New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-05-07
HAVE THE WHARF LESSEES FAILED TO
COMPLY WITH THEIR CONTRACT

COMPLY WITH THEIR CONTRACT7
While we accord to the Bulletin, the
credit of entire sincerity and The most
correct motives in it's position on the wharf
bonds question, we cannot say anything
complimentary to its legal or financial
acumen. The interested lessees seem to
have found in our usually clear minded
contemporary friendly and partial ad-
vocate rather than rigid judge in their
controversy with the people.
The statement of the wharf debt, and
which is no doubt correct, shows that of
the one million dollars worth of bonds
originally issued, about four hundred
thousand dollars have been redeemed,
leaving say six hundred thousand dollars
outstanding. The contract with the bond
holders bound the city to redeem one
tenth Of the amount yearly. This would
require annual payments Of one hundred
and four thousand dollars for principal
and varying amounts for interest on all
the outstanding bonds at the rate of seven
thirty per cent Upon the allegation that
the city could not derive enough revenue
from the wharves to defray expenses Of
repairs and collections and make these
annual payments contract was entered
in to with private parties, who professed
to be abundantly able to do the work I'M
der certain stipulated conditions. These
parties have been in possession for nearly
year, and now come forward with the
complaint, substantially, that they are
unable to comply with the terms of their
agreement. Under the guise of amend
ing the terms Of the old, they really
ask for a new contract, and their
request is supported by the advocates Of
the change on the ground that the city
cannot make any better terms elsewhere,
nor succeed in any other manner without
the aid of the present contractors. Dur
ing the existence of the lease less than
one-tenth Of the bonds have been re-
deemed, and only about nineteen thou
sand paid for interest. The reason for
this meagre showing is ascribed to une1-
pected heavy OUTLAWS for repairs and a
serious shrinkage Of levee dues. It would
seem, therefore, that private parties who
have to pay their own salaries out of the
hax Sc AZ. 1>Io 70 ~
the receipts than the city officials who are
paid for their services ont Of another fund.
The logic Of the Bulletins reasoning,
which we understand is that of the lessees
also, is about this:
After about years trial there remains
about as much debt as before, but not so
much wharfage, nor SO many wharves.
For we are told the Council "can not col
lect wharfage where there are no wharves
or where the wharves are utterly unfit for
use." If such condition Of things exist
at the end Of one years management by
lessees, how will we stand at the end Of
another twelve months? What has become
of the alleged improvements put upon the
wharves by the lessees? 1t seems to rs
that if Mr.. Ellerman is permitting the
wharves to rot away and become
unf: for use, without even pay
ing the debts as per agreement, the
city ought to put him in default, ana
either administer the wharf business itself
or relet the contract to some lessee who
has capital enough to do the work with
out being obliged to await the slow pro-
cess Of daily collections Anybody, We
take it, can stand upon the river bank
without dollar in his pocket, collect the
dues that come in, pay portion to the
fraction Of the remainder
for few repairs and keep the rest him
self. A man could easily be hired by the
city for $4,000 year to do this, and re-
luire him to pay the balance, if any, into
The treasury. The lessees can not reason
ably expect the city to give them con-
tract to do nothing and take no risks, and
assure them profit in the enterprise.
We can not admit that the city is SO
Utterly powerless as the Bulletin. endea7ors
% make it out. There is no doubt that
he wharves have been badly managed
During the past ten years it has been
necessary to pay large sums to build new
md repair old landings. Some OF the
work done is Of an imperishable nature,
md will remain 50 for years. A large
portion of the expenses, fifty per cent
perhaps, represents discounts for bad pay
md shrinkage, from bad management and
If there be perceptible falling off in
as there is likely to be, there
viii be no necessity for SO large an area Of
wharf accommodation as formerly. If the
Eastern railroad interests, the Coushatta
Democracy and the Democratic enemies
# leyee appropriations are permitted to
ucceed in their attempts to cripple il not
uin our commerce, there is no reason why
We should 60 to the expense Of an extern
i've landing along the entire front of the
ity, and nail down several million feet Of
blanks merely to rot in the SUGGESTIONS Of
ain and sunshine. And as 70 human
oresight can penetrate the future to say
With sufficient accuracy whether we shall
70 able to hold our own or not even in the
over river trade, it will be wise at least
or the city to assume full control of the