The news & observer., 1897-02-10
REPuDlATE THEIR BONDS.
DECLARED TO BE "a MONSTROU8
ACT OF Dlo1ONOR
The City Attorney says that the Bonds
to the W. N. & NJ. r. e.
Are Invalid.

TO the w. N. * ". Il. h.
Are Invalid.
Newbern, n. c., Feb. S.-(Special)-
The Board of City Council of this city
has created quite a sensation i'm some of
its business transactions of the Februa-
ry meeting. City officials, tax payers,
and w. n. and n. Railroad Company,
aare now in controversy regarding the ac-
tion of the Board (acting under the in
struction of the city attorney in repu-
dating a contract entered into with the
Wilmington, Newbern and Norfolk
Railway Company some four years ago,
when the city was bonded for fifty thou
sand dollars by popular vote Of the c1ty
at the ballot box, for the entrance of this
railroad to the city.
Now the city has repudiated that ac-
ton, and refuses to pay the coupons held
by the w. n. and N. Il. r. Co, which
is causing censure by some and approval
by others.
The city attorneys advice to the Board
of Council, submitted at the February
meeting was as follows:
To the Honorable Mayor and the Board
of City Councblmen of the City Of
Newbern
Gentlemen:-At the request of your
Mayor, having carefully examined the
Acts with reference to the issuance of
municipal bonds in payment of subcrip-
ton to the capital stock of the East Car
olima Land and Railway Company, | beg
leave to report as follows:
That i'm my opinion the bonds issued
by the city of Newbem to the railway
company under the provisions of the acts
of Assembly of 1887 as amended by the
acts Of 1889 are invalid and in my opin-
ion have no binding effect as a liability
upon the city.
As this opinion if acted upon by your
Board will .necessitate an action against
the city i'm order to keep the fund real
lied by the collection Of the special tax
provided for under the acts named,
would respectfully recommend the APP
pointment of a trustee to keep and hold
the fund already realized and such as
may hereafter accumulate, so that this
fund may be kept separate and distinct
from the general funds of the city l
regret that confinement to my bed pre-
vents my personal presence at your meet
ing tonight and enables me only to
transmit you this hasty opinion.
OWEN III. GUION,
Dictated, p. r. G. City Attorney.
The move to bond the city to get this
railroad into Newbern had opposition
in the beginning, and when the vote was
taken two or three of the city's largest
taxpayers voted mo-" but their votes
were to no avail, as ignorant negroes,
and non-tax payers were coerced to the
polls to cast a ballot for something that
they should not have had any jurisdic
ton 1t was expected by the taxpayers
that did vote to bond the city that this
road would be extended on through to
Norfolk, and this, the company says is
the intended project.
1t is claimed that the company has not
completed its obligations and the ex
tension of the road has not reached its
proper destination, as it's agents declared
it would. But it is said on the other
hand that an entrance to the city was ell
that was agreed to, and ON those grounds
the vote was taken, which being in the
affirmative, the city was bonded and
special tax of 20 cents ON the one hun
dred dollar valuation was levied ON the
taxpayers for the payment OF this bond.
Railroad officials claim that all obliga-
tions have been fulfilled, that the city
has found flaw in the legislation of an
act that they think vindicates them in
repudiating solemn and honest trans
action.
THE PULPIT DEN0UNCES TT.
An article i'm the Sunday issue of the
Journal, headed 'Repudiate the Repudia
tors" Grated great comment ON the street
corners and public places Of the city yes
terday. The religious services were for
gotten; the true meaning of ''the Sab
bath" and how it should be observed
didn't seem to effect the interested par
ties-"the bond-debt repudiated" was the
topic.
The article prompted the voice of a
divine in regards to a city or a people
repudiating an honest debt, declaring
that lit would be looked upon by a chris
tian community with contempt and
disapproval.
The article referred to goes for the city
council with gloves off" and the writer
terms it, "a monstrous act of dishonor."
Further comment regarding the city's
action will he watched with interest here