Pine Bluff daily graphic., 1917-02-11

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 sum of one hundred thirty thousand, four hundred dollars ($13O,4O0) to pay which there are no funds now, nor in the near future, available, beg to submit to your consideration the fol- lowing proposition, to-wit:
 You, of course, are aware that on &C., count 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 inz 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 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 a municipal or simi- lar corporation may legally fund it's outstanding indebtedness without any express grant of power from the leg islature. It has also been held that a municipal corporation in disposing of its securities has authority to engage the services of and pay commission to a broker in and about assisting it to dispose of it's securities. It is manifest that to arrange for postponement of the time of payment of the obli- gations of the city that are now pay able, notwithstanding the provisions of our Constitution forbidding the is- suance by you of evidence of indebted ness that bear interest, the fact is we'll known: to all that the terms upon which it is possible to secure the post .ponement of time of payment of any indebtedness inevitably has some re- lation ot prevailing interest rates that are ordinarily charged. j It clearly fol- lows that the City of Pine Bluff can not hope to induce its creditors whose obligations are now payable to agree without any consideration for so do- ing to agree to postpone the time of payment especially in vieWeof the fact that any judgment that might be re- covered against the city, for it's out standing debt, would under our law bear interest at six per eentum (69o) per annum.
 Taking all of the foregoing condi- tions into consideration I agree with the City of Pine Bluff, Arkansas, to arrange for the postponement of the time of payment of the cityseentire in- debtedness of one hundred thirty thou sand, four hundred dollars ($13O,4OO) proposed to be funded as hereinafter indicated upon condition that there shall be issued in place of such obli- gations of the City Funding Certifi- eates of Indebtedness of the city az Egregating one hundred, forty-nine thousand, nine hundred and sixty dol lars 149,96O; said amount being nineteen thousand, five hundred and sixty dollars ($19,560) in addition to the. indebtedness to be funded, which agree to accept in payment as a brokerage fee, the e-expense to which will be put in carrying out my part of the proposition now asphnitted to you, and ill consideration of which I agree to cause the postponement of