The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-09-07
CITY FRANCHISES.

It Is now apparent to every one that the
city of New Orleans will be unable to make
any award of the city railroad franchises un-
der the recent advertisement for bids.
First, because since these bids an advance
of $4,000 has been offered over and above
the bid Of the City Railroad Company; and,
secondly, even were this amount in cash ac-
ceptad, it would at once be sgobbled up" by
Selling creditors holding judgments against
the city-thus involving the city in tedious
and costly litigation, and, even under the
most favorable aspect OF the case, would re-
tire on the face amount of the judgments, with
costs and attorneys fees to pay. Assuming,
therefore, that no such injustice will be done
to the creditors of the city and that the Coun-
Gil will interpose, as is its duty, to protect the
city interest by appropriately rejecting all
proposals hitherto made, make the follow
ing suggestion:
The law requires that the proceeds Of sale
of any property or franchises Of the city shall
be directed toward the payment OF it's float
ing and bonded indebtedness. The amount OF
floating Indebtedness OF the city, exclusive OF
iudgments), from Administrator Browns
report. is s.. 700 600 more or less. The mar
ket value OF this indebtedness varies accord
| ing to the year and the fund to which 1t be-
| longs, worth to the holders say an average OF
much below fifty cents, but to the city 1t Is
| debt Of face value, and were the city, with
| her $500, 900 In cash and untrammeIed, to
| commence its redemption by calling 1t 10, Its
enhancement would render it Impossible to
purchase at an average OF fifty cents.
| Following up this idea, let the CITY ADMIN,
istration authorize syndicate to call in all
of the present outstanding floating indebted
ness at fifty cents on the dollar, which would
| be- say, in round numbers, 100000. Let a
| company be- formed under the general corpor-
alton law, say New Orleans Transportation
Company, and upon the payment TO the CITY
OF the floating Indebtedness the city transfer
the above franchises and all her rights there
under, subrogating said company and binding
| it to stand in the shoes OF the city In taxing
| the property of the City Railroad under the
appraisement provided for in the present
charter.
ST zoo. 600 cash for the franchises could, under
| this general law, either Increase It's STOCK De
/ ST 50U, 6t6 THE present company being 9l,4oo,-
| O00) or by putting a mortgage Dond pedfIng
even per cent at fifteen or twenty years, 10
! run upon the franchises, road-bed and prop
artv- to be taken at it's assessed value from
Che City Railroad Company, would provide
ample means for carrying on. and even max
| ing necessary repairs and improvements to
| the railway system.
| Premium bondholders might complain o.
| injuetics In the preference given to the hold
ers of city floating indebtedness.
| Let US see. Suppose the fund were divided
between the two, it would be but small relic
to the premium bondholders, and Its effrct
even at the same rate, say, hfty cents on the
probation upon that premium bond, and still
leave that met, bus OF floating Indebtedness ii
only reduced bp one-haf with all IFS attend
ing difficulties. The floating Indebtedness