New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-05-11
SCALE THE WHARF ROHDS.

A suggestion has been made to us since
the reopening Of the discussion Of the
wharf lease by the petition Of the lessee
for relief-to the effect that wharf bond
holders should consent to scaling or re-
duction from the face value of their bonds,
proportional to the decreased revenue
from wharf dues. Several figures have
been named, from twenty-five to forty
cents on the dollar, as the amount which
should be taken from the face value of the
bonds, and the same scaling of the cou-
pons after the first of June next, and the
! interest on remainder Of the bonds to be
fixed at five per cent, instead of seven
thirty as at present.
This suggestion will not be likely to
meet with much favor from the bond
holders, but upon serious reflection it
may not appear SO unreasonable as at
| first blush it would seem. All other
| creditors of the city have been subjected
| to losses from the inability Of the city to
! meet all her liabilities with her decreased
! revenues. A large number Of the holders
Of other city bonds have consented to ex-
change them for premium bonds, by
which scheme the bonds will be paid
from one to fifty years, with the interest
reduced to a uniform rate Of FIVE per cent.
These premium bonds are only quoted
at say thirty-seven cents; consolidated,
old and new, at say forty, and city scrips
at from forty to sixty. All these creditors
have been compelled to abate q part of
their claim from the simple inability on
the part OF the city to pay at maturity and
at their face value all the bonds, showing
much greater loss ON the part of these
creditors than is proposed to subject wharf
bondholders to.
1t is true the wharf bonds are secured
by pledge of the revenue from wharf
dues, but it is also true that before any
revenue can be collected from vessels
landing at the wharves, such wharves
must first be built and afterward kept in
order, and whatever surplus revenue is
collected over the cost of building, main
tanning, collecting and other necessary
expenses will go toward the liquidation
of the wharf bonds and interest.
1t is manifest that the revenue from
vessels landing at the city wharves is less
now than when the wharf bonds were
issued, and is gradually decreasing, and
from present indications will continue to
do so. This is the case at the Old and
New basins, where the decrease of re-
ceipis has been nearly one half, as COM
pared with 1901. If the wharf bond
holders will step forward and consent to
an abatement Of say, twenty-five cents on
the dollar, or two hundred and fifty dol
lara on each bond Of one thousand dol
lars, and the interest to five per cent from
the first of June next, there is no doubt
that such modification Can be made of the |
lease, between the lessee and the city, as !
will be mutually satisfactory, and to the |
interest of all parties and the public.
It is very evident the city would have |
retired no bonds, Sor paid any interest
during the last nine months, had she kept |
control Of the wharves and made the |
same extensive repairs which the lessee
has made; and with less repairs the bust !
ness on the levee last winter could not |
well have been conducted. The revenue |
collected would not have been sufficient |
to make the repairs and pay any portion
of the wharf bond debt, and the city has
no other revenue applicable for this pur-
pose. It is very problematical if the city
will be in condition for years to come to
reduce this debt materially, unless the
holders of the bonds make reduction of
The face value of their bonds and interest
lad give an extension Of the time for
inal payment, to correspond with the re-
luced revenue derived from the wharves.
1t is fact so we'll known to every one
hat during such panic and shrinkage
If values as we have had since 1873, the
lebtor class is most affected by it. Such
unfortunately was the position of the city
when the panic commenced. Her bonds
we're out to an enormous amount and her
esources cut off to such an extent as to
educe the problem simply to reputation
" an abatement and scaling Of the inter-
st and an extension for the final payment
n fiftv vaarS of her hondad II abt
There is no good reason why the wharf
'onds should escape the shrinkage to
which all other bonds were subjected. It
5 supposed only few of these bonds are
n first hands, and parties now holding
hem have come in possession at a less
igure than seventy-fve cents on the dol
n, and therefore can well afford to &C