Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1875-12-03
The Leftwich Funding Bonds
Over-Issue Held Void by j..
the Supreme Court.
The Numbers Of the Bonds 50 Issued,
and History of their Issuance.
The Paving BOnds that were lille.
gaIIy Issued and their Num-
hers, with History OILS
suance and Statement
of Issues Involved
Before the SUI
preme Court.

The Supreme Court on yesterday de-
cided in the cases of the City of Mem
phis VS.. P. G. Bethel ct al. funding
bonds cases) as follows:
First-That Mayor Leftwich issued
without authority an excess Of $l35, 900
in funding bonds.
Second-That the city can neither
plead usury nor scale the bonds.
Third-That the city is bound to levy
the taxes necessary to pay the interest
on the bonds that were issued before the
acts of 1875 we're passed. which acts con-
tain the new charter, and which limits
the amount of taxes to be levied, etc.
These bonds are held by parties in
New York, Memphis and other points.
Our BODYBUILDING reporter visited the
City Registers Office yesterday afternoon
and obtained the following accurate list
Of the numbers of said bonds declared
void: Nos. 1878 to 1878, inclusive five
hundred dollar bonds); 1880, 1881, 1887,
1888. 2OO9, 2OlO, 2Oll, 2Ol2, 2Ol5, 2059.
2O6O, 2O62, and 2O67 to 2O75, inclusive
Zone thousand dollar bonds). Nos, 277,
2O8O, 1884, 2lS3 Zone thousand dollar
bonds, 22l9. 1920 five hundred dollar
bond), 1922 Zone thousand dollar bond),
and 2235 to 1852 1--WE hundred dollar
bonds). Nos. 1861, 26TO, 267l, 2672,
261S, and 1850 to 27O4, inclusive; 27O7,
27OS, 27Os, 272l, and 2s79 to 1891, in
elusive, and BOIL to 9O56, inclusive lone
thousand dollar bonds),
The above figures show the. numbers
Of bonds issued in excess of the one
million OF dollars in bonds issued by
Mayor Leftwich, April Is, 1868, by au-
thority Of the General Council. How
all this came about is as follows: By
ordinance Of September 6, 1866, in LOT
lands administration, $3.50, 900 of fund
ing bonds were authorized to be issued.
Under this ordinance only $l87, 900 were
issued, and thus the matter stood until
April Is, 1868, when the ordinance was
passed authorizing the 81, OO0, ZOO fund
ing issue. After the passage of the
ordinance Leftwich issued 81, l35, 900,
assuming, it appears, that he had power
to make the issue Of a million, and also
the balance of the $25O,0OO not issued
by LoAand, and this overplus Of $l35, 900
the Supreme Court has declared void.
The Supreme Court decided all other
questions'in these cases against the city,
and the questions so decided involves
about $4,000. These other questions
SO decided against the city are in refer
ence TO the bonds that we're rightfully
and legally issued. 1t was commended by
the City Attorney and other counsel of
the city:
First-That the present holders could
receive onlyt the amount actually realized
by the city.
Second-If not, that the present bond
holder could recover only what he paid,
unless the amount PAID by them was less
than the city received. The face value
of the bonds was about 81, 264, 1000, and
the loss the city sustained On said face
value amounted to about $500 as the
city only realized from forty.nine to
sixty cents on the bonds; but the ST.
preme Court has decided against the
city on the points above relied upon, and
the city will have to pay the face value
Of the bonds, regardless Of what she re-
ceived for them when issued or what the
present holders paid for them.
h PAVING BONDS QUESTION.
The Supreme Court on yesterday had
not decided as to the 100000 paving
bonds question, but nearly the same
issues are involved, and, if anything, q
stronger case of defense is made by the
city. The history Of the issuance OIL
the bonds is as follows: On June l6,
1861, the General Council, by ordinance,
authorized Mayor Leftwich to issue 5000,
=
900 in paving bonds, and it is claimed
that Of that amount 100000 is void, as
the Legislature only authorized the city
to issue $500, 900 of paving bonds, and o.
these bonds 1857 900 we're issued at pal
by the city. The balance Of this $500,
900 was issued below par and the mum
bers of said bonds so issued below pal
and amounting to about S400, 900 are as
follows: Nos. 1873, 1877, 1873, 1879, lao