Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-03-27

There is no prospect in future for an iu-
crease in the above valuations, if our present
financial condition continues. On the con-
trary, as everyone here knows, the value of
real estate here is and has been steadily de-
Ginning, owing, as we believe, for the most
part, 10 the heavy taxes and constantly in
creasing Indebtedness OF the city.
As you are aware no sure reliance can be
placed on personal property as a means
of raising revenue, as under the law the debt
itself only attaches TO the realty, while the
personally may be removed beyond the city
limits and the tax avoided, and "a taxation
becomes more ouerous the tendency il TO
avoid it by all available means. 1t is there
fore unsafe in any consideration which may
be given the subject to rely for acertainty on
much aid outslde of The real estate. But
taking the figures as they stand above, our
condition shows one Of .haneless insolvency.,
and 10 enforce the payment out OF dAs prop
erty shown to be liable, means simply confs-
cation, which no people would submit to
were their officials disposed to exact it.
We submit that it lie far better for the
creditors to accept q new bond based upon
our ability TO pay and get their interest regu-
larry and promptly, than to pursue the pres
ent policy, ruinous alike 10 debtor and
creditor.
We submit further that it is better for
debtor and creditor 10 deal directly with
each other than threug n the intervention of
third parties, thus saving commissions and
fees which might be saved to the creditor.
We submit also that if the creditors can be
brought to the proposed settlement they will
be able 10 realize much more than the pres
emit value OF their claims, for il is based upon
an estimate which puts the prompt payment
of the interest beyond question, at the same
time will enable US 10 provide = reserve for
the payment of the principal when due. If
we are able to defeat the claim of $145, 900
now pending before the Supreme Court it will
enable US TO offer better terms than if that
becomes part of our debt.
On the basis Of the present fixed debt
which, as shown above, 10 S2S0,000, we pro-
pose to fund at forty per cent. the principal
and interest into five per cent. thirty-year
bonds OF such denominations az will suit the
creditors, payable, principal and interest, in
New York; interest payable annually.
Should, however, this suit go against us and
the $l45 900 be added 10 our debt we cannot
offer better than forty per cent of The total,
funded into three per cent. of the thirty.
year bonds, payable as above. As to our
power to carry out this offer, being a. we are
merely committee of unofficial citizens, we
can give you no further guarantee than th at
VIC oAC aSAAhS III bchdil vi INC WHOLE
tax.paying community, and in concert with
the city authorities, aud we have no doubt,
if the terms proposed are accepted, they will
be carried ont; but as 10 this you must ad.
| wise yourself by any means you see fit t.
| adopt. We make the proposal in behalf OF
| our citizens in the utmost good faith, sincere.
ly trusting it may be adopted. This will be
sent in circular form 10 all creditors known
to u, and an early reply is requested.
JOHN P. MOORE,
D. II. CREB5.
March 70, 1888. Committee.
Since then another committee has been
appointed, composed of three of Helena'a
| most influential men, 10 act in concert wit
| above committee, for the purpose OF con-
| ferriDg further with the city's creditors and
eheciing omPromise-as proposed in the
circular quoted above-if possible. All
previous overtures have been frui,less, and
unless a compromise, on the basis proposed,
can now be made, an election, already or
dered, will be held tour weeks hence, when
the charter will be surrendered by an over
whelmlng majority. Though this will not
relieve the city from her present indebted
ness-incurred by improvident bonded rail-
road grants, accumulated interest and success
full m andamuses-it will give her time to
increase her material wealth, and conse-
queptly enable her, perhaps, to pay. AS
will be seen by references to the table given
above, the total valuation of all property,
real and personal, within the corporate limits,
is only fifty per cent. greater than the cily's
liabilities. To pay in full would be sure
bankruptcy and ruin; whereas the proposed
compromise would still leave the bondhold-
er handsome interest upon his investment,
obtained by hypothecalion of the bonds
many years since, at a mere song, and give
the city chance to recover. In any event
the bondholder cannot be TOO sure OF his bar
gain, for the people, though honestly dis.
posed, are not going to be crushed.
BARNABY.