The Superior times. [volume] (Superior, Wis.) 1870-1912, 1885-01-31
The Ghost of Reputation Again
Appears to the Duluth People.


By little sharp practice the ex-
city, now village of Duluth have for a
number Of years lodged the payment
of a large, but honest Indebtedness,
but it looks now as though her credit
ors were about to get their just dues
A memorial to Congress was itroduc-
ed in the Minnesota legislature a few
days ago, and referred to the finance
committee, asking that body to step in
between the regulators and creditors,
and to assist the latter in recovering
their Just dues Duluth will sooner or
later have to pay her honest debts,
and the sooner she does that same, and
wipes out the stain of reputation the
better it will be for her. The me-
mortal us given below fully explains
the situation, and the plan Oh which
1t is proposed to recover the amount
due:
Governor Hubbard, in his last mes
sage to the Minnesota Legislature, sug-
gests that it memorabilia Congress for
an appropriation of money for an I'M
provement of Duluth harbor.
The city Of Duluth stands to-day
before the State Legislature and the
Congress of the United States as the
only city in Minnesota that has form
ally and under color oflaw repudiated
its bonded Indebtedness. After issu-
ing and negotiating as many Of its
"Harbor Improvement Bonds" as it
was able to place upon the market,
the city, in 1877, procured the passage
Of law authorizing it to reincorpor-
ate as village for the purpose of can
ceiling its bonded Indebtedness, by is
suing new bonds to take up the old
bonds at the rate of twenty-five cents
on the dollar. Under this law Du-
luth repudiated its old bonds. and a
large portion were funded in new
bonds at twenty-five per cent of their
value. \ large portion of the bonds
SO surrendered were held or controlled
by property owners in Duluth, upon
whom devolved the payment of the
taxes necessary to meet the interest
on the bonds and to pay the principal;
so that it made little difference to
them whether they received twenty
five cents or one hundred cents on the
dollar-''for one hand washed the
other. But the holders of a smaller
portion of these bonds, who had
bought them in good faith at ninety
cents to nlnety-tive cents on the dol
lar, and who had no property interests
in Duluth, refused to accept the prof
tered twenty-five per cent in new
bonds of the village of Duluth, which
may, in turn, be repudiated should
the village ever reorganze as Il city.
Whatever merit there may have
been IN the various pleas Of ''poyer-
ty, or depreciation Of property, or
Inability to pay in one thousand
eight hundred and seventy-seven, no
such Justification now exists, -for the
corporation of Duluth has taken back
into its corporate limits the most val
liable portion of the old city of Duluth,
and the present value OF its taxable
property Is five times what it was at
the time Of these repudiated bonds
were issued and sold upon the market
for ninety cents upon the dollar
Duluth (the present DULUTH re-
ceiyed the benefit of these "Harbor
Improvement Bonds" She is, as she
herself boasts, rich and strong, vet re-
fuses to pay the interest she is album
dainty able to pay, and denies all sat
istaction to those who do not choose to
accept her offer of compromise at
twenty-five per cent.
The United States district court has
decided that the city of Duluth is la
bic for these boRds,-but, under Il law
providing that AL service of summons
or process In any suit against the city
must be made upon the mayor Of the
city (not the VILLAGE, and by falling
to elect mayor or keep up any city
organization, she has thrown every pos
sible obstacle in the way of collecting
through the courts the bond coupons,
now ten years past dne and unpaid =
and finding that she can place no
more "llarbor improvement Bonds
upon the market, until the interest
upon the repudiated bonds is provided
for, she is now asking Congress through
you fer further assistance.
The only hope of the bondholdcrs
for relief seems to lie in Il presenta-
ton of the facts to your honorable
body and TO Congress, and in protest
ing against the appropriation of mon
ey asked for, unless the same shall first
be applied in payment of these 'Har-
Dor Improvement Bonds.
We, the undersigned, holders OF
such bonds, therefore respectfully ask
that your honorable body, in memoir
ializing Congress for an appropriation
of money for the improvement of Du-
luth harber, will couple with such
memorial a proviso that any appropri-
alton made shall not become available
until the overdue interest coupons of
the Duluth "Harbor Improvement
Bonds are paid, and the principal OF
the said bonds provided for
Signed by \. p. I.angford, VIM. \.
Spencer, c. V Hutchins and Edward
Brevis bond holders.