Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-04-14


ing into prominence, and yesterday an AP
PEAL reporter visited several merchants to
pick up few gems Of thought regarding it
Mr.. GAVIN SAID:
81 think the present commission should
continue till the time has expired"
"How do you regard the saddling of the
old city debt on the Taxing
''As sure DEATH"
"Do you know of any Memphis men
who own old city bonds or coupoDs?"
YES; / own some of them myself; but
that plays no figure in the case. When the
act expires the question arises whether the
bondholders can get anything or not"
PRESIDENT MADDEN
was the next who had to pass under the
reportorial yoke.
''Do you think the L;quidating Commits
sion should be discharged" asked the scribe
mo; think the commission should re-
main until the law is changed. 1t would
show that we are willing to settle at some
rate. As for settling the debt, don't think
that any permanent prosperity or vim will
overtake the city until the debt Is settled in
some way. 1t is an incubus upon the entire
real estate interest. / think the Taxing
District government should not be disturbed
in the administration of affairs, because it
is the best and cheapest form of government
L
by the Legislature authorizing the Taxing
District to assume the valid and legal debts
of the old city government at fifty cents on
the dollar, giving thirty years bond, and
drawing four per cent. interest for ten years,
five per cent. for the next ten years and six
per cent. for the last ten; and the tax to be
levied for the special purpose of paying these
interests, and TO be q separate fund,
like the police or fire funds; and these
ha IL, Il
tax alone. This I think the people
would pay promptly and willingly, and the
bond would be really better for the bond
holders than if they drew a higher rate of in
terest. The bondholders say this: we will
take so much and nothing less; and if you
don't grant it to us We will rely on our law
suits and will eventually collect dollar for
dollar against the Taxing District"
"Do you think there is local ring TO in
crease the value of the bonds?"
"No; there is a large number of bond
holders who are much more largely inter-
ested in real estate than bonds, who think
the FIippin compromise should be ac-
copied"
"Well, what will be the outcome of it all?''
81 see nothing ahead but long and tedious
lawsuits. The bondholders say they want
so much and nothing less, while the great
majority of the people think by granting
and would break down and default in paying
the interest"
MAJOR G. V. RAMBAUT
was the next victim.
81 think" said he, that the commission
should continue, and that the Legislature
had better not meddle with the matter at all"
"Do you think the bondholders are trying
to buoy up the value of the bends?"
Eyes; / think the boudholders want to in
crease the value of the bonds in order 10
sell. The bonds have been on the market
for some time, and just at present no one will
buy them. l think the bondholders would
be very glad to sell, and the bills presented
before the Legislature are very likely in the
interest of the Hpeculators."
"Do you think there is q ring of any kind
here, trying TO work" the old city bonds
into fictitious prominence%
az do not"
MR.. WEXFORD,
OF Furstenheim & Wexford, has taken some
interest in the old city debt matter. 81 am
in favor" said he, "of the commission con-
tinuing, al. least until the act of 1881 ex-
pires. We intend petitioning the Legisla-
ture 10 take no further steps in the way of
legislation at present. One act exists now,
and we don't care to have another existing
at the same time. We do not ask for delay
in the interest of reputation, but simply to
let us think. There are only few days
more for the present assembly to live, and
any action taken on the matter would be
necessarily hurried, and that we wish to
avoid. ! do not think that the bondholders
are trying to boost up the stock, because
that is in my opinion not possible. Nobody
cares TO buy the bonds, which have been on
the market at fair prices all the time"
Mr. W. N BROWN
was the next gentleman approached. As he
is an intelligent observer Of city affairs his
views are of interest.
"Are you in favor of discharge of the
present commission" asked the reporter.
"Yes, sir; l don't see that they can do any
good at ell. How can they settle the debt?
They are simply an ornamental expense to
the city"
"But you favor compromise of the old
debit"
Certainly 1 do. am probably one of
the very few who believe that the Flppin
compromise would be the best. There is no
doubt we will have to pay something. While
we are talking the debt is running on snd
increasing. We can easily enough pay
IS 600, 900, which is about the amount of the
Fiippin compromise, but il we delay it will
be SO large that we will be bankrupt to pay
it, The city will never prosper until the
debt is wiped out"
Mr.. II. MILLER
said he was by no means a repudiatIonist,
but that the bondholders had been so luke
warm about a compromise that he almost
hoped they would get nothing. Still he was
in favor Of any compromise that would lay
Banquo's ghost.
THE CITIZENS INTERESTED.
Inasmuch as the bondholders have been
holding meetings in the city at some Of the
banks to devise means for getting the van
tage ground as against the people, the latter
have been consulting with each other. The
people should be advised of what is going
on. Several bill. prepared in the Interest of
the bondholders are about TO be sprung upon
the Legislature, and as business there Is on
the hurry, it is probable that some one of
the Objectionable bills will slip through.
One bill OF a general nature, with a special
end in view, rescinds the act of 1881, except
the fifty cents Equidating tax. ltprovides
that the debts Of towEs and cities shall be
funded at not exceeding fifty five cents for
judgments and fifty cents for past-due bonds
and coupons. The rate OF interest shall not
he over Elk per cent. The coupons shall be
receivable for all kinds of taxes and all
de bts OF every description due by the Tax
ing Dislrict The bill also provides that
4 sinking fund tax shall be levied TO buy up
city bonds in thirty years, the bonds not 10
run for lees than twenty years nor more than
thirty. This is revival OF the Fhppin
with a vengeance added.
The total assessment of the Taxing Dis
trict is S14 0o0 600, less State property, ST.
$4,000, leave. $l2, 100000; less delinquen-
eies amounting to fully S2,500,000, leaves
a round $4,000, 900. The funded in
debtedness of S2,5O0,000 would create,
at per cent, an interest OF Sl50,000,
to which add the sinking fund tax, which
would make S250,000. This amount is ESQ
per cent. on $4,000. The State and county
tax is one per cent, the city tax is LEO per
cent, adding the $50 per cent, making DO
per cent.
Inc bgures are presented 10 the people as
cud for them to chew, and they can digest
them to suit themselves.
LAW REPORTS.