Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-25
THE CITY DEBT
Must be Settled by Special Commission
at Fifty-and-Six, the Coupons Not to
be Receivable for Taxes.

Must NC .1cttica " . CRcSieA SoAAnAsoAVA
at Fifty-and-Six, the Coupons Not to
be Receivable for Taxes.
The People Of the TaxiBg.District So |
Declare, by Large Majority, for
the Second Time.
Yesterday afternoon q large number OF
citizens who represent the worth and intelli-
gepce of the city assembled at the Greenlav
Operahouse in order TO discuss the report OF
the Committee of Sixteen. The meeting was
a very orderly one, and the speakers were
seldom interrupted. The resolutions finally
adopted were the voice of two-thirds of those
who were present.
When the meeting was called to order
Judge B. NJ. Estes was called to the chair.
He stated the object of the meeting was to
discuss the report OF the Citizens Committee.
Mai. Meriwether arose and said he had
some resolutions TO offer in lieu of the report
of the committee. He according offered the
\ following resolutions:
MERIwErHER's RESOLUTIONS.
| Resolved, That the settlement of the Mem
| phis city debt offered the creditors in the act
| Of April, 1881, namely, thirty-three and one
third cents, with three per cent interest for
| the first FIVE years and six per cent. there
| after, il all that we are able to pay, and all
| that equity and good conscience dem ands.
Resolved, That it is the sense of this as
semblage, that said act of April, 1881, mod
| lied SO as 10 exclude in express terms all
| illegal Indebtedness and to make the COM
mission, now salaried, with paid secretary,
be Continued in force one year longer to give
| the creditors an opportunity to fund I'M
der il.
MAI. MERIwErHER's SPEECH.
Mr.. Meriwether was called to the stand
and made a full exposition OF the city debt.
he pointed out the fact that large number
of the bonds were void. In 1882 he said
that an act was passed virtually enacting the
Flppin compromise. He said the report of
the committee ought to state under whom it
is proposed to fund. Another objection he
| had to il was, there was a large amount OF
it now under litigation. He believed that
s., 100000 of the bonds could be defeated in
the courts. He did not see how the District
could get along without 81 so if it expected
to keep mp the street work, the sanitation,
etc. Ii the debt was placed at SIS SOC, 900
and settled at S2,750,000, the people would
have to pay 81 30 more, which, added to the
District tax of IL so and the State tax of 81,
, would make 81, which was practical confs-
cation. 1t was true that the wealthy people
the people could not. The tax would fall
heaviest on the poor man with his little
cottage and his little family. A mans
DUTY TO his family is q higher obligation than
any other. A short time ago he had ceme
into the city and was dumped of at tie Pea
body Hotel, being told that he could not be
taken home. He was in favor of fighting
the bondholders, and be predicted that
about ST SOC, 900 could be retired. He said
another objection he had to the report was
| that it made the coupons recelvable Tor
taxes. This has already been decided by
the Legislature to be unconstitutional.
AN INTERRUPTION.
Mr.. Bethel-Are you in favor of repudia-
ton entire in the city and State?
Maj. Meriwether replied: II will give you
| a categorical answer: 81 favor repudisting
all debt that is not just"
Mr. Frayser-Who will you leave it to, to
decide whether it is just?
ST propose to fight it as long az 1 have
arms to fght with,n said Maj. Meriwethsr.
al think it is an Ubiquitous debt; and if we
have no other alternative, we can at least
fall back into the body OF the county"
MIR. BETHEL TO THE FRONT.
When Mai. Meriwether had concluded, Mr..
Bethel stated that Maj Meriwether had &C.
cused him of being a lobbyist. He denied
that he was. He SAID: 81 wish TO make a
lew explanations. l am q citizen of Mem
phis and have interests at stake here. As il
is understood by you all, am q practical
man. propose to discuss this question in q
business way. I came to Memphis in 1856.
If have done any harm to this city / am
not aware of it, and humbly beg your par
don il I have injured it. I am not aware
that it is any crime to buy bonds. The gen.
tleman has accused me of being lobbyist.
1t is untrue. A word about the bonds which
hold. When this city was in debt, 1 adj
vanced the money and bought the bonds, pay
ing dollar for dollar. Is there any crime in
buying the bonds of your city when they are
on the market? When the Fiippin compro-
mise act was made, funded under il in good
faith. The gentleman has tried TO throw
odium upon me because hold some of the
bonds of this city. He has no right to drag
my name into discussion of this kind.
should have said nothing here if he had not
misrepresented me"
Msi. Meriwelher said that he arose to
make personal explanation. Mr.. Bethe
had misunderstood him. He did not mean
to charge anything OF criminal nature
He desired TO ask few questions of Mr.
Bethel.
The chairman said he had right 20 make
two speeches on the question. II he, Maj
Meriwether, spoke then he could no
speak again.
THE WINNING RESOLUTIONS.
Mr.. Geo. B. Peters said that he had
series of resolutions which he wished to Of
fer. He said that there were a large mum
ha~ of uho ith 4 h.
report, as made by the Committee of Six.
teen, nor were they in accord with the views
OF Mr.. Meriwether, bat thought a middle
ground was possible. With view 10 har
mony he therefore offered his resolutions.
The following are Mr.. Peters's resolutions:
Resolved, That we are anxious to adjust al
questions touching the old city debt, upon a
basis that will be acceptable to the creditors
and to begin and continue to pay on such
basis until the amount agreed upon shall be
paid in full.
Resolved, That we are unalterably opposed
to the change of our present form of local
government 30 as TO authorize 1t 10 issue
bonds or exercise The taxing power for any
purpose, and therefore cannot consent to the
issue of bonds by the Taxing District and
the exercise of the taxing power as elements
of the compromise and adjustment.
Resolved, That the tax coupon receivable
for all taxes is impossible and impractical
BILE in our view
First-It is unconstitutional.
Second-It could not receive the assent Of
the Legislature.
Third-It would divert the revenue which
is the life OF our local government, or so in
terfere with it as to impair its usefulness
break down confidence in it, and again star
us on that downward tendency in the direc
ton of discredit and bankruptcy, from
which We are emerging.
Fourth-The coupon device would lead to 8
multiplicity ofsuits, could harrass the people
and disappoint the creditors.
| Fourth-In our anxiety 10 settle and re
cover payment upon this basis Of settlement
in good faith, experience admonishes us thai
we should not enter into engagements to pay
at rate so great that it would necessarily
cause suspension OF payment; and TO agres
to settle at fifty cents on the dollar witt
interest at Elk per cent. and provide for {
sinking fund end undertake 10 meet the
whole interest and raise the sinking fund
from the start would make burden, with
other necessary taxes, of from four TO foul
and half per cent. per annum. We coule
not long continue to meet such a burden.
Fifth-If our creditors are willing to termi
, that we can perform, that are lawful, and
that will not impair or destroy the efficiency
. of our local government, we will gladly meet
them and give them guarantee OF perform
snce which cannot fail TO satisfy them.
Sixth-We will meet them on the basis oil
, fifty cents and interest at the rate OF ak per
cent. per annum, to be provided for as fol
lows: Three per cent. interest to be paid an.