Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1874-12-19
THE BANKRUPT CITY.

The Memphis BOmdhOlder'a COnven.
| ton at the 81. Nicholas Hotel, New
YoIk-What was Done and Who
| Did II.
The New York papers contain an
elaborate account Of the meeting of the
Memphis committee with the city bond.
holders at the st. Nicholas Hotel:
Messrs. G. A. Hanson, City Attorney; 1.
M. Hill, E. NJ. Apperson, P. G. Bethel,
]. M. Heating of the Appeal and A. j.
Kellar of the Avalanche.
The Convention met, and after des.
ultory discussion adopted the following
resolution:
Resolved, That the holders of bonds
Of the city Of Memphis in Charleston,
Baltimore, Philadelphia and elsewhere,
are hereby requested to call meeting
and appoint one or two delegates each
to meet committee of two appointed
by this Convention for the purpose Of
further consideration of the questions
now before the Convention.
This adjourned meeting will be held
in our city in January next. In view Of
the meeting at the St. Nicholas Hotel,
Mayor League issued the following cir
cular as to the financial troubles of the
city
In view Of the action of the General
Council, as hereinafter set forth, calling
convention of the bonded debt credi-
tors of the city Of Memphis, and with
the advice and consent of the Finance
Committee, in furtherance of the object,
we most respectfully submit a few facts
for your consideration:
The bonded debt of our city is.......s3, 500 500
On which the past-due interest Tin
GLIDING January lst) is-..""-."-.." 471.665
Total bond and past duo int'r't debt. 4,371, 165
From which is to be deducted on ao-
count Of the sale Of the city's stock
in the nj. and G. X. R......--."..". 10000
Leaving the net debt on account of
ponus'..'....... .....t4, 100
The bonds issued during the years
1867, 1868 and 1869 we're, in the MAN.
disposed of by the then city authorities
at great loss, so that on 1886, 900 is
sued the amount of $l,l23,086 SO was
all that was realized, leaving a loss of
$772,9l3 II, although at the time the
city was prohibited by its charter from
issuing bonds at less than their face
value. These bonds having been issued
in violation Of the city, charter, can, at
the option of the city, be declared ut
terly void. The city, however, does not
wish to pursue this harsh policy towards
any of its creditors, neither does it de-
sire in any sense to repudiate any por-
ton of its just debts; it is, however, at
this time simply an unfortunate debtor,
with obligations past-due and still matur-
ing far beyond its ability to pay. For
1873 it called on the tax payers for a
four per cent. tax on assessed values.
The effect of this high rate was ruinous
on the prospects of our city, and its
most visible effects were the expulsion
of capital and capitalists from our midst
and the entailing of heavier burdens on
those who have remained.
Looking at the inability of our citizens
to pay, during the present financial
troubles and late disasters, the rates Of
taxation have been reduced one-half.
This affords relief to the taxpayer, but
none to the bonded debt creditor, as only
about one.eighth of the levy is for inter
est, and nominal amount for sinking
fund, which on the present assessed value
amounts to less than $4,000, while the
interest on the bonded debt is about
$240, 900, leaving the creditors clamor-
ing for the balance.
Our assessed values for taxation being
about $4,000, 900, it will require levy
OF one and one-eighth per cent. to pro.
vide tor this portion of our Indebtedness
alone, 10 order to preserve the credit and
faith of the city on its present obliga.
tons.
In the present financial and business
condition of our people, we can give our
bonded debt creditors no encouragement
for payment. We cannot pay this
amount OF money, in addition to the
ordinary expenses of the city govern
ment and the sustaining Of our public |
schools
The New York convention was mis-
take from its inception and should never
have been called.