The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-01
CITY COUNCIL
HOLDS MEETING
Samuel O'Quinn Elected
City Manager-Peo-
pies Bank Declines
Exemption

h"id Tuesday evening, there were
present Mayor J.. ID. Jennings, and
Counciimcn ID. j.. McCaIum and ].
a. Raliicld.
Inc minutes of the regular meet
iE1 OF December 14th were read and
approved.
Mr. q. w. Shaw's letter OF No
Nember 18TH relative TO placing a sign
over the sideWaik, 1T the Sumter Sales
company on w. Liberty Street was
again taken up by council, and after
some discussion, the sign was allow
eo 10 be placed, subject to the will OF
couhcll. Mayor Jennings opposed.
s'dtlhg mat he was not in favor of
haVing any signs suspended over the
Sidewalks of the city.
Mr.. :. O'Quinn was elected CITY
Manager, subject 10 the will of conn
ell at salary Of $3.50 per month. Mr..
OQuinn Will take up his duties as city
manager Oh or about January 10Th.
1921.
The matter of a license for pitching
balls, was taken up and after due
consider alton, the license was fixed by
council at $3.50 per month, with a six
month minimum. Council also decid-
ed, ..i the case Of licenses for contrac-
tors, plumbers, timers and brick ,
masons, 10 make licenses for non-res-
ident firms double that OF resident
firms, as the license as it now stands
Is construed 10 mean resident firms.
The bill OF Clifford and Morrisey.
for one steam carburetor installed.
on Indiana truck, was ordered paid,
also TO have more OF these carbure-
Z IN
satisfactory
Tie letter Of Mr.. u. James Winn
in which he requested council 10 deed
back TO him the land which he had
given TO the city, on the lower end OF
West Calhoun street. was presented at
, this meeting. Mr. Winn's request was
refused by council.
! AZ tho regular meeting Of council
! Eeco mbcr 18th, it was decided to all
! low al of the banks OF the city SIS
! per cent tax exemption on the electric
light bonds, which said banks had
purchased from the city. Mayor Jen-
nlngS representing the Peoples Bank.
stated that his bank would not accent
the SO per cent exemption, however
they would accept per cent interest
! FOR their money duling the actual
t!me that their fands were invested
in the city's bonds.
! Mayor Jennings lester IS as follows.
City Council Of the City of Sumter.
Gentle:ncn: This bank was in
formed by the city clerk that a ma
jori;y OF council had allowed an exem-
ption from taxes Of 5S per cent OF the
bonds purchased by this bank. I'm
der the contract entered into with the
! city at the time of the purchase of
tnese bonds IL was provided:
That SO long as the bonds pur-
Chased under this agreement are own
cd ana bona fide held by the party OF
the second part, the same shall be tax
+ exempt TO the extent of IS per cent OF
par value thereof as against the share
/ holders OF The party of the second
J part, and in order to make the same
! TAX exempt as Aforesaid, the party of
ne flrst part agrees that SO per cent
/ OF the par value Of the bonds pur-
chased undor his agreement and bona
hde held by the party Of the second
part may be deducted from the assess
ment FOR TAXATION fixed and levied by
the state tax commission against the
party OF the second part in each
year hereafter that the party of the
second part may continue to be the
owner and holder of said bonds"
This bank did not hold any of said
ponds on the first day OF November.
l92O' Wneu The city taxes were due
ana collectiblc, and under said agree
ment the tank does not consider tnat
1t would be entitled TO be exempted
from taxes as referred to- in said
agreement, as this bank only owned
said bonds from the first of July until
sometime in October, and to take the
exemption permitted by council would
DE collecting from the city something
over Is per cent per annum for the
use of the money during the period
which this bank held said bonds.
This bank, however, knows that
during said period from the first OF
July until sometime in October~mon-
ey was quite tight, and that if the
bank had not had It's money invest
cd in these bonds it could have obtain
ed eight per cent discount on same.
while the bonds ii held only bore in
derost at the rate of six per cen.
and that it would be fully repaid for
me use of the money should the cft
make up to the bank the difference be-
tween per cent and per cent. ana
the bank could not have obtained le-
Saliy more than s per cent for its
money, and this bank sees no reason
why it should charge the city. 5 per
cont bonus above the legal rate for
the use of said money while it held
said $4,000 Of bonds.
While the bank appreciates the po-
slnon of ;he m&jorit.' Of council, still
1t must decline to accept a greater
rate OF interest than is permitted by
law TO he charge by bank in this
state, and especially when this extra
rate OF interest must of necessity be
nald by the whole people out of the
taxes collected; and, of course, some
oil these taxes are collected out OF