Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-03-16


of the repea! of the charter. herewith sub
Join a statement, carefully prepared by the
former comptroller, OF Its condition at that
time:
In January, 1876, found our bonded 90
Our floating debt (past duej ........ 2'67I872 81
Total Ii abilities exclusive of Interest,
say $25O,000 on past due debit o.. S5,1S5,3l2 %
Excess Of liabilities over assets 3,590,733 so
This was surely an uninviting prospect.
Ruinous taxation and other causes, superad-
ded to series OF mlsfOrtdCes, had brought
general depression in business, shriukage in
values, and consequent inability to meet
annual expenses and maturing obligations.
The debt was frightfully Increasing, and our
values greatly decreasing each year. the
interest uuprovided for was accumulating at
the rate of nearly three hundred anu fifty
thousand dollars annually, and that portion
of the interest represented by coupons was
drawing, after It's maturity, seven per cent.
High rates of taxation on high assessments
were not paid, either from disiDcliuatiCn or
disability to do so. While the city charter
required the expenditures of each year to be
paid out OF the resources of that particular
year Ia good provision), yet inasmuch a. the
expenses commenced on January Of each
year and continued throughout the year, and
the taxes for that year could not be collected
until near its close and atterward, it followed
that practically the city government must Oe
run on the credit system. THIS credit was
paid for at a rulnous percentage. An
other embarrassing feature OF toe char
ter was that it permitted all those
taxes set apart to defray the expenses
of government to be paid IN city indebt
edness. As consequence nearly every dollar
of these taxes was paid in scrip instead of in
cash, for no one would pay his taxes in money
when scrip would answer the same purpose,
which was at twenty to thirty per cent. dis
count. By reason of this thing the city au-
thorities had no power to administer the as
sets of the city; the Taxpayers did this by
paying their taxes IN Indebtedness. The sys-
tenn IS most Vicious one, requiring the mu-
nicipal authorities rightly to administer the
city revenues when they are not under their
control. Such was the situation when came
into Office in January, 1876 How to relieve
the city was a subject Of most profound soic-
itude To the solution of this problem | ad-
dressed the most earnest thought, and after
mature deliberatiCn | saw no other feasible
mode of relief than in a compromise Of our
debt. But to compromise would require the
issue of new bonds, the issue of which the
charter prohibited for any purpose. The
legislature would not meet for year, and
until it convened we could do nothing. In
1877 the funding act was passed. but afer its
passage we were compelled to wait still fur
Their until the assessment of the city's prop
erty was completed which was not done uu-
til near July, 1877. In anticipation of an act
o. the legislature enabling US 10 fund our
deb, went to New York, Baltimore and
other places in the fall of 1876, and
with our creditors agreed upon a basis of set
Element to this effect: The city was to pay
sixty cents on the dola-, with four per cent.
interest the first year. five per cent. for the
next four years, and SIX per cent. after that
time. AS to the bords and coupons matur-
ing within twelve years from that date, if not
paid, then the holders had a right, at their
option, to have them funded at their face
value IN thirty-year bonds, with six per cent.
As to all other bonds maturing alter twelve
years, if not paid as per agreement, then the
holders had right, at their option, to be re-
stored to their original position. This right
to fund in one class of cases and to be restored
to their original position In another class of
cases, OF course only applied to those securi-
ties to which default was made, and did not
affect those in the least to which there was no
default To illustrate: If fifty thousand dol
lars of our bonds fell due within the next
twelve years, if paid promptly, thirty thou
sand dollars would take them up; but if
twenty-five thousand only were paid and de-
fault as to FIVE Thousand, then the holder of
these, at bis option, could fund them at their
face value III six per cent. thlrty-year bonds,
the interest on which thereafter to be paid
would only be three hundred dollars per year
The creditors at the same time agreed
W SuSpSuu Tue SOilSCt1Oh VI NiclI CldIulS, stop
all suits until the proper legislation was OBJ
tanned. thought then, and think now, that
this would have been infinitely better for the
city than to have endured all the litigation
she has since had by the rejection of is
proposition. But this agreement was greatly
misrepresented, aud these misrepresentation
so industriously circulated that it met with
distavOr to such an extent that it was not
presented to the legislature when it met in
January, 1877. From this time litigation
and taxation increased. Under the funding
act of 1877 we commenced in July OF that
year. Candor compels me to say that our
home creditors, by their continued suits and
want Of active CO operation, retarded the
funding of the debt nIJre than all Others
Their con luct discouraged other creditors
If the wisdom Of this scheme Is not already
demonstrated, the sequel will abundantiy
contirm this conclusion. Within the last
eighteen or nineteen month. more than
twenty two hundred thousand dollars have
been funded. This was not thought salts
factory progress. Oar bonds We're scattered |
la almost every State Of the Union, as well as
IN every country in Europe. Depressed !
fdances and excessive taxation begat |
lmpatience at the delay OF adjust !
ment. Cormorant creditors, foreign and |
domestic, the latter often hiding their raven
Gus cupidity under the names OF non-resi |
dents, sucked the Likelihood Of our afflicted |
city 90 1t struggled under the weight OF mis- |
fortunes, and the greater weight of success |
siVe and repeated mandamuses. Car taxes, !
exclusive of mandumus taxes, were less, | |
believe, than any city In the Union except |
those of Boston, thus at least nsgaigIng the |
idea OF extravaganza IN municipal manage |
ment In fact, with the view of tightening |
our burden as much as possible, our taxes for |
general expenses were so low (on!y ninety |
cents in 1879 as to be inadsquateSto meet |
the city s necessities. Again, the ease with |
which the city has been resisted IN the col |
lection OF her taxes has been one OF the most |
embarrassing matters in It's administration. |
Under the law lrJunctOns are obtained witt |
the ease with which cust0mhouse oaths are |
taken. Scarcely any one h=retotor5 paid |
tax unless he wished to. The law for en-
forcing the collection OF taxes IN this State |
is almost nuihty. 1t Is a mockery and a |
disgrace upon the statnte book. Tax titles |
in point of utility are worse than waste paper. |
The best investments have been in tax delin- |
quencies. To pay, il point OF money max
ing, has been to lose, and not to pay has beer |
to gain. Such legislation as this will bank
rupt any city; when, Is only question OF |
time. Notwithstanding all these embarrass-
ments, a comparison of the condition Of the |
city In January, 1876, and January, 1879, |
shows a considerable progress Ia the ADJUST |
ment of its debt. | submit the figures:
Bonded debt in January, IS76...-.. So 71O,50O 90
Bonded deb In January, lo79.- 2'774,OOO 90 |
The S2774,OOO included S1,O54, 900 cOmprO-
mise bonds.
T. E. Brown debt in January, 1876,
without INTEREST," -. S277,719 so |
without interestJ 80, 81 ,S72 93 |
Reduction .........-.. ..----..---- SlS5,846 81 |
Pavement debt due individuals Janu-
airy, 1875 ..--........--.------. SSlS,3S6 4S |
Pavement de0t due individuals Janu-
AIRY, lS79.-.----- -.-..-...--.-..... 64l,171 Ii |
zes---
Reduction. --................-.--- SI77,2I5 81 /
Total floating debt January, 1875. s., O74 1872 81
Total floating debt January, 1879. I,6S4,265 20 |
Total liabilities January, IS76..... So, 1855 372 81
Total liabilities January, 1SI9..-... 4,41S,2b 20 /
Reduction. 81 ,337 ,IO6 %
Total assets January, 1879. .S2,5T9.S39 Is
Total assets January, Is It.-......-. 21g4,639 OF |
Increase of assets. S3S5,2OO IL /
Excess of liabilities over assets Janu-
AIRY. 1873 50, $50, 1913 so
Excess OF liabilities over assets Janu-