The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1867-12-26
KENosHA CITY DEBT.

the hammer, would be insufficient topay, the
assessed value of the city being but 1854, roo; |
the conclusion therefore, is irresistible that ID
is physically impossible 1or us to pay such
debt as q consequence we are as q city hope
lessly bankrupt, and without relief financially
ruined.
It is unnecessary to tell how this pa
per was issued; useless to blame the want OF
foresight exhibited by those having IN charge
the interests of the city for the time beng, or
the expressed inability of those now having
in charge those interests to devise remedy
for the consequences OF sueh want oil sagacl-
ty; idle TO think the holders OF this paper Will
always refrain from pressing their Chains be-
fore courts whose DECISIONS so far, are almost
uniformly favorable to thems nd Qfwhom
judgment may be had for the asking; madness
to continue unmoved in spite OF the ''oft re-
peated warning", and make no effort to avoid
the coming evil, thinking that Limitation stat,
utes, or the complex character of the legal
machinery Of collection ofthe State and FEEDER
al governments will settle without affecting
our responsibility in the premises, what 1t is
our duty TO settle upon such terms and IN
snch spirit, that the future of our city If we
shall be prosperous (as it may beg shall be
without shame, or misgiving for the past.
Two propositions have been urged and put
forward by leading citizens, outside OF the
corporate authority, for the arrangement OF the
debt, or at least, gaining substantial control
fit. AaG sH sL,
The first proposition is one similar to that
adopted at Racine, and is substantially, a Sc
| cret association composed of citizens OF the
locality interested uniting their means and
| finds in the purchase on such portions oflthe
debt as can be bought up, holding the same
when bought oStensibly for the benefit OF the
| embarrassed locality, and acting as a check
| upon the determination of other holders to
put their claims in suit; with the idea of an
/ ultimate resort to the law for judgment upon
the claims purchased by them, which shall
1 substantially bar the claims of other holders
or at least compel them to sell to the associ-
alton at reduced valuation, and we are
bound to suppose, with an eye to ultimate re-
endorsement from the great mass of citizens
for the actual investment thus made in good
faith for their benefit
To this plan may be urged the following OBJ
)jectionsi-
1st The secret feature of the association rem
ders it liable to distrust.
End That as fast as any portion OF the debt
is purchased that fact will leak out, and Will
render it impossible to purchase the whole, or
even a large part OF it,
Srd That sooner or later it involves the
bringing to Judgment of the great body the
citizens of the embarrassed locality, after long
delay, and no small degree of uncertainty as
to the ultimate result, and, I
4th That in the meantime as no interest can
be paid upon any portion Of the debt for obvi-
} o us reasons, the embarrassed locality is endu-
ring all the reproach ofsubstantial reputation;
is subject to harrassing litigation and expense;
and is compelled to forego for an indefinite
period the advantages resulting from an ex-
emption from pressing debt, and knowl-
edge of ultimate ability to pay.
: The second propositions not new or untried
so far as individuals are concerned, but is q
remedy resorted to by all commercial nations
or people having dealings, which render pecu-
mary failure and embarrassment, not an nm
common: occurrence. 1t is not going into
bankruptcy, but is compromise with credi-
tors, but for which voluntary or involuntary
bankruptcy would take place. Its this:-
The corporation or municipality finding it.
self unable to pay any portion ofits maturing
ut-standing indebtedness, and believing
that justice, equity and good faith require
them to pay as much as they can, by its Off.
GERS and agents shall admit such inability To
pay in full, and shall offer to pay such pro
portion of its obligations as it shall be able,
either in cash, or in such paper as shall be ap'
lproved by the holders of the indebtedness
upon fair showing of its population and re-
lsources. +stt ss -. t .Hr
4 A confidential statement Of the comparative
population aud resources Of the town having
been made out, and statement of the ordin.
airy annual taxes and charges paid by such
corporation for the maintenance of the Ma
tional, State and local government appended
thereto. Such paper to contain the form
, of an agreement on the part of the holder OF
the bond, judgment, or other security, thathe
cipal payable in cash or other securities las
she or they will take such reduced sum for prin.
! named, if such sum shall be paid, or security
rendered within'a certain period to be therein
stated, and such paper, TO be offered for the
} consideration, of every creditor, by the agent
of the corporation, duly appointed.
The corporate authority shall in the next
place with the concurrence of the great body
of resident citizens unanimously petition the
! Legislature to grant the necessary authority fol
an issue of Bonds sufficient in amount TO COW
er the entire Indebtedness of the municipality
outstanding and unliquidated at the contem-
7 plated reduction which bonds shall bear an
interest of Seven ~ per cent and be payable
principal and interest in the City of New orll
: such bonds to be drawn up with care and de-
: liberation, and submitted for the approval OF
: three OF the largest holders of such indebted
ness proposed to be thus substituted and su-
perseded, before they are issued, whichbonds
shall be duly numbered and registered, and a
transfer book, orrecord ofdeliyery or assign
g ment shall be kept, by the Treasurer or other
person designated by the authorities to have
charge of the business, who shall give bonds
for the faithful discharge of his trust, to be
delivered by such person upon the order of the
Treasurer upon the surrender fthe evidences
of debt for which they are to be exchanged, or
upon payment to him of their par value by
persons having the interests Of the corpora
ton in view, and who are ready TO advance
funds for the purpose of accomplishing the
object aimed at,viz: the extinction of the debt
in Its present form, by the substitution of a
new debt of less amount but better secured
They shall further pray the Legislature to
enact that the council or other authority, lev
ying taxes shall annually levy tax upon the
real and personal property of the burdened To-
cality sufficient in amount to pay the accru-
| ing interest upon such bonds at maturity and
to pay off and take up such portions OF the
| principal as shall extinguish the debt and
absorb the entire issue of bonds within twenty
years, or sooner, without requiring a vote Of
| the people thereon, at any time after the final
adoption of the measure by the substantial
| concurrence of the great body of the citizens
| Such bonds, issued for the purpose of extri-
eating corporation from almost ineXtricable
embarrassment,g up with care, deIiberation
and caution and made to pass the scrutiny OF
| those interested in receiving them, with a
guaranty of ample provision for the payment
| OF both interest and principal, could not fail
| to inspire confidence, ard it is believed that
| those persons who are anxious to relieve our
| city from the burden now carried and in pros
| pect, and have said they were willing to buy
| up the present debt so much of it as they
could at random, would not fear to buy the
new security, and paying their money for the
| same, the proceeds could be appropriated to
paying for old bonds or that portion of the
debt the holders of which might be unwilling
to take the new security. While many of the
Ito u.s. foreign holders of our securities might
be induced to accept security of such I'M
questionable character representingsour abili-
ty to pay, in lieu of that they now hold which
Is in many respects questionable, and in
amount in the aggregate absolutely beyond
our abilit y to pay.
For the carrying out of the offer to be thus
made by the city authority, a person of good
character and address and possessing the need
ed qualifications should be selected and com
missioned to take a copy of such detailed
statement of resources &c. and form ofagree
ment Impossible to the holders of the Seen.
rites, where known in person, and to use his
1e. cndeaV rs 10 Al CT Compromise OF the
claim OF sGcl holders upon terms acceptable
TO the City, making it his sole business until
the object is accomplished, or he shall be able
to report after trial his inability to effect such
settlement, or to obtain such proposition.
Endeavoring to obtain the agreement Of such