The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-07-01
CITY EMBARRASSMENTS,

le mas Deen evident Tor seven months pas
that the city government could not collec
from deprecated and idle property tax sui
hcient to pay the necessary expenses of tn
city, and, in addition, the interest on tn,
bonded debt Taxable property assessed a
about $12O. 600, 900, worth, at rates now cur
rent, not much more than $4,000, 900, bear.
half the load of costly State government
and half the interest on the enormous State
debt as well as the expenses of the city gov
eminent, and the interest on city debt Of
s22, 246. 900, calling for nearly 81, 500 900 in
interest Besides this the city pays double
license tax on business amounting to $500, OO0
more, which operates virtually as if tax on
property.
These loads are too heavy to carry, and the
fact has been formally announced to the City
Council. In his message to that body, at its
session of June 29th, after quoting from his
message of December 29th the Mayor says:
The inability Of the people to pay so large
tax, which l then asserted, has proved to be
true. With the utmost energy on your part,
with the greatest inducements to prompt pay
ment, the time has arrived when the receipts
/
and the question now arises: How is the city
government to be administered?
! Further on he says:
see no way of protecting the public well
fare but by taking from the taxes collected a
sum sufficient to meet the current necessary
expenditures, reduced to the lowest point
| commensurate with the efficient performance
OF the duties committed to your charge. The
public safety is the first law. and this must
justify you in using the funds which should
otherwise be devoted to the payment of spe-
cifc debts.
Afterwards the Administrator of Finance
offered preamble with the following resolu-
ton:
Rescued, That trusting in the forbearance
OF the public creditor, as we'll as the support
of the whole community, the Council declares
Its inability to meet the heavy demands for
interest on the public debt, and is compelled |
to postpone the reservation and payment of
same until such time as the receipts from |
taxes may justify a resumption.
Both message and resolution were referred |
to the Committve of the Whole for private de-
bate and conference in the customary informal
meetings in the Mayors parlor.
What the action of the Council may be in
this grave contingency remains to be seem
The proceeds of the interest tax of one per
cent are applied by law and by ordinance to
one designated purpose, and they cannot be
legally Invested from that purpose. Any
holder of the bonds or the city may, in few
hours, absolutely debar the Council from d.
vesting any sum, small or great from the
proceeds Of the interest tax for the payment
Of any expenses of the city, even those which
seem necessary to secure the safety of the
very property from which the interest tax is
.aised. Even the delinquent tax debtors of
he City would probably be sustained by the t
courts in refusal to pay an interest tax when
hey know and can prove the intention of the
jouncil to appropriate the money collected
or interest otherwise than as the law :
lirects.
As we have long since repeatedly stated the
mbarrassments of the city are such as can be
cached only by legislative action. 1t was in
he hope that something might be done at .
nee for the relief of the city by the General :
ssembly at its extra session, that the COM
romise was anticipated as anything which
ur citizens could endure. But that incon-
ruous body did little else than provide for
s own pay. The voice of distress from our
tizens did not disturb the complacency of
le Radical Senate, whose aim seemed to be Il
prolong the abuses invented by their pre-
ecessors to the utmost extent.
What the Council can possibly do in this G.
ID emergency we are unable to see. A re-
sal on their part to assess the interest tax is
to an abdication of their Offices
hey are not allowed to divide tax bill, and
receive that part which is assigned to cur
mt city expenses, while RENTING that part
aich is assigned by law to the payment of %
Q interest on the city debt They can not an
ke the money collected for and belonging to
9 holders of city bonds, and pay it to the 40
Charitable Association for extin- an
ishing fires, or to the gas company for =,
hting streets, or to the payment of police, ror
to fees Of clerks and sherifs, or to the set
ment of judgment debts, or to the support w
orphans, or even to the payment of their !
icers or themselves. 1t is a dilemma in ]
ich they have little else to do but to obey T
laws, under which they act, as far as pos
le,