The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-02-05
SALE STOPPED BY INJUNCTION.
CITY OF BRUNSWICK LEVIED ON
THE OGLETHORPE FOR TAXES.

Temporary Injunction Granted In
United States COurt-MutuaI Mis-
take Had Allowed Taxes to Accu-
mulate-HOteI Owner Charged
That the City Assessed Property
at High Valuations in Order 10 In
crease CIty's Ability to Incur In
Z debtedness.
In the United States Circuit Court yes
terday Judge Speer granted a temporary
injunction, restraining the defendants in
the case of E. N. Dickerson VS.. the Mayor
and Council of Brunswick in equity, from
selling the Oglethorpe Hotel under exc
cutions for taxes. Behind this action there
is an interesting story. which shows
II the plaintiffs tale be true, that NUM-
cipal corporations are as anxious as other
corporations to have the public not un-
derate their resources
The bill alleges that In 1886 the Ogie-
thorpe Hotel Company, the then owners
of the property. decided TO the city GER
tain land. AS a consideration, the hotel
and premises were to be exempt from
taxes for term of years. The length of
this term was, it seems, the subject of
mutual mistake and the Indirect cause of
the present suit Both parties, the bill
alleges, thought the exemption would not
expire until 1885, when in reality it ex-
pired in 1898.
Things wagged along and the property
suffered several changes of ownership,
coming in 1898 into the possession of Jonn
E. du Bgnon. Mr.. du Bignon. to secure
his note for SIS, 2f7. So mortgaged the prop
erty to E. N. Dickerson.
For the years 1893. 1894, 1895, 1896 and 1897
tne city assessed the property at valua-
IONS ranging from $63 ,176 to $SS. 800. Mr..
Dlckerson, secure in the conviction that
the property was not subject to taxation,
rested easy Then the situation changed
Inc TACT that the property had been sub
Ject to taxes since 1898 was made evident
and the city issued executions against it,
and advertised ii for sale.
IL is now alleged that the valuations
placed upon the property were greatly in
excess of what 1t would have brought in
the market, and that this fact was known
to the city. Mr.. Dickerson declares that
the assessors shared his belief that the
property was not subject to taxation and
returned 1t at inflated values, so that the
taxable property of the city and its cor
responding capacity to incur bonded and
floating indebtedness might be increased.
He declares further that to this end the
assessors returned churches, squares and
other public property, constitutionally ex-
empt from taxation.
1t is alleged that the property would not
bring in the market more than $21 900, at
which price it was sold under a former
order Of the court. The plaintiff tenders
taxes for five years upon this valuation.
amounting to $1,S12.5O, and asks that the
defendants be restrained from selling the
property under the tax executions and
that the taxes in excess of the amount
rendered, amounting to $S,S2364, be re-
mitted.
The plaintiff further alleges that the act
ual owner of the property, John E. duBig-
non, is not able to pay the note held by
him, other than by a sale of the hotel
property, and that the property, if sold,
will not bring more than the amount of
the note, If as much.
Judge Speer granted the temporary in
junction prayed for, and directed the de-
PENDANTS to show cause before him, at
Macon, in March, why the injunction
should not be made permanent. Messrs.
Erwin, duBignon, Chisholm & Clay rep
resent the plaintiff.