Savannah morning news. [volume] (Savannah) 1868-1887, 1883-03-23
SUIT ON SAVANNAH BONDS
MAYOR AND ALDERMEN VERSUS
KELLY

REILLY.
Three Hundred Thousand Dollars In
vOIved-Internal Revenue ~sta.fatics-
stamps but Not Money-A Cool Berth
for an ofice Seeker-Brady under Fire
Another Effort to Indict Him.
WASHINGTON, March 22.-The argu-
ment was concluded in the United States
Supreme Cour to-day in the bond case OF
the Mayor and Aldermen of the CITY OF
Savannah, plaintiff in error. against
Eugene Kelly, brought here upon a writ
OF error from the Circuit Court of the
United States for the Southern District OF
Georgia.
This was a suit instituted by Eugene
Kelly, upon certain coupon bonds of the
Savannah, Albany and Gulf Railway
Company. which bear the indorsed guar.
anty of the Mayor and Aldermen of the
city of Savannah. The defendant seeks
to recover from the guarantOrs the
amount due on the bonds.
In the court below the city set ND the
defense that tie gnaranty was made
I without consideration, and without any
legal authority, and was therefore void
Inc court, however, instructed the jury
that the evidence, if credible, showed
that there was a valid cOnsidera.
ton, and that the bonds guaranteed
were issued for purposes of internal i'm
! proyement within the meaning of the
/ clty's charter. Under these instructions
the jury found verdict for the bond.
holder and judgment was entered ac.
cordingly.
The city now seeks to have that iudg
ment reversed. The issue of bonds in
controversy bears date ofJanuary l, 1859
and amounts to 100000.
INTERNAL REVENUE STATISTICS.
A statement has been prepared by the
commissioner of Internal Revenue
showing that the receipts of the office dur-
my the last fiscal year were STAG, ,400, ,000
Ihe receipts from July, 1882, to March 81.
1883, exceed the receips for the CORE
spending period of last year by $2,2OO.-
OOO. 1t is estimated that the receipts for
the current fiscal year, if there had been
| no reduction in taxation, would have
amounted to $14S, 900. The deduction
on account of the changes in the revenue
laws is $5O,OOO,OO0. The total estimated
receipts for the current fiscal year are
Sl43, ,62j, 900.
The estimated increases and decreases
OF revenue during the remainder of the
current fiscal year, as compared with last
year, are as follows: Increase ON spirits.
$l,5OO,OOO; decrease from banks and
bankers, 81, 4OO, 900; decrease from special
taxes, $1,000, 900; decrease from adhesive
stamps, $900,0O0; decrease from tobacco.
$2'OOO,OOO; total increase, 81, SOC, 600; total
| decrease, $6,5OO,OOO; net estimated de-
crease, $5,OOO,OOO.
The summary of the total internal reve-
nue. receipts from July 1, 1882, to March
l, 1888, were $105, ,225. 900. The estimated
receipts for the rest of the current fiscal
year are $3S, 100000, a total of $143, ,625, 900.
STAMPS BUT NOT MONEY.
Judge Lawrence, First Comptroller of
the Treasury, to-day rendered a decision
on question submitted to him by the
Commissioner of Internal Revenue, as to
whether the tax and tariff act of March 3,
1885, either OF itself or in connection
with existing laws, operates as an
appropriation of the money necessary to
pay claims which may be presented under
It's fourth section for rebate of the tax
on unbrOken factory packages of tobacco
and snuff, cigars, cher0Ots and cigarettes.
The First Comptroller decided that this
act does not make any apprO-
priation of money for the Dayment
of claims for rebate authorized by said
fourth section, and that there is no other
statute which makes an appropriation of
money applicable for that purpose. He
also decides that the statute authorizes
the payment QfelAipaS faEy yrahate ts.sesRl-
faeturers in stamps 81 the reduced rate
therein provided, but no such provision is
made for any payment to dealers.
PLACE FOR AN OFFICE SEEKER.
The Governor of Montana sent the fol-
lowing dispatch to the Post Office Depart
ment to-day: '.The vigilantes at Green
horn, Montana, have removed the Demo-
cratic postmaster by hanging. Govern
ment fuel must be scarce as he was
caught barn burning. The office is now
vacant. The sureties have been notified
to take charge of the Office"
THE EXCHANGE OF BONDS.
The exchanges of 80 per cent. bonds
into per cents. will be suspended by the
Treasury from March 81 to May 1. The
adjustment of interest on the exchanges
made after this suspension is to allow
time for the preparation of schedules and
interest checks for the payment of the
dividend due May 1 ON the registered
bonds.
The Treasury Department has ordered
the payment of the interest due April
on the Goth instant without rebate.
WORKING AGAINST BRADY.
John A. Walsh was before the grand
jury to-day. 1t is understood that the
government is making another attempt to
indict eX-POstmaster General Brady in
connection with a former United States
Senator for conspiracy in the star route
matters.