Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-06-20

AZ much talk has been caused by the
recent financial communication OF Mr..
G.. A, Hanson, city attorney, to the gen.
eraI council, we have endesVOred to give
the public what this gentleman has to
say on the subject Of the municipal It'll
CATION. For this purpose the APPEAL
reporter yesterday interviewed Mr.. Han
son, with the following result:
ReDOrter-Mr. Hanson, l wish to as
certain what you know about the man.
ddn7Us cases, and how long you have
favored 4 compromise with the city's
creditors?
Mr.. Hsnson-I have always favored a
compromise, for / have never believed
the city able to pay her entire indebted
ness, and always favored that something
be done to bring about a compromise.
ReporJer-Did you not advise the gen.
eral council. either directly or indirectly,
through its fisance committee, to oppose
the nlaBdQnlt8 cases?
Mr.. HausOn-I have made the best
returns I could to such suits, which, like
attachments, seek 10 give some creditor
or creditors 3 priority Of payment. OF
course we defend all suits, but L have
never advised the city to act in such a
manner as to induce lawsuits either Of
this or any other character. Ny advice
has always been to place all creditors
upon an equal footing. l think l was
the first person TO suggest meeting Of
the bOndh0ldeTs so as to scale the debt
within the limit that the city could pay.
You know we had a committee which
went to New York for that purpose, but
the plan was not c0nsUmmated.
RepOr5er-As you are aware, the
question raising the legality Of the city
bonds has been the subject Of much
comment, and it IS stated by some that
you induced the mayor to have the con-
test raised.
Mr., HsnsOn-I never knew the mayor
had any ides Of having the bonds con-
tested until his message was delivered
to the general council last May or April,
1874. But on June 4, 1874, some suits
had been instituted, and | called upon
the mayor and city council, asking f0T
the appointment Of additional counsel,
as I was unwilling 70 take the RESPONSE
bility OF the suits, Previous to the writ
ing Of the letter, June 4, 1874, asking for
counsel, had conversation with AL
deTman J. Hillsmsn, then chairman Of
the finance committee, stating 10 him
that the question had been precipitated
upon me by the mayor. l expressed to
him my doubts about our success in the
suits, and it was at his suggestion that l
wrote the communication already spo-
ken Of it being understood between US
that when COUNSEL was employed, II
should be Howell T. Jackson and Judge
Elicit, he suggesting their names, and l
being glad to have them. In that con-
versation Hillsman said to me that We
Z -, -3
suits. l was doubtful, and said it de-
pended upon the proof We could make of
the facts as set out by the mayor. /
thought that in law and Justice we ought
to have q defense Of the issue of Sl35, 900,
for the reason that the authority to issue
the bonds was only for $lO0, 900, while
they Issued Sl35, 600 of bonds, as the
mayors message shows. OF course
Sl35,O00 of bonds was Issued without
the shadow of authority, but owing to
the manner in which the bond register
was kept and the bonds used, we could
not designate which were the right
issue. We found it impossible to IN
raveI this, ss bonds Of a higher number
were in many cases issued before those
of lower number. After my commune
cation to the council, WS 8 instructed to
see Messrs. Jackson and Elicit, and as
certain what they would take the cases
for. Mr.. Jackson minated that he
would take a retainer OF $500, with a
fee Of $500 for taking three cases to the
highest court, but expressed great doubt
as to our being able to make anything
out of the cases. Judge Elicit didn't
name any fee, but expressed doubts as
TO our being successful, and finally eX-
pressed as his opinion that we could
not.
RepOrteT-Did you report this infor-
nation to the city council and mayor?
Mr.. HansOn-I did, and the city
council appointed committee to confer
with attorneys, and the said committee
appointed General Humes and Major
EdgingtOn, and perhaps others, upon
the subjects of the suits. The neWspa-
peTs and public ciamOr became strong
against the employment Of this counsel,
and I sent q communication to the city
council, dated July IA, 1874, in which
said: "In this connection | will add
that as there seems TO be serious opposi-
iiOn to assistant counsel in these cases,
leave Il to the discretion of the council
to do so or not as they seem proper, and
will not urge it further. 1t is the weight
OF responsibility from which l shrink
rather thsn the labor and duty which
these suits impose
RepoTter-Had the general Council
ever asked your views upon the subject?
Mr.. HansOn-Tbey never asked me
my legal opinion Ss to the result Of the |
suits, but they did ask Inc what points |
l expected 10 make in defense of the |
suits. l st first declined to state them |
iOr the reason that they once before |
asked my opinion in the Happy Hollow |
matter, tut the council went against it, |
and my opinion was read against me in |
open court by the opposing counsel. But |
on the sixth day Of July, 1874, / did |
write o letter 10 the council stating the |
defenses that l had set up by plea in |
these cases. In that letter / used |
this language: at may be proper |
for me to state that l had |
to do with the inception OF |
this litigation or the raising of the ques- |
tons upon which it must turn. That
letter WSs read in the general council to |
8 full board. Our difficulty was then as |
it is now: We had no money to pay the |
debt, interest or principal, and our cred |
itDEs sued as, and we had to make the |
best defense We could. We tried to pre- |
vent being crushed by the multiplicity
Of the suits. / thought then the city |
council would take some steps. A con- |
vention OF bOndhOlders wss held to get
them to scale down the city's debt. |
Since then there has nothing been done
by the council.
RgpOrteT-I notice that more than one |
member Of the city council has been dis |
p0ssd to censuTe you as the ilisd of the |
city's financial woes. Had you ever adj |
vised or attempted retrenchment previ- |
Gus to the dates mentioned in the above |
answer?
Mr.. HansOn-I think did, sir. When |
A. J. White was elected to fill the posi- |
ton made vacant by the death of Harry |
Lee, Of the eighth ward, some time in |
the spring Of 1874, prepared g resolution
10 have 3 committee appointed whose |
duty it should be to investigate every |
d department OF the city government, |
aud report what employees might be dis |
what salaries might be reduced, |
and what items OF general current ex-
penses might lie curtaIled. l carried |
resolution to A. J. Whites store, on |
Front street, and left it there, he being |
absent. met him next day at the coun- |
ell, and I asked him if he was going to
present the resolution. He said he found |
it at his store, but did not know. who