The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-07-22
NEW ORLEANS.
Report Of the Committee on Debt.
Government and Drainage
of the City.
Continued from fret page.l

rayment OF valid claims
They were all issued after the auditing Of the
claims or obligations for which they were au-
thorized to be given.
The great increase of the bonded debt OF the
city of New Orleans between the years looa
and 1874 is due to the loose manner ~ WHICH, snda
the Legislature authorized ths Issue b 2. pg now
compose the city OF New Orleans, ana W Sa1
fact that many Of said bonds were exen .a
at great discount on their par + uati % ~.
would be frnltless aha of evsfy Claim for
which these bonds were given, ana even "
atrnnr s,,snicion would attach to the validity
Of said claims, for want q eyldehee a aI "
cause for lapse OF time 1t would DC alnost
imnnssible to verify the suspicion.
FaW If the bonds are now held by those to
whom they were originally given, ana We De.
lieve that 1t would be Impossible 70 aelent
hnIders. who have doubtless obtained the
same ia due course Of business
Taking, therefore, as q basis that the
bonded debt, as reported, Is q valia ana legaf
obligation of the corporation, the payment OF
which cannot be escaped, but that the cfedlt-
ors of the city fully realize the total inability
Of the corporation to meet even the interest,"
due upon SO large q debt. " becomes n etas
sary to devise some practical plan TO re,estab-
Iish on O lasting basis the credit OF the CITY |
and as far as possible give some relief 70 the
taxpayers. IN.
debt of the city has reached the appalling
fiUnre with the interest, OF $23, 822, O07; this
and the total inability OF the city tomeet such
4 liability is reflected In the low value OF real
estate and the price ct which the p4nas sen ~
open market, from twenty-five 10 InlI W cents
on the dollar.
These figures call much louder for relief
than the $12,00Q,00D due by the State, ana
which liz creating such u profound sensation.
Believing as we do, in the sacred and bud
jnQ character Of these contracts, the only re-
LEI that we can suggest Is by compromise
with the consent OF the creditors Of the city,
and to this end your committee has held IN
farcourse with the Mayor and Administrations
OF the city and with q large number OF Dotd-
holders and their representatives, ana the
result Is that there seems to be q remarkable
l,nanimity of opinion that the most acceptable
adjustment Of this important question OF
finance is to authorize the Legislature BY pr
dinance In the present constitution 20 appoint
acommisson to take charge OF and llquldate
the bonded debt OF the city OF New Orleans
that said commission shall be composed OF
nine membels, composed Of the commissioners
Of the consolidated debt and such others as
may be determined by lazy.
That the commission be permanent and
vested with full powers to treat with the bond
holders of the city and adjust the debt on the
best terms possible either by funding at q
low rate OF interest, or by continuance OF
the premium bond plan, or by selling the
amount received from the city for the interest
on the bonded debt under sealed proposals to
the highest bidder or otherwise.
That the necessary clerical force be en-
Moved ut a cost not exceeding - per
ann,lm, but no member Of sud commission
shall receive any compensation directly or In
directly.
That half of one per cent on the assessed
value OF the real and personal property OF
the city be levied and applied to the interest
and reduction Of the DEBT.
That the tax be collected by the city with
and as part of the taxes. and be paid over to
the commission daily, within one clear day OF
its receipt. -
That under no circumstances shall the
bonded debt or the annual interest charge be
increased. a
That severe penalties be imposed on any
diversion or misrepresentation Of this fund.-
It is the opinion OF your committee that
should said commission be appointed TO treat
with the bondholders and with full power TO
act that the creditors OF the city would soon
come to a full realization OF the impossibilty
of obtaining from a bankrupt city the face
value OF their bonds, and that some scheme
would be devised and accepted by the bond
holders, looking to q reduction Of the present
debt and more desirable security for them
within the ability OF the city to pay, and with
increased prosperity resulting in increased
assessment, taxation could Wlthln SNORT
period be reduced to per cent or below
GOVERNMENT OF THE CITY OF NEW ORLEANS
The important question SO vital to the
future prosperity Of the citizens OF this great
city has had a careful cons Iteration. We find
that almost every citizen is clamOring Tor re;
lief from the heavy burden Of taxation, and
tnthat end demands reduction in the mum
Der Of our city officials, their employees and
salaries; therefore our first duty Is to see
where these reforms can be made, aud sug
u gest the application of the pruning knife te
the city of New Orleans as thoroughly as Il
has been applied to the State.
E We have had many suggestions from gooe
citizens looking to a reduction IN the expense
Of running the City Hall, many advocating {
return to the old aldermanlc plan, winch they
1n;, rrfyrn q
form Of government, and be less expensive
but on examination Of the two plans we SCI
many objections to q return to the aidermanlc
and believe the present system OF bureau a q
I'll modification and reduction ia the number Q
We believe that the fewer officers under re-
sponsble bond that are charged With :. adm y
istering the affairs Of this great city, the
better will the peoples interest be served, ane
the less the expense.
An examination Of the budget Of the presen
year shows an appropriation for the e. city a.,
government for all purposes OF 81 9o6, 63U
Which compares most favorably with that Q
all other administrations and is even lowe
than the one that preceded it BY 1000; BY
making a budget and living within It are wv
different things, and we doubt If at the end o
the year with the present unnecessary mum
Der of bureaus, and the lavish appropriation
for the administration OF criminal lustlcf
running the tire department, etc. that tn'
present COuncH Will De iounu 70 De hepI Win
In the budget, especially as for the frs
quarter Of the year necessity has compelet
then ~ to largely exceed it by $4,000. |
is, however, explained to this COMMITTEE
BY the Administrator Of Public al Account
that the expenditures for the first quarter az
always the highest, and that they expect an
will Keep within the limitations Of the bulge
for the years for which it was made
An examination OF the total budget OF e.
penditures of the city OF New orleans e lor "a "a
past fifteen years. from 1865 to 1879, shows th
appalling apps amount Of s62,669o9s, or an ave-
age of s4,177,a33 per annun, and the tot &
debt Of the city during the period IN has ~ i
creased some s7,0O0,000. as IN 1860 Ihe eo y,
debt OF the city was Sl33S9.247, and On -
81. first Of January, 1879, it had increased
. S20,377 ,345.
These figures show the cause Of the Ere
depreciation ia real estate and call loudly II