New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-07-29
TRYING TO SHIFT THE RESPONSIBILITY.

1no Dee, III 1JS zeal W SCI 70 0AAo ~oAeAAA>
party that ruled our municipal affairs Las
year, has undertaken big contract. !
endeavors to prove, by plausible figure
of rhetoric, that the recent change from
corrupt, irresponsible, extravagant ant
unprincipled ring of politicians, to al
administration Of honorable, intelligen
and thoroughly responsible citizens, ha
been detrimental to the pecuniary inter
ests Of the city. There is no sort OF poin
in the comparison, nor proof in the citet
evidence The logic, the figures and thu
testimony of the Bee are entirely insult
| Gent to make out case, while the animus
is so apparent as to deprive its position O.
ordinary dignity.
When the present city government
came into power, they were met at the
very threshold of the City Hall by a
| crowd of angry, impatient creditors, who
held claims to the amount, including city
notes, of something more than three
millions. Let it be borne in mind, that
the Legislature of the previous year had
authorized the issue of five millions in
bonds to pay all indebtedness up to
twenty-seventh February, 1869. The in
debtedness Of the city at the time the old
Council went out, had consequently ac-
crued in one year, and showed the excess of
expenditures over the receipts incurred by
the Bees especial pets, Conway, Mount,
and the Council of 1869. The receipts
for the year, from licenses, etc., probably
amounted to 50, 100000, and as the out
standing debts are found to exceed three
millions, it follows that the Democratic
council cost the tax payers more than
five and a half millions during their
last years reign. How to provide
for the payment of this debt, the
bulk of which ought never to have
been contracted at all, has been the chief
and most anxious consideration of the
Board of Administrators. The Legisla-
ture authorized the issue of three millions
in bonds for the purpose; and in view Of
the fact that the late Council had been in
the market the year before, and obtained
no more than seventy-fve cents on dollar
for the bonds, placed that figure as the
lowest limit at which the new issue should
be sold. For it stands to reason that if
the credit of the city was at twenty-five
per cent discount in 1869, before the issue
of five millions, it would not be
greatly improved in 1870, after this
heavy loan had been placed upon
the market. But as fnanciers chose
to regard the change in our government
as favorable, they have done better than
was expected, and offered to take the
bonds at twenty per cent. discount This
is a decided gain in the face Of difficulties,
and is sufficient in itself to convince the
Picdluae and other fair-minded and reas-
enable men that we have experienced a
beneficial change. The Bee should, there
fore, place to the credit Of the present
the excess realized on the
5000, 900 bonds at eighty over what they
would have brought at seventy-fve, the
rate offered to Mr.. Layton, and eagerly
accepted by Conway & Co. This makes,
At the outset, a difference on the right
side of S15O,000 in cash, while the indi-
rect advantages derived from our obvi-
ously improved credit can not easily be
and are not likely to be over
.ated
AS for the Jackson Railroad stock, the |
showing Of the Bee is yet more unfortu-
late for its side Of the question. We do
lot remember the time when the eighty |
thousand shares owned by the city were |
quoted at 100000 That would be $40 |
Der share. The stock has been quoted |
or a number of years at from SIS to
IS 50 with only limited sales No large
could have been disposed Of in
he market for cash at the inside figure at
ny time within our recollection, which
xtends back to the date of the charter.
Besides, the old Council has the credit of |
laving disposed of the stock. Mayor
conway and Mr.. Mount sold it, or at least
'argained to sell it, for So Is per
hare, and the general verdict of the
'eople was that it had been advantageously
disposed of under the circumstances.
But there was undue haste. The stock
ras not advertised exactly in accordance
Tith custom, and some doubts existed as
0 the legality. Hence the case got into
curt. The prevailing opinion among
awyers was that the validity of McCombs
tile would be maintained, but in order
hat there might be no question, be final
7 proposed to add $4,000 to the
800, 900 already rendered. Thus COM
romise was effected and Mayor Elan
ers and the Administrators are entitled
"a credit of $4,000 on that transaction.
The necessity for depositing a stipu-
ted sum in bank monthly to meet ac-
-uing interest is chargeable to those who
lcurred the immense debt. And as we
ave shown above that the Democratic
ouncil found balance of three million
ollars in twelve months on the wrong
de, it is not difficult to locate the re-
Ii the Board of Administrators run up
debt of two or three millions during the
rst year they are in Office, and the school
the fremen, the gas company,