Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-31
A NEW MOVE.
The Old City Creditors Trying to Grab
the Money in the Hands Of the
Liquidating Board.
They Ask that the Tax be Diverted from
its Special Purpose to Satisfy
Their Judgments.

Yesterday another move was made 10 the
old city debt matter by the interchangeable
| holders Of the old city bonds. 1t took an
entirely unexpected shape, and it will be
| difficult To see how they expect to get any
| money from the source desired. How tax
| levied for specific purpose can be utilized
to settle their judgments against the Taxing
| District is something that no fellow can find
/ out. 1t goes to show that there Is to be no
| let-up in the city debt question.
| THE TOTAL AMOUNT SUED FOR
| is S4S,704 o.. Suit was brought yesterday
in the Chancery Court by J. B. II. Smith,
| Thomas Branch and Co., Richard Lathers,
Andrew Reid and the Chemical National
Bank and P. S. March against the Taxing
District OF Shelby county, the Union and
Planters Bank of Memphis, the State Ma
tionsl Bank of Memphis, Henry F. Dix,
John r. Goodwin and J. J. Duffy, constituting
the Liquidating Board of the extinct munic-
ipality OF the old city. The petition recites
that the plaintiffs recovered the following
Judgments against the old city: S1157 90,
S1443, S947 25, $4755 81, S46s3 rs, $3.50 95,
1890, S2S03 TO- S1O81 70, S9991 90, S9703,
1886 80, 1896, S11,O25 Of.
THE CoMPLAINANTs CLAIM
that the old city was abolished and re-
chartered as the Taxing District, and that it
is the successor of the city of Memphis, and
as such liable for all The debts and obliga-
tions of the same and entitled to the proper
ties of said city, except as may be limited by
valid acts Of the Legislature. They claim
that under the law and acts of the Legis-
iature of the State authorizing the said city
of Memphis 10 issue bonds and coupons on
which the judgments of the complainants are
based, it was made the duty of the city to
levy tax annually sufficient in amount TO
pay the interest thereon. and sinking fund
tax suficient to pay the said bonds at
maturi (which, as they tare advised, con-
stituted part of the contract on behalf of the
city in the bonds and coupons, and the COM
the act as provides that tine Taxing District
SHALL NOT BE LIABLE
to pay the debs of the city of Memphis, and
particularly the judgments, claims and
bonds held by the complainauts, and 80
much of said acts as withdraws.. all taxing
power and prohibits the Taxing District from
levying any tax to pay the judgments and
bonds, and which denies the complainants
all remedies, and impairs the obligation OF
the complainants' contract. are in violation
of the constitutions of the United States and
of Tennessee, and therefore null and void.
The complainaHts show further that they
brought suits in the United States Circuit
Court against the Taxing District on the
IuOSu4Shtn Olu CllJ1 anu
RECOVERED JUDGMENTS
against the District. Executions were issued
and served upon the Taxing District govern
ment and returns of "no property" were
made. Subsequently the Legislature passed
an act providing for the settlement of the old
city debt at 333 cents on the dollar, with in
terest at three per cent, and a tax imposed
for that purpose. The act also provided for
the appointment of a Liquidating Board of
three, and Governor Hawkins appointed
John r. Goodwin, J. j. Duffy and Henry F.
Dix. Compliments show that since the
of said commissioners, part of
the tax of fifty cents on the 500 has been
and
PAID OVER
to the Liquidating Board, amounting to
$50, 355 go, and that there is about $4,000 in
the hands of the trustee TO be turned over to
the board. The whole levy was S69, 9l5 ~, |
about $4,000 of which has not been COL
lected, but most likely will in the future.
Besides, the levy continues for an indefinite |
period of years, and each successive year |
will add 10 the amount if collected. The |
charge that the board have only |
funded about S3239 Sc. They claim that |
owing to the low rate of compromise the |
creditors will not come in and fund, and they |
ask that the money be brought in and i'm |
10 the satisfaction of their Judgments. They |
also ask that the Liquidating Board be en-
Joined from employing more of the money |
On hand TO buy in the old bonds. Myers & |
5need are the attorneys for the plaintiffs.