Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1878-12-19
And Our Municipal Debt Attract Small
Meeting, but Elicit Free Discus
On---ResOutiOns Offered
at the GreenIaw Opera
House Gathering
Last Night.

General w. Y.C. Humes moved that
committee of five be appointed on resolu-
tions, which was adopted, and the chair
man appointed as such committee General
w. Y. 9. Humes, /. NJ. Hill, r. j. Nor
gan, b. M. Estes and NJ. L. Meacham.
This committee retired, and in few |
moments appeared and presented the fol-
lowing report;
Your committee appointed to draft res |
outions present the following report:
The city of Memphis is burdened with |
a large and unmanageable debt. 1t is not |
necessary to enumerate the causes which |
have brought about so heavy liability, !
but 1t IS fact that no benefits have been |
received corresponding with the magni- |
tude of the debt. We however, recog-
nize the rights Of creditors, and have no
disposition, if we had the power, to de-
stroy their property represented by our
bonds. Many calamities have befallen us,
and 1t is the interest of our creditors as
well as ourselves that there should be
satisfactory adjustment. Many of the
bonds were recklessly, some perhaps ile-
| gally, issued, and doubtless there are pres
ent holders of bonds who did not pay
thirty cents on their face value but we
urge none of these reasons against the
| payment of the bonds. We have not the
ability to discharge the necessary corpo-
rate expenses and also pay the interest on
our entire unfunded debt. In the hope
that a mutually beneficial arrangement
! could be made, at our instance the last
General Assembly passed an act authoriz-
ing the city TO fund its bonded indebted
ness at fifty cents on the dollar, ample
provision being made for the payment of
the interest under which act city indebt-
edness to the amount of $47 900 have been
funded, the interest on which has been
promptly paid. There are, however, out
standing of the old Indebtedness bonds to
the amount of $2,080000; also an indebt-
edness of Nicolson pavement scrip, iudg-
ments, etc, aggregating S3,800,000 in all,
and an amount so largethat the benefits ac-
cruing from the passage Of the funding
act are almost imperceptible.
We here reiterato our sincere wish TO
compromise our Indebtedness at fifty cents
on the dollar, and Notwithstanding all our
burdens, we express our conviction and
determination to pay the interest on
all bonds which may be thus funded. The
municipal authority has been so harassed
by suits at the instance of bondholders or
the purchasers Of coupons on speculation.
that many good and worthy citizens in
tend to apply through our senators and
representatives for legislative measures
which may impair or destroy, or at least
certainly throw many obstacles in the way
Z of the collection of debts due from the
city. We express our opinion as TO the
} legality or illegality, propriety or impro-
priety Of such proceeding; but we desire
: to avoid any such Issue; and in our opin.
! ion the way and the only way to avoid it,
is for the creditors of the city, who have
not funded their claims, promptly within
l the next few weeks to respond TO our pro-
, position, and accept the terms rendered by
said funding act. 1t is, therefore, the sense
of this meeting
; |. That the terms we offer to our credi-
tors are fair, just and liberal, and we trust
that they will meet US in the spirit Of the
same fairness, justice and liberality.
2. That if creditors representing four
tifths Of our unfunded debt should within
the next 45 days accept the terms set forth
, in the funding act, we will earnestly op-
pose and use all honorable means to defeat
any effort to repeal our charter. .1
. 3. That in case any law is passed repeal
ing the charity, our senators and represen-
tOtives are requested TO insert provision
in said repeating act, securing by annual
Y tax upon the property within the former
city limits the payment Of all the coupons
on bonds which have been and may be
! issued under said funding act.
: B. NJ. Estes moved the adoption of the
, resolutions.
RESOLUTIONS TO REPEAL.
Major Minor Meriwether then offered,
IN lieu, the following resolutions
Resolved, That it is the sense Of this
meeting that the city charter ought to be
repealed, and all power of local taxation
be withdrawn, and Moderate tax be
levied directly by the legislature on all
taxable property within the present cor
6 porate limits for the purpose of maintain
ing an efficient police, fire and sanitary
r system, and for paving and lighting the
q streets.
Resolved, That it is the sense Of this
2 meeting that the city of Memphis is not
! able and ought not in equity be required
to pay more than fifty cents on the dollar
of their bonds and coupons klQyn as the
r compromise bonds, and twenty-five o6Its
! on the dollar of the balance of her valid
4 debt. of whatever character; and for the
purpose ofpayilg the debt at these rates
the Legislature be invoked TO levy a
direct tax OF fifty cents on the $iG0 on all
taxable property in Memphis, and that all
valid back taxes heretofore levied be col
lected and applied to the eXtinguishment
of the debt at said rates, but as an induce
: meDt to the prompt payment of said back
/, taxes, that compromise bonds and cou-
! pons be recalyed in payment thereof ut
) par, and any other valid debt of the city
3 be received in payment tbegeqf ct fifty
cents on the dollar.
Mr. Meriwether advocated the passage
Of his resolutions. He sneered at the 'sa-
, cred debt" Of Memphis, end said that the
only relief that could be found vas in a
repeal of the city charter That step
would s.e;s wandamus suits, and when
/ that was gained 1t vas one point in the
way Of relief lie had heard that there
was combination formed to buy up
3 these bonds as cheap as possible, and
5 have them funded at theirown advantage.
= Judge Lea, of Nashville, Judge Henry
I G. Smith, General W. Y. G. Humes, ex-
1 Chancellor Morgan and B. NJ. Estes spoke
in favor of the committees resolutions.
Harry Hill and Judge Anderson spoke in
, favor Of Major Meriwether's resolutions.
I The meeting failed 10 adopt any of the
l resolutions and on motion Of W, A. Col
D lier adjourned to Saturday night