The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-04-22


&C., SC.
There was terrible hub-bub in Broad street
yesterday morning, caused by rumors that GER
tain persons had levied upon the property Of the
| CITY and that vigorous attempt would be :lade
! to throw the corporation into bankruptcy. The
excitement reached its height by the middle OF
the day. aud happy were the lucky dealers who,
on Wednesday, while the storm was brewing,
had disposed Of all their stock. There were, OF
course some wry faces. Several persons had
received checks from the city in payment OF
the quarterly interest on their stock, and had
neglected TO present the checks Immediately. TO
them city check was to the full as good aS 'aw-
| full money OF the United States,' but when the
hurry y-burly began and they hurried to the banks,
they found, 70 their horror, that all the city funds
had been attached, and the checks were refused
payment. Some OF these checks were offered the
City Treasurer yesterday, In payment of city tan
es, but the sharp officials in the tax office respect
fully declined to be taken in and done for.
There were score of different opinions as to
the effect OF the proposed. proceedings upon the
city and the city stock. Many thought and said
that the stock would dive down to thirty with a
rush. Others said that sudden death was better
than long agony, and they wanted to see the
thing settled somehow. Another set argued that
In few months lachrymose real estate owners
would be Offering premiums to any Eind youths
who would take their property OF their hands.
There was on all sides great exaggeration OF
feeling-of dependency as OF exultatlon. When
the good people of Charleston come to their So
ber second thought they will find this very ser..
Gus business; tangled knot whose cutting or
untying may be both troublesome and dangerous.
THE HISTORY OF TIE TROUBLE.
As Is well known the debt Of the City OF Char,es-
ton Is more than s5,OOo,Ooo, large portion OF
ytuch, In the shape OF stock, falls due ut stated
periods. Large amounts fell due in 1858, aad
other instalments fall due every April and octo-
ber until 1898. Among the holders Of the over
due stock were Mr.. G. W. Williams, Of this city,
and the executors OF George Gibbon. These par.
ties brought suit against the city for the amount
OF the over due stock which they held, being, We
believe about s6OOOO, OF which amount $4,000
was held by the executors OF Gibbon.
On the 9Th April instant the two parties obtain
ed Judgment for the amount Of their claim, aud the
executors OF Gbbon at once set about enforcing
satisfaction OF the judgment.
NEGOTIATIONS WITH COUNCIL.
By the last named persons propositions were
made to the Mayor and Council for the settle
ment OF their claim. They offered to take city
stock at par for the amount OF their judgment
p,ouided that the city would give them in Gas
Company stock, owned by the city, sufficient
sum to make up for the discount about so per
cent? at which city securities are selling This
proposition was promptly declined. AS Ia counter
proposition, the city offered to give Gas Com
pany stock, (or which the city holds 1915 shares)
at par for the amount OF the claim. This was
not accepted.
FLANK MOVEMENT.
In the meanwhile, other interested pa ties De-
lleying that they had claims upon the property
and assets OF the city, which were likely to be
compromised and deslrous Of ascertaining the
character and extent OF the liability OF the city,
determined to make an attempt to restrain the
proceedings Of the judgment creditors and OF the
Mayor and Council. Their action, generally, was
based upon the assumption that the Mayor and
Council were trustees for the corporators OF the
City OF Charleston, that no creditor could proceed
under Judgment directly against the property
and assets OF the city, and that under the plan
OF arrangement Of the city debt carried out in
1857, every holder Of city stock was entitled to an
equitable share OF the proceeds OF the assets OF
the city, which were, at that time, pledged for
the payment Of the city debt. A bill OF complaint
was accordingly prepared by Messrs. Simens i
Sinons and Messrs. Spratt, Brewster Burke, OF
counsel for Messrs. George s. Cameron and others.
THE BILL OF COMPLAINT.
The bill, which was 6led in Judge Carpenters
court. yesterday morning, Is as follows:
CHARLESTON COUNTY. y
In the Common Pleus-First Circuit.
Francis S. Peizer, James S. Gibbes George S.
Cameron, George A. Trenholm, Edward w.
Marshall, c. q. Witte, James I. Wesman,
Thomas r. waring, for themselves aud others,
vs. The City Council or Charleston, George w.
Williams and John Gbbon, George e. Gibbon,
William L. Webb and A. Mcdowell Brown, cX-
ecutors of George Gbbon.
The complaint OF the above named plaintiffs,
corporatOrs aud creditors OF the City OF Charles
ton, who bring this action as well for themselves
as for all others, corporators and creditors, who
NAV come in and contribute to the expenses Of
this action, respectfully show to this court:
l. That the plaintiffs are corpOratOrs and crcdl.
tors of the City OF Charleston body polite and
corporate, Incorporated by act OF the General
ASSeLuUN, puSSSu 1otA EhuSuot, ~. ~. h''o thS
charter or which has been, from time TO time,
altered, amended and extended by the said Gene.
raj Assembly by divers acts thereof. That the
the name Of the City OF Charleston that the ln-
tendant and Warllens OF the said city were de.
clared to be the City Council OF Charleston, and
were vested with divers powers, authorities and
duties in said charter set forth; that the said City
Council of Charleston were made capable in law
to purchase. to hcve and to hold TO them and TO
their successors TO the use OF the City OF Charles
ton in perbetuity or for years, estates, real or
personal and lands and tenementS within thn
limits OF I'll, said city and the Parish OF st. Philip.
and to sell, allen, lease or exchange the same, as
they may think proper; and certain lands ut the
time OF the said Incorporation. appropriated for
certain public purposes, were vested in the said
City Council for the use and advantage Of the
said city, to be leased, sold or improved on, or
otherwise disposed OF as to the said City Council
should appear most conducive to the welfare and
advantage OF the SAID city aud to the inhab.
itauts thereof that the name Of the lntendant and
Wartens OF tile City ef Charleston was. by an act
of 2Ist December, A. d. 1885, changed TO the name
and title OF Mayor and Aldermen, and they were
vested with the same powers and authority ol
the Intendant and Wardens OF the wards VI the
City OF Charleston. under the acts OF Assembly
and the ordinances ofthe said City Council.
.. That In pursuance or the powers aHd author
ity vested in the City Council OF Charleston. lrola
time to time, the said City Council incurred obll-
cations and debts, and issued stocks and other
| securities In the name OF the City Council OF
Charleston for the said debts anu obligations,
which up to the 1lth day OF August, A. u. 1857.