The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-09-27
HOPE FOR GALVESTON.
Enormous Losses But Willingness Shown to
Invest in Real Estate.
(By the Associated Press. }


heaviest of all the losers here is the mu-
ncipality of Galveston. AS estimated
by officers OF the various departments of
the city government the loss is divided
as follows:
Thirty miles of street paving..$ 100000
Schools and furniture. 1880. 3OO,OOO
City hall and market place.. 10000
Water works power plant...... 100000
Depreciation of wharf stock. 100000
Depreciation of street railway
stock held by the city........ 5000
Damage to parks and squares. 10000
Total ........ ................$1,5S $4,000
How the city shall rehabilitate itself is
the greatest problem that will confront
the mayor and council when the city
comes from under military rule and IS
placed in their control again "To look
at it now" said Mayor Jones, cit would
seem that we are utterly ruined finan-
cially, but it must be that there is way
out l expect to call meeting of the
council with the city attorney in few
days to consider this matter Until then
] will not discuss the situation further.
Galveston's position is a bad one. Be-
fore the storm the city had a total as
sessed valuation of SIG, III 1888 on a ba-
sis of 20 per cent real cash value. On
this there was a total net indebtedness
of $2,767 ,086. Various citizens estimate
that the loss has been at least so per
cent of the real value. On the old Valu-
alton Galveston had not yet reached the
legal limit of bonded indebtedness, but
under present conditions is beyond it,.
The city was already in a bad way finan-
cially, being five months behind in sala-
ries. The problem now is how to float
more bonds when the assets which made
former issues good have been so fearful
ly deprecated. If this cannot be done
the city will have to devise other means.
DIFFICULT TO FLOAT BONDS.
ut will be impossible for us to float
bonds in the present condition of the
CITY," said Judge M. E. KIeberg, unless
we should make most phenomenal dis
play af energy and enterprise in re-
building. l think we will receive suffl-
cient contributions from outside to ena-
BILE us to repair some of our buildings,
and for the rest we will have to wait
until we can raise the money by taxa
ton"
There was not piece of property
which escaped without loss. 1t is total
on the city hall and market house, and
nearly so on the fire engine houses and
municipal telegraph system. A metal
statue of Justice which stood on the
front gable of the city hall lies battered
and broken. A few Offices on the main
floor are occupied, but the building has
been condemned and all are to move to
the court house tomorrow. The heaviest
loss came on the streets. The grade of
some streets is two feet below where it
was prior to the flood Four out of nine
school buildings were entirely destroyed.
three badly damaged and two not so
badly. In the latter are included the
Ball high school for white children and
the Rosenberg graded school. Judge
Kleberg of the school board says $685.
600 will repair both. Each of these build
ings was given to the city by leading
residents, from whom they take their
names. 1t is unlikely the schools will
open October l as usual.
VALUE OF WHARF STOCK.
The loss on the wharf stock may be
only temporary if Galveston maintains
it's former prestige as port and when
the docks are repaired. The company
that owns every foot of the dockage in
Galveston exacts toll from all freight en-
tering or leaving either by rail or boat.
1t is one Of the most profitable of all
Southern stocks. Last year the city re-
ceived $S7, 900 in dividends on stock
valued at 1922, 200. The city obtained this
valuable asset in payment for streets
vacated along the harbor front.
The city also holds nominally 100000
in street railroad stock. The fire depart
ment had ten engine. houses and good
equipment All of these houses are prac-
ticalIy ruined. The department lost
number of its men.
The work of repairing roofs goes ahead
steadily, but rebuilding has not begun. In
this evenings paper loan agency adver-
tises that it has money to loan to those
who will rebuild. The agency claims to
have $500, 900 now and that it will in
crease the amount to 100000 in few
days. This is the first instance since the
flood when people not already holders of
property have shown a willingness to in
vest anything in Galveston in real es-
tate.