Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-04
THOSE ALDEN BONDS.
4 Hnotsy Question Grappled with by
the City COGueii-Bew shaII the In.
debtedness OF the City he Psid7-So
Definite Conclusion launched


debteduess Of the City he Psid7-so
Definite Conclusion Reached.
| Pursuant to call by the Mayor, both
Boards OF the City Council met in conven-
| ton yesterday afternoon at O'Clock, Pres
ident McCrea in the chair.
The following message from the Mayor,
setting forth the objects of the meeting, was
read and received:
| MAYoR's OFFICE, June 3, 1S74.-Hon-
| Orable City Council in Convention assem-
bled-Gentlemen: There are two questions
which you are respectfully requested to
take under consideration at this special
meeting. /. The City Assessor informs
me that he has completed the assessment
Of city property, and now has his books
ready for report and inspection by the City
Council and for examination. and also for
the appointment Of a committee of equali-
zstiOn as by Law directed. The object in
calling your attention now TO the matter is
to facilitate the books reaching the hands
of the Collector, at as early day as prae-
tirable and in order that the city may re-
ceive the benefit of the new assessment
books as early as possible; and as the COan-
Gil will not meet in regular session for some
days, would respectfully recoinend that
you at this netting appoint a committee of
equalization as required by law to examine
said books.
2. 1t has been requested by the Financial
Committee that | should call a special
meeting for the purpose Of your taking into
consideration the financial coalition of the
corporation aud especially the question of
what is known as the "Aldeh bonds"
There is a large amount of these bonds, in
Guiding the interest on the same, which
have already fallen due, been sued upon
and Judgments obtained in the United
States Circuit CoWt of this district, and
very soon still larger amount will be due
and unless some arrangement is made or
mode adopted by which they can be settled,
other judgments will be brought against the
| city and judgi:.s LIE future by the past,
judgments will be likewise obtained with
the court costs against the city, which will
| in the aggregate amount to large sum.
| The city's legal responsibilities to pay
| these Alden bonds has been much discussed
for several years By the City Council, and
| citizens on the outside, and the particular
line of policy to be adopted as 20 whether
the city was bound TO recognize this char
acter Of indebtedness, and, if so, how it
would be best to settle it. Whether in the
| opinion of this honorable Council the city
is or is not legally bound to pay said bonds,
1t is a fact beyond dispute that such have
been sued on and judgments obtained
which arc outstanding to-day against the
city.
There is large amount of bonds now
due and being held by some of our citizens
for collection, and unless settled in some
way, multiplicity of suits will be brought
against the city, wherein not only juds-
ments, / apprehend, viii be obtained, but
the bill of court costs will amount to thOus-
ands Of dollars. The present City Attorney
and legal adviser for the corporation, has
informed me that he has earnestly and care
fully examined the legal question involved,
and that he is unable, under the law, to
prevent judgments from being obtained On
said bonds. If this be the true state
Of the case, is it not significant
warning to your honorable bodies
as the lawmakers Of the city, to take some
active steps and adopt some line Of policy
by which the corporation can in the easiest
manner get rid OF this character of liabili-
ty. The matter is Their fore presented for
your earnest consideration, and it is to be
hoped You, in your wisdom, will adopt and
pursue some settled line of policy BY which
the city can, in the best manner known,
the way through which il will be the best
advantage of the city to disencumber itself
Of its present embarraSsments.
Respectfully,
THOs. i. KERcHEvAI,
Mayor.
The Chair ruled that The Convention |
could take action only upon the Assessors |
books.
Councilman Cant made the point that |
the city charter required notice Of ten |
days aud publication after the receipt Of the |
hooks before they could be adopted. The |
point was considered well taken and a mo- |
ton then prevailed that when the COnyen-
ton adjourned, it be till Monday, the 18th |
inst, at p. N.
THE CITY's INDEBTEDNESS.
1t being decided that it was not in order |
for the Convention to take action upon the |
financial question specified in the message,
general and informal discussion arose 1
upon the city finances and the means Of /
paying the bonds falling due.
President MeCrea explained his views,
declaring himself in favor of making full
provision for the discharge of the oblisa-
tions falling due. He was in favor of pay
ing them of in bonds payable twenty-five
years from date.
Councilman Lindsey said he had pre-
pared a bill embodying his views as to the
best method of settling the Indebtedness.
The following is a copy Of the bill:
Whereas, the entire debt of the city of
Nashville, including bonds, coupons, inter
est, checks, and miscellaneous and liti-
gated claims, amounts to about the sum of
one million five hundred thousand dollars,
and the city treasury is being constantly
drained by the forced payment of many Of
the above claims, to the neglect Of needed
Improvements, and the annual income of |
the city is wholly insufficient to meet the
demands pressing upon it, and it is deSira-
bic that all of the just Indebtedness or the
city should be funded in bonds maturing
at long periods, so as 10 leave the annual
income for current expenses, interest, and
a judiciOus retirement of the funded debt.
The yearly interest on the entire city
debt, if funded, would amount to about
$4,000. The current income Of the city
from all sources amounts to about $780,
900, which would yield $4,000 yearly as a
sinking fund with which to pay Off the 1
funded debt; 10000 yearly, with which to |
pay interest, and which interest account
would yearly decrease; $4,000 for school
purposes, the amount now allowed that
department., and 81, 700 yearly, or so, 4O5 ,
monthly, for the current expenses and i'm
lrovements of the city; and the city now /
mas authority, by law, to issue its bonds to
amount Of $4,000 in settlement of its
last Indebtedness; therefore,
Sec. l. Be it enacted by the Mayor and i
City Council, that Robert III. Gardner, Thos.
4. Atchison, JnO. NJ. Lea. Michael Burns,
md James b. Craichead, be, and are here s
" appointed Commissioners, for and in be- :
lalf of the city Of Nashville, to treat with
III the creditors of the city, who represent
laims against the city, past due, in litiga-
ion, or 10 mature prior TO the year 1876
said commissioners are hereby fully EN- L
lowered to make settlements with any and
III of said classes Of creditors, OH the best
VISIBLE terms for the city, the claims so
ettled to be paid in the coupon bonds Of
he city, authorized under the acts Of the o
legislature of Feb. 8, 1870, and Dec. 10,
Il L, i - LII,