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Austin's $1,545 Bond Interest Payment Dispute

Saturday, June 25, 1898 special called

Emergency funding request: The city council met in special session to consider paying $1,545 in interest on bonds from before 1890, due July 1st, 1898.

Payment rejected: The ordinance to fund this interest payment failed to pass, with 9 aldermen voting yes and 5 voting no—not enough support to approve the measure.

Legal questions raised: After the vote failed, the council asked the city attorney to investigate whether those old bonds were even valid, suggesting concerns about whether Austin should pay interest on questionable debt.

Poor attendance: About one-third of aldermen were absent during the debates, with some out of town and the marshal having to track down others.

Full Transcript

23 Minutes of a Called Meeting of the City Council. Austin, Texas, June 25, 1898. Hon. Jno. D McCall, Mayor Presiding. Roll Called. Present. Aldermen Belvin, Haynes, Kuhn, Maddox, Platt, Bowell, Shelley, Taylor and Townsend 9. Absent. Aldermen Beaty, Crooner, Fischer, Horton, McLemore, Miller, Morris, Nitschke, Predd, Roberdean, Rosengren, Stumpf and Zilker 13. Aldermen Beaty, Stumpf and Zilker entered the Council Chamber. Alderman Belvin moved a call of the Council which was seconded. Roll called. Absent. Aldermen Crooner, Fischer, Horton, McLemore Miller, Morris, Nitschke Predd, Roberdean and Rosengren. 10 The Marshal was directed to bring in the absenters. On motion Aldermen Morris and Roberdean were excused. On motion the roll was suspended. The following call for a special meeting of the Council was read: Mayor's Office Austin Texas June 25th 1898. Mayor's call A special session of the City Council of the City of Austin, Texas, is hereby for Special Meeting called to meet in the Council Chamber, at the City Hall, at 6 o'clock p.m. of City Council. this 25th day of June 1898, for the purpose of considering an ordinance entitled "An Ordinance appropriating the sum of $1545.00 to pay interest due July 1st 1898, on bonds issued prior to May 1st 1890." Jno. D. McCall, Mayor. Austin, Texas June 25th 1898 4 P.M. Marshal's Certificate. I hereby certify that the following named Aldermen have been served with the above call by having it read to each of them in person, viz: Beaty, Belvin, Crooner, Haynes, Horton, Kuhn, Maddox, Miller, Platt, Bowell, Predd, Roberdean, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker, and that Aldermen Fischer, Morris, McLemore, and Nitschke have been served by a true copy having been left at each of their respective places of business, they being out of the City. Jno C. Lucy, City Marshal, Mr. Alderman Rosengren entered the Council Chamber. Ord. Warrant $1545.00 The Mayor then laid before the Council an ordinance appropriating to pay Int. due July the sum of $1545.00 to pay interest due July 1st 1898, on bonds issued 1st 1898, on 1890 Bonds. prior to May 1st 1890. The ordinance was read the second time. On motion of Alderman Shelley, the Council adjourned until 8:30 o'clock, p.m. Monday, June 24th 1898. Jno. O. Johnson City Clerk. --- Page break --- 24 Minutes of an adjourned Called Meeting of the City Council. Austin, Texas, June 27th 1898. Hon. Geo. D. McCall, Mayor, presiding. Roll Called. Present: Aldermen Beaty, Belvin, Brooker, Haynes, Horton, Kuhn, Miller, Platt, Powell, Redd, Rosmgren, Shelley, Taylor and Townsend 14. Absent: Aldermen Fischer, Maddox, McLenore, Morris, Nitschke, Robertson Strumpf and Belger 8. Ord. No. 415-5. The Mayor laid before the Council an ordinance appropriating the sum To pay int. due July of $15,15-- to pay interest due July 1st 1898, on bonds issued prior to May 1st 1890. The ordinance was read the third time, and placed upon its final passage, and was lost by the following vote: Yeas: Aldermen Haynes, Horton, Kuhn, Powell, Redd, Rosmgren, Shelley, Taylor and Townsend 9. Nays: Aldermen Beaty, Belvin, Brooker, Miller and Platt, 5. Alderman Shelley moved to reconsider the vote just had, by which the Council refused to pass the ordinance, which motion prevailed. City Atty. assumed On motion the City Attorney was asked to advise the Council as to Council as to validity the validity of the bonds mentioned in the ordinance, which he of bonds. did, after which, the Council, on motion of Alderman Belvin, adjourned. Jno. A. Johnson City Clerk.