Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-02-02
THE BONDHOLDERs' LAST OFFER
OF AEl.rLEMRNT

THE BOHDHOLDERs' LAST OPFEF
OF sEITLEMENT.
The question Of the settlement Of tn,
deb. OF the city OF Memphis ia to be brough
t. The immediate consideration of the peo
pie Of the Taxing District for the fourth
time tomorrow night at a macs meeting 4
be he'd at the Greeulsw operahouse at 7:S0
O'Clock. AT the first meeting for this pur
pose, held in June OF last year, the peopl,
declared their willingness 10 settle the deb
at fifty-and-six, but that "the Taxing Distric
shall not be party TO the settlement, nor oul
'present city government be held responsi
"bls for said Indebtedness" A committee
Of reputable and respectable citizens, as fol
lows, wa appointed to negotiate with the
DO -dho Gers for a settlement under this reso
ution: Napoleon Hill, chairman; Johr
OVerton, j., John w. billiard, J. c. Nicely,
III. I. Elicit, N. NJ. Jones, Beujsmu Babb
James E. G1odlett, Louis Hanauer, JOAN E
RaDdle. This committee, after many weeks
Of careful consideration of the subject and
interviews with the residen. bondholders and
the representatives Of the foreign bondhoId-
err, reported that no compromise of the debt
c0nld be effected on any other terms than
those on which about one-third OF the debt
has already been settled, namely:
First-The bonds to be funded al ff v
cents on the dollar in bonds bearing six per
cent. interest.
Second-The bends 10 be issued by the
Taxing District government, and the coupons
10 be receivable in payment OF all taxes due
the said government.
Third-Ad, quaie provision by taxation to
be made by the Legislature of the State for
the payment OF the interest and for sink
ing fund 10 retire the principal of the bonds
"a they fall due.
Fourih-The settlemen, not TO take effect
until three-fourrhs Of the creditors in
amount shall signify their acceptance thereof
within reasonable time to be limited.
In reportin, these terms for the acceptaucs
OF the ci izAps this committee plainly ex-
ceeded lis Instructions, but it was the best
ii C ul d.. They were published and
di cusse length BY the APPEAL, and a
public meeting held on he 18th of Jsnnary,
at which hey were TO be pressed for passage,
was adjourned 10 the 24ib, when they were
rej-cled by majority of over two to one, and
series of resolutions were adopted as offered
by Mr.. George Peters, which empo owered the
chairman TO app int a committee of i've 10
draft bill authorizing the appointment of
settling agency to settle the debt on the
basis Of
Fifty cent?, and interest at the rate OF six
L. IL
follows: Three per cent. interest 10 be paid
annually for the first three years, and the
other three TO be capitalized and become
part OF the principal Of the debt; four per
cent. per annum for the next three years,
and the other two per cent. TO be capitalized
and become part OF the debt. From
<-that time pay annually the whole
six per cent. interest and start in opera
tion q sinking fund that in thirty years
from that date will pay the whole principal
according 10 the terms OF the compromise.
As guarantee that the people will carry
out a settlement thus made, provide that
failure 10 have an adequate tax imposed by
the Legislature TO meet the interest and raise
the sinking fund, as anticipated by the terms
OF the settlement, for any one year shall, at
the option of the creditors, forfeit the rights
OF the people in the settlement and at
once restore the creditors 10 all the
rights and remedies which they now
have, in as full and ample a manner
as they now have and possess the same; all
payments made in the meantime to be sim
pie credits on the debt al it's face amount.
Each creditor 10 have the right TO declare
the forfeiture for himself. These Terms 10
be embodied in q carefully prepared con-
tract. This contract TO be negotiable, and
not to satisfy the bond or judgment, which
il is given to adjust, until il ia fully COM
piled with; but tuch bond or judgment 20
remain in full force and effect until there is
full compliance,
The stand thus taken by the people, who
declared their determination to find final
refuge with the county government, should
the bondholders press their demands and
succeed with their suit, ia the courts, has at
last brought The bondhoIders 10 their senses,
asd they and their representatives have
Consented 10 a compromise that embraces
she ffiy-and three and.fo basis of settle
ment agreed to by the meeting of the 24lh,
but also includes Two clauses authorizing the
Taxing District government to issue the
sompromise bonds, and that il be empow-
cred, in ca the Legislature fails, to levy
the tax to pay interest and for the sinking
fund.
The gain TO the people by this proposed
compromise is the surrender BY the bond
holders of the coupon-for-tsxes feature OF
their previous demands and their consent 10
the scaling OF the interest for the first six
years.
In return for this the people are asked 10
--es2sent 10 the issue of the bonds by the
Taxin.- district government, and that it be
empowered to levy the tax to pay interest in
case the Legislature should fail TO do so;
but TO have no power to create any debt,
levy any tax, or issue any bonds except
for ihe purpose Of carrying out this set
tleme1t.
Nea-ly al the influential men OF the city
who have herettf re contended for the peo-
pie Of the Taxing District, believe and de-
clare that this is ar fair settlement ofthe debt
of the city Of Memphis a. can be s cured,
and hey " i'll on Saturday night recommend
wha they elsewhere publicly indorse.
The APPEAL mas had no pnrpose 10 contend
log for the past four years for the people bot
to secure flr them the beet possible settle.
meut of This debt, which is q menace to
their welfare and their progress, snd since
the bondholders have yielded two OF their
cherished ideas, and many OF the leading
representatives Of the people have yielded
two Of theirs, we feel ii our duty 10 again ad-
wise the citizens CT the District of all the
facts, and suggest 10 them the most careful
consideration OF this last offer OF the bond
holders.
With all the mandsmuses, judgments and
causes Of action, and every form of city in
debtedness funded, there need be no fear OF
mandamu.es in the future; as, even should
the Legislature fail to levy the tax, the Ds-
trict government is authorized to levy ii,
and would do go. On the other hand, the
anxieties of the people TO prevent such a
contingency will force them 10 make
provision for interest payment in every
budget, and thus prevent the exer-
else of the tax.leyying power even
for that purpose. This is the argument
advanced in support of that feature Of the
boudholders' offer. As TO The Taxing
District issning the bonds, the fear OF man
damuses removed, it is said there can be no
objection to it, especially since the power to
issue bonds for any other purpose is strictly
prohibited.
Compromise means the yielding of some
thing BY each of the two parties TO a contro.
versy. The bondholders have surrendered
something Of the points they have contended
for, and the people will be asked 10 yield
something OF theirs also. They will be asked
to say on Saturday night if they are willing