Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1881-01-05
OLD MEMPHIs AND HER CREDITORS.

cases.
OLD MEMPHIS AND her CREDITORS
When the city charter was repealed
it was distinctly stated that the object
was not to repudiate the just debts o.
Memphis, but to get rid Of cumbrOul
form of government, and beyond the
reach of relentless creditors. The
Legislature has requested to appoint
a commission to report upon the
debt of Memphis, and recommend
a mode and basis of settlement. This
was done under joint resolution, and
the commission after very careful in
vestigation was at length made a re.
port, which will be laid before ths
Legislature. Although the supreme
court of the United States has de-
cided that the creditors have no
remedy at law, the people of Memphis
will take no advantage of this, but 60
on in good faith and try to effect a
compromise that is endurable, the
same as if no such decision existed
1t is stated in the first place that the
old debt amounts in fact, though moi
on its face, to $5,6O8,355.34, and in
addition to this there we're claims in
litigation at the time of the repeal
amounting to 100000. The available
assets Of the old municipality, consist
ing mostly of back taxes, amount ID
about 81, 100000. These are to be
collected and disbursed by Receiver
Meriwether, and will possibly reduce
the debt to $4,OO0,00O, but this will
take some years. The total assessed
value Of real and personal property
within the limits Of the city is Sl3,-
948,6l5. But the Ninth and Tenth
wards are only liable for their proper
tionate part Of about one-6fth Of the
debt. The value Of property in these
wards amounts to about 100000. II
is shown that much property is en-
numbered with state and county taxes
and that not more than ten or eleven
millions of property within the old
limits Of the city can be relied upon ia
promptly pay current taxes And il
is the opinion Of the commission
that property is now assessed
at its full market values, Much
has been accomplished toward
improving the sanitary condition Of
the city, but much remains to pc done
yet in paving streets, laying sidewalks
work on the wharf and extending and
perfecting the sewer system. No
great rise in values can, therefore, be
expected for some years to come, To
carry out improvements necessary to
the health of the city and of the whole
southern country, and to meet current
expenses of government, will require
a tax of at least $l.65 on the SlOO
The st,ate and county tax, as it now
stands, is IS cents on the 500, and il
the state deSt is settled, from forty to
fifty cents will have to be added. This
makes tax Of at least $2.75 on the
800, which will have to be borne by
the property within the Taxing Dis
trict of Shelby county without refer
enoe to any provision to be made foi
the debt of the extinct corporation
The commissioners therefore recon-
mend the settlement of the old city
debt at twenty-five cents on the dollar
at three per cent per annum for the
first five years, and six per cent per
annum thereafter; that an annual tax
of fifty cents on the sl00 worth o.
property be imposed to meet the Ia
terest; that coupons be receivable foi
taxes, and that a liquidating board, tC
be appointed, have power after ten
years to buy up the bonds. These
recommendations are embraced in the
form of a bill Of nine sections, to be
submitted with this report to the gem
eral assembly. This is move in the
right direction and, we believe, at thf
right time. We are glad to learn and
be assured that this basis of settle.
ment meets the approval Of some Of
our local creditors, and that some at q
distance are not disposed to be exact.
ing. The amount offered Is as much
as Memphis can reasonably be ex-
peeted to pay. The holders Of the
bonds and other indebtedness car
afford to take this without loss, and i
Memphis is reasonably prosperous We
can carry this debt. We commend
the report and the bill to the favorable
consideration Of the genoyAl assembly
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A $4,000 Fire.
Nyw YORK. January 5.-Eevcra