The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-06-19
THE WHARF LEASE BUSINESS.
CHANCE FOR "soBER SECOND THOUGHT.


CHANCE FOR A :.:soBER SECOND THOUGHT.
Without feeling in any way conscious Of
neglect of duty we might suspend our re-
marks upon the matter Of the lease OF inc
wharves. But inasmuch as the Council are
arrested for the time being from further pro-
ceedure in the matter, just at the moment
when they were about to deliberate upon bids
received in pursuance of the ordinance, We
cannot let the opportunity pass Of repeating
our objections and Of expressing the hope
that the injunction of the Superior District
Court may be made perpetual
If the proposal to farm out the revenues of
the wharves for cash to the highest bidder
had been made in year Of prosperity, when
New Orleans owed but little debt of any kind
and no wharf debt at all, the natural inquiry
Of the people would be as to the gain which
the city government might have from the
transaction. To be acceptable, such a propo-
sal must be such as to show that the wharf
revenues collected by subordinates Of the
lessees would be more valuable to the city
than if collected by her employees, and that
the needful repairs could be made at lower
rates by such lessees than by the Administra-
tors of Commerce and Improvements. And
at this time to arrive at the merits Of the pro-
posal to farm out the revenues of the wharves.
We are to look at it precisely as if the city
owed no wharf debt and as if the
interest on any class Of bonds was in no
manner whatsoever lien upon the money
collected for wharfage.
The negotiation would thus assume the
form of bid for the privilege Of collecting
wharfage, coupled with the engagement to
keep the wharves in repair. The natural
answer of the city to such bid would be to
the effect that the wharf revenues are worth
as much to the city treasury as they could be
to the lessee, and that the city can make all
requisite repairs in due time and at as low
rates as the same could be made by lessees
The city might, furthermore, reply that it is
very desirable to reduce wharf rates as soon
as possible, and that to effect such reduction
it is important to have absolute control of
the whole matter at all times.
II, as further inducement, the person or
company desiring to obtain the lease should
offer to pay $75O,0OO of the city's bonds
for the revenues of the wharves for forty
or fifty months, the citys reply would be
that she was not in q condition to pay her
debt nor even the interest upon it. and that,
therefore, she had no wish to prefer one class
Of creditors over another.
During the week. and especially on We'd
nesday and Thursday, the prices Of wharf
bonds advanced in view of the prospect of
their more certain and more speedy redemp-
ton. Any action Of the city producing this
effect is partial and impolitic, showing that .
preference had been given and that favored
class of creditors had been selected.
But the city, with due consideration for
her credit, and with justice for her guidance,
cannot afford to single out and isolate the
holders Of the wharf bonds for special favors.
Their interest has been punctuelly and regu-
larry paid, and the stipulated annual one
tenth of the principal has been redeemed;
more, that the city cannot do injustice to her
other creditors. She must be just before
being generous, and any action on her part
favoring the wharf bond creditors, must be at
the expense of other interests and other credi-
tors. The city need be in no haste to redeem
her wharf bonds. Even if unable to redeem
the one-tenth annually, the holders would
still be as well off in the matter as the hold
ers of any other class of city bonds. In her
present financial condition TO appropriate the
cash revenues Of the wharyes to speedy re-
duction of certain class Of Indebtedness
seems to be anything else but wise.