Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-04
The Fifty-Cent IniqRiiy, by Which We
We're TO be Delivered Over to the
Tender Hercies
or The Mandamus Fiends, UnanimOu y
Repudiated by the Citizens
Meeting.
Telling Speech by Judge Clapp in OppO.
position TO the Measure-The
TaXing-District
Must Not be Connected with the Old City
Debt-ResOlutiOns Adaptations
mittees Appointed.

| pursuant 10 previous DOllCS j very iSiSc
| number of citizens, including many OF the
representatives of the bondholders, met at
| the County Courthouse yesterday afternoon
| to further consider the question as to the
manner OF settling the old city debt. Con-
| sidering the number present 1t Is sale to say
| that there was larger proportion OF wealth
| and intelligence of the city represented than
| is often present at public meetings OF any
| character. The representative OF the APPEAL
made an effort 10 get the names OF all pres
| ent, but succeeded only in securing the tol-
| lowing: Mr. Z. NJ. Apperson, President d.
| p II adden of the Taxing District; Judge
B. NJ. Estes, John b. Mcclellan, DIR. William
| Hewitt, Joseph Montedonice, the Hon. John
| Overton, Chancellor w. W. Mcdowell, II. c.
| Warmer, L. Patterson, +. Whitman, Thomas
| Boyle, jr., 7. II. Winters, 5. b. Howell,
James ID. Robinson, G. w. Macrea, w. w.
Goodwin, City Attorney G. w. Heiskell,
| Michael Magevney, DIR. Sam. Watson,
Judge II. T. Elicit, DIR. d. I. Porter, DIR. ID.
F. Goodyear, J. c. Maccabe, wv. n.
John j. Duffy, Benjamin Babb, Major NJ.
Burke, member Legislative Council; J. L.
| Goodlett, Judge J. W. Clapp, NJ. GAVIN,
member Legislative Council; j. z. Prescott,
| H. T. Lennon, Elias Lowenstein, S. b. Camp
| and others.
At the appointed hour, Hon. John Over
| ton suggested that Judge Il. NJ. Estes take
| the chair. which seemed to meet with unanl-
| NOUS approval.
Judge Estes called the meeting TO order,
/ and stated that he had hoped that honor
| would deyolve upon some one else-in fact,
l he had attempted to escape; but as the duty
of presiding at this meeting had been i'm
posed upon him, he would endeayor to do
the best he could. 1t usually devolves upon
the chair to explain the objects for which a
meeting is called. / understand this meet
ing has been called for the purpose of dis
| cussing the best means of arriving at plan
of settlement Of the old city debt, which
hangs like pail over the future prosperity
of our city, and | hope il has not been called
IN the interest OF any particular party to that
question but that both sides may be afforded
an opportunity of engaging in fair, calm
and prudent consideration of the subject;
that the views of debtor and creditor may
be- inteIchanged in a business-like way, so
that the most favorable freeults may be
reached. / possess OF the qualities
which Qualities me as your presiding officer,
and that is L represent the creditor and the
debtor. | now call the meeting to order, and
invite a calm consideration OF the question
before us.
On motion of Hon. ]. c. Maccabe, the
members of the press present were requested
to act as secretaries OF the meeting.
DIR. VIM. Hewitt stated that he would like
TO hear from some one present who was able
10 explain the exact condition OF our imam
cial affairs.
President David p. Hadden, of the Legis-
Iative Council, stated that according to his
understanding the debt was in a very unde-
termined condition. There had been held
an informal meeting with the bondholdeTs,
at which it had been discussed thoroughly
from their standpoint. The Hon. John
johnson had made estimates showing that
at the present compromise (h!ty-and-six)
the original debt would be reduced to
So, 600 O00-not more than S2,25OOOO at
most Now, We had experts at work on 1t
some time ago who made ii out little more
than that Judge Heiskell, our city attor-
ney, is here, who may be able 10 give more
reliable statement IL an | can. l have figured
at it a good DEAL and my estimates are none
of them less than $2,500,000. There are
enough back taxes unpaid, | think, to pay
the floating debt, but they are not being paid
up very promptly, and l am afraid We will
all have to be sold out for back taxes ii
some kind of law is not passed to facilitate
their more prompt collection.
Chancellor w. w. Mcdowell took the floor
when President Hadden had concluded, and
stated that no one seemed inclined to come
forward in response TO the call for informa-
ton as TO the condition of the debt, and
naturally supposing that the information
would be asked for, he took the pains to
make some investigation into the matter, OF
which he had made memoranda, and would
present in answer to the call. Chancellor
Mcdowell then proceeded 10 read from his
memorandum, celebrating each item by way
of explanation:
CITY DEBT STATEMENT.
On March 10, 1879, Judge Flippin pub
lisheG statement showing the total city debt
on
4 IL
The accrued interest on the above liza
billy including the compounded in
terest on due coupons 10 list OF july
1882 if nothing had been paid, would
be about l'o9''2|o
Total including amount paid see .....-... S., 545 $40
rmOnnt retired by 7; j. Latham 10 ooo
Amount retired by r. j. Black and
Minor Meriwether, receivers, to
April l, lS32.-.--.- - Oo<'Ioo
Total amount retired...-........... 5s2,1s6
Balance DUE. 1881
Total debt July l, 1852. .....si. 96 S5i
AVAILABLE ASSETS.
Memphis and Charleston railroad
Taxes available in the hands Of
receiver, at least...........-........-. S50,O00
tax-..-......... o'VOo
Total amount OF available assets sl,17o,Oo0
Excess of debts over assets. ,793 5i
Deduct amount of compromise bonds 1,O54 900
This leayes.......... ...s2. 789, 85l
To be settled at so cents on the dollar, to-
wit at the sum of..-.........-. 3696Il
Add to this the compromise bonds 1O5iOOO
And We have total city debt Or. .428,677
Of this sum there is barred in Nicolson
pavement scrip and coupons at LEAST. lo5,o''
Leaving debt to be met of 1000
The annual interest on $2,270,O00-
A.. = 10
ana at per cent is'-''''-''''--'-- ''''-' IS0
Est hhs the balance OF the taxable
value OF the city property to be-l6,ouOOOO
A tax OF eighty-ive cents on the 500
would meet the interest at six per cent. At
four per cent. a tax of ifty-seven cents on the
800. Atstwo per cent. twenty eight cents on
the 800 will pay it. Now, suppose We offer
two per cent. until January l, 1884! We
can easily pay twenty-eight mills on
the dollar, and 90 on with our I'M
provements this snd next year. Then
nav four per cent. for five years, which
will be say, fifty-seven mills on the dollar.
This we can do, for by 1884 our sewers and
streets will be in good condition, after which,
with small sinking fund, we can easily pay
six per cent with tax exceeding sixty mills
on the dollar. But ii VIC continue to llti-
gate, the 81 100000 of tainted bonds now
tied up in the United States Court, and will
be for the next three years, we will have
far less interest to pay; and il We
defeat any part OF them, the debt
will decrease to that extent. There
is now due and will mature on or be-
fore July 1, 1886, $2,196,000, of undisputed
liabilities of the old city, as follows:
Bonds StoouOO
Compromise Coupons now DUE. Do 600
Other s .3o0C0
Coupons TO MATURE ooooOo
What is TO become of us if this vast debt, or
even the half of it, is hurled upon US at once2
When the item stating the estimate of
taxable valuations was reached, President
Hadden interrupted the speaker, by way OF
correction, stating the estimate should not be
higher than S14 100000, TO which Chancellor
Mcdowell replied that President MADDEN
wac correct as TO the value of real and per-
sonaI estate, but that amount did not include
the merchants and privilege tax, which
would make the equivalent Of Sl6,000,000, as
stated in the memorandum.
Chancellor Mcdowell concluded his mem.