Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-02
THE BONDHOLDERS
Determined on Their Pound of Flesh,
Insist Upon Making the Taxing-Dis-
trict Government Responsible
For the Debt OF Memphis and Opening a
Way for Their Mandamuses TO the
Ruin OF the People.

1t being generally understood that Jester
days action of the Legislative Council
would decide the fate of the 6fty-cent bill
recently Matched up by the State Legislature
for the benefit of the bondholders holding
claims" against the old city of Memphis,
an APPEAL representative was on the track
Of events. Hitherto the meetings of the
Council have been held in the afternoon,
and there being no official notification Of
change to a morning hour, the APPEAL man
discovered on visiting the city department OF
the courthouse yesterday afternoon, that he
had been fanked. The meeting, an in
formal one, as it is called, had been
held during the morning hour in another
part OF the building, and consequently We
were Left to employ our wits as best We could
in obtaining what had transpired. Two or
three members Of the council were hunted
up, but they had nothing definite 10 give up,
except that a number of the representatives
of the bondholders, including several of
their counsel, had been in conference with
the members of the Legislative Council,
acting as committee OF the whole. A dispo-
sition on the part of the bondholders was
manifested to compromise, the amount OF
interest being the bone of contention. During
the consultation it became apparent that the
bondhoiding element were not anxious to have
shape. The trainers of the bill had left IN
done some things they ought to have DONE
and done some things they ought not to have
DONE and there was no more health in the
bill for the bondholder than there was for
the debtor, and it was in a manner left out
of the discussion. But attention was turned
to propositions of compromise, the prominent
features of the entertainment on the part of
the bondholders being an effort to secure
some kind of Endorsement or assumption by
by the Taxing District government.
proposition by Captain james Lee, of the
Legislative Council, seemed to be regard
ed with most favor, and that was that
the bondholders, through accredited rep
resentatives, should meet the representatives
of the city, and consult together In plain,
sociable way, discuss the question quietly
and with special regard to the best plan of
settlement, and whatever might be agreed
upou should be adopted By the Council and
accepted by the bondholder as final, and
should put an end to all suits now pending
in the courts. During the consultation
Colonel Charley Frayser accidentally stepped
into the room, on business of private ma
ture. His presence was noticed by some of
the legal representatives of the bondholders,
who perhaps had read the APPEALS inter
view with that gentleman.
Colonel Frayser was at once called upon
TO answer several direct questions, the first
being in reference to the rate of taxation il
would require for the Taxing District gov
eminent TO carry on the necessary internal
improvements ard pay the debt at fifty cents
on the dollar and six per cent. interest.
Colonel Frayser replied in substance that
those who had made close calculations said
it would require a levy of four and half
per cent per year for taxes If the act of the
last Legislature was accepted, and that this
community was in no condition TO stand such
a tax. To the question as 10 the general
effect of the bill Colonel Frayser said that
it was so equiyocal that no lawyer
could tell what would be the real
effects of ii without thorough study, and
perhaps not even then. As TO the RESPONSE
bility of the Taxing District government for
the old city debt, Colonel Frayser stated that
there was as vet no court that had said the
debt could be collected from the Taxing
District, and that Judge Matthews day or
two since did not say SO, but RENTED the
question to the Supreme Court. AS to the
questionable character of the bonds issued by
the Taxing District in accordance with the
pending bill, he replied that if the bonds
were issued and were void, or the act a null
litv. it would be mere trifiing on the part of
the Taxing-District to issue them. AS to the
motive or iute ntion of the bondholders, Colo
mel Frayser stated that if the creditors refused
to fund under the act it would be no more
they intended to try the courts for 100 cents |
on the dollar FIRST, and failing there, they |
would then come in under this act, because |
they could do no better. Colonel Frayser |
again referred to the equivocal character of |
the bill passed by the Legislature, remarking |
ironically that "the party who drew it up |
deserved to be complimented." He was
asked if he favored the settlement of the
debt at any compromise, to, which he
replied that fifty cents on the dollar
was more than the bondholders were entitled
to, but he was willing to settle at that figure
as soon as the people of the Taxing District
we're able to, but under no such act as this
one. He was opposed TO reputation, or the
statute of limitations regards this debt.
He would pay it whether the courts could |
collect it or not.
Our informant states that the city legisla-
tors gave the representatives of the bond
holders patient hearing-perhaps too pa
liently listening to the ingeniously laid
schemes to get the Taxing District govern
ment TO- in some shape, assume the RESPONSE
bility of the debt, in advance of any positive
decision Of the courts that it was at all re-
sponsible, thus opening the doors for the
mandamus exactipg the dol
ar-for-dollar, should their suits in the
courts result in their favor. A result was
cot reached at yesterdays consultation, and
another one is to be held Saturday
Learning this much, the APPEAL man
went in pursuit of further light on the SUBJ
Jet, and meeting the Hon. John johnson,
who we learned was prest Mt, he was asked
Tor his opinion as to what result had been
reached, but Mr.. johnson excused himself |
On the score of other matters demanding his
present attention. Mr.. William Moore, of
he Bluff City Insurance. Company, who had
been in attendance on the meeting, very
kindly gave US an outline OF the proceedings,
put nothing definite as TO probable results.
Mr.. Graves and Captain james Lee, both
members of the Council, were also inter-
yiewed, from whom much of the above in
orm alton was obtained. Ii is understood
hat the matter will be decided at to-mor-
.ow's meeting.