Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-07
"FLATTENED OUT"
Expresses the Condition OF the Fifty
Cent Act When the Council Was
Done With 1t.
The "Dads'' Unanimous in Opposing 1t
A Councilman Who Don't Want
His Talk Reported.

The Legislative Council met in session
yesterday, with President Hadden IN the
chair, and Messrs. Burke, Kney, Graves,
james, Gavin, Wallace and Lee present.
Major Meriwether, engineer of The Tax
! ing-District, submitted proposals for furnish
| ing cedar for paving blocks for fernando
street, between Beale and Gayoso. His rec
concentrations were ordered carried out.
| Transferred to Monroe street, between Main
and Second, when $500 is raised by subscip-
| ton by Thursday next.
BEALE STREET MIDDLE.
A petition was received from about forty
| five business men and firms OF Beale street
calling attention to and earnestly protecting
against the unne cesssry delay in the work OF
delay great and inexcusable. Referred to
| the engineer with instructions to compel
Fogarty to comply rigidly with his bond.
THE CONTRACTORS SIDE.
A petition was received from J. G.
Fogarty, contractor on Beale street. stating
that he ia required to haul large quantity
of very inferior stone from the river landing
on TO Beale street, nearly a.double quantity,
of which stone he is to make a trst-class
pavement, and which it is impossible to do.
After going to heavy expense of hauling, he
says the supervisor will not allow him 10
use it. He asks to be relieved from the USE
less expenditure and waste of time by giving
him the same kind of stone that he is using
in the center of the street 10 pave the whole
street and he will do the work in third
less time. This petition referred to the
engineer with instructions to hold Fogarty
to his contract.
NOT RESTAURANT.
A petition was received from Frank Sturls,
asking TO be assessed as a hotel keeper in
stead of a restaurant keeper. Referred to
the city attorney and the president with
power to act.
ARCH CULvERT.
Major Meriwether submitted plan and
estimated cost of the proposed wing OF
the arch culvert at the intersection of Main
and jackson streets, and recommended TO
have the northwest wing, east line of Main,
extended ia accordance with the plan. Re-
ferred to the Board of Public Works to report
Thursday.
A petition CT Samuelson and Isascs was
referred to the president. Mr.. Lee and the
District-atterney.
Mrs Taylor, on Mulberry street, was given
permission to repair her house.
THE DEBT ACT soUELCHED.
The. following resolution was offered by
Mr.. Lee:
of the city OF Memphis, made by act Of the
last extra session of the Legislature, de-
pendent upon the consent of this Council, be
and the same is hereby rejected, the opinion
of the District attorney to its legality and
advisability recommending the action afore-
said.
COATING IT OVER.
Mr.. Lee said he thought this much was
due to the Legislature, the body that gave
members of that body were honest and we'll |
meaning in their efforts to contribute toward !
a settle ment and they deserved credit there
for.
Mr.. Gavin thought the resolution was too |
short and might appear curt. He thought |
the Council ought to give some reason for its |
action. There was evidently not enough |
sorghum in it 10 suit him.
JUDGE HEIsKELL's OPINION.
Judge Heiskell read an opinion carefully |
prepared by him for the occasion. 1t was as
follows:
To the Honorable the Legislative Council:
GENrLEMEN-As read the act of the last
extra session of the Legislature, passed for
he settlement OF the debt of Memphis, its
egal effect is follows:
First-It is legislative recognition of the
District as the successor of the city of Men,
1his (sec' ion ~.
Second.--It provides in its first section for
he settlement of "the valid indebtedness of
Memphis, thus allowing defense TO be made
o all of that debt claimed to be invalid.
But in its fifth section it is provided
urtber, that nothing in this act shall pre-
dude the said Taxing District from resisting
n the courts the validity of said bonds on
he ground of fraud in the issuance thereof"
This restricts defense TO these bonds to the
round of fraud in their issue; whereas, de-
enses already made involve the Illegally of
heir issue, and to many Of them the statute
f Limitation since their issue. This
hink serious objection to the act.
I.Td.-The act provides for the settle
nent of the debt OF Memphis at fifty-fEe
ents on the dollar for judgments, and at
fly cents on the dollar for other indebted
less, except that the Flippin coApromise
onds are to be settled at their face, and
heir coupons also at par. The bonds in
ettlement are to be issued by the District :
government as its obligations, at thirty
ears, and to bear interest at any rate not
xceeding six per cent, which may be
greed on by your board and the cred
ors (section A.. In its fifth section,
recognizes the Flippin bonds as valid OBJ
gations OF the District, and entitled to the
rovisions OF This act, whereas we are at
acking many OF these bonds in the courts
ow. The sixth section of the act provides
Or the levy of this tax 10 pay interest, and | &,
lse for sinking fund to retire the bonds as
1ey mature; which tax is to be applied by ,
ne head OF your government to the payment
coupons from the bonds, and the linking
ind, after 1886, is to be put in the hands OF
for retiring the bonds. 1t alec
royides for the collection OF this tax in the ;
anne manner as other District taxes are col
,cted.
F0urtI-In its tenth section is the very OBJ
coupon feature. Here, in my {
pinlon, is the danger to your government OF
landamus writs. ID If the Council or
resident should fail to put in the biennial
udget TO the Legislature (see eection III
TX sufficient to meet the interest on the
onds, and after 1856 the sinking fund re-
uirements you could be compelled under e
lis act, by mandamus, to do so. (2) If the
ouncil should put the proper amount of tax 8
! its budget Tor the president, as the act {
rovides that he shall do this), and the Leg
lature should fail to make the levy, but
lould only levy taxes for proper govern :
ent purposes, then the trustee could be
,mpelled, by mandamus, to receive the
,upons from these bonds, and the
Ich tax for government purposes. l
}. 1t provides that the act (sections Is
I'd III shall not take effect until the ac- r
ptance and ratification of the settlement L
,rein provided for by the Legislative Coun-
and shall take effect ten days
ter such acceptance"
In my opinion this provision renders the =
It of doubtful validity-too doubtful for 2
ou to expect any considerable number of !
editors of Memphis to accept its provisions
you did SO. See Cooley, Const. Linn, PIP. n
g 125, and many authorities cited. Be- Ii
des, the creditors have some thirteen n
onths in which to accept, whereas you are a
accept, il at all, in forty days after the I
usage of the act. Thus if you accept W
ey have against you all of the iererage of ii
ch action, whereas they can take their a
ances in the courts, and if they can win ,,
ere they can decline to accept, and if they
&c, then fall back on this settlement. A 4
me OF "heads' win, tails you lose"
y further opinion is that the =,
upon feature, also makes the validity OF u
e act extremely doubtful under the 1908 Ia
cision of our Supreme Court. Under u
csc circumstances the step you are to take
not to take, is OF the gravest importance
d responsibility. Ga the one hand is a
BIT which should be settled on some fair Q
u honorable terms, without, however, in =