The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-03-12
VALIDITY OF THE CITYS NOTES
WILL BE TESTED BY INJUNCTION
PROCEEDINGS

Lawyer Lawrence Says There Is No
Way Out of Granting the Injunc-
ton on the Sewer Note Issue-NIr.
ROurke Says He Was Unable TO Ne
gotiate the Notes without His En-
dorsement.
General interest is centered on the In
junction 10 be argued before Judge Falli-
CANT Monday as 10 the legality of ethe city
Issuing notes in excess of per cent of
the assessed valuation of taxable property
The interest also extends to the probable
outcome in regard to the sewerage WORK
in case the injunction is sustained.
Another matter which is attracting at
tention in connection with the litigation is
on the part of the petitioners, besides the
mere protection of their property. One
of the circumstances which lead many 10
presume there is some object altogether
foreign to what appears on the surface is
the fact that the heavier taxpayers and
those who would feel the brunt of munich
pal embarrassment even more than the
petitioners, are not interested in the mat
ter other than being perplexed as to the
reason for enjoining the city from pushing
the house drainage work at this time. =
decided majority of property owners is
in favor of the work proceeding and be-
lieves there is something behind the move
ment which apparently seeks to stop the
work already begun and engage the city
in legal fight. Were the petitioners for
the injunction among the heavier taxpay
ers and the movement Endorsed by
greater number, there would be less rea-
son, it is claimed, for believing the petition
was actuated from other motives than APP
pear on the surface.
A. A. Lawrence, Esq, counsel for the
petitioners, was asked yesterday concern
ing the matter. Any citizen he said, has
a right to stop a corporation from violat-
ing a law There is no difference between
a corporation and a citizen, he said,
when it comes TO violating law, and
there is no reason for not stopping it, In
regard to the law on the subject of excess
sive indebtedness, Mr.. Lawrence turned
to the constitution of Georgia and read as
follows:
1.-The debt hereafter incurred by any coun-
ty, municipal corporation, or political di-
vision of this state, except as in this con-
sttutioA. provided for, shall not exceed Z
per centum of the assessed value of all the
taxable property therein, and no such
county, municipality or division shall in
cur any new debt, except for temporary
loan or loans to supply casual Deficiencies
of revenue, not to exceed one-ffth of
per centum of the assessed value of tax
able property therein, without the assent
of two-thirds of the qualified voters there
of, at an election for that purpose, to be
held as may be prescribed by law; but any
city, the debt of which does not exceed Z
per centum of the assessed value, of the
taxable property at the time of the adop-
ton of this institution, may be authorized
by law to increase, al any time the amount
of said debt, 8 per centum upon such as
sessed valuation"
Speaking of the law governing the prop
osition Mr.. Lawrence said he considered it
particularly in point and he confidently
believed the restraining order win be
granted. He can see no way to avoid
it, he said, as the law is simple and the
violation by the city is beyond dispute
rs it the purpose of your clients to stop
the house drainage work in case the city
Insists on issuing the notes?" he was
asked.
There is no desire to stop the work.
Indeed the object of the gentlemen 1 rep
resent is simply to take such action as will
compel the city to act in accordance with
the law, There is no reason whatever for
believing this a political move because
the belief is without a scintilla of proof.
| The petitioners have no object to thwart
| the sewerage work and as soon as the
! city adopts legel method of settling, for
the work, l feel quite sure there will be
no further cause for complaint"
"By what means do you suppose the
city will adjust the matter in case the in
! junction is sustained?"
LAS to that I cannot say That will be
| entirely with the City Council and Just
| what steps it will take remains to be seen.
The city owns considerable property, how
ever and l do not think any difficulty will
| be had from that source"
| However the facts may be- the belief OBJ
| tains that the object of the proceedin& is
| TO determine the validity of the notes is
sued to the Contractors Rourke, Mitchell
& Co. 1t has been generally known for
| some time that the notes have not been
| rated as first class securities, and there is
| no stronger evidence of This than the fact
they have been repeatedly turned down
! by the local banks, to say nothing of brok-
ers in New York who, after considering
/ the notes, decided not to run the risk of
! ndnCllIlS tIeHl on account OF their SUD-
! posed issue in violation of the constitu-
| tonal limitation.
! In connection with the matter, Mr.. John
! Rourke, one of the contractors on the
| house drainage work, was seen by a Morn
ing News representative, and asked con-
corning the injunction. Mr.. Rourke was
told that it was rumored that the con-
| tractors were AT the bottom of the iujunc-
ton proceedings for the purpose of deter
mining the validity of the notes given
! them in payment for the work When ask
ed whether such was the case Mr.. Rourke
| said
THE whole story concerning our con-
| tract with the city is that we are unable
to get money on the notes. At the outset
we were given to understand that the notes
could be negotiated In New York above par
! at any time. With view to ACCOMPLISH
ing this, a member of the aldermanic board
went to New York to negotiate the notes.
but returned without accomplishing the
| purpose. Two trips We're made by the
same gentleman for this purpose, neither
of which was successful in selling the pa
| per
"Since the sewer work began" Mr..
Rourke said, Il have attempted to nego-
tate the notes to banks in Savannah. and
| in every instance where money hos 49,,