The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-03-18
nor AFRAID OF CITY NOTES.
SAID TO HAVE WANTED
d. PER CENT. DISCOUNT.


,,au KrousISOH Does Not Be-
the Petition for InJunctio
od PoIicy-AIderman Reid Knew
Ranks wanted More Discount
man the Interest Allowed the
.+roctors and Anticipated
,r.oubIe-POIiticRI Theory as to
,niunetiOn, the Aldermen Say. Is
r-,undIess and Would Produce no
neIav in the work.
rnabated discussion of the injune-
~ suit against the city's issuance OF
ro,ss for sewer purposes continues, and
Ill, likely not cease until the matter IS
e.,u- settled and the result to the sewer
,u,,rovement apparently settled. There is
.o,si5erable talk among members of
,,rpcil on the subject. and the outcome is
: d,nble interest to them, as citizens and
officials.
D7o solution offers itself to Alderman
1-rorskoff. who gave his views on the
matter Yesterday to representative of
.bo Morning News. Contrasting the pre-
ions trouble the city had with dissatis-
fe5 property owners, and speaking from
on official standpoint, the alderman can
not understand why parties apparently
lace interested than those of larger hold
ines see it to their interest to interfere
with the progress of the work. Alderman
Krouskoff does not question the privilege
Of tbe petitioners in the injunction case,
10
oroperties and who will have a greater
share of the cost to pay, can see it to
their interest TO allow the work to pro-
qrass. it is reasonable TO expect others
could do so.
While the question as to the validity of
notes is said to have been brought up in
caucus before the sewer contract was
finally closed, still it was thought there
WAS no risk and the matter went through
without dissenting vote The questions
which were raised were not for the pur-
pose of antagonizing the sewerage work in
any way, but simply to look at the situa-
ton from all sides and adopt the safest
course Notes were issued before and
were considered such a valuable securities
that the question of striking a snag was
soon laid on the shelf.
Alderman Reid stated that he considered
the city's notes good. He holds over
5000 Of them, and has been offered a dis
count of per cent, but refused it, since
which one of the notes for $1,000 has been
settled with interest by the city. 1t is
Alderman Reids belief that the notes now
in the hands of the contractors can be dis
counted Shortly after the contract was
let" said the alderman, 81 heard that the
for less than Z per cent, and l remarked
at the time that the contractors might
meet with trouble from this source, as they
could not afford to pay that interest when
only receiving per cent. from the city.
am not sure the notes could even be dis.
counted for per cent, but l have heard
such talk and am inclined TO believe it.
'As for the city's credit" the alder
man continued, there is not the slightest
doubt of its being the best in the South.
City bonds are in constant demand, and
that too, at a figure considerably above
their par value. The city advertises an
nually but cannot get them without pay
ing neat profit. In my belief 1t is the
same with the notes, though the stir
which has been created may have had
something to do with the banks and brok-
ers demanding addition discount"
1t is commonly talked that the notes
held by the present sewer contractors can
be discounted for per cent 1t is as
serted that If such is the case, and this is
the point on which the proceeding rests,
the contract could be amended in such a
way as to enable the contractors to dis
pose OF the notes. One alderman does not
sdhere to this and claims that if the city
defualts the contractors must proceed ac-
corning TO the terms of the agreement
by thls agreement the sewerage system
would belong to them until the city set
lies and for the use of it an annual con
sideration of $4,000 would be received
from the city.
Il the notes had been discounted at the
late allowed by the city the contractors
would be enabled to make almost an en-
settlement with the city at the end
done
IL Is provided in the contract a COW of
"nich was shown a Morning News repre-
sentative that on the 10th of each month
0eItllcate is to be furnished the city by
He engineers, Messrs. Warning, Champion
anu rafquhar, of the work done the pre-
tgulhg month by the contractors. The city
tlen issues its notes covering IS per cent.
VI 1ne amount certified. BY this arrange
IeuI the contractors could keep within
Sose range of expenses with the amounts
aeinshed by the city. While SUCH Of
utse' Is not said to be necessary, vet the
iudollIy to discount the notes without
ala,I,l,ially interfering with the contract
, r1Isluera lion, was contingency entirely
fsopplhg the city from further issuing
1,-,. no'es Will not interfere with the sewer
s.l IN any way, some of the aldermen
~ as the city will, in that event, ex-
tne contractors to proceed as if moth
, rs uad happened. If the Injunction is a
con,I move, which is not credited, it
rnor nave no hindering effect, the alder
men say as it was especially nrovided far
ne work to move along uninterruptefllv.
,,l.,li such a contingency as the present
p'DVloh for injunction arise.
LOCAL Personal.