The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-08-16
CITY PREFERS TO PAY Cash.
NOTES WILL NOT BE ISSUED TO
COMPLETE HOUSE DRAINAGE.

Ground Rent Claims Was Consid-
ered-The Objections to II, How
ever, VIII Likely Call for Other
Plans TO Raise Funds-NO Desire
Among the Aldermen to Court the
Annoyance and Delay of Another
Note Issue.
The near approach of the time to let
house drainage system Is giving the
Council some concern as to where the
money Is coming from. 1t is pretty web
agreed that the note experiment VIII not
be repeated, which will necessitate deriv-
ing the wherewithal from some other
source
At the last meeting of Council the mat
ter was discussed at some length by the
alderman, with the result that a confer
ence was held in the Mayors office yes
terday between the finance committee and
officers of the banks for the Purpose Of
considering the advisability of disposing
Of the citys ground rent asset, aud
whether the banks would likely take It.
The meeting was attended by Aldermen
Thomas and Duncan OF the finance com
mittee, Hon. Herman Myers, president of
the National Bank of Savannah; Capt.
Henry Blum, president of the Gernania
Bank; Mr. II. A. Crane, vice presl-
dent Of the Southern Bank; Mr.. M. 3.
Lane, vice president of the Citizens Bank.
Mr.. w. G. Cam, cashier of the sa-
vannah Bank and Trust Company, and
| City Attorney Adams.
The conference with representatives of
the banks was to get their ideas as TO
the sale of the clty's claim for a balance
of purchase money on the ground rent
lots. These balances need not be paid by
holders of the lots, but as long as they
are unpaid, they bear interest at the rate
| of o. 6 and per cent, the average rate
| being 5.79 per cent. The total balances
due amount to about $4,000
Since it had been suggested that finan-
cial institutions in other cities would ne
willing to pay the city par for its claims,
it was decided to first take the matter
| up with local banks, and see what they
would be willing to do. If the transfer
! could be made, 1t would put the city in
ample funds to complete the house lraIn-
! age system, and prevent the risk of again
Issuing notes, and possibly being delayed
| with an injunction suit as before.
| When the discussion began serious ques-
! tons were raised by the bankers, among
which was the safety in taking hold of
the asset as well as the city's legal right
] to transfer it. There was no question
with City Attorney Adams that it could
not be legally transferred, since such rights
are specifically set out in the charter, and
! he so advised those who expressed doubt.
| But it was evident at least a few were
dubious about the matter, and will not
put the matter before their directors.
olDs eofl
Capt Blum, "ls that there is no terminal
ton to the claim. The banks are to buy
! it of the city outright, the city to collect
| this interest in the capacity of agent.
! Were it in such shape that the purchasers
! could take complete control of it, ] think
| there would be less objection, and that
| the prospects of selling il would be much
brighter. l am not so well impressed
with the idea of buying an asset with
no end in sight when it may be converted
into cash"
Alderman Thomas, chairman OF the
| finance committee, expressed the belief
the local banks would probably not be
willing to take the claims. He said moth
ing of the views expressed at the confer
ence, but was clearly of the opinion there
is too much doubt about the matter to In
sure favorable consldera ton by the banks.
1t is the intention to raise the funds, how
ever, he said, and if they cannot be OBJ
! tdlncu IN TINS manner, a TAX levy may De-
come necessary. Alderman Thomas had
not thoroughly looked into particular
| plans by which the amount can be raised.
| but he expressed the belief the money
can be raised in some way by plans which
| will probably soon be considered by Coun-
| Gil.
Hon. Herman Myers said he did not
mean to question the correctness of City
Attorney Adams opinion but he was not
inclined TO believe the claims could be
! legally transferred. His reason for this
| is the provision in the contract that the
| interest shall be paid to "the city of Sa-
| vannah," and not to an assign, agent or
other representative. Then there are 9TH
er questions concerning the safety of the
transaction for the banks, which lead Mr..
Myers to believe the investment would
not be advisable.
"There is a question as to the legality
| of holders of this ground rent property
paying both taxes and interest on the
amount the city claims" said Mr. My
ers. This is now before the Supreme
Court, and until il is settled one way or
| the other, l do not think the city could
well dispose of the claims. Not only this,
| but the fact there is no termination to the
claim would preclude my recommending
such a transaction to the directors. 1
would not favor loaning the money of
| stockholders and depositors on an asset
!
within reasonable time"
MIR. Myers and other bankers expressed
| a willingness to do anything TO aid the
| city consistent with the proper conduct
of the banks they represent Al the same
| time the opinion is freely expressed by
number of them that the city could more
easily complete the house drainage sys-
tenn by sections, by which the amount
needed at one time would be greatly de-
! creased. 1t is claimed the system could
be completed in reasonable time with a
/ budget allowance of from $4,000 to $50, 600
a year. The Council considered taking up
the work piecemeal, but it was believed
| by a majority that the best plan was to
push it 10 a completion at once, and not
be digging mn the streets every season for
the next five o. six years.
| Whether an extra tax levy will be made
in case the proposed selling of the ground
| rent claims is not successful, remains to
be seen, but it is certain some plan viii
| be adopted to raise the necessary amount
| instead of again attempting the issue.
| of notes This is clearly against the state