Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-05-26
Judge T. ]. Latham.

| Our next raid was made on Judge I. j.
Latham, president of the Memphis Water
Company, whom we found in his Office con-
templatiDg handful of gravel and coal that
| had been choking up some of his water
mains. We approached the subject of the
city debt question delicately, but found the
! judge ready with replies.
Are you in favor of paying the old city
debit"
sour utmost efforts should be exerted to
satisfactorily discharge the debt"
"Can we pay it dollar for dollar?"
Everybody says we cannot"
Scan we pay fifty cents on the dollar, with
six per cent. interest, demanded by the
| law recently enacted by the LEGISLATURE
81 will have to go back little During
the session of the last Legislature commit
tees composed of our representative citizens
visited Nashville repeatedly TO urge our
inability to pay exceeding twenty-five per
cent of our debt. After a vigorous fight
between the friends of the twenty-five per
cent proposition and the creditors, the Leg
islature compromised the question by decid-
ing that thirty three and one-third per cent
was what the city should pay. The credi-
tors, might have been expected, declined
to accept these terms, and have now con-
yiuced the present Legislature that the city
is able TO pay fifty cents on the dollar, with
six per cent. interest. III they can also con-
vince our Legislative Council that will end it,
unless the creditors subsequently find a way
to collect 100 cents with six per cent inter-
est"
"That suggests the question, do you think
the Legislative Council should approve that
measureT
81 think not; it certainly should not do 30
at present. 1t may as we'll be conceded that
fifty and six means one per cent. interest
tax, and by the time the prompt taxpayer
makes good, from year TO year, the default of
the delinquent, who may in the uncert4n
future pay in scrip at face value, with in
terest, you will find one per cent. an inside
estimate. The present rate of taxation for
current expenses is 81 go, and unless our
streets are to remain disgrace, the sewer
system continue dangerously incomplete,
variously needed improvements be neglected,
to say nothing Of becoming owners OF water
works, as some have suggested, al a cost OF
at least 100000, it will require at least two
TO two and half per cent. for these purposes.
Now add one per cent. for State and county
taxes, and we have four to a four and
half per cent. tax, with no provision for a
sinking fund. l know this will be considered
an over-estimate, but with the old city debt
at fifty and six, if our rate Of taxation is less
than four per cent. it will be at the ex-
pense of much-needed public improve
ments."
"Would not that rate of taxation amount
10 connscatloD, II we were 10 attempt 10 pay
it now"
"At present do not think We could stand
that burden. What good fortune the future
may have in store for US i know not. / hope
for the best, and the faith of no one is
stronger than mine; but my conviction is it
would be unjust alike TO ourselves and TO our
creditors to promise in the future what we
could not perform in the past, nor can we
now. The State compromise at sixty cents
is reluctantly accepted, and yet the State
can better afford TO pay sixty cents than
Memphis can at present pay ten cents"
What do you think OF the danger Of our
having the whole debt to pay at face vslue?D
"The possibility, not to say probability, OF
such an ultimate calamity, il the debt is not
compromised, Is not TO be ignored, but i
doubt if Memphis can ever compromise the
main burden of this debt, until the creditors
have exhausted every effort to collect 100-6.
If the Legislative Council should commit us
to sos the average creditor will await the
result Of certain suits in the hope be may
secure the 1905; and if the courts point the
way, the last creditor will avail himself of il.
IT, on the contrary, the courts do not charge
the Taxing District with the old city debt,
then the creditors will readily, 'by large
msiority,' accept the 500, or, possibly, 80 4
! think il will be time enough 10 act when IL
lie Enosrn that what We offer will be accepted,
and what We promise we can perform-in the
meantime avoiding possible dangers and
'entanglipg alliances between the Taxing
District and the creditors Of the old city"