Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-11-13
THE SCHOOL TAX.
Bexuit of an Interview between an
Appeal Reporter and City
Attorney Hanson.
Why the Collection OF SclEOOI-Tax Il
Resisted, and WhO are Prom
fnens I'm "a.
lhe Effect OF Decisions by the Supreme
Court, ana the Efset of an Ad-
verse Decision Here.

the following result, CICy-AItOfney TAI
con being the gentleman questioned:
r Reporter-What truth is there in the
report of certain parties attempting tC
resist the payment, or, rather, the col
Lection, OF the city school tax?
Mr.. Hanson-There are quite a num-
Der of our largest taxpayers who are
now refusing to pay it, upon the Piles
that we have no right TO collect II. Only
the German national bank and the Firsi
national bank have gone into the courts
to resist it. Distress warrants. having
been issued against them to compel the
payment of all their taxes, the school
tax included, they fled petitions in the
and ceTtiOrQTi.
Reporter-What is the amount due
from these banks?
Mr.. Hanson-The amount due from
the German national bank is between
five and six hundred dollars, and tht
First national bank nine hundred dol
lars.
Reporter-What steps have you takeI
in this matter?
Mr.. HansOn-I have entered motion
to dismiss the supersededS and ceTtiOT
dTi. The motion will be argued the frs
motion day. I would here state that al
of the other banks and insurance com
panies in the city have enjOined the city
from the collection of all tax except forty
cents on the hundred dollars. Those
cases were argued nearly month ago
on q motion to dissolve the Injunction
before Chancellor Morgan, who has moi
yet delivered an opinion.
| RepOrter-What effect would a decis-
ion sustaining the bills have upon the
city schools?
Mr.. HansOn-It would close them by
cutting off all revenue. II sustained,
the bills will preclude the city from col
lecting any tax on all and every class OF
property except the forty cents, whereas,
we now have the power to levy one per
cent. for general purposes, One-half OF
one per cent. for sinking-fund, and as
much for the payment of interest on
bonds as may be required. The sums
are not sufficient, by fully One-half, to
pay the expenses Of the city as now ad-
| ministered.
Reporter-Then the city is running in
in debt, is it not?
Mr.. HansOn-Yes, and l suppose at
the rate of from two hundred thousand
dollars to four hundred thousand dollars
per year, according to the variation OF
the tax. Last year we levied four pei
cent. and this year one hundred and
eighty cents on the hundred dollars.
Reporter-What are the current ex-
penses?
Mr.. Hanson-AbOut four hundred and
fifty thousand dollars. The interest is
two hundred and thirty-nine thousand
dollars per annum.
RepOrter-Whath have the schools re-
quired this year?
Mr.. HansOn-I am informed by the
mayor that the schools have this year
made acquisitions for one hundred and
ninety thousand dollars.
Reporter-How this great sum?
Mr.. Hanson-The scholastic popula-
ton of the city, as taken by the school
board, is reported to be something over
fourteen thousand. They, therefore,
made requisition for sum total equiva-
lent to ten dollars per caput, which the
school charter as passed and amended
gives them the right to do. Then, there
is fifty thousand dollars for building pur-
poses, which annual sum the charter
provides they shall have for ten years
from 1868. am informed by the mayor
that this is the amount demanded. -
Reporter-Was the sum of fifty thou
sand dollars paid the school board last
year?
Mr.. Hanson-I think not, and the
board this year presses its claim all the
more, as they claim there is for last
year q deficiency coming to them oi
eighty-five thousand dollars, which
should be made up.
] Reporter-HOw much of the building
fund have the hoard received?
T. h,sax raftW mn
to the time two hundred thousand dol
lars in bonds of the city of Memphis.
Reporter-Do you know what dispO-
sition has been made of said bonds, or
! how much available money has been
derived from them?
Mr.. Hanson--I am informed that
some of those bonds have been traded
| for building sites, and that others have
been used as collateral security for b0r-
rOwed money.
Reporter-Do you know what rate OF
interest has been paid on money bOr-
rowed on these hypothecated bonds?
Mr.. HansOn-I do not. l have heard
parties say that from two to three per
| cent. per month was paid.
RepoTter-WeH now upon what
| ground do these parties seek to avoid
/ the payment of the school tax?
Mr.. Hanson-UpOn the ground thai
the city charter as enacted in 1859 and
repealed all acts in conflict with it, does
not give the city any power over schools
or to levy a school tax.
Repoi ter-Why and how has this
power been exercised?
Mr.. Hanson-Of course everyone is in
favor of maintaining the public schools,
and the power has been exercised under
the charter of the sehOOl-bOard passed in
1868, which makes the said board an in
dependent corporation. While times
were good no one objected to the tax.
Persons who have spoken to me say that
the schOol-bOard is eZtravagant, and eZ-
ceeds its limit of authority by building
schoolhouses and introducing the higher
branches in the cOurse.
Reporter-Then | understand that the
objection made is this: The school-board
has no right to levy or collect school
tax, but merely to recommend such tO
| the city council; but the city council has
no authority under its charter to levy g
school-tax unless such authority is de.
I rived from the school charter. This
understand is the objection urged by the
parties contesting the case. ---
Mr.. Hanson--That is their objection,
but we hold that the city holds the
right, which il derives from the school
| charter itself.
Reporter-Have the courts ever had
this or a similar question before them
If so, how did they decide it?
Mr.. Hanson-This question was be.
| fore Judge Heiskell, or the first circuit
court of this city three weeks ago, buI
the case went off on the constitution
ality of the NicOlson pavement SCRIP
tax. The supreme court, a few days ago
l at Knoxville, decided q similar case
that of G, f. WateThouse UerSUs Direct.
ors of the Cleveland public schools
which were chartered by the Legislature
with a charter almost identical with
ours.
Reporter What is the material differ.
ence between the charters.
Mr.. HansOD-In Cleveland the mayOl
!, and aldermen compose the school board
|, and they were authorized to levy tar
for the carrying on Of the public schools
The supreme court decided they were 8
private corporation, and therefore the
bower of taxation could not be delegated
TO them; they could not levy a tax az
/ members Of the board of aldermen by
virtue OF authority conferred IS school
directors or school board.
Reporter-Butthe city council Of Mem
phis levies the tax as q municipality
which is q public corporation, and mo-
as a school-board, but simply upon, the
latter's recommendation.
Mr.. Hanson-That is true. The par
ties who resist contend that because tht
citv charter does not contain in the lis
of powers granted any power to estab
lish schools or to levy tax for the sup
port of schools; that the city council ha
no such power, and that the exercise o.
. the power is unlawful. / am an esFnes
advocate of public schools, but do no
think the board should be extravagant
| II fha finciainn of Ghanoellnr Mnrpal