The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-14
A REMARKABLE PROPOSITION.

Yesterday there was printed In the DEMO-
Graf. in the column devoted to municipal
Matters" o very remarkable petition adj
dressed to the Mayor and Administrators
This petition, we are infOrmed has been
signed BY a number OF large taxpayers and
bondhoders, and will be formally presented
to the city authorities Tuesday morning. Who
the signers of the petition are we are not in
formed; but the character of that document
suggests that they are more largely interested
in bonds than in taxpaying. The vexed ques-
tion Of the city debt is one which involves SO
many and such large interests that we
have treated it with much caution We feel
compelled, however, In common Justice, to EN-
phatically repudiate the very extraordinary
assumption, or rather assertion, that the
whole debt of New Orleans stands upon the
same basis of legality; that the consolidated
bonds, constituting q sacred and legal con-
tract. II ever there was one between munich
pal body and It's creditors, and the millions Of
bonds and floating Indebtedness representing
an era of profligacy and corruption and rot
ten with fraud and illegality, are equally bind
ing upon the taxpayers OF the city, ana
should be paid as u whole or scaled in the
same proportion.
The petition says, ''Thc city islegally bound
for all her debts and can make no distinction.
Yet certainly there Is a very great distinction
between the multitude of claims which pur-
port to represent the debts OF the city. There
is a distinction between the consolidated bonds
and all other classes of bonds issued in viola
ton of the act of 1862 and there is a difference
between these latter classes Of bonds. There
are very few, II any, Of these latter that an
honest court would decide the city oughttopay
dollar for dollar, and there are many OF them
which we believe such a court would pronounce
utterly worthless. We can conceive OF no
erosser Injustice that could be done both to
taxpavers and the holders Of just claims
against the city than scheme OF settlement
which would fail to make any distinction be-
tween these claims.
Proceeding upon their hypothesis, that there
is no such distinction, the petitioners, after
expressing preference for the premium
bond plan of settlement over any other, pro-
coed as follows, ~ r. r.
Should the opposition on the part OF some
of the creditors of tho city to the premium
bond scheme be not withdrawn speedily, then
your memOrialists respectfully recommend
that petition be sent to the Legislature ask
ing for the passage of q law to authorize the
city to scale her outstanding debts bonded
and floating--at fifty cents on the dollar, and
issue new bonds, payable in fifty years, with
So per cent per annum interest, payable selni-
annually with a sinking fund sufficient to
pay the principal In fifty years.
We assume that such an act of the Legisla-
ture would arouse the most bitter and violent
antagonism of the taxpayers. Premium
bonds, which are now quoted at between SO and
81 cents, it is proposed to fund into other bonds
at 50 cents, bearing 81 per cent interest. The
holders of these bonds would, we have no
doubt, accept this proposition, but we fail to
see how or in what manner the city would be
benefited. u
The extraordinary propositions embodied In
this petition, "sigted by large taxpayers and
bondholders," especially the proposition that
there is no distinction between the claims rep
resenting the indebtedness against the city,
suggests the probability that the origin, ma
ture and validity of these claims is rapidly
passing out Of the public mind. It would be
well, therefore, we think, to institute an Off
cial investigation Of the city debt, and Of every
separate claim, that a full history of 1t may
be laid before the public.
This vexed question is giving rise to a con-
troversy which Is growing fiercer every day,
and Of the merits Of which the great mass OF
the people know little or nothing.
A commission to investigate the city debt,
therefore, we think, should disappointed either
by the City Council or the Legislature, and
when the result Of the labors of such Il COM
mission are completed the people will be able
to determine whether or not there is a dis
tinction between these claims, and whether all
of them should be paid or all of them evenly
scaled. u.