Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-21

u tnls 80! II my 1aIofnzlon Is true Al N q,
account in part for the complexioasof th
advocates and the opponents of the repor
of the majority of the committee.
Messrs. Editors, 1 have already extended
this far beyond what at FIRST expected.
could say much more, but desist. BIT lie
Us insist on "holdipg fast TO that which il
good" and rejecting that which is bad.
| vERIfAs.
The Bondt older. AFTER the Poasa OF
4 Flesh.
To the Editors of the Appeal:
! / happened TO drop in at the Citizen
meeting at the courthouse on Friday sitter.
noon. was little late, and at first thought
l had walked unawares into Republican
convention. The sight of the faces OF sew
| eral Of our local bondholders reassured me
and entered. The boDdholding element
certainly monopoIissd the oratory Of the
occasion. think all of them were there.
1t occurred to me then that this effort to
again fasten the old city debt upon the
shoulders OF the old government was intended
primarily TO increase the value of the bonds
- - - tAAFetS OPibAO III At tAis
OF the question has had the effect of enhanc-
ing the interests of the bondholders, whd are
perhaps desirous of unloading OF a
aush market. Whether they succeef in
burdeniDg the present government or
not with the debt, the favorable report made
By the Citizens Committee will at least tend
TO raise the market value of the bonds. The
bondholder is fast becoming z second 1Shy-
lock; )" he wants his pound of flesh next 10
the heart of the new government. II he is
not careful, may not some "wise young judge"
forbid him TO take any of the "blood" of
the people? In other words, may he not get
left? OLD FoeY.
rIhree Per Cent Iaterest and OPP
for Taxes.
To the Editors of the Appeal:
AS a number OF the citizens of Memphis
seem to De unduly afraid that the avalanche
OF the debt Of the extinct municipality OF
Memphis will be precipitated upon them,
permit an old citizen, prompt taxpayer,
and claiming to be an intelligent reader of
the decision of the Supreme Court of the
United States in the case of Meriwether Us.
Garrett ct al, to give his views upon this
most important of issues. In the first place,
the Legislature of Tennessee granted char
ter to the municipality of Memphis, corpo-
ration with no subscribed capital other than
the power to contract debts, to sue and be
sued, and with the power to levy taxes to pa5
its debts constituting its only available as
sets. All taxes duly authorized by lax
under lis charter are, if imposed, assets
10 creditors, and in accepting the bonds or
other evidences of Indebtedness all creditors
relied upon the vested power of the corpora
tion of Memphis, through its legally elected
Representatives, to levy taxes with which to
pay The corporation debt OF Memphis. Chief
Justice Waite distinctly enunciates this prin-
cip!e of law in the decision before alluded
TO, and ii appears TO me to be common sense
By the repeal Of the charter of Memphis in
1879, the power TO levy taxes and create
debts was taken away from the corporation
or general stock company of Memphis.
Whatever assets there may be, in the shape
OF unpaid taxes or any other property which
is subject to levy and execution, belong TO
the creditors of the extinct municipality OF
Memphis.
THE PROPERTY, REAL AND PERSONAL,
OF the individuals composing the population
of Memphis does not owe the debt and is not
bound. This principle of law is fully set
forth in the Supreme Court decision before
alluded to. The debt of Memphis stands in
the same position that the debt of any in
corporsted or chartered Institution does, with
this difference
For the purpose OF carrying on any sort of
industrial enterprise number Of individuals
get together, each subscribing SO much
money which they pay into the common
treasury. No lawyer will assume the posi-
tion that there is chartered institution in
the State, except the national banks, in which
the individuals of the corporation are bound
for any more than they paid into the treasury
of the corporation. ANY creditor has the
right to collect his debt out of the assets of
the corporation, but no right to go on the in
dividuals composing the corporation for one
dollar, provided the assets are exhausted.
1t is distinctly understood by creditors that
the corporation assets are alone subject to
its debts. As to the public debt of Memphis,
its assets consist, first, of its power 10 levy
taxes; secondly, of such taxes lawfully levied
remaining unpaid. 1t is plain to me that
the creditors of Memphis are without any
remedy to collect their debt, aud the upreme
Court Of the United States clearly so decides,
unless the Legislature of the State sees
proper to create new corporation, or revive
the old one, and to be invested with the pow
er to levy taxes. Do not understand me as
A REPUDIATIoN eF THE CITY
DEBT.
On the contrary, am 10 favor of paying as
much as we can pay, but am utterly opposed
to laying an intolersble or unreasonable bur-
den on the people of the Taxing. District.
Now, let US see whether compromising the
debt OF Memphis at fifty cents ON the dollar,
with six per cent. interest, be unreasonable
or not. When the charter was repealed in
January, 1879, including the $l,O54,O00
bonds compromised at fifty cents per dollar
by Flippin, mayor, the debt stood in round
numbers S4,600000. Having occasion, and
it being my duty to examine into the assets
on the city tax-books, which were nominally
about 81, 100000, not exceeding 100000 was
regarded as collectable or available, the bal
auce was regarded as worthless. After
careful examination all tax accounts ag ainst
real estate, provided the amount did not ex-
ceed the value of the property, was regarded
as good; also, few accounts Of taxes of q
personal character, will venture the pre-
diciion that the gross collections of Mr..
Meriwether or his successors pever exceeds
100000. Assuming such TO be the result,
the public debt settled at fifty cents per dol
lar will stand in round numbers thus
y 81 dosl Fppn bonds.
Interest on same four years TO lst OF Janu-
ar5, 1855 1,356, $50
Total debt.............. ol0 e6o
npaia taxes goo
Interest, say two years. los.eoo-sl, ,oos 900
Net debt. ..,-...... sS.Io1. 600
Compromised at fifty cents per
dollar $3.060,S0o
The total valuation of the real and peg
sonal property of Memphis is, in round num-
bers, sl4,000,Oo0.
THE DELlNQUENCIEs UNDER THE TAXING
DISTRICT GOVERNMENT
are twenty-five per cent. Prior to the re-
peal of the charter of Memphis the deIin-
quents averaged forty-fve per cent. But
assuming that under new compromise the
delinquent list will not exceed twenty-five
cent, we have SIC, 500 900 taxable properly
to rely on to pay taxes promptly. The
Sc ,050, 900 bonds, at six per cent, will carry
an annual interest of S183, ,04s, and exclusive
Of any provision for sinking fund will re-
quire levy of between one and ive-eighths
and one and three-quarlers per cent, in
stead of LBS per cent, as stated by Presi-
dent Hadden.
Now, it is strenuously maintained by the
creditors that the real estate here is under