The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-12-01

| money, with interest, Que III one yedI
Relying on their estimate, council
passed an ordinance ON July 5. 1902.
to borrow $1,000 from the Palmetto
Bank and Trust Company, of Colum-
bia. S. c., "for the purpose Of building
city hall" A resolution dated July 9,
1902, and properly signed and attested
BY the town officials, authorized the
borrowing of $1,000 from the Palmet-
to Bank and Trust Company with
which ''to carry on the affairs OF the
town." the obligation to be secured by
pledge of "the taxes of the town aris-
ing from the levy for the present year,
or the profits derived by the town
from the dispensary, or both, if neces-
sary." This resolution is not referred
to in the Minute Book of council, but
the referee found that it was the same
as the ordinance mentioned as passed
on July 5, 1902; and this seems cor
rect, council explaining the apparent
difference for which the money was
Borrowed by saying that when it was
found necessary to borrow they de-
cided to put The sum borrowed into
the common treasury and pay 1t out
as needed, whether for work on the
building or for ordinary current ex-
penses: On July IL, 1902, the town
! council negotiated the note Of the
town for $1,000, payable January 10,
1908, the resolution of July 9th being
attached, at the Palmetto Bank and
Trust Company, and received thereon
$3.50. At this time the only debt OUT
standing against the town so far as
the testimony shows was the $3.50
tnote given for the purchase money OF
Erhe lot. II is true, the ordinary cur-
rent expenses for the remainder OF the
wear had to be met, but the
resolution authorizing the Gre
alton of the debt specified that the
money was to be used 80 carry on
the affairs of the town. and there is
| nothing to show that the bank had
express notice of the original ordl-
nance specifying that the money was
to be used for the purpose OF build
ing a town hall.
The cash book of the town shows
that the total municipal income from
ali sources for the fiscal year begin
ming April 22, 1902, was S1,S32.1o.
The receipts up to July II, 1902 were
sAs5.56, and the expenditures S44o.o2,
| of which $2o76o was paid out on the
building and the balance on current
EXPENSES. This left available to
council S1,3o1.37 with which to pay
che ordinary current expenses from
Tulv II to the end of that fiscal year,
amounting to S1,ooo.13, and with
which to pay the balance OF S1'352'4o
on the lot and building debts OF
s165o thus showing council had fallen
FIR short in their estimate. II the
s16,o had not been spent on the
town hall council would have had
balance Of S6S7.84 on hand at the end
I,of the fiscal year, but instead OF limit
ine the cost of the building and lot
to $3.50 as originally contemplated
thew decided to enlarge and improve
the building. and TO meet the addl-
tional expense borrowed on S@ptern-
Der s 1902. 5000 from the Bank OF
Prosperity, giving therefor the note
Of the town payable in one year. thus
making the total indebtedness OF tine
town for the fical year 1902, S3,3o4.35
os aoains1 total income Of SI,o32.19.
At maturity on January 10, 1908 the
81 600 note to the Palmetto Bank ana
Trust company was taken up by the
Bank of Prosperity, and a renewal
note under the seal of the town was
given by the council. the ordinance
authorizing such action, which was
similar to the resolution under which
the original debt was incurred, be-
ine attached thereto A like second
renewal note was given at the maturl-
tv of the first in 1904 under the au-
thor;tv of a similar ordinance. From
this it clearly appears that this last