Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-19
DEBT-BURDENED MEMPHIS.
The Conference Between Her Repre-.
sentatives and Creditors I'm New
York.
New York Herald, Dec. Is.

York.
New York Herald, Dec. Is.
Yesterday, at II o'clock, meeting Of
the representatives of the city of Memphis
and the creditors took place at the st.
Nicholas Hotel. On Nov. rs, the Mayor
issued message in view Of the action OF
the General Council, calling a convention
Of the bonded debt creditors, in which il
was submitted that the bonded debt of the
city was $S,S99, 500-t past due interest
(to January, 1s75,) S471, 665-making
$4,371, 165, from which was to be deducted
20,00o, on account of the sale Of city
stock, leaving the net debt 81, ISL, 165. The
closing paragraph of the Mayors message
stated that they could not pay,
and recommended the establishment of
a new basis Of credit, based upon the new
series Of bonds to be issued and an annual
levy Of some fixed amount for interest and
sinking fund, with such guarantees as
might be demanded by the bonded debt
creditors, which would be acceptable to
the tax payers. In submitting this proposition
to the General Council the Mayor (Hon.
John Lcague) recommended that G.. A.
Hanson, City Attorney; Messrs. 1. NJ. Hill,
E. N. Apperson, P. c. Bethel, j. NJ. Keat-
ing and Col. A. J. Kellar should be ap-
pointed TO meet with the creditors, with a
view to obtaining from them some propo-
sition acceptable to the Council, and which
could be acceptable to the people at the
coming municipal election. These recon-
mendations were approved by the Council,
and the gentlemen named were ordered to
meet in New York, on Dec. Is, in pur-
suance of their spirit. -
Yesterday, therefore, in parlor 433 Of the
St. Nicholas Hotel, the first meeting took
place, and the committee were enabled to
explain to the bondholders the exact state
of affairs. Mr.. E. N. AppersoD was called
70 the chair, and J. NJ. Heating, of the
Memphis appeal, was appointed secretary.
There were present Col. A. j. Kellar, Of
the Memphis Ardlanche; Messrs. p. C..
Bethel, and G. A. Hanson, City Attorney;
and of the bondholders, Col. Lathers, of
Charleston; Messrs. F. Il. Cossitt, of New
York; Parsons, Peck, Alexander, Moses,
Redmond, Graniss, Bierne and Bethel.
The City Attorney explained the
FINANCIAL CONDITION OF THE CITY,
heir entire inability to meet their indebt- |
edness, and exposed generally the financial |
status of the city after the war, and recon- |
'tructiOn problems under which the bur-
lens Of the citizens were recklessly i'm |
Dosed. After reviewing the fact that the
'aluation Of city property was 500, $50, ia,
he receipts for 1874 S572, 923, and disburse-
nents S53,91S without showing a pay
nent on account of city bonds, coupons and /
crip) which makes a failure of about
5000 Of interest, the official went on to
how that Memphis was taxed on two
birds valuation of real estate, notwith-
landing there was a decrease of al least
ne-third in value; therefore the taxation
Tas on full value Of property. Mr.. Bethel,
large property holder and city bond
lolder, urged on his fellow creditors plan
{ Cancellation by either a reduction of
rincipal or rate of interest, at the same
lme promising if they would consent to
his to pledge themselves that
LEGISLATION SHOULD GUARANTEE
hem in all their rights,
Colonel Lathers, of Charleston, intro
uced the following resolution, which was
dopted:
Resolved, that the holders of bonds of
be city Of Memphis in Charleston, Balti-
lore, Philadelphia and elsewhere are here
y requested to call meeting and appoint
pc or two delegates each to meet a COM
Attcc VI tNO dppOlutcu Dl lnlS CONVENTION, |
II the purpose Of further consideration Of
ne questions now before this convention.
Col. Richard Lathers and +. II. COssitt |
ere appointed the committee, with pro-
$50 that if the latter declined to serve the |
,rmer should fill the vacancy. The con-
ention pledged themselves to carry out
ny legislation necessary TO protect bond
olders in any equitable scheme for funding
: scaling the debt
The committee found the best feelingex-
ting, and go to Baltimore, where a large
mount Of the city's bonds are held, and
ope that the flank initiative to meet in a ,
roper spirit the question of their obliga-
ons will meet with a generous response
ON creditors, who will doubtless consult
leir interests by recognizing the trouble of
re debtor to meet it in liberal spirit.