USA > Kentucky > Henderson County > History of Henderson County, Kentucky > Part 33
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In conclusion, the Mayor said : " A united and harmonious city government striving to promote the happiness and prosperity of all, even the humblest citizen, and animated by an earnest desire to dis- charge their duty, will certainly accomplish much. We have fallen on troublous times for the past two years, the business of the coun- try has been deranged and trade is not found in its accustomed chan- nels, but this condition must shortly have an end. The signs of a change are favorable and already streaks of light of the coming day mark the horizen, and but a few months will elapse before the hus- bandman will again receive the promised reward of his labor, the busy hum of industry will be heard as loud as ever on our streets, labor will not seek in vain for its accustomed employment and the ring of the anvil and the trowel and the noise of the hammer and saw will make sweetest music for our ears."
The tax levied for 1875 was 85 cents for city purposes, 60 cents for school, 90 cents for railroad and 50 cents to pay interest on water works bonds, making a total of $2.85 on each $100 of valuation. In addition to this a poll-tax of $2 on each male citizen over the age of twenty-one years.
To collect this tax was a very difficult matter and in very many cases absolutely impossible. In many cases the Collector was com- pelled to sell realty and personalty, and altogether the burden was something terrible. Therefore it was the object and aim of the new administration to conform to the most economical views, and to there- by relieve the citizen taxpayer as much as possible.
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HISTORY OF HENDERSON COUNTY, KY.
On September 21st, the first meeting after the inauguration, the Retrenchment Committee reported, recommending sweeping reduc- tions in salaries and in some instances abolishment of offices.
October 5th, after being amended and added to in one or two particulars, the report of the committee was adopted.
November 16th, a contract was entered into with George W. Scantland, for the purchase of sufficient ground for the extension of Adams Street, from Third to Fourth, at the L. & N. depot.
1876.
Outside of the completion of the water works and necessary leg- islation concerning that important public enterprise, nothing of ma- terial interest occurred during the year.
April 25th the city alarm bell was purchased at a cost of three hundred and twenty dollars.
July 18th a contract was entered into by and between the city and John Haffey for building the sewer, now running from the inter- section of First and Water Streets to the river.
The delinquent list this year was, as for several years previous, distressingly large.
1877.
The number of children of school age reported this year was 1112 white and 410 colored.
May 1st the Retrenchment Committee reported in favor of issu- ing $98,000 in 6 and 7 per cent. bonds, to be used in redeeming the same amount of outstanding bonds bearing 10 per cent. interest. This proposition failed to be adopted by the Council.
The assessment of property reported this year was : for city pur- purposes $2,162,035, for water works $2,200,210, for school $2,147,- 960, for railroad $2,618,190. Upon this assessment the following levy was made : For city 80 cents on the $100 valuation, 55 cents for sehool, $1 for railroad and 50 cents for water works. The delinquent list, as in.previous years, continued to be very large.
1878.
A volunteer fire company, known as "Hose Company No. 1," tendered its services and was accepted by the city. April 16th a hose reel was purchased for the benefit of this company.
January 1st, the charter was again amended, and in addition, an act was approved authorizing the city to fund her indebtedness.
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HISTORY OF HENDERSON COUNTY, KY.
There were outstanding at that time bonds of the city represent- ing two hundred thousand dollars, bearing seven per cent. interest. One hundred thousand dollars bearing eight per cent. interest, issued to aid in building the Henderson & Nashville Railroad. Twenty- eight thousand dollars of school bonds, bearing ten per cent. inter- est. Sixty-one thousand three hundred dollars of city funding bonds, bearing ten per cent. interest. Thirteen thousand five hundred dol- lars of water works extension bonds, bearing eight per cent. interest, and one hundred thousand dollars of water works bonds, bearing ten per cent, interest. The total outstanding bonded indebtedness at that time was $496,800, bearing an annual interest of $42,280. Coupled with the gradual decrease in price of all real estate, and ne- cessary high taxes to meet this fixed and certain interest, an outstand- ing scrip debt of eleven or twelve thousand dollars, and scrip below par, it will require but little thought to determine the difficulties Mayor Atkinson and his Council labored under in keeping up the ordinary running machinery of government, to say nothing of the city's good credit. Yet, considering all of this, as has been before said, the city never defaulted in payment of her semi-annual interest.
By the amended charter of 1873-4, a sinking fund was established for the payment of the bonded debt, and among other sources of rev- enue specified for said fund, it was provided that the revenue derived from the tax on licenses and from all other specific tax should be sa- credly devoted to the payment of the bonded debt of the city and to no other purpose. The fund available to the city for expenses cou- sisted of the ad valorem and poll tax, whatever those amounts may have been, and the receipts from wharfage and fines, the whole amounting, after deducting commissions and delinquencies, to $22,000 or $23,000. This amount, then, constituted the fund at the command of the Council to carry on the government, keep the streets in repair, and do such other things as were regarded absolutely necessary. It was evident that the people could not, or would not, suffer under this terrible yoke much longer. A very large majority of the people were beginning to consider a compromise, not a repudiating compromise, but one to be adjusted upon an honorable and equitable basis, while there were a smaller number who were in favor of scaling the bonds with a merciless indiscretion. This excitement continued to grow, yet all the while the Board of Sinking Fund Commissioners, of which the Mayor is, and was, ex officio chairman, strived without ceasing to bring about a satisfactory settlement. As this history progresses we shall see what was the result of the compromise.
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HISTORY OF HENDERSON COUNTY, KY.
The colored school had grown to such magnitude it was found necessary to have more room, and in order to accommodate the in- creased number of pupils, July 16th an addition of twenty by thirty feet was ordered made to the school house. Be it said to the credit of the Council, in all of its travails, sight was never lost of the edu- cational interest of the city, but loans and donations were frequently extended to the blacks as well as the whites.
This was the year of the great temperance revival, sailing under the color of the " Red Ribbon." The movement had been inaugu- rated in the latter part of 1877, by an Evansville club headed by General James M. Shackelford, and had swept everything before it like a whirlwind. It was calculated to do good, and did do good, but the apathy of leading officers, partaken of by those who had been most active, submitted the organization to the inevitable of all such movements. Henderson alone did not partake of this wonderful con- tagion, but it swept the entire county. At Cairo, Robards, Hebbards- ville, Corydon, Smith's Mills, Zion, and other places, clubs were formed and great numbers of people signed the pledge. All of these, be it sorrowfully said, have " turned their toes to the daisies."
1879.
This year begins with the Council of the city still laboring to ef- fect a settlement of the bonded indebtedness. In order that this settlement may be thoroughly understood, it is deemed best to take up the beginning and follow it to the end. In the latter part of 1878 Mayor Atkinson had urged the Council to appoint a committee for the purpose of giving the matter a calm and wise consideration, and to recommend some plan for the funding of the bonded debt. The Council at this time was composed of W. H. Lewis, George H. Steele, F. E. Kreipke, Henry Unverzaght, J. O. Clore, William H. Sandefur, Fred Kleiderer and Martin Schlamp. A committee was appointed consisting of S. K. Sneed, L. C. Dallam, John E. McCallister, L. H. Lyne, John C. Atkinson, composing the Board of Sinking Fund Com- missioners, and M. Yeaman, Attorney for the city. On the sixteenth day of January this committee, composed of gentlemen of the finest financial ability, and all men of more than average wealth, gave the matter referred to them the closest scrutiny, weighing well the inter- est of the city, as well as consulting the rights of the bondholders, and, after calm and due deliberation, unanimously recommended that the city give in exchange for their outstanding bonds a new " bond bearing six per cent. interest (interest payable semi-annually), payable in thirty years after date (with the option of the city to redeem after
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HISTORY OF HENDERSON COUNTY, KY.
five years) at the rate of eighty cents to one dollar for the seven per cent bonds, ninety cents to one dollar for the eight per cent. bonds, and one hundred cents to the one dollar for the ten per cent bonds. This will be, as we believe, substantial and relative justice to all par- ties, would be a saving to the city of $15,000 a year interest and $50,000 of the principal debt, and give to the bondholder a safer in- vestment of his money in a bond the city can more certainly provide for." This report was received and filed for future consideration. On the 18th day of February the question was again called up, and thereupon a report, signed by seven members of the Council, and a minority report signed by one member, were received and ordered filed.
The majority committee, composed of Fred. Kleiderer, F. E. . Kreipke, J. O. Clore, George H. Steele, W. H. Unverzagt, Martin Schlamp and W. H. Sandefur, reported that in their opinion the city should issue new bonds bearing five per cent. interest, payable semi- annually, the bonds payable in thirty years, but may be redeemed at the pleasure of the city at any time after five years ; said new bonds to be given in exchange for the now outstanding bonds of the city, on the following basis : Seventy cents on the dollar for seven per cent. railroad bonds, eighty cents on the dollar for eight per cent. railroad bonds, one hundred cents on the dollar for school, water works and city bonds.
The minority report was signed by Councilman W. H. Lewis and is in substance as follows : He reasoned that as property had shrunk in value below fifty per cent., that there was no reason why the bonds should not shrink in a like ratio; therefore, that he favored paying the seven per cent. bonds at fifty cents on the dollar, the eight per cent. bonds at sixty cents on the dollar, and the ten per cent. bonds at seventy-five cents on the dollar, and that the settlement be made by substituting a new bond bearing five. per cent. interest.
The proposition to fund the bonded indebtedness of the city had now become the town talk, nothing else was thought of. Politicians and office seekers had seized upon it and hoped to ride into office upon their own peculiar hobby, no matter how damaging their views may have been to the public welfare. Scores of men who barely knew the marked difference between a city bond and a map of North America, talked of nothing else but bonds, and just what sort of a settlement should be adopted, and thus it was the weak kneed, look- ing ahead for accumulating popularity, pandered to the ruinous policy, while the substantial element, holding the general good of the city
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HISTORY OF HENDERSON COUNTY, KY.
paramount to popular favor or personal aggrandizement, held out for an equitable and just basis.
The bondholders recognized that the city needed relief, and were more than willing to contribute to it. They were, perhaps, the origina- tors of the movement, for a large majority of them were deeply inter- ested outside of the amount of bonds they held.
March 4th, Mayor Atkinson urged the Council that if they pro- posed to adhere to the majority report that they appoint a committee to prepare and submit a printed proposal to the bondholders. Upon this suggestion a committee was appointed consisting of the Mayor and Attorney Yeamen. In addition to this, as a sort of persuader, they were to incorporate with the proposal a statement of the city's debt and her resources, as they might deem advisable. On the twelfth day of March the committee reported a paper addressed to the bond- holders wherein they set forth the wishes of the Council, as reported by the majority committee, in regard to funding the bonds, making a clear exhibit of the bonded indebtedness of the city, the valuation of property in the city for taxation for city, railroad, school and water works purposes, showing the property belonging to the city and from what source she derives her revenues, the current expenses of the city, and, in fact, a clear, full and fair exhibit of all matters pertaining to the subject then in hand. Upon the report of Mayor Atkinson and Hon. M. Yeaman, Council advisor, being read, a resolution was passed by the Council approving of the report, and requesting the bondholders to signify their acceptance or rejection of the proposi- tion of the Council contained in said statement on or before the first day of May, 1879. This statement was inclosed to the bondholders, and on April 1st Mayor Atkinson and Mr. Yeaman reported that a majority of the holders of the bonds had been heard from, and that most of them refused to accept the proposition of the Council, and urged that the report of the Sinking Fund Commissioners, or some- thing else which would likely be accepted by the bondholders be pro- posed to them. Thereupon the Council, like unto eight lost men, afraid of their own shadows, resolved and directed Mayor Atkinson, (notwithstanding the bondholders had signified a willingness to accept the proposition as embodied in the report of the Sinking Fund Com- missioners) to correspond with those bondholders from whom he had heard, as well as those from whom he had not, what "plan or propo- sition " they were willing to accept, assuring them that the Council was desirous of coming to some honorable settlement. The Mayor was then requested to report at the next regular meeting. April 28th
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HISTORY OF HENDERSON COUNTY, KY.
Mayor Atkinson reported that he had conversed with a number of the largest bondholders, but failed to get any proposition from them. He again urged the adoption of the proposition of the Sinking Fund Com- missioners, whereupon a motion was made to receive and record the report of the Mayor, but it was lost by a vote of four to four, Messrs. Steele, Kreipke, Sandefur and Kleiderer voting in the affirmative, Messrs. Unverzaght, Clore, Schlamp and Lewis in the negative.
Again, on the 6th day of May, Mayor Atkinson urged the adop- tion of the Sinking Fund proposition, but no action was taken.
In order to settle this perplexing question the Council held fre- quent caucus meetings. New ideas suggested themselves and were discussed. Every evidence of ability was exercised to effect an in- telligent solution of the momentous matters in hand. Just the thing to do, the proper step to take was the question. The supervisors of the tax books had reported, and the time had arrived for levying the several taxes. The report had been referred to the Finance Commit- tee and they were ready with their report. The Mayor called a meet- ing for June 6th for the purpose of considering the report of the Fi- nance Committee upon the report of the Supervisors and Assessor. Mayor Atkinson and the Council differed as to what course should be pursued in levying the annual taxes for 1879. The very strange course the Council seemed determined upon was met by the Mayor's strong opposition, but was passed over him by a unanimous vote. The Finance Committee had reported that a tax of $3.45 would have to be levied upon each $100 valuation, in order to defray expenses, pay interest, and so on, and furthermore that State taxation would in- crease said amount to $4. Accompanying this report was also a reso- lution, that the Council levy only a tax of 30 cents on each $100 val- uation for school purposes and 70 cents to defray the necessary ex- penses of the city for the year ending July 1st, 1880. Also that it would be inexpedient to levy any tax to pay existing interest on the bonded indebtedness. This resolution, it would seem, was intended as a genuine bulldozer, no doubt to frighten the holders of the city's bonds into a compromise, but such was not the case, as will be seen further on. The truth was, the Council had " dilly dallied " long enough. A liberal compromise had been offered them, but rejected, and the people were beginning to become restive and out of all pa- tience.
The city was losing ground every day and something had to be done, therefore, as a feeler more than anything else, this reso- lution was passed. It was worded to capture the masses, and al-
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HISTORY OF HENDERSON COUNTY, KY,
together was a serio comic dodge calculated to " wake the natives " to a sense of the terrible condition they had gotten themselves into without persuasion, and the bond holders to a sense of the perilous monitary situation gradually surrounding them. This movement of the checkmate, all of a sudden, failed to have the desired effect. The bondholders paid no attention to it, but moved along as serenely and complacently as though nothing had ever occurred to mar their peaceful equilibrium. Thus matters went on until it was discovered that something must indeed be done. A large number of mechanics had left the city and others were preparing to follow after. No build- ings were going up, houses were being emptied, and altogether the signs of the times were becoming truly alarming. The bondholders could stand it, but those who had to live by the sweat of their brow could not.
September 2d Mayor Atkininson's term of office expired, and re- lying upon a consciousness of having done his whole duty as an exe- cutive, he gracefully surrendered the reins of government to Hon. Francis M. English, his duly elected successor.
Upon the inauguration of the new Mayor, who be it said, had been elected upon the compromise excitement as the very man of all men to effect a satisfactory settlement, this vexed question was again called up in the shape of a resolution requesting the bondhold- ers to meet the Common Council in conference on Tuesday evening, September 9th. No meeting it appears was held for a month, and yet the city was not only dead, but the corpse gradually growing colder and colder.
October 9th the Council met in called session, and upon assem- bling, Mayor English stated the object of the meeting to be to con- sider what proposition should be made to the bondholders.
At this meeting it is evident that the Council was in a better frame of mind and more determined to a settlement. As a sort of " feeler," Councilman Kleiderer proposed as a basis of settlement the minority report of Councilman Lewis, made February 18th, 1879. A vote was taken and resulted in its defeat, no one voting for it, save Mr. Lewis himself. Thereupon the majority report made to the Council upon the same date, was proposed and unanimously adopted. Mr. Lewis voting for it for the purpose of having the matter settled, Mayor English was then directed to communicate with the bondhold- ers by printed circular.
October 4th, 1879, Mayor English addressed to Colonel L. H. Lyne, John H. Barret and others, a notice of the action of the Coun-
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HISTORY OF HENDERSON COUNTY, KY.
cil, inclosing them one of the printed propositions, and requesting an answer by the twenty-first ; also requesting all creditors and taxpayers of the city to be present. The creditors and taxpayers failed to put in an appearance, from the fact, perhaps, it was regarded a difficult and uncomfortable matter to impress one thousand or more people into a room only capable of accommodating forty or more. One hun- dred and fifty-six taxpayers did put in an appearance by petition, how- ever, and a petition that had its weight.
At the meeting, October 21st, Mayor English reported a letter from John G. Morton, representing the Hopkins county bondholders, declining to accept the proposition of the Council as communicated in the printed circular ; also a petition signed by one hundred and fifty-six citizens requesting the Council to offer to the bondholders new bonds bearing five per cent. interest, in lieu of the seven and eight per cent. outstanding bonds, and new bonds bearing six per cent. interest in lieu of the ten per cent. outstanding bonds. This peti- tion, as before stated, had its weight, as the following resolution passed by the Council October 24th, three days after, will show :
"Resolved. That this Council tender to the holders of the outstanding bonds of the City of Henderson, Ky , new bonds, bearing five per cent. in- terest for the seven and eight per cent. bonds, and new bonds bearing six per cent. interest for the ten per cent bonds, said bonds to be issued under author- ity and in accordance with an act of the Legislature of the State of Kentucky, approved January 30th, 1878, and all past due interest on the outstanding bonds to be paid at same rate that the new bonds will bear to the old."
This resolution was supported and voted for by Councilmen Kreipke, Unverzaght, Clore, Sandefur, Kleiderer and Schlamp. Op- posed by Steele and Lewis. Upon its passage the following resolu- tion of the Board of Sinking Fund Commissioners was read to the Council and by that body adopted.
"Resolved, That we agree that the funds now on hand and to come into the Treasury of this Board shall be applied to the payment of the interest on the new bonds proposed to be issued.
Ayes-McCallister, Lyne, Dallam, Sneed and 'Mayor English.
November 18th, Messrs. Leonard H. Lyne and S. K. Sneed, gen- tlemen who had from the beginning taken a most active and leading interest in the settlement of the bonded troubles upon an equitable and just basis, reported to the Council that holders of the bonds of the city amounting to $435,000 had signed an agreement accepting the proposition of the Council made to them. This report was re- ceived and Messrs. Lyne and Sneed requested to procure, if possi- ble, the signatures of the remaining bondholders. In addition to
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HISTORY OF HENDERSON COUNTY, KY.
this, a committee was appointed to prepare the form of a funding bond, to be reported at their earliest convenience.
It will be remembered that at a meeting of the Council held June 6th, a tax was levied only to pay the current expenses of the city government, and for the further purpose of carrying on the public schools. No levy subsequent to that time had been passed to meet the interest of the city falling due upon her outstanding bonded in- debtedness. But now matters had changed, a better feeling existed, the people, or at least one hundred and fifty-six of them, representing the general business and professional interest of the city, had become interested, and an agreement had about been concluded. The Council now determined and did pass an ordinance in relation to the levy and collection of certain taxes for 1879. This levy was exclusively for the purpose of paying interest, and was as follows: To pay the in- terest on railroad bonds, seventy-five cents on the one hundred dol- lars ; to pay the interest on outstanding school bonds, ten cents on the one hundred dollars ; to pay the interest on water works bonds, thirty-five cents on the one hundred dollars. These amounts, coupled with the levy of seventy-five and thirty cents June 6th, made a grand total of two dollars and twenty-five cents on each one hundred dol- lars valuation, and was made upon the basis of the agreed bonded settlement.
The assessed valuation for 1878 was, for city purposes, $2,131,- 155; for water, $2,165,115 ; for school, $2,124,005 ; for railroad, $2,- 411,780; the total levy for all purposes, $2.90.
The assessed valuation for 1879 was, for city, $1,922.907; for water, $1,961,992; for school, $1,918,872; for railroad, $2,096,227, and the total levy, $2.25.
Every citizen, with perhaps a few exceptions, was rejoiced at the long hoped for settlement, and business, which had been so distressed for many months, began immediately to assume a life both bright and cheering.
November 20th, the Council, by resolution, directed the Board of Sinking Fund Commissioners to pay the past due interest upon the basis agreed upon.
In compliance with a resolution passed by the Council July 20th, 1880, inviting the Sinking Fund Commissioners and bondholders to meet the Council in reference to the bond settlement, the following named gentlemen inet July 23d : Mayor English , Councilmen Kreipke, Clore, Unverzaght, Sandefur, Kleiderer, Schlamp and Lewis, and
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