Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-03

"trip" in the ffty-cent act case yesterday,
and interviewed the members of the Legis-
lative Council, all but two-Mr. James, who
is out Of town, and Mr.. Kney, who could not
be found. The following is the result:
"
President David p. Hadden.
President Hadden's cordial greetings to
the APPEALS city debt liquidator yesterday
morning, the latter entered the presidents
Office, was assurance that a pleasant inter
view was within our grasp, and we made no
hesitation in taking advantage of the occa-
sion.
''What is your opinion of the fifty and six
legislative bill, Mr.. President?"
81 say to you frankly, sir, that the bill
has flaws in it-haws against the bondholder
and flaws against the debtor. 1t is 30 con-
structed that should the bondholders at any
time become dissatisfied with it they could
rend it into fragments, and should the debtor
not approve of it he can tear it to pieces
Therefore, / think it an unsafe measure"
"Of course you are in favor of paying the
debt on some basis OF compromise?"
"Indeed / am, sir; and / in favor of
settling it at the earliest possible moment,
and on basis that shall be satisfactory to
both parties, which settlement must be final
The terms of settlement, l say, must be sat
isfactory, which condition can only be
reached by conference of the bondholders
and debtors, or their duly accredited repre-
sentatives. They must come together right
here in the city and discuss the matter
calmly, coolly and deliberately, and agree
upon basis OF settlement, upon which a
consent bill must be drafted embracing the
lowest compromise that can be mutually
agreed upon, and then together these bond
holders and debtors must urge the Legisla-
ture to adopt it and provide the ways and
means of liquidating the debt on that basis."
care we in a condition at present to bear
the burden OF taxation necessary to pay the
interest, create a sinking fund to meet the
principal, and at the same time proceed with
our sanitary and other internal works?"
Il do not believe we can pay six per cent
interest, but l think We could settle at what
ever compromise may be agreed on, provided
there be graded series of interest. If we
secure that kind of compromise we can
begin at once, and should do 80 in view of
the all-important fact that it will be greatly
to the material interests of the city to get
rid of that debt as soon as possible"
"You entertain this view with some idea
of the amount OF that old debt; what do
you estimate it to be?"
81 think a compromise at fifty cents on the
dollar would reduce the amount to some
where between S2,500,000 and $2,750,Oeo-
probably less than the lowest figures stated,
which at a graded rate of interest / don't
think would require tax as high as some
have estimated, and could be easily borne by
this community, even at the present basis of
assessments. Now, l want to say to you one
thing right here: 1 think that debt of S.
100000, with graded rate of interest, would
do less harm to the material interests of the |
city than would a debt OF Sc, 900 900, now
hanging over us, with no disposition on our |
part to make arrangements to pay. No, sir;
If we enter into an agreement to pay let us |
begin right now and get the thing out of the |
way as soon as possible"
"Do you favor the proposition TO fasten |
the debt on the Taxing Districtw
t'That has already been done by the courts, |
which have decided that the Taxing-Dis- |
trict is responsible for the debt of the old |
being its recognized successor" |
"What mean, Mr.. President, is do you |
think the Taxing District government should |
assume the payment of the bonds issued on |
the basis of compromise agreed upon?"
"That is not a matter of choice with US. |
The bondholders demand some security for |
the concessions they are making, and seem |
not disposed-in fact declare their unwilling
ness to accept the bonds of any liquidating |
board. They want something more cub |
stantial, and / do not see how we can satisfy
them unless the bonds be issued by the head |
OF the Taxing District government. / do not |
mean to be understood as being in favor of |
this government being empowered to levy
taxes or create debts. / want none of that. |
l want the Taxing-Distfict to remain Just |
what it is now. These bonds issued by the |
Taxing District government would be for
the specific purpose of liquidating that debt,
and we could place in our annual budget of
expenses sufficient amount to pay the in
terest and create a sinking-fund for the
principal, which the Legislature could
authorize to be collected by taxation, Just as
the other items OF the budget are provided
for, and the bondholder must look to that
tax alone for his pay"
"Are you of opinion that the Taxing-Dis-
trlct government could be reached by the
courts through mandamus If the flty-and-
six bill were rejected by your Counci"
81 realize the fact that the Taxing District
has been decided by the courts to be respon-
sible for the debt; l also realize the fact that
the Taxing District cannot at present be
reached by man anus; at the same time l
realize that there are a number of judgments
already out against us, and that they are
ating in number. There is also the
too patent fact that the interest on that debt
is increasing at the rate OF about $1,000
day. We are only the agents of the State
which can at any time reinvest
the Taxing District with power to assess and
levy taxes, when we would again be at the
mercy of the creditor and his mandamuses
[ also know-at least it has been thrown at
1s-that the State Legislature has become in
manner disgusted with constant legislation
or Memphis, and at any time might be in
luced to set us back into the old form OF
to which / am unalterably OPP
oosed.'
allow do you stand on the coupon feature
If the bill now before you as applicable to
INV other basis of settlement"
aWell, am opposed to it, but know no
way TO avoid it."
"What is your opinion of the present sys-
EN- OF assessments for taxation"
81 think they are too low, and regard the
aising of assessments as good move toward
,nabling US the better to carry on ogr gov
rnment and pay off the debt"
President MADDEN concluded the interview
" stating, in regard TO issuing bonds with
,raded interest, that he was Sin favor of
making bond covering the last payments
hat could be redeemed before maturity, be-
ause I believe that the advantages that
would result to the city's prosperity on the
ettlement of the debt would enable us to
axe up these bonds before they matured,
bus saving a large amount of interest debt"
"Now,n President Hadden concluded, 81
rant you to say to the people that the meet
ng to be held tomorrow Saturday is free
} all, and it is especially desired that the
itizens and bondholders should be well rep
ssented. Tell your folks to come up and
clip us get this thing out of the way"