The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-13
MUNICIPAL MATTERS.
THE CITY DEBT AGAIN.
srbe Petition of Taxpa, ers and nOnd-
holders to the City Administration.

A day or two ago we referred to D petition
which would shortly be presented to our city
Administrators by some Of our large tax
payers and bondholders. We are enabled to
rive this morning the full text OF the
memorial It will be presented OF the meet
Ing of the City Council on Tuesday, ana reaoS
MS follows:
To the Mayor and Administrators OIL the Guy
OF New Orleans:
The undersigned. property holders and tax
payers. duly apprecating the financial trou-
bjes and en,barrassments OF our city Admin
istrators, as well as the hardships OF the tag
PAYERS, and the great damage to the public
and nriyate credit resulting from the naga-
ton relative to the city debt respectfully
memorabilia your honorable body ~ favor Oh
AZ, adjustment Of the vexatious and danag
jnr dispute between the city and the holders
of city consolidated bonds OF 1897.
Referring to what parportS 70 DC petltlgsl
to your honorable body, OF which the ABOVE is
the beginning, by which IT Is proposed mat
YOU should assess nm additional Tax on tne
property Of our citizens for The beneht " the
sDnaolidated bondholders, your mem ortaiists
xy,n see no reason for assessing al additional
tar In favor of consolidated bopdholdHs any
more than in favor Of all other holders Of city
obligations, bonds and floating debt. Tho city
ia legally bound for adj her debts and can
make NO distinction, but is unable te pay any.
The legal view Is one side Of the question: the
ability of the city to pay Is another
1t ID very plain TO he seen that tho enrbar-
rassment of the city finances Is salch that II
no abatement Is made on the paStof it's credit
Ors,
RUIN TO THE WHOLE GoadsIUNTTE
will be the resutof their persistence tn get all,
The premium bond plan has SO far worked
well, and the eventual estinguishmeGt OF tho
debt is thereby assured. Including consoF-
dated bonds without increasing the present
rate of taxation In the opinion of your nae
morialists, tho holders Of consolidated bonds
should consent In common with oil, other cred
itOrs OF the CITY to an abatement OF what they
ing to exchange their bonds for premium
bonds, and by so doing put an end to all the
annoying and expensive litigation now carried
ON by some against the city.
That M abatement on the part OF All cred
i50rs OF the city must be made Tn order to re-
aliz8 anything from the city will not be con-
troyerted by any one who Is ut all couversant
with Its resources. This abatement can be
made land has been done by numbers) by
guaranteeing their bonds aud reoeaying Ina.
stead premium bonds.
ShUald the opposition on the para, .of some
OF the creditors of the city TO the premium
bond schemebe not Withdrawn speedily, Then
your memerialsts respectfully recon mend
that a petition be ser.t to the Legislature ASH
ing for the
PASSAGE OF A LAW
to authorize the city to scale her outstanding
debts bonded and floating at fifty cents 4oIl
the dollar, and issue new bonds, payable in
fifty years, with 81 per cont per anpum in
terest, payable ssni-annually, with sinking
fund sufficient to pay tho principal jn fifty
years.
Your memoriahsts are ,of the opinion that
the plan of scaling the debt would be gnore
acceptable to some of the creditors THAI the
premium bond plan, as IL would enable hold
ers of these bonds TO realize the interest,
though small, mt stated and short periods,
which Is desirable by those whn invest In in
premium bonds is paid only when tlretteond is
paid) This would
RELIEVE THE CITY
to saoh degree that no default, either in the
payment of interest or the sinking fund.
could hereafter occur On the 9th or hand the
new bonds with the certainty thiLt the inter-
est would be paid promptly would very soon
20 up to par Even If they should geno higher
than 55 cents, they would be bet ter than any
OF thebonds are now selling for oE the mar
ket.
In conclusion, we pray that yoAr honorable
consolidated bondholders or others whereby
the rate OF taxation will be increased
Respectfully submitted.
THIS PLAN,
MS weunderstand 1t, reekons the total indebt-
edness of the city, in round SANDERS at
100000, which at the sealing srate of fifty
cents on the dollar would reduce 1t to
$1l 10000
Further, 1t proposes that Sob0OOO shall be
set apart each year for the payNa1t of the in
terest 1.-THE establishing Of a sinking fund
It would, therefore, at s per cent on
$11, 600, 600. require the appropriation
OF $65000e for the first year leaving
$4,000 to redeem that much of the debt
which the second year will have been de-
creased to that extent-decrcasing therefore.
the amount Of interest to be paid the second
year In proportion to the amount redeemed,
and all amounts saved in interestin this man
ner TO 20 to the sinking fund each succeeding
year. We may very shortly refer | n detail to
this plan, as well as to the asse rtion OF the
Mayor that the premium bond plan IL still
more advantageous to the bonddio lders, and
TO hecity at the same time.