Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-05-24
What HI. Clay King Calls an Answer to
the Above Questions.

what HI. Clay King Calls an Answer to
the Above QuestiOns.
Your three questions shall be answered
Together. Our city Indebtedness is now, in
round numbers, S50O0,O00, large portion
of it fixed by judgment on the Taxing
District. and all the rest will be when ma
tured-execations issued and returned, "no
property to be found" So we will soon
stand 100000 hanging over US by judg-
ment, and our property only shielded from
execution and mandamus by a provision Of
the act creating the Taxing District whereby
all power to levy taxes to pay debts or
otherwise ia reserved to the State OF Tennes-
see. That present safeguard is liable to be
taken away in any one OF the four following
ways:
Fust.-That clause of the Taxing District
act may be repealed by any succeeding Lsgis-
lature.
Second-Congress may at any time confer
the power on the Federal Court to enforce
its judgments against delinquent municipal
corporations by subjecting all property
within its boundaries to the payment of judg-
ments against it. Such an act would com
pletely destroy the efficacy of the Taxing
District act of our Legislature, and put it at
once at the mercy of our creditors. Our
property, real and personal, would then be
seized and sold like the property and effects
OF dead man to pay his debts. That Fede-
Damocles. Congress ID not in favor of repu-
diation, nor of evading the payment of pub
lie obligations beyond reasonable time, as
as / read the temper of that body. The Re-
publican members of that body are strongly
in favor of having public obligations paid,
and so are many OF the Democratic mem.
bers. So strong is the debt-paying sentiment
there, that majority of our Tennessee rep
resentatIves and senators on reaching there
advise us here to settle and begin to pay our
debts, State and municipal. When it shall
be formally announced on the floor of Con-
gress that Memphis, and perhaps other
cities, have finally and formally refused to
settle their Indebtedness, reduced 10 judg-
nient ard defed the process of the courts,
does any thinking man doubt what would be
the result? 1t is we'll known to the bar of
the United States that the only reason why
such power has not been conferred on the
Federal judiciary was that ample power al
ready existed by mandamus to compel the
taxing power of the county or city to levy
and collect taxes sufficient to pay the jud :
ments of the Federal courts. And this being
so, the Democratic portion of Congress was
opposed to any further extension of power
to the Federal government. But this po-
tent argument in favor of Democratic
principle is completely taken away by the
act establishing the Taxing District de-
priving the Federal Court of all power of en-
forcing its own judgments and DEGREES. When
such bill Is introduced in Congress, with
Memphis as the example held up as repudi-
atiDg her debt or refusing to settle on terms
offered by her creditors, there will be found
Democrats as well II publicans voting for
a measure that will make our property
liable.
Third.-It is among the possibilities of the
future that the Supreme Court oil the United
m
hold our property subject and liable to this
Indebtedness. Judge Bakers decision hold
ing it liable vas only reversed by divided
court. the personnel of thai court is changing;
and besides the same court is liable to re-
verse its own decisions. And the recent utter
ings of that court in the Louisiana cases are
not comforting TO cities that have refused to
pay their obligations 1t would be dangerous
10 take a case now into that court with the
admission contained in the first question
submitted by the appeal above, that "the
Taxing District government uas formed 10
aro;d, not Grade the debt"
Fourth-It is not by any means certain that
our own Supreme Court may not in the future,
when case is squarely presented, hold that
our creditors have some way of subjecting our
property to the satisfaction of their debts.
Then the situation is this: We have five
millions hanging over us; there are four
Oh TedCuiuS our properly III Tue
future; if our property is reached in either
mode, wei are ruined. Prudence would un-
hesitatingly say, compromise at fifty cents on
the dollar now when we can. What would
paved streets be-to us if our property is
taken from us, and our homes given to
others? In my judgment, this ia the para
mount question 10 all others of the present
hour. 1t is idle to talk of capital coming to
Memphis with this great danger impending.
If the streets were all laid with asphalt, as
in Paris, capital would still not come when
in danger OF being seized for debt. In our
present condition, any additional taxa
ton would be burdensome and hard
to bear. But the question is: Shall
we pay the interest whatever may be agreed
on) on half of our Indebtedness annually,
and half of the Indebtedness on reasonable
time, or take the chances of having the
whole debt Eprincipal and interest, saddled
On our property, which would amount to
confscation?
My judgment is compromise under the
ffty-cent act There will be no compromise
under the thirty three and one third act, for
the creditors have positively refused to
cept it. In the meantime let the necessary
sanitary work go on to keep the city healthy
and free from epidemics as this and last
year.
PRESIDENT MADDEN.
An APPEAL reporter called on President
Hadden yesterday afternoon to pop some
questions at him concerning the question of
the Districts assuming the debt of the old
city. He admitted very frankly that he
would have to dodge the three questions put
by the scribe at Mr.. III. Clay King. He
avoided the questions as follows:
81 thing every sane man in the city knows
that the 333 per cent. settlement was failure.
The only two bonds amounting to 500 were
funded, and If we had to wait to fund the
remainder of the debt we would accomplish
it somewhere in the neighborhood of the
next food. / will say to you that 1 am In
favor of the settlement of the debt at a low
for the District to pay. III you can tell me
how to settle debt of 100000 without
somebody giving up some money I'd like to
know it. / don't want to settle at a rate of
interest which we may default in in the fu-
ture. l am for sanitation; my daily walks
among the purlieus shows | am for SANTA
ton, and / believe that by settling the debt
at a low rate we will be able to have more
sanitation and do things we can't do now.
am for a law making man pay his taxes,
too. Don't you forget that"
"Can the District pay $4,000 or $4,000
interest annually"
81 haven't put the interest down at $780,
900 the way l want to settle. Pll tell you an
anecdote. Spell that word correctly, young
man. once approached an individual in
Kentucky who owed me two dollars, and
didn't want TO pay me. 1 remarked to him:
sd like to know if you are going to pay me
that two dollars 'Of course am he said,
and do you know whyp 1 told him sup
posed it was because he owed it to me- You
are clean wrong he said; it's not for the
principle of the thing, but because it costs
burned sight less to pay than not to pay
That's the way feel about the city debt"
At this juncture the reporter leaned from
the window, took hold of the lightning-rod
and allowed himself to curl around to the