The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1923-09-21
NO BONDS CAN BE SOLD
WHILELITIGATI0NLASTS
Public Utilities Companies By Keeping City
In Court May Yet Drive Aldermen To
COMPROMISE With Them.

Will the Electric Light Co.
of Elizabeth City and its asso-
ciatcd companies drive the city
to a compromise and a pur-
chase Of these already estab-
lished public utilities? 1t is be-
ginning to look that way to
some who are on the inside Of
things.
With $SOO,OOO of public improve
mcnt bonds for sale, for the pur-
pose of building its own electric
generating, water and sewerage
plants, Elizabeth City can't sell a
bond so long as there is any litiga-
ton affecting the bonds. 1t is Il
rule of bond buyers TO stay off any
bond issue where there is litigation.
And it il not ut all impOrbaHo that
the private companies will carry
the city thru the courts GOr ten or
Il dozen years. They may lose in
the end, but so long as they can
stay in the courts Elizabeth City
can't find outside buyers for its
bonds and the private companies
have the field to themselves.
The companies lost i'm their first
round i'm the courts, Judge Ii. &.
.COnnOr in the L. :. Court for the
Eastern District of North Carolina
having refused TO grant them a per-
manent injunction restraining the
city from the sale of its bonds. But
the companies appealed from Judge
COnnOr's decision to the Circuit
Court of Appeals. After weeks and
months of delay they may lose in
the Circuit Court of Appeals. only
to go on to the Supreme Court Of.
the United States. If they lose in
the highest court of the land, IL is
altogether likely that their attor-
ncys will start another suit o; some
kind and continue to. keep the
market closed to the city's bonds.
If Elizabeth City is to proceed
with its program for the construc-
ton of lis own electric light. water
and sewerage propositions any time
soon, there are only two courses
open to it,: G) Elizabeth City folk
must turn TO and buy their own
bOndsi or (2), the citv will have 10
make terms with the private COM
paIiics.
The great Obstacle 10 n conro.
misc with the private companies, il
the fiat refusal OF inDsc companies
to name the city n satisfactory
price for their properties Elizabeth
City has made an offer ~! $2l0.0JG
for the properties: iirr companies
refuse to consider ibis offer. mit
make no counter offer. The con-
pan;cs want to leave The matter of
& price to n committee Of arbitrn-
ton, binding the city 10 a''ep. the
figures set hy such Il committee.
The city refuses 20 take ai'y Sr"h
chance. And 50 there the matter
rests.
Four members of the present
Board of Aldermen have gone on
record as favOring a renewal of
negotiations with the private com
panicS. Four others and Mayor
Goodwin are Just the other Say.
But Mayor Goodwin is not au ir-
recOnsilablc and his friends say
that he is ready TO listen TO flat
footed proposition from the private
companies.
And every day the matter is at Il
Stand-still makes everybody more
and more inclined TO hear a PROPOSE.
ton from the companies. So long
as the companies can keep the city
in the courts, Elizabeth City can
not sell bond or turn a spade. And
just so long will there be no i'm
prOvement i'm electric light and
power service, no improvement in
the city water supply, and no eX-
tension of water and sewerage
mains.