New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-07-11
CITY LIQUIDATION CONSIDERED.


. peal to 'the Sorbearance of its creditors
.. can be expected 70 relieve its enbarrass
ments OK comply with It's duties. An
people Of Louisiana living within the Cit.
limits must be protected. They mus
have schools. police. water. protection
| from fire and from disease. Ihe Councl
can no: abd;cate OK stand sill. AID NJ
plan o! relief which requires the consen
: or cooperation Of others can be adequate
to the emergency. We sill conslae:
. suggestion for Tie termination OF presen
deb. obligations by giving UP to the pub
lie creditor all tire corporate property sub
jec: to hi, debt. We deny that any power
to co,npe! farther taxation Of the people
0: thei. property Cor tia: purpose exists
anywhere.
II We gran: tina: the city is bound !ol
its debt 20 the extent Of its property. then
let the Administrators DO precisely what
any other inso!ver: tebto. may do. Let
the city 90 into the liquidation Of its debt
by the application O: i:s assets.
The Common Council should give for
ma! notice TO its creditors o; lis inability
10 meet is obligations, and request them
TO accept q confession OF judSn1ea. for
their several debts. If this involve TOO
large an amour: OF costs. then let the city
o..er . mortgage Of all corporate property
and classify all its creditors, either on an
! agreed schedule OK otherwise. with spe-
| cific conditions O: sale, the creditors to
be paid from the sales ra.eably rs to
amoun. or otherwise. We suppose that
| by this OK o:he. practical means the city
| surrenders CT subjects its assets foz its
debt. OF what do these assets consist?
OF al! the real property and Of all the
present or back debt due the city. There
would be reservation 0! certain property
exempt from taxation, and certain fran
chises We contend are 40: subject Of
sale beyond the term OK amounts fo:
which they may have been granted by the
corporation. Deductins then all the
property not within tbs liability Of the
city for paymcn: Of the public debt. the
rest would be on sale.
Admit the utmost value Of this sche.
dule SO surrendered. and it would not pay
ten per cent on the public debt, and as
purchasing credito. can not well carry
the property away, tie city might re-
purchase whatever portion it needed.
This is 'the pound Of flesh lie. the
public creditor take 1t. But beyond that
hair line Shylock can no: 60. Tie right |
q tara!io" IS not a" Gss.: q Inc city 1t
was no part Of the ccrtrac: that the city
should levy q given tax: and, if it were.
the contract is forfeited by the inability
Of the city to comply viii. it. Why: Be-
cause the city is not a sovereign, and can
impose no tax unless authorized or conf
manded by the State 70 impose and col
lecs such q tax. # then the city says to
the public creditor, Take all my property,
and surrender my bonds. and the creditor
refuses, what next: The State may, W.
say tina, the citizens Q: New Or
leans. whom it has jus: said were unab!eto
pay their part OF the State debt. shall pay
lie whole Of their own debt. The public
,reditor may undoubtedly command
through the courts tie enforcement of
he present taxes. but no power exists to
Command State TO levy even :nu-
'icipal tax to make good municipal
ontrac.. On :he other hand, the State
nay repeal the law separating tie city
axes and assignir: them in specified
ums 20 specified purposes. The State s
nay. at the ceques: Of its citizens. re- s
uce :he corporate taxes en- the
property and business 0: those who !,
We within municipal jurisdiction 20
ucii rate rs is :nay seem proper ;or
be maintenance o: tina. municipal
oyernmen.. Il will be said the l
UbLc credi tor may arrest these revenues :!
/ sc,.sia il nc ean sc: there first but
hey would be ms; gniiicant in proportion A
} his demands. and might be SO vested
, spec;a! uses as 20 BE sacred from ye-
raining order Do We teach yepudia-
on: No: At all. We contend that the 3
ub!ic creditor trusted the city upon the $
18th Of her assets. and that while public u
nth may have been an item to surrender 0
! schedule Of assets, the power to en- =
'rce tax Oh the people to NEE: these L
oligations was no: az asse. in the hands O
the city, end SO can no. be surrendered. O
9 affirm this because tde people
, not belong TO the corporation, nor has te
&c corporation any power 70 tax them. "
he people have . right to say, through N
eir representatives in the whole State. III
hat rate Of taxes they will pay, upon what Of
Ibjects the taxes shall be imposed, and to az
hat purposes the taxes shall be applied. vi
e deny that the city can be compelled by &C
even to propose a rate o: taxes til
? a specified purpose. ad
We wish the Common Council. to take pa
csc suggestions into consideration. Let IN
he examined whethe. the public cred &
Y can demand anything more than what tn
in sight, and whether power exists pl
ywhese to compel the imposition of ia
ses upon the people beyond their ability n:
bear, or their own disposition to sub
t. Let Us sell out, pay out and get
Z; let us surrender the visible corporate
sets on our own account and leave 70 NC
2 posterity of payers to decide for Te
emselves whether they choose to slip ne