Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-03-16

PoooOuSOlo 1ldu w OualSO twenty
five cents. The little stockholders
have been crushed out or silenced
and the big ones absorb the profits
in enormous salaries which they do
not earn. We hope Mr.. Golfers
bill will pass as a preliminary step
to a final test in the courts, for the
company has money and will no
doubt fight it out to the end. So
will the LEDGER, which speaks for
the people.
TIE RECEIVERS BILL IN The HOUSE.
The following bill, providing for
the appointment of a receiver for
Memphis, has been introduced in
the house, and we understand that
its supporters and the friends of
the Flippin bill, as it is called in
the senate, have agreed upon this
as the bill which they will endeayor
to press through. This we regard
as an improvement on Flippin's
bill in many respects, which will be
apparent to those who have studied
the bill already published in the
LEDGER. One important feature
is that after two years the
holders Of bonds issued by the
receiver may exchange them for
five per cent. gold bearing bonds.
This obyiates the objection that the
bonds issued by receiver would
not be negotiable, for at the end of
two years the Office of mayor and
board Of aldermen and common
council would doubtless be restored
and the bonds given in exchange
would be issued by a regular city
government. There is one defect in
the bill, but that can be remedied
amendment: it does not limit
the compensation of the receiver. It
is usual to allow a receiver five per
cent, which in this case would be
too much Of a good thing. A fixed
or a maximum compensation
should be mentioned in the bill for
the receiver, aud the commissioners
also, who should be something
more than fgure-heads. The bill
introduced is as follows:
HOUSE BILL no. 707.
An act TO enable municipal corporations
having more than IS, 900 inhabitants
to settle their indebtedness:
Section | Be it enacted ty the gen
eral assembly of the State Of Tennessee.
That section 81 CT an act passed March
20, 1875, chapter 81, which reads:
That the legislative powers Of such
cities shall be vested in a mayor, board
of mayor and aldermen and a board Of
common couucilmeD, who together shall
De styled the general council Of such
cities, and shall be elected as shall be
hereinafter provided" be and the same
is hereby repealed
Sec. z BE itiurther enacted, That the
power TO levy taxes Of every description.
and for any and every purpose whatever
is taken away from said municipal cor
p%orations and each and every officer
aud representative thereof, and said tax
ing power Is hereby lodged in the legisla.
ture Of The State, and not elsewhere.
Sec, 3. Be it further enacted. That
upon the application of any person or
persons who are the owners and holders of
any past due and unpaid bond, coupon or
other Indebtedness Of said municipal
corporations, not less in amount than
hity thousand dollars, it shall be the
duty OF the Chancery Court to appoint e
receiver for said municipal corporation.
who as the officer Of the court, and not
otherwise, shall. under the orders andVu.
structions Of the court, act for said mu
nicipsl corporation.
Sec 4. Be it further enacted, That said
receiver, together with two other ei,i.
zens and property.holders Of said cor.
poratlon, to be appointed By the
court, shall constitute a commission 10
settle and compromise the Indebtedness
OF said municipal corporation by fund.
ing the same at a rate not exceeding
nifty five cents on the dollar on iudg.
ments, and not exceeding fifty cents on
the dollar for bonds or coupons past due
aud at a less rate for the less valuable
classes Of said indebtedness, and upor
this action being confirmed BY The
court the court shall direct the
receiver to execute the necessary
aud proper compromise bonds and con.
tracts, which bonds, when so executed
shall to all intents and purpose, be n,
valid and binding obligations Of said cor.
porations; but it is understood and agreed
that the holders OF any of the bond,
issued by the receiver, as provided in ihi,
act, shall have the option after two wear,
to fund and exchange them at bar into
gold bonds, bearing FIVE per cent. int
rest, 10 mature at tie same time IA the
bonds for which they are exchanged.
Sec. O. Be it further enacted, That in
order to enable said commission to max,
q settlement of said municipal indebted
ness as herein contemplated, it is hereb,
enacted,
l. That all matured bonds aud con
pons and judgments and all paving scri,
certificates issued by said corporation
and all receipts for moaey paid by tax
payers to paving contractors for making
the Nicholson and stone pavements. etc
by virtue Of any contracts with said cor
porstion may be funded at such a raj,