The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-02-14
THE cITYS FLOATING DEBT.
ALDERMEN SAY THERE'S NOTHING
IN MIR. CHISHOLSrs CLAIM.

The Right of the Mayor and Alder
men 40 Give NOtes I'm Payment OF
Public improvements Has Been
Discussed Many Times before,
They Say-MayOr Myers Declines to
Discuss the Objectionable Would
Oppose Any Heavy Increase in the
City's Floating Debt-Might Put "a
stop 90 OPenig Streets IL the Point
should BE Sustained.
The point brought up by ". s. CHS
holm, Esq, at the meeting which or
ganized the Chatham Real Estate Assoc
citation. that the city has no authority 10
issue notes on longtime payments. which
Will have to be paid by future assess
ments, because this viii be an increase
of the public debt, contrary to the ex-
pressed provisions Of the constitution, reg
ulating county and municipal debts. has
been generally discussed, and the fact
that the assertion has not been answered
or contradicted in any way has been com
mented upon.
Several aldermen who have been spoken
TO about the matter have passed 1t or as
of no particular Importance.
''Oh, that's old" said one OF them when
the matter was preached. Don't you
know, that that question has been con-
sidered by every council for the last sew
eral years. We understand very well the
provisions Of the constitution on the sub
ject, and you can put it down that we
know what we are doing when we enter
into these obligations. We have good le-
gal advice and we are not making any
mistakes on that line"
Mayor Myers when spoken to about the
matter by a Morning News reporter, de-
clined TO express any views on the ques-
ton. He said he did not care to discuss
II. At the same time. he stated some
facts.
The total amount of notes due by tho
city" said he rs only about S2s.OOO ex-
elusive of the notes for the new water
works, which are now due, or will be
soon Ihis Is hardly enough to cause any
alarm 10 the property holders. Mr. CHS
nom makes the point that the city has
no right to give notes to be paid by fu-
ture assessments. Admitting this to be
the case the city could borrow money on
snort time notes and at the expiration Of
these notes renew them and continue o
renew them again and SO on, but the rate
OF interest would be higher. 1t Is more
economical TO make the notes for the
1ull time for which the debt Is intended
10 run. 1t is true that there must be a
edness of this sort, and I
for one would certainly oppose any
movement looking to the creation of a
large floating debt which might embar-
rass the city in the future"
Alderman Falligant remarked that the
point sprung at the meeting of the Real
Estate Association was doubled-edged.
The real estate owners forget he said,
that practically all the notes of the city
now outstanding were given in payment
for land for the purpose of opening the
streets In the southern section of the
city If the point should be sustained the
city would be debarred from continuing
this plan of securing rights of way for
opening streets in that section. The city
certainly has no cash in hand with which
10 purchase these rights Of way and the
result would be that the work of street
opening would come to a stop.
The real estate owners Will hold an
other meeting shortly and the point made
by Mr.. Chisholm may be further discuss
ed. 1t is a question whether or not ii
will be pressed as the real estate men
might conclude that II Is to their interests
for the city to continue its plan of inn
provement so long as the expenditures
are kept within reasonable bounds
There is some talk that the city will be
en1oined should II undertake to put in
lighting plant OF its own as advocated by
Mayor Myers by paying a small amount
IN cash and giving notes running, falling
due during the next several years and
that test case would be made of the
city's rights to incur such indebtedness.