Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1875-10-07

A RuMpUs AMosu THE HOLDERS OUTSIDE tt
STATE.

A RuMpU5 AMoRu TIRE HOLDERS OUTSIDE THE
STATE
Tho refusal of the City Council, by vote ON
Thursday evening, to continue to pay, Gin adli-
ton to the six per cent interest on the city's
bonds,) to holders residing in other States fur
ther sum equal to the Delaware State tax which
they would be required to pay il reaidauIs OF
this State has created considerable dlssHtisfac-
tion among them. On Saturday numbor of
the Pennsylvania holders OF city bonds called
at the Treasurur's Office Tor their interest,
which they received without the addition of
Delaware State tax. They mostly took it under
protest. They complain strongly of Counclls
action and one OF these bondholdors remarked
to COMMERCIAL reporter that if such was to be
the future policy OF the Council ho did not want
his bonds, any longer.
1t has been the custom of tho city for some
years to pay an amount equal to the state tax
on the city bonds, whether they were held IN or
outside the State. There seems to be, however,
no warrant either in tie ordinances or on the
| face of the bonds for such custom, 81 far ~
| regards holders residing outside Of Delaware,
| and q former City Solicitor has 6lYcn
the opinion that tho payment, III
| the latter Gaze was unlawful; that iu-
] asmuch rs the State of Delaware can lay no tax
| upon the bonds except where they arc hold in'
side tho State, the city i'll paying Its interost,
should not in addition pay tho equivalent oi
such tax, to holdcrs living elsewhere. ThI
4 |
terest will be paid "clear of all taxes levied ol
to be levied upon said principal sun
or interest by authority of the StatS
of Delaware or the United States o.
America" and the engagement here manifest
ly bears out the opinion OF the eX-Sucitur, Ii
practice, however, it has been found that IN OF
der to sell the bonds TO Pcnpsylvauiaus, it was
necessary to adj TO their interest tho SAINT
amount az would be paid, for State tax, to DGia
ware holders. Some years ago, the same posi-
ton WAS taken by Council that has now beer
taken, and IL caused great dissatisfaction, auC
80 general throwing of bonds on the local mar
ket as to greatly doprc5s their price IL Id al5t
the fact that the City Treasurer, belug authOrHeI
to do no by tho Finance Committee, assuro'
PENNSYLVANIA purchasers of large amounts tha
they would be paid six per cont 8 and Dolawar
State tax and that upon this sa6surance ON
party took some 600 IL is Obvious that /
: the State of Pennsylvania should lay no tax o.
such bonds, IN tho hands of their holders in tia
!. State, the latter would be getting more than 81
per cent interest. A kenIlett Square man, o
Saturday, stated that Pennsylvania docs Ia
them, but whether more or loss than the Dels
. | ware rate, he did not say. Ii this be the cast
,, | then the bonds would not be SO good an myes
:, meut, in Pennsylvania, rs in Delaware, II III
=, city insists on its present refusal.
7 Generally, in lilGuclal circles, it is conHllerC
an unwlse step for the Council to make tl
:, change Of policy. II is thought that bonds "
e be sent hore and thrown on the market. In u
:. present condition of the money Market hol
- ever, this may be considered very doubtful, Al
y if they should be, there are no doubt many i
Il i vostors here who would willingly take them u
!, = as there was considerable disappointment th
- the recent loan was 30 quickly cleaned OF
v City bonds now command premium i'll the nus
, ket, selling at lOll