The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-05-03
They Argue at Length Why the Bill
Passed by the Legislature Should
Not Become Law.

Passed by the Legislature Should
Not Become Law.
The following letter, relating to House
bill No. 3o3, making certain certificates
and evidences Of indebtedness OF the
city receivable for taxes for certain
years. passed by the Legislature at the
extra session, and as yet unsigned. was
placed In the hands Of Gov. Nichols
yesterday.
MIAYoRAITY OF NEW ORLEANS,
City Hall, May ., 1877. !
TO His Excellency, Francis 7. Nichols, Gov
ernor OF the State of Louisiana:
Az the last hour, on the last day OF the session
of the General Assembly. thers was hurr,ealy
aD3. having for lie object the payment OF city
taxes with outstanding obligations OF the muni-
cipality. z,
l. The tenor Of this bill in respect :, the oblgs-
tions receivable for each year taxes have heard.
ia subata ptially, II not exactly. az follows:
q Jlity back taxes, to 1873 inclusive, to be paid
with any outstanding and admitted obligation.
nil interest being RENTED.
a. Cty tax 1874, payable according to its sew
eral objects, thue Police tax In police certificates,
echoo tai In school certificates, interest tax In
unpsid coupons and the remainder of the tax on
general fund portion In any valid obligation OF
A. City tax of 1875 to be paid In manner eimi-
lar to that prescribed for 1874 except interest tax
which lie payable in cash.
Many and powerful reasons arise opposition
TO such law. Obviously the fret among these is:
First--That such law is reward Tor Delinquent
OF aud affords strong inducements for refusal to
pay taxes.
Similar laws have been passed from time to
time, until suoh enactments are regularly eK-
pected, and no argument or assurance will, In
view Of past experience, lead to the belief that
similar laws will not again be made. In this be-
lief q very large number OF Taxpayers have OBJ
served . profitable delay and proved to them
selves that the best way to pay tax is TO refuse
q prompt compliance. In THE belief many will
again wait. conscious that many respectable
members and numerous individuals comprising
the army OF delinquents will always be able to
bring such moral influence to bear on their rep
resentatives In the General Assembly as to induce
III not require them to pass these "scrip laws"
And well may taxpayer wait, for his reward
lie great. Thus, Tom Jones owes tax OF $4,000
for 1879 which he refuses to pay until the present
time MAY, 1871, when he sees good reason to
take advantage OF the proposed law. For four
years Tom Jones has refused TO pay his tag; it
increases at the rate OF ten per cent per annun
until now: Il has reached the sum OF $1,000; the
law paases. the interest and costs ere RENTED,
and the principal. $4,000, may be paid with city
scrip at thirty Ave cents, or Jones finally pays
his original debt of $4,000 with $780, Not only does
he thus avoid oil interest or oosta paid by thoee
saved to himself two-thrds Of the tax due. Nor
is this all; In the four years of his delinquency
Jones has had the use Of his $4,000 at ten per
cent profit in the way OF interest," equal to $4,000,
40 that the advantage gained by him by refusal
to pay amounts to $3.50, which is the amount of
hs reward, se given him by tho law now before
your Excellency for signature. Need there be
other argument to chow that the enactment of
such laws and the hope OF annual repehtions OF
the same kind Of etatGtes will always render the
TeaDpnlablp
and valuable documents
Seoond-The same payment which we have
seen soperate 20 advant,geoualy for recall
citraut taxpayer increases tho debt Of the city
and takes away the means by which that debt
was to have been fully paid
The city can only and does only impose tax
TO pay her liabilities thus, che imposes sufficient
tax TO pay interest, as there will be interest fall
ing due in the year for which the tax is levied
she levies just enough for the general fund as
will be needed to pay the gas bill, supplies, etc..
amongst which there ariees In 1873 debt OF
$4,000 TO John Brown for supplies. That debt is
to be paid from collection OF $4,000 taxes OF 1873
which are particularly devoted by law to the debts
OF that year. But the persistent delinquency Of
= vast number OF taxpayers, including Tom
Jones himself. whose tax would exactly pay
The debt at the start, make Il impossible
20 obtain money to pay debte. Browns debt Of
$4,000 bears 1--WE will say the smallest rate) Ave
per cent, in four years; when Jones pays his tax
of $4,000 in scrip, and without interest, the debt
has swollen to 10000. Now, we will suppose that
Jones buys this claim Of Brown amounting to
$4,000, and, under the law, pays his (Jones tax of
$4,000. This will pay off Jones' debt TO the city,
but as 1t will require only $4,000 Of Browns claim
TO do 80, there will be left still due by the city
$1,000. 10 is thus obvious that the remission OF
the interest on the taxes will deprive the city Of
the fund whence she expects to pay the interest
on the debts which prompt payment of the
tax would have discharged before interest began
10 accrue.
Tho ranisa;on AZ iniaraot an t.xaa will 49,.
leave the city owing the interest on her floating
debt without means OF payment, and IL We put
that debt for 1873 at 100000, the increase Of the
city's debt on the paying OF that sum in scrip
four years, or 100000. The remission OF inter
eat will surely increase the city debt for 1873 to
100000, IL not much more, for which no other
means has been provided than the interest ITSELF
which is to be forgiven to ths delinquent. But
this debt must be provided for, and by the
levy of tax, and, moreover, levy OF q tax
on the whole city property, including
the citizens who have promptly complied with
dience Of law and refusal to support the govern
ment, needs no illustration to be manifest but
when large portion OF the reward Ia to be
granted at the expense OF the patriotic and wor-
shy citizen, the act becomes so grossly unjust
and unfair and impolitic that II seems strange
that 1t can find an advocate, except among those
who hope to reap Its unequal rewards and bene-
fits. a
Ihlrd-Ine laws ana the ordinances OF the
city besides requiring the tax levied to be meas
ured exactly by the sum needed to pay the liabil-
ities for the year for which the tax IL levied and
for payment of which this tax becomes sacred
fund, do also require that each years taxes shall
be used for no other purpose than the payment
OF such years debts. Thus the tax Of 1878 is to
be used exclusively for the debts Of 1873. On
the faith of these acts, and with knowledge
that the tax of the year is pledged for the
years debts, the individual contracts
and deals with the city, receiving an
Acknowledgement Of the debt due him. The
creditor knows the fund to which he must look
and knows that TO divert the tax SO specially as
signed for the benefit of his debt will be injuri-
GUS to him and violative of law and unconstitu-
tional IS divesting him Of q vested right in the
particular years tax. The diversion Of funds
from the purpose to which they were originally
devoted, ia expressly forbidden by the city char
ter and would receive the vigorous censure OF the
courts If any creditor should see ft to invoke an
expression of Judicial opinion.
10 rsola nT <bo