Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-01-18
THE CITY DEBT.
Meeting aftf-c Gus,rg:ittec - : =
Proposed A.SsT.

JEeesinx efthe saE-u:iftec - ~
Proposed H-SsT.
At two O'Clock Yesterday afternoon US
Joint committee Of Aldermen aud ci''Is"'
o. poIated 10 consider the best course 10 p"'
sue in the settlement. Of our city deol, uis'
At the City Hall. Mayor DonAhue' A'o1,
Kuhnen, Harding and Andersen, anu
Mes.rs. WooaSard, Stibolt and fnzh'ii
were present. The draf. ofa bill prepared
by Judge Dillon, D. s. True, E,q., ana
members OF the committee, was presence
and considered. 1t 10 AZ follows:
80 s,t 20 enable municipal and public cor.
porstlons 20 SETTLE adjust aud compound the1,
| Indebtedness, and to provide for the issu. y.
| new bonds b, the levy OF specihc taxes. snu ~
this purpose altering and amending eAi''As
| charters and laws.
| BE tt sHdcssd, dc.
Sscrrox !. Municipsl aud public corporations,
| including cities, towns aud counties, are HEREBY
| authorized - ssttle, adjust and compound deo's
| owing by, or slaimed against them evideneso W
| the bonds or Vtner pro0issory instruments "
| such corporations and such corporstione upon
Il
ihorized TO issue new bonds in the place Of ths
old or former bonds, and such new bonds snsii
| 6e legal and valid to oil intents and purposes,
| aud no corpora'io issuing such new bonos sns'
| DC allowed To plead IN deiencs thereto any 10
| validity, want of consideration, or any othef
matter which might have been pleaded IN de
euc- to the old former bonds
| This act is intended to apply TO all eases where
cities, towns and counties have heretofore Is
sued bonds or securities for money on accouni
| Of any subscription to ths capital stock oi any
| Lublc Improvement, aad the same remain out
| sta iding and any debt arising thereout remains
unpaid hut this net 10 limited TO the settle emen
| Of bonds aad securities heretofore issued and
outstanding at the time OF the passage ana np
| proval hereof; that 10 TO say, the power herein
given to settle, adjust aud compound debts 10
| given with respect TO debts already existing.
snd 20 enable the debtor corporations TO settle
| he same in accordance with the provisions OF
| shis act
| And nothing herein contained shall be con
| ,trued TO give the holders Of existing bonds Or
| iecuritiss the right TO compel the debtor cor
psration to Issue such new bonds, in the all
| sence OF m agreement on its part TO do so.
/ This act applies TO counties, and to cities and
| towns, whether setting undes special charters or
| andcr the general Incorporation law,
New bonds issued by virtue hereof, shall in no
| case be for greater sum than the principal and
/ accrued or earned interest unpaid Of the bonds
| or debts in place Of which, or TO pay which they
| shall be given. nor bear . greater rate OF inter
| -ss than six per cent per annum and such ne =
| bonds shall show on their face tnat they ere is.
| sued under this act. and if sgseed. may pro
| vide for the annual payment OF i've per cent. on
/ the principal thereof, in addition 90 the annua
| interest, until said new bends are fully paid
| Said new bonds shall all be made payable al The
| treasury OF the city shall be cancelled whsr
paid, and destroyed IN the presence ofthe Coun
| Gil or Supervisors who cause to be kept . regis
nj Ill has. IL Ill
bonds which are cancelled asd destroyed. Such
l new bonds may be in such form, for sucl
/ amount not exceeding principal and Interest
shen due on the Old bonds or securities. and up
ON such time, not exceeding twenty-five years
u nay be agreed upon with the holder or owner
/ Such new bonds shall only be Ggned In open
session. register shall be kept thereof, th,
bonds at once delivered 70 the treasurer Of III,
oity, town or county, Who shall be liable on hi
official bond, for the safe keeping thereof, ant
Of the proceeds thereof, until he parts there
with under shs direction Of the Council or Bosrt
/ Of Supervisors.
$50. .. The Council OF Trustees OF incorpor
ated towns or cities. Or the Board ofSuper viso,
of counties are hereby invested with full powe
| to bond their respective corporations by settle
| ments made pursuant to aud in virtue OF this act
| But they are directed and required before an
| such settlement shall be entered upon, to asceT
| tam the whole amo ant due BY such debtor cor
l poratien, and they are invested with power &
| ascertain this in such way and manner as the
/ NAV deem best. And the holders Of existipl
bonds shall. il required By pntlis proclamation
of the Board of Supervisors or proper City o
Town Council and as therein required. presen
their bonds to the proper Clerk OF the county o
city or town, and allow such Clerk 4
mako q register OF such bonds, show
ing their date, number, amount. maturit
| aud rate OF interest; this is require
| because certain counties ana cities never kep
or have lost the record Of the bonds issued
and TO enable such corporations to ascertain tn
| amount Of their liabilities. Aud no old bond 0
| violence o! debt shall IN any case be allowed
| audited, paid or settled until the same shall b
| actually produced and surrendered, or establish
ed ny the judgment of q competent court. II
elects to act hereunder. the city. town. or coun
Ity. by its proper governing body, shall appoin
| lot less than three nor more than live OF iss cit
.ens, Board Of Commissioners to execute th
powers aud duties fsqircd by this act, OF whic
Board of Commissioners the Mayor Of che cit
Or town, or the chairman of the Board Of Su
pervisors shall be sr ogfeio amember; but no q
| of the Board of Commissioners in auditing Q
allowing bonds or debts. or in settlement there
Of, shsli bind the corporation until such act
Reported TO the proper governing body Of tn
corporation and approved BY il. And said Boar
of Commissioners shall keep record of the,
acts and doings. which shall st oil times bs ope
to public inspection. And so the city, town N
County corporation shall keep record of all il
and doings in the premises. which shall like
| wise be open TO public inspection.
| Sac. 3. II new bonds or obligations ere il
sued, pursuant to the power given by this act
the said corporations named in the first sectio
| hereof, nrs hereby authorized. and it is hereb
made the duty of the governing body Of sal
| corporations, annually. 10 enter "a specific tax
pay the interest of such new bonds and sue
portion of the principal. if any, - has bee
agreed to be paid each year. Aud this said SIT
chic levy shall be sutii cient each year to pay III
annual interest due on such new bonds and sue
portion OF the principal sum as may fall du
each year. IL the debtor corporation has nc
| agreed TO paw any portion Of the principal eac
wear. but elects to let the principal all fall du
At one time, or in different years. then durin
the year when the principal SO fall due. the sp,
;fc levy shall be sufficient to pay of all Of sai
principal thus falling due as we'll any intere,
thereon. Said tax shall be a specific tax fc
, the specific purpose Of applying pa,
ing SAID new bond, or the intere.
thereon, and for no other purpose whatever, n
shall money SO raised ever be diverted or use
for any other object. Nor shall the money
raised or the proceeds of new bones ac"aired
settle and pay the old bonds CT debts, be sube.
TO attachment, garnishment, levy sale. or az
preparation By the holders OF debts or judi
, | ments against the corporation unless such jude
| mente ere obtained on the new bonds iseued
J virtue of this act. Money thus raised shall /
| kept as distinct fundto be eacre a!y and e exclu
1
debts Of the corporation as provided IN .his &C
Ii the corporation sgrees 10 pay. in addit.o
TO the annual interest, some specific portion
the principal each yea such new bonds she'll
in such form as 70 enable this 20 be done. aa
the amount paid from year to year to be de'aci
81 from the honda and cancelled. Said spccf
YAK hereby authorized shall be levied ct II
same time that other taxes are levied, and shs
be collected in the sans manner, but nothing bt
money shall be receivable in pavmest Of ss
AK. Aud this act shall be construed ~ q
! amendment to the charter Of cities and 10 u
general incorporation act, being chapter 81
the revision. asd also a. enlars,ng the pewe
J | now given by Law 10 the counties Of the Stat
| Nut no creditor Of any public o. municipal co
pofaeion Who refuses to settle or compound b
debt and refuses 70 receive, and does not rseei,
new bends Or obligations, shall b entitled
the beneet Of this ct, or to The specific tsx y,
herein authorixed.
And the better 70 assufs or make certain u
righto 81 the hol1sre Of the oew bends o. oAliR
taons herein authorized, il 10 declared to be q
imperative duty sf corporations issuing sus
I new bon1s, to levy annually the specf6c Il
herein authorized to collect the same PRONE Of
and promptly to apply the same TO the specii
!. purpose herein authorized, but to no other, o.
!. It is hereby declared to be the duty of courts
enforce the duty above epioined upon the corp
rahons, by mandamus, st the instance of sr
creditor holding such new bonds.
And il the Court il antisfied that thera n =,