The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-03-06
CITY's DEBT MAY BE FUNDED.
Mayor Myers Found New Yorker
Willing to Take 31s Per Cent. Bonds.

Mayor Myers Found New Yorker
willing to Take 31k Per Cent. Bonds.
After an absence Of several days in New
York, Mayor Myers returned to Savan-
nah yesterday. While his visit North per-
tanned to private business, the Mayor en-
braced the opportunity to confer with
some of the city's bondholders on the sub
ject of funding the outstanding debt If
an expression from one voices the SEN
timents of majority of the larger bond
holders, it will go a long way toward
enabling Mayor Myers to fund the bonded
debt in accordance with the suggestion
thrown out in his letter accepting the
mayoralty nomination.
While it was not necessary to state the
names, Mayor Myers said he had conferred
with the bondholder in question, who ex-
pressed a Willingness for the city to issue
bonds bearing lower rate of interest
The inducement for the consent of bond
holders will, of course, b. an issue for a
long period, probably to run for fifty
years. Without the suggestion from May
or Myers, il is stated, the gentleman gave
it as his opinion that bond bearing 31k
per cent. interest would be satisfactory.
1t cannot be told whether one repre-
sents the feeling of a majority of the bond
holders or not" said Mayor Myers. ITO
bring about an exchange of the present
bonds would require the consent of the
bondholders and the City Council, which
would have to provide for the exchange
by ordinance in accordance with the act
of the legislature, approved Dec. II, 1878.
BY this act it is provided that when the
authorities of a city or town shall desire
to avail themselves of the benefits of the
act the Council shall pass an ordinance
to provide for the issuance and exchange
of new bonds to stand in the place and
stead of those outstanding. The Council
determines the method of the issuance
and exchange, fixes the time the new
bonds shall run, and the rate of interest
they shall bear.
Under this act authorizing the city to
compromise its bonded debt an ordinance
was passed covering the last exchange of
bonds. This ordinance has the effect Of
a contract. To repeal il, however, will
probably require the consent of all the
bondholders. though am not prepared 10
say positively as to this"
by the exchange proposed said Mayor
Myers, II calculate that the city will save
anywhere from $4,000 to $4,000 in interest
a year. While the premium on the bonds
will begin to drop soon as a consequence
of their nearing maturity, still the fact
they will be above par for some time yet
would neceSsitate the city'S paying a pre-
MUM 1t might be an exchange could be
brought about by the payment of 10 per
cent. premium. There are several matters
In connection with the bonded debt de
sire to investigate, after which the fund
ing question may be brought to the atten-
ion of the City Council. 1 am fully con-
WINGED however, that the exchange at a
low rate of interest is feasible, and that
the bondholders could be induced to accept
proposition for an issue to run over
long PERIOD
Mayor Myers has many acquaintance in
New York, and embraced the opportunity
to see many of them during his stay. Vice
President Guggenheimer of the Common
Council of New York Is a kinsman of
Mayor Myers. An extensive acquaintance
among business men also helps to make
the Mayor at home in New York.