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


government, was found at his place of busi-
ness ard expressed his willingness to give
his opinions, and readily responded to the
questions submitted to him SeiGtin:
with your knowledge of the fact that
the taxing government was formed to Groid
not Grade, the old city debt, don't you think
| we had better proceed that way and leave
the debt settlement to the thirty-three-an d. a
| third commission appointed for that pur-
poser"
Il do. / do not think the Taxing District
ought to issue any bond scrip or other &C.
acknowledgement of debt for any purpose what
ever. l want this debt settled by commits
sion, who alone shall be responsible. The
debt should never be settled by or in the
name OF the Tsxing-District government
| These commissioners must assume all the
responsibility on whatever basis of settle
ment Is agreed upon between debtor and
creditor, and the commissioners alone shall
| make the settlement"
| "How do you propose the commissioners
| shall settle the debt, Doctor?"
| "If the assets of the old city will not make
up sufficient amount to settle upon the
| basis agreed to- then the deficit must be made
up by taxation at a rate assessed by the State
| Legislature-tbe proceeds of these assets and
| taxes to be disbursed by the commissioners for
the benefit of the bondholders only. In
other words, l do not think the Taxing
|
| old government, but that the commission
| ought to manage the debt and let the Taxing
| District administer the affairs of the city in
| such way that one cannot conflict with the
other In this connection l would like to
call your attention to the closing paragraph
of the Introduction to the Digest of The
Acts Repeating the Charter, ETC., which 1 hand
you"
The extract is as follows: "This govern
- lu NJ M "a
ment, without the power of credit or taxa
ton, and the evils consequent thereon. 1t
owns no property, except for governmental
purposes alone. 1t can issue no bonds, and
has no power to pay them if they are issued.
1t contracts no deb:s, except as against par
ticular taxes levied by the State itself, to
pay them, year by year. 1t therefore pays
as it goes.the only true policy for indiyid-
uals and States. What improvements it
makes it pays TOR; and if it has no money to
pay, it waits until it has. Launched under
such auspices, 1t is hoped that it will prove
a lasting blessing, and that economy, hon.
esty and enterprise, cleanliness and thor
ough sanitation, good streets, ana an efficient
fire and police protection, will close its gates
on the pestilence forever, and open wide the
doors Of health and lasting prosperity"
"Then, Doctor, 1 am led to the opinion
that we should complete our sanitary work
and pave the streets before anything else is
dope"
Certainly; 1 think 1t is all important to
the welfare of the city that the streets should
be paved, and that the work of sanitation
should be continued. l do not think it is
possible to maintain healthy condition of
the city until the principal thoroughfares
are paved"
az understand, Doctor that you oppose the
present proposition of settlement of the debt
principally because of the heavy burdens of
taxation it would impose upon the citizens"
"Yes, sir; that is my objection, because l
believe it would dangerously cripple our
present system of government-pay as you
CO."
"How long, Doctor, before you think this
difficulty could be overcome?"
"Weli, it will take several years-probably
three or four"
"Would you be ready then to listen to
'No, sir, because, as 1 told you before, 1
am opposed 10 the Taxing District assuming
any debt"
'Is that the only Objectionable feature to
the present proposition implied in the bill
of the Legislature"
"No, sir, there is one other-the coupon
provision. l object to that because it stops
everything else until the coupons are salts
fed. Our sanitary work, our schools, our
street improvements-all our work would
have to stop until those coupons could be
satisfied"
doctor, what do you think of the propri-
ety of the present Legislative Council taking
action on this biIl?D
az will not answer that ouestion. but I will
saw that T believe tba not one member of
Council could have been elected If he had
Lei II he known that he wonld advocate the
settlement of the old city debt on the basis
specified in that bill, which 1 understand to
terest' with coupons receivable for all taxes.
Such position would have secured defeat
for the whole ticket h adj that been the poIicy.D
"What would be the general effect if that
bill were ratifed?"
"Tbe bondholder. and their friends pre-
tend that the settlement of the debt question
would invite immigration of population and
capital. but. take NV word for il. that ia all
stuff. The perfection of the sanitary condi-
ton of Memphis and system of reasonable
will have more Influence toward that
resuIt than anything eIse. Perfect our svstem
of sanitation and imnrove our streets 40 az To
facilitate the traffic necnIiar 10 onr citv and
We will have done mora good than conld he
accommodated in anv other wavn
aConld NOT the citizens Of the TAXING
District stand taxation sufficient 10 do this
necessary internal work and paw the annual
of COMPROMISED"
DO mol thlnK tney can at Inc MY ana SIX
rate. a SetueMent on inc oasis VI my Genus
on Inc dollar, Win SIX per cent. interest," VIII
p necessltate a tax oil iour per cent, ana per
maps iraction over ihciuuing otate, county,
CITY ana interest tax.
suppose the aIing,District Council
should ratIfy thus olu, what would be the
result"
1t would force US pack INTO Inc position
we occupied before the old charter was
The demands upon US would be
30 great that we would have to resort to the
scrip system to pay current expenses-the |
6remen and the police, and all the depart |
ments of government"
"What dc you think would satisfy the |
bondholders?"
81 don't think they will accept any rea- |
sonable proposition of compromise until |
they have exhausted all means OF collecting |
dollar for dollar through the courts"
"What are your general views on the ques
lion OF settling the old debt?"
Il have always been extremely anxious to |
have some settlement made, 90 that there
would be no more default In the future, and |
10 that our new government would be IN no |
way interfered with. l am satisfied the |
oondholders will not sccede to this proposi- |
and slx-as long as there ls hope |
eft them in the courts to collect face value"
M :. We,ICora
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