The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-12-11
TIE city OF u.nbla Bonds.

Some interest having been manifested,
and doubts honestly entertained and ex-
pressed. by Taxpayers, as to the bona
Jfdes Of the contract entered into between
the City Council and the Carolina Ma
tional Bank. of this city, in reference to
the negotiation Of the new issue of city
bonds, we have put ourselves to some
trouble to ascertain the facts. By the
Act of Assembly, of March 13. 1872,
under which these bonds are issued. to
be applied, in part, to the erection of
new City Hall, it is required that the
Mayor and Aldermen shall, by ordinance,
make provision for sinking fund, to
be based upon tho net annual income
derived from anch parts of the said City
Hall as may be leased from them, the
proceeds of which sinking fund shall be
solemnly set apart for tho payment of
the debt and the interest thereon, con-
sracted in the erection of the said City
Hail." and it is further required that,
IN addition to the levy of the annual
taxes for the support Of the city govern
ment. the said Mayor and Aldermen shall
levy. annually, special tax for the pay
ment OF tho semi-annual interest upon
the bonds which shall be issued under
the authority" of said Act. By the Act
it is further required that "no bond shall
bo negotiated under the provisions Of
this Act otherwise than by public sale''-
OF which sale public notice shall be given
by advertisement in Charleston and New
York. Under this authority, the City
Council have issued bonds to the amount
of $3.50, 600; and the samo have, as is
we'll known, been repeatedly offerad at
public sale, but have in no instance COM
manded price ut oil commensurate with
their actual value. Efforts have also
been made to put them on the market III
New York, but 30 great is the want of
confidence there felt in all public seouri-
ties Of this State. that it was deemed un-
advisable to offer them.
Under these circumstances, and for the
purpose OF giving to purchasers of the
bonds such guarantees as would enhance
the market value OF the bonds, contract
was made on the Goth October last, be-
tween the City Council and the Carolina
National Bank, whereby the Council
agreed to constitute tho bnnk their trus-
tee, in reference as we'll to tho sinking
fund as to the payment of the semi-an-
nnal coupons. BY this contract the City
Council agreed to authorize the Mayor,
by ordinance, to execute to the bunk us
trustee, for the term of twenty years. u
lease of the City Hall, with authority to
collect tho rents therefrom, aud to keep
the same invested as sinking fund for
the redemption of the bonds, and to con-
stitute the bank as their fiscal agent for
the payment OF the coupons. The lien
required by this contract was authorized
by an ordinance passed on the 7th inst,
IN reference to which objections are
made. that it was not passed ut two regu-
lar meetings OF tie Council. We find
in the charter of tie city no provi-
sion which requires that an ordinance
shall be required to be thus passed..
By Rule % OF tho City Council rules,
1t is provided that ''no ordinance shall
be passed without being considered at
two regular meetings Of Councils" but
by Rule /, the Mayor is authorized "to
call special meetings Whenever. in his
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