The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-03-29
WHY NOT DRAW INTEREST
HOW THE LOCAL BANKS HAVE EN-
JoYED A VALUABLE FAVOR.
The City's Interest Fund q Handsome
Sum, on Deposit for a Regular Period,
Yet a Return for It's Use BY the
Banks is Respectfully Declined.

The city government Is generally believed
to be run on superior business principles.
Perhaps, in the majority of instances, It is,
but somehow or other private corporations,
except the big railroad concerns, escape with
very light returns to the public for the valu-
able franchises enjoyed.
There is the Artesian Water Company, the
gaslight companies, the electric light COM
pany and the street railway companies.
Only the latter enterprises pay anything at
all, which comes in the way Of paving. The
remaining institutions not only pay moth
ing, but receive very liberal compensation
for whatever in thei lines is supplied the city.
For example, there is set aside for water for
this aud next year about$ 32, 900, and for light
ing, $4,000. Then there is that company
said TO have made a bona 1de and standing
offer of $780, 900 per year for, the franchise
now enjoyed by the Memphis City Railway
Company for just what paving the authori-
ties can exact from them. Ii makes u grand
total Of over S $1,000.
Beginning with the LIST of January last,
the city's interest fund summed up Just q
little less than $4,000 per annum. This is
paid out semi-annually, July | and January
|. This account is deposited in any bank
that may be so fortunate as TO secure an
election ut the hands of the Legislative
Council. 1t goes in for a specified period,
and naturally the bank holding II enjoys
the privilege of turning IL TO profit as great
as possible. Then why should the city not
reap a little legitimate benefit from it2 But
II don't. Because OF this singular policy
there is a painful absence of several thou
sand dollars from the city revenue, which
might easily have been there without any
kick from the bankers. Had any one OF the
gentlemen who oppose letting the fund out
on bids and bonus been dispOsing of their
" money for a time, IL goes without say
ing that every cent Of interest proflercd,
with good security, would be unhositatingly
accepted. But II seems the city prefers to
get along without II, rs the vote ON tho fol-
lowing resolution, offered by Capt. Lee at
the legislative Council meeting yesterday,
will show:
Resolved, That hereafter the depository Of
the interest and sinking fund will be given
To the bank giving the largest bonus for
same. All propositions from banks making
application for simo shall be accompanied
by the names Of the bondsmcn they propose
90 give. No action shall be taken upon tho
matter except 10 open propositions ON the
day set 10 receive same. but they shnll lay
over Al least one week before AN election
shall be gone into.
The vote on this resolution st0od a. fol-
LOVE; Petit, no; Kncy, aye; Wallace, no;
Hirsch. no: Graham, no; Randle. no; Lee,
aye; MADDEN, not voting.
Maj. Petit offered The following, which
was adopted unanimously:
Resolved. That In all future selections Of
a depository for the interest aud sinking
fund, the Legislative Council feeling that 1t
Is its duty 50 10 do, ns a precautionary meas
ure) reserves the right 10 withdraw said de-
post, II the facts and circumstances at any
Time, IN the judgment OF the Council, call
for such action. The District also reserves the
right TO require the bond Of the depository to-
be strengthened, II, IN the judgment Of the
Council, such n requirement should be
made, and TO withdraw the deposit II such
requirement be not complied with. II the
deposit should b. Withdrawn, the fund shall
be deposited specially until another deposit
tory be selected. This resolution shall he
deemed TO be accepted by any bank accept
ing the appointment Of depository OF said
fund
The Council then went 10 balloting for a
depository. forty.scycn ballots were taken,
as follows: