The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-05-09
THE CITY DEBT CASE.
What the City Council has to Say In the
Matter.

In the Court Of Common Pleas on Saturday,
City Attorney Corbln filed the following answer
OF the City Council:
First. The City Council, defendants in this ac-
tlon answering the complaint by their attorney,
ID. T. Corbln, say That tiev deny all tile aega-
tlons in said complaint except those hereinafter
admitted.
Second. 1t is denied that the City Council had
taken any action to appropriate any OF the stocks
and bonds pledged by the ordinance OF August II,
OF payment OF the city debt OF the Uity OF Charles
ton, and to provide for the final extinguishment
OF the same,n and the payment OF the Judgment
obtained in favor of John Gibbon and others,
executors, against the Ctv Council, but that the
| same WAS being discussed by certain members OF
the City Council in an entirely unofficial manner;
that the question OF paying Judgment by use OF
| these stocks had never been mooted even in open
! council, or ut any legal meeting or Council.
Neither had tho question ever been officially sub
mltted to the legal adviser OF the City Council as
! to whether such an appropriation could he made
OF such Stocks 1t Is mitt,d that the City Coun-
| Gil were very deslrous OF making some arrange
ments to pay the Judgment obtained against the
| city In favor OF GibbOn and others, but as yet
| have been unaLle to do so.
| dnance entitled IAN ordinance to arrange tic
time OF payment of the debt of the City OF Charles
ton. and provide for the final extinguishment OF
the same )" ratified August llth. 1857 the following
provision Is admitted to be in full force: "Fhat all
aud singular the stock and stocks or the city In
|
pany, shall be and the same is hereby pledged for
| the payment Of the stock to be issacd under this
ordinance. and when any portion OF salu nrsS
mentioned stock or stocSs shall be sold or dispos-
ed or the proceeds thereof saall lie pledged for the
same purpose aud object, and II such proceeds he
| In cash. the same Shall be appropriated towards
| the purchase and payment or the STOCK
| hereinafter provided Tor !; und all dividends
and interest received upon the frst men
| toned stock or stocks. shall he appropriat.
Ell to the payment OF the Interest 10 accrue
upon the stocks to be used under this ordinance
and IN no other manner; provided, however, that
! nothing herein contained shall 10 construed TO
prevent Council from transferring their BLOCK IN
any one company or corporation to another.
And, provided, also, that nothing herein contain
ell shall be construed TO interfere With ANY exist
ing pledge In any OF said stocks, upon Which any
party Interested therein may be disposed to IN
slst."
upon them, and deuy that they have any purpose
IT, violate the same or the pledges thereby made.
The ,lty Council submits It's rights TO the court,
and having fully answered the complaint, begs to
be hence dismissed With reasonable costs IN this
behalf most wrongfully sustained.
The City Attorney, after ding the answer,
moved that the decree made In their case as TO
the disposition OF the funds, pledged BY the ordi.
nance OF August H. 1857, be modified so as to con-
form to the 9th section OF said ordinance.
Judge Carpenter, after hearing the motion,
ruled as follows "It appearing to the court that
the executors have not had notice OF the motion,
1t Ia ordored TINT the same be continued until the
June term OF this court. Either party have leave
II they desire, to take proof before W. ]. Gayer,
ESQ.,, who Is for that purpose appointed special
referee as to the allegations made In the COM
plant. that the city was about to dispose OF the
security mentioned In the plesdings, In violation
or the ordin ancc OF 1871