The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-11-25
Their nish,. 30, Mni,sa.

To the Bitter at The Appeal
Sir In an interview with W. NJ Snccd,
E.q., published this morning. be- claims
that the holders of the "Elppn cumprO-
misc bonds are ON the same footing that
tie holders IT the Taxing District bonds"
having waived whatever rights they may
have acquired under the act OF 1877, under
which they were issued. What were those
rights 4 bond ior thirty years, drawing
u per cent interest, coupons receivable Tor
all kinds OF taxes aud demands, anil
| promise that the city, after the compro-
! mise OF It's Indebtedness, would Is no
no more bolds. The Object was
10 enable municipal corporations 10 settle
J thoir indebtedness ~ III title Indicated.
What WIS the object Of the act OF 1852
Why precisely the same thing as H. cap
ton indicates. Under the irt act tho
funding Of the city indebtedness was only
partially completed when the cts went
into the hands IT receiver IN January.
1872 Much of iis indebtedness was still
unlundcl and remained 10 until the act
Of 1883 WIS passed, aud ns already stated,
Ia complete the funding oi the cily's debt,
and here symmetrical scheme this act
was passed. The act oi 1877, under which
flippin bonds were issued, does not pro-
hibit the issuance OF bonds to COM
promise tie city's debt, but ON tho
contrary, iis very purpose was a. &C
complish that thing. ~ Section Of that
act prohibits the issuance Of any moro
bonds after the compromise OF tho
citys indebtedness. Had the act OF 1883
not been passed, which Is In substance
with the variation II u graduated intent a
supplement 10 that Oi 1871, the funding
might have brCn contaminated under tho
latter act had the creditors seen No 10 hayo
done ~ and tho holders oi the comprO-
mise bond. could not have onloincd them.
Nor 10 nov think these could have en-
Joined the issuance II the Taxing Dis
trici bonds ifsuud under an act In sub
slantiil conformity 10 the act Of 1917, " at
least upon u basis which IN no manner
could prejudice their rights. the conditions
In some respects being more favorable to
the city than Those contained IN the act Of
1871. Both acts had In contemplation tho
funding Of the city debt, and the holders
oi bonds issued under tho iint act had no
right 10 complain whether the remaining
Indebtedness outstanding when the Flip
pin bonds were signed should be funded
under the act Of 1877 VI the act Of
1883, which would In no wise affect their
rights unless they voluntarily did some
act 10 their own prejudice. But the point
make h this, that tho dcbthn been CON.
promised aud the holders OF the llipiin
bonds can now forbid the Issuance Of iny
mono bonds Tor any other purpose. This
b the promise made 10 them Ia the lau-
guagc OF Section ui act of 1871, which re-
peat THAT any municipal corporation
Issuing bonds under this act shall BE- p.O-
hiUitcd from issuing scrip or any other
bonds while their compromise bonds afo
outlndng aud unpaid" This was a most
Important right i0r the fewer the bonds
the greater thC certainty Of payment, thc
les. the indebtedness the more probable
prompt payment Of interest aud principal.
The act Of 1883 made two proposition, 20
the holders Of these bonds, the one 10 CX-
chang 10 do which was 10 surrender and
eNtinguish oil rights under lhc Old bond
other proposition was 10 retain
coupons stamped, nhlting Tor some
years the collection oi some Interest, aud
the remaining interest by
retaining them and stamping the coupons,
Mr.. Snccd slys. they waived OIL right aud
stood upon tie same footing as u they had
the old aud accepted the new
bond. Il Il not strange, then, that tho
Legislature shonld have made the Two
II tho two wcrc identical in
cncct2 Mr. snced saws they waived all
rights by having the coupons stamped,
but the legislature, Section 3 act 1888.
,ayE Whenever said compounds bonds
lro retained, neither the acceptance OF in
.orpHt on them nor capitalization VI inter
vt on them, a. provided by this act, shall
BIZ held or taken ~ q waiver OF any rights
which the holder. Of said bonds Flippin)
iow have Snccd w. The legislature.
Mr.. Snccd SAYS they have lost the right 10
pay their taxes and oil other city demands
IA coupons, TO hold their bonds until they
naiurcd, 10 prohibit the city from issuing
more after It's Indebtedness had been COM
promised. These are some OF the ac-
rights thcy hal before these
coupons we're stamped, bu, now
hey are Loaf Mr.. snccd ensa