The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-06-15
WORTH THEIR FACE VALUE.
COUNCIL RELUCTANT TO DISCOUNT
GROUND RENT CLAIMS.

lowing Discount of 10 Per Cent.
and 4 Against AIIOwance-Finance
Committee Made Adverse Report
ON Petition for Observation-Disclosures
Williams Says Money Is Cheap,
and the City Had Better Borrow
Than Disturb Its Investments.
Mayor Myers Favored the Allow
ance-BeIievcd Councils Action
viii Cause Claims to BE Paid
More Promptly.
The stand the City Council took at its
meeting yesterday afternoon on the petit
| ton of H. F. Kuck, asking that he be
allowed the usual discount of 10 per cenr.
on the amount due on ground rent lots
indicates that the board is coming
to realize that these assets are gilt-edgeG
| investments, and that the city cannot af-
ford to part with them for less than their
face value. The usual discount was al
lowed, but the opposition 10 it clearly
showed that the time is not far off when
| these claims will be demanded in full.
The meeting was the first of the after
noon sessions, and was attended by the
| entire board, except Aldermen Haas and
farrell. There is a chance that the months
| III AOAHlAlS the d4NGIlOOn SGSslOUS Will DC
changed to July, August and September
instead Of June. July and August, as a,
present. Notice of intention 10 move for
! change was given by AL
derman Dixon in accordance with the
| city ordinance. The reason for the desire
TO postpone the time of beginning the af-
| ternoon sessions is that they viii be more
| convenient 10 the board during September
mill 10 4s,
| considerable of being as disagreeable as
| September.
| Few matters were considered which
! seemed TO interest the hoard more than the
discussion relative 10 the ground rent dis
| count, which seems 10 have awakened
more interest than it has heretofore.
| The petition came to Council from the
| nnance committee, 10 which it had been
| referred, and which made an adverse re-
| port upon T. The committee took the posi-
| ton that the asset is valuable, and that
| me offers previously made for the claims
! do not justify allowing any discount Here
| tofore liberal discounts have been allow
| ed, some administrations cutting off as
| hlsh as 10 per cent where persons desired
| TO make their titles fee simple, while sue
! ceeding administrations have been allow
| ing discounts about 10 Per cent. less than
| their predecessors. The tendency not to al
| low the discounts was doubtless strength
! ened by an offer of a New York firm of
! brokers last year TO take the ground rent
| asse at their face value.
!
| committee on the petition was submitted,
II was moved that the report be NOT
| agreed to, and that the petition be grant
| ed. This called for considerable discus
! sion, and brought several aldermen to
their feet against the petition which they
! considered should be SO disposed of as to
to a final vote Aldermen Dix
| on, Doyle, Graham, Bacon. Schwarz
| and Wells voted In favor of al
! lowing the discount, while Aldermen Will
! Jams, Thomas Mills and Tiedeman voted
| against it.
Alderman Thomas objected to the dis
worth its face value. He stated that at
! the close of the previous administration
| Mayor Meldrim refused TO allow the
| ceptance of payment on ground rent
! claims for less than their face value. 1t
| was stated that the city would be bene-
! flied by offering inducements to get the
! they now cucumber would become sub
| Ject to taxation for its full value. Alder
| man Thomas did not agree that 1t was to
| the citys advantage.
| Alderman Williams also opposed the dis
| count, which he believes the same as a
premium of 10 per cent. paid by the city
| 70 enjoy The use of those claims. lie
| stated that the money will not be worth
more than 4 per cent. to the city for the
reason that the city can borrow at that
| rate, II necessary, and that the amount
| of taxes which would be collected after
! the property is made fee simple would not
| exceed ? per cent for the city, county and
sible gain of per cent for the city in
collecting the claims. On the other hand
Alderman Williams said the city now gets
about 61a per cent. on the ground rent
claims, which clearly makes it the better
plan to leave them invested
Mayor Myers did not agree with Alder
man Williams that the money would only
be worth per cent. 10 the city. The May
or evidently did not think money could be
had at this rate of interest and shook
his head in doubt when he point was ure-
ed Alderman Williams IS under the i'm
preston that the Mayor thinks the money
now paying a higher rate on its outstand-
ing notes for property purchased for street
opening purposes. II is asserted tn f. not
a fair example, however. because an allur-
ing rate of interest Oftcntimes has to be
allowed to make trade, regardless of the
market rates.
Aldermen Tiedeman and Mills also in
sisted the discount should not be allowed
while Mayor Myers, Alderman Wells and
others thought an inducement should be
held out as in the past. Alderman Doyle
did not see any reason for parting from
The precedent of allowing the discount and
believed the city would profit by getting
in the claims as soon as possible.
1t is expected the reluctance with which
Council allowed the discount will have the
effect of bringing in these claims at a
| lively rate. The general impression is
that properly owners can make better
contracts with private individuals, and
this in connection with the discount of
10 per cent for cash payment, will make
strong inducement to pay. The rush
is promised in the next few months q :
there are few who will not appreciate
70 daNy of ,tu =