Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1858-11-27

AZ well as by their Issuance Of scrip to pay
teachers. It it be true that the city
cannot paw the balance due on the coupons,
IS. T. No aud " my lord Mayer" should ad-
nit the fact and not seek TO dodge unpleasant
By screening themselves behind IN
arguments and assumptions. II the
debt Of the city has grown under the
Square and street graFeling extravag-
ancss, and under the terrorism Of the Fire De-
partment, at which every aspirant for the place
OF Mayor trembles, and for which be will vote
any absurd appropriations these facts have
baakruptsd the trsatury, say so, and let the
company sell out for enough to pay its
bonds, and let the city lsse the S350,OOO and
her citizens the 100000 they have paid. This
is the proper course. Fiat jHstitia Tudi
cOelam." J.
For ths Memphis Appeal
MEssRs. EDITeRs / see in yosr issue Of the
Path inst, a communicstio from " S. T. NJ pin
regard to the report Of the committee on the
MAYORS message ss to the obligations Of the
city to pay Interest on bonds guaranteed by mort
gage on the Navy Yard out Of sny revenue in
the city treasury.
differ with as. T. NJ. in most o. bis pO-
sitions as to the facts and policy. H. starts
out BY saying that in as much IS the donation
BY the general government of the property to
the city, vas for the use and benefit OF the
city, that The Mayor and Aldermen had no right
to use 1t for any purpose outside Of the city.
There are many things the city Of Memphis
could appropriate money to (f she had it, out
Of the corporation limits, that would be use
fol and very beneficial; in fact the whole Of our
large debt is for things out Of the corporation
(the various railroads) and if as. I. NJ"
would have reflected be must have seen that
the Board in 1857 acted in regard to this mat
ter with a view to public benefit and in ny
opinion with ample authority under the charles
to Justify them. The charter Of Memphis
granted to the city power to subscribe for
stock ia railroads and to issue bonds for its
payment, provided a majority Of votes cast at
the election we're in favor Of it. That portion
Of the charter has been amended, and as stated
by 5. T. NJ" no bonds can be issued by the
city Except for school purpOses) under the
charter as amended, and l cannot see that the
charter has been violated by the city guaran-
tying the payment Of principal and interest Of
railroad bonds. The city has not issued any
bonds Of her own, and as my friend stickles
about language, we will eonfns him to the ex-
act language Of the charter, which shows no
violation has been committed.
That The public may fully understand the
matter, and for the information Of S. I. M, |
will give some OF the reasons that influenced
the Board Of 1857 to mortgage the Navy Yard
properly to aid the Railroad Company. The
Company, at the time, was broke down, diff
e%ulties existed with the contractors, and with
out aid from come source, it was believed that
the city would lose the three hundred and
City thousand dollars paid in.
The conditions on which the charter was
granted, and aid promised by the Arksn-
sss Legislature, required the first division Of
the road to st. Francis river completed By the
LIST Of January, 1858; aud in case Of a failure,
the material, work, and all things belonging to
the company, was forfeited to the State Of Ar
kansas, (ths time was afterwards extended to
the LIST of December, 1851 which would have
caused the city to lose all she bad paid in
say three hundred and fifty thousand dollars
in case of a failure. To wait for our Lsgisla-
turs to meet, to have the charter amended, au-
thorizing the issuing Of bonds, would not give
sufi cient time to complete the road in and to
meet the emergency, 1t was determined, and
darnn1 rfght 20 aoais4 N. amman hr , r,ort
gage on the Navy Yard property, to secure the
bonds of the Railroad Company, thereby ma.
king the bonds available. That part Of the
city charter amended, prohibiting the Issuing Of
bonds, was passed by the Legislature and no
twenty men in the city Of Memphis know tn,
fact. 1t was the work Of a few men to pro
tset the public, and not the people themselves
that even asked for it. The same thing coulc
have been done in this case bat for the want o
time.
l give IL az my opinion, that a majority o
the people Of Memphis would have sanctiOns,
tue whsle transaction at the time, with thI
facts before them.
as. I. NJ" will not deEy to the Board o
Aldermen the right to sell all the property be
longing to the city. This being the case, i
was deemed, by the Board Of 1883, more to th.
interest Of the city to mortgage than to sell thI
property. Now, it is clear TO my nind, that i
a party has the right to sell a piece Of proper
ty, and can make a good title, hat be wOulu
have a perfect right to give a mortgage upon i
for a consideration satisfactory 70 bin. This
l think, settles the question, and shows e%lsarll
that the atty should feel legally bound, (ther
can Be DO doubt about the moral obligation,
ami carry out in good faith the contract.
There has been no question raised in the
Board Of Aldermen, in reference to the trans
action, except the one made BY the Mayor, a
to whether the interest on said bonds should b.
paid out Of asy revenue, except that derived
from the Navy Yard grounds. This, when tht
facts are known, will be seen to be a small
matter. The rents from the property ant
lands will amount IN The aggregate to twenty.
one thousand dollars. The amount Of interes
on bonds, per annum, Of this amount could b
collected promptly. The interest could be pair
without calling on the city for other means
a portion Of The rent will lot be paid promptly
and unless the city will pay the interest as /
natures, and bold the notes unpaid, the bond
must become worthless, and the credit Of tn
road 90 down, besides 1t would inhict a grea
wrong on the bond holder, who is an innocent
party. With these facts before the people o
Memphis, is there one other man in the city
exceRt as. 7. NJ" who would even intimate
the propriety Of repudiating the obligation th'
city is under TO the bond holder.
Break down the credit Of the read by re
fusing to pay interest on the bonds, and thu
city Of Memphis will receive more injury thar
can possibly result otherwise, and il as. T
M.'s1 views were carried out by the present
Board, greater injury would be done than ID
complained Of by him. 1t would prevent the
completion of the road, thereby giving to the
city At least the same benefits she is receiving
from other railroads, and, Of course, il the
bonds issued are made, through the city, worth
less, we could not expect 10 receive any benefit
from the bonds mentioned b. as. T. NJ" hay-
ing thirty years to run. They, too, would be
worthless; give credit to the road, assist In
setuhs dlo from AAebsass anu otHrA s0uiSeeJ
and above all, sustain he credit Of the bonds
BY paying the interest, and the city will not
only be benefited incidentally, but may, per-
hspss receive ia . few years interest from the
bonds. She is entitled TO suiieient to pay the
interest, leaving the revenue frOa the Navy
Yard clear, to be usedfOr Oiher purposes.