New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-07-21

lars As far as making a pro rata division
of the bonds at seventy-ive per cent was
concerned it could not be done, and he
wished the Secretary to put on record his
firm opinion on this point
Mr.. Pierce said he was under the impress
sion that many creditors holding these
seven per cent certificates would be willing
to let their claims lie over till the Legisla-
ture gave relief. Seven per cent was
pretty good interest, and he was inclined
to think there would not be more of these
claims presented than the city would be
able to meet in full with the bonds.
Mr.. Shaw said two of the gentlemen who
had spoken, were laboring under good
deal OF misrepresentation. The Admins
traitor of Finance (Mr. Walton) understood
this to be an ordinance to make a pro rata
on the bonds themselves. On the contrary,
his proposition was to accept pro rata of
the certificates in full payment Of the bonds
He proposed to sell the bonds for certif-
Gates, accepting pro rata Of those certif
Gates in full payment for them. In answer
to the assertion of the Administrator of
Commerce (Mr. Emley) who had said that it
would take ten years to find out the whole
floating debt, he had only to say that at this
moment we were within fifty thousand
dollars of it, in two weeks more would
know within five thousand dollars what it
was.
Mr.. Emley: Suppose you do come within
five thousand dollars of it, will that be
knowing exactly what it is
Mr.. Shaw would not chop logic on that
point. When we knew within few thou
sand dollars what the floating debt was, we
would know exactly what we could do for
the holders 1t was our duty to see that they
got justice, and that these bonds were
properly divided among them. Every per-
son who held any of the evidences Of this
debt had the same right and was entitled to
the same treatment as the rest. The large
creditors ought not to be preferred over the
small ones. Had this ordinance been
passed two months and half ago, he had
no doubt the Council by this time would
have sold most of these bonds at ninety
cents on the dollar.
Mr.. Walton explained that he all along
understood the proposition to be, as the Adj
ministrator of Accounts stated, seventy-ive
per cent on the certificates. His objection
was, that such a pro ratio could not be paid
in bonds, especially in the case of the small
creditors, whom the Administrator Of Ac-
counts, very properly was DESTROYS. of seeing
paid, not more SO than he (Mr. WaltOn)
was. The impracticability of the pro ratio
scheme had already been proved. The Bank
of New Orleans in transaction Of four hum
dred and nineteen thousand dollars, had re-
| fused to pay balance of thirty-nine dollars
in cash, and the creditor had been compelled
to forego that amount. Take the case OF
poor school teacer to whom the city owed
hundred dollars. On the pro rata plan,
that teacher would be entitled to seventy
| five dollars. But there were no bonds
smaller than fifty dollars. Where were the
remaining twenty-five dollars to come from!
Mr.. West answered that that argument
was met by the Administrator of Finances
| own statement, that the holders of seven
per cent certificates valued them as much as
bonds.
Mr.. Walton explained that he did not say
that. What he said was that intrinscally
the seven per cent certificates were worth
as much as bonds.
Mr.. West said the argument of the gen
tleman was that some of these people coult
not obtain bonds, but would have the OPP
portunity of retaining these seven per cent
certificates, which were just as good. He
| (Mr. Vest did not agree with him because
bond was much more negotiable than {
certificate. The whole question was mar
| rowed down to this: The bonds were not
sutficien: to meet the whole floating debt
| and the ordinance of the Administrator O.
Accounts was designed to prevent the pay
| ing of some creditors in full, leaving others
out in the cold.
Mr.. Walton did not admit that the cred
itors temporarily passed by were left out il
way whatever. His objection to the ordi
nance was that it could not be carried out
it was altogether impracticable.
Mr.. Shaw remarked that there was II,
such thing in the world as perfection, ant
he thought the plan proposed was the fair
est and the best to all the creditors, eve1
though there should be some fractions o
claims which could not be converted int
bonds.
The Mayor observed that the word
"seventy-fve per cent or more" in tn
ordinance, left it open for the bidder t
accept the whole if he could get it. Iii
was utterly impossible, as he believed i
was, to pay on the pro rata plan, it left tn
door open to pay the whole claim. H
would like to ask the Administrator o
Accounts how many claims there were les
than hundred dollars!
Mr.. Shawn great many.
The Mayor: Ten thousand
Mr. Shaw: Yes, sir.
The Mayor: How can these persons bt
paid who have only these small accounts!
Mr.. Shaw: If they can not bid they vii
not bid.
The Mayor: But how will it be possible fo
these men who hold at least five hundTe.
thousand dollars worth Of the floating deb
to bid at all
Mr.. Shaw replied that persons who coul,
not bid would not bid, but they would los
nothing. Every man would get his pr
rata That was guaranteed. The mail
point gained was, that by this plan tn
Council would get a higher price for tn
bonds. Everybody knew man would Civ,