Westmount, Outremont and Verdur
have had efficient administrations and
their finances are in excellent shape
They do not propose to help carry The
burden accumulated by Montreal anG
Maisonneuve by maladministrat;on
The three municipalities comprise p
population of 10000 people. Maison.
neuve had a loan maturing recently
! which it failed to meet, with the rcsul,
that several banks had to come forward
and q E,,r