The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1878-05-05
THE CITY'S BONDED INDEBTED
NESS.

| TION OF ALL THE FEATURES OF THE PRO-
| POSED COMPROMISE.
The most important question affecting the
interests Of the taxpayers of this city at
present is that Of adjusting the debt with
which our people are burdencd, which in
its present enormous proportions amounts to
a claim upon every mans property in the
city of almost 40 per cent of the ASSESS
ed value thereof. The best method Of get
tine rid of this monstrous load has been
the subject Of much comment among our
people for the past two years, some OF whom
have advocated the plan of fighting with
the aid of the law, to the bitter end, all the
bonds that might have any question what
ever as to their legality. Others have said
the resistance should be confined to the rail
road bonds, which seem to be, of all
bonds, the most unpopular with peo-
pie; while Others have doubtip 'ly
shook their heads and with g. ~
sigh said; Wen have all Of ,hc bonds
with interest topay some time; this fighting
the tax levy will give temporary relief, but
we'll have it all to pay in the end The
city authorities have not for the past two
years levied any taxes for interest, giving
as II reason in justification of their course
that the burdens of taxation were so great
for the cost Of maintaining our city gov
eminent, repairing broken levees, etc. that
| it would be useless TO attempt the collec-
| ton Of an additional tax TOR interest pur-
poses; that the people would refuse to pay
such tax and the whole revenue thereby
defeated. Those directing the financial af-
fairs of the city government have insist I'd
that the best and proper way to become re-
| licved of part of our debt would be
through a compromise; that Il was plain to
every one that we were overloaded with
debt and could not pay it all. With this
in view the Council in June last issued the
To the Holder. of Eonds of the City of Cairo; The
debt of this city has lately become largely incrcl
ed by the Issuance Of bonds voted by the people in
aid of railroads. under an allurng and dcceptous
act of State legislation. With this increase, the
civ's debt has become so LARGE, and the burden 80
| great upon the taxpayers, that the corporate au-
| thorities find themselves unable longer to collect
revenue sufficient, or PROV dc funds to meet the
quiremcn- for interest They therefore respectful
| y ask a conference looking TO the funding OF the
bonds in reduced principal and interest. Core
| spondencc should be addressed Finance Commit
tee, Cairo, Illinois, Adopted By the City council
| Of Cairo, His, June s. lSii.
J.B pIIILLIs, City Clerk.
To this circular numerous individual re-
plies were made, but no concerted action
was had on the part Of the bondhoders that
the city authorities were ever advised of.
In February last proposition was received
from St. Louis firm desiring to undertake
a compromise of our bonded debt upon
basis of 65@110 cents on the dollar of the
present debt. This proposition, the Finance
Committee did not cntel tain, believing that
any adjustment of our debt based upon o
larger sum that 80 per cent. Of the existing
sum, principal and interest could not be
carried into effect. In March Mr.. II.
W. Halliday, the Chairman of the
Finance Committee Of the City Council,
was called upon by Mr.. Z. p.
Leland, representing the Funding Associa-
ton of United States, composed Of leading
bankers Of New York, founded for the
purpose of arranging compromises between
municipalities and bondholders. a'tcrrc-
peated interviews the Finance Committc and
Mr.. Leland have agreed upon basis Of com
promise which the Association he represents
is willing to undertake TO cany out. To
enable our readers to fully understand the
results Of this proposed compromiS" we
give below all the irfol nation we could
obtain in regard thereto
The bonded debt of the city is as follow,
viz:
Bond. issued for drainage and improve
meut purposes. rcdcemng city scrip,
etc. bearing per cent interest, ..... Sli13l3 30
| Fox, Howard u Co. bonds 5 per cent l9}CJ0 60
| Improvement bonds, per cent ....... 500 )
| S91s 373 30
Ro''road bonds, s per cent 10000 %
SibS313 80
Overdue interest on same, about ...,... 73,0C0 90
| Total bonded debt Of Clty......... S5il3 30
| Amount annual interest required on the
above bonds Observation-Disclosures. s3tGS2 40
The arrangement agreed upon, which
Of course is subject to approval by the City
Council and to ratification by the vote.
provides for the issuance Of S210,000 new
bonds by the city, bearing six per cent.
interest, payable semi annually, pay ments
to be made on the principal after four years,
so that the whole debt will be eXtinguished
within twenty years, by the payment Of
six per cent Of the new debt for four years
and ten per cent for fifteen and one half
years or to illustrate more t0rcibly the
debt will be absolutely wiped out by the
payment for four years Of three per cen
tum and for fifteen and one.half years of
five per contum of the present debt.
There seems to be an objection by some
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