Pine Bluff daily graphic., 1917-02-24
Legal Notices ORDINANCE NO. 1497


 Whereas, it duly appears to the C;tv Council of the City of Pine Bluff Arkansas, that there is now outstand- ;ng total valid, indebtedness of said c;tv & represented by warrants and oth- er valid, written obligations of the c;tv. which are hereinafter fully de- scribed, aggregating a sum in excess of one hundred and thirty thousand, four hundred dollars (S130,40O) and that there are no funds of the city now now available to pay the same nor will there be any such funds in the near future; and
 Whereas, the City Council finds that in order to prevent the impair ment of the credit of the city and to nrevent financial loss to the city, it is indispensably necessary to make ap- nropriate and suitable provision for inc postponement of the time of pay ,nent of said indebtedness as has been in this ordinance hereinafter provid- ed; and
 Whereas, by the express provisions of the laws of Arkansas, including Sections 5436 and 5437 of Kirby's Di- gest of the Statutes of Arkansas, the City of Pine Bluff has general powers and privileges and is given such other privileges as are incident to other municipal corporations of like charac- ter not inconsistent with the provis- ions of the general laws of Arkansas; i; and
 Whereas, after due investigation and inquiry as to the best and most advantageous plan that can be devised and carried out to maintain the credit of the City of Pine Bluff within and in strict conformity with the powers and limitations of the law it has been and is now found and determined by the City Council of Pine Bluff lawful, practicable and necessary and to the advantage of the City of Pine Bluff to accept a certain proposition of James Gould, submitted to the City Council of the City of Pine Bluff to execute and issue funding certifi- cates of indebtedness aggregating one hundred, forty-nine thousand, nine hundred and sixty dollars ($149,960) of the City of Pine Bluff in the forms, amounts, denominations and having the deferred maturities hereinafter prescribed, which certificates of in- debtedness when executed the said James Gould has agreed either to ac- cept or to cause to be accepted by the respective holders of the obligations of the City of Pine Bluff, now out standing, simultaneously with their cancellation and in place of such out standing obligations of the City of Pine Bluff which are provided to be funded pursuant to the provisions of this ordinance, payment thereof or a proportionate amount of new certifi- cates of indebtedness, authorized by this ordinance to be issued; which proposition of said James Gould, is in the words and figures as follows, to- wit:
 To the Honorable City Council of the
 City of Pine Bluff, Arkansas:
 Gentlemen:
 As to the outstanding indebtedness of the City of Pine Bluff, Arkansas, that is now payable amounting to the four hundred dollars ($130, ,400) to pay which there are no funds now, nor in the near future, available, l beg to submit to your consideration the fol- lowing proposition, to-wit:
 You, of course, are aware that on account of the provisions in our State Constitution it is not competent for the city to execute interest bearing evidences of indebtedness that might be issued and used as they are by municipalities outside the State of Ar kansas, to fund valid outstanding in- debtedness. Nevertheless, the Arkan- sas legislature has granted plenary powers to municipal corporations op- erating under it's laws and has ex- pressly granted general powers and privileges, and such other privileges as are incident to other corporations Of a like character, not inconsistent with the general laws of the State of Arkansas. It has been held by the courts of last resort in one or more of the states that municipal or simi- lar corporation may legally fund it's outstanding indebtedness without any express grant of power from the leg lslature. It has also been held that a municipal corporation in disposing of Its securities has authority to engage the services of any pay commission to broker in and about assisting it to Gspose of its securities. It is manifest mat to arrange for a postponement or the time of payment of the obli- gaatlons of the city that are now pay aele, notwithstanding the provisions or our Constitution forbidding the is- suance by you of evidence of indebted ness that bear interest, the fact is weil known to all that the terms upon winch it is possible to secure the post Ponement of time of payment of any 1'naebtedness inevitably has some re- !atlon of prevailing interest rates that are ordinarily charged. It clearly fol- .oWs that the City of Pine Bluff can aSt nI nope to induce it's creditors whose oengations are now payable to agree ;Mlsnout ;ns e any consideration for so do: ,ng to agree to postpone the time of tgnsyment especially in view of the fact Mat any judgment that might be re- .tveled against the city, for it's out s.anding debt, would under our law Dea Dear interest at six per centum (6%) +;,. laking all of the foregoing condi- tSa aons o into consideration I agree with sss ".e Clty of Pine Bluff, Arkansas, to tima tirsnge a for the postponement of the