The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-15
How to Get Rid Of City BO.lds.

Editor New Orleans Bulletin:
In one of Hogarth's pictures woman Is
represented as having expired WINE tne uo.'
tors are disputing her case. Unless we has'e
with remedy for the city collapse may ~
any moment occur
The annual payment Of interest by q cor
poration is a terrible drag on lts prosperity.
You see debt created without knowing 1oi
what purpose it was ever authorized, no I'M
provements have come from II, out extrava'
rancy. prodigality and unTlse Legislation
helned IL on. and New Orleans is in poverty
to-day. ;.
The city owns three valuable properties,
viz. The Water Works, the wharves and land
inps and the markets. The first, previous to
1870. paid an annual dividend Of five per
cent to the stockholders, but under city man.
agement, by an increase in the water rates,
the expenses were not paid, but a debt was
added to the city. The Water Works, man
aged by a private corporation, will produce
an annual net revenue Of one hundred thou
sand dollars. The wharves and landings,
from April, 1852, to April, 1870. period of
eighteen years, produced net revenue OF
$l9s, COZ OF, but this amount was only real
lied by the sale OF the revenues Of wharves IN
1855 and 1853 In 1855 the revenues for
three years sold for S53S, 100
In 1858 they sold for 81 ,O52, 900 for p Rod
of four years and nine months. Although
the wharves since 1870 have helped add 10
the debt Of the city by a failure to produce
net revenue, it does not follow but that they
NAV be made source Of profit under private
management and produce an annual net
rental of two hundred thousand dollars.
The markets yielded good annua! revenues
until the Council in 1870 changed the sale
from yearly to monthly, when they fell of,
but with little prosperity they can be made
to produce 100000 per annum.
The cash valuation of the Water Works has
been fixed at 50 600, 600. The wharves and
landings at S3,OOO,OO0 and the markets at
81, OOO, 600 but / propose to lease and will
fix the value Of each property at four millions
of dollars, payable only in city bonds on the
following terms and conditions:
To an association returning to the city gov
eminent four millions Of dollars in city
bonds with the coupons attached. lease OF
forty years Of the Water Works will be given,
with the proviso that the City Fire Depart
ment and charitable institutions be furnished
with all the water needed, and two citizens
representing the interests of the city be an
nually elected by the Council, to act with the
direction Of the association.
The revenues of the wharves and landings
to be given for term of twenty years, on the
return to the city of 81, 600, 900 in city bonds
with the coupons attached. The purchasers
to keep in repair, and renew when necessary,
the wharves, and the same to be returned to
the city at the end of the lease in good repair
The city will appoint all the wharfngers
needed and pay the salaries of the same.
The revenues Of the markets to be given
for term Of thirteen years and four months,
on the return to the city Of four millions Of
dollars in city bonds with the coupons at
tached.
The three properties leased to be gov erned
by such rules and regulations as the Council
may prescribe, but no change to be made in
the tariff Of charges adopted at the time Of
the signing of the lease without the consent
of both parties, and let it be distinctly under
stood that change, it made, shall only be to
lower the rates charged.
Thus will twelve millions Of dollars in
bonds be stricken from the debt of the city
and an annual interest of more than $3.50 900
saved, while the loss of revenue (frOm mar
kets alone) will be S250,O0O, making clear
gain to the city of more than half million of
dollars annually.
This saving, with others promised by the
relief measures of the Legislature, will enable
tho city to lower the taxes to one per cent for
interest and all other purposes. The bond
holders will do well to consider this propo-
sition; they will never do better. In business
the first offer Of compromise is the best De-
lay or reject and party may spring up that
will repudiate all. In time you will be paid
the full face Of the bonds, but interest is
pleasing memento Of the past and you must
further dispense with the luxury.
S. HOWELL.