Austin Settles Water Bond Lawsuit Debt
• Bond Payment Crisis: Austin City Council approved an emergency appropriation of $17,787.53 from the city treasury to pay overdue interest coupons on Water and Light bonds that were being sued over in federal court.
• Legal Action Prompted Action: Three lawsuits filed by H.H. Church against the city (cases 234-236) for unpaid bond interest forced the council to act quickly and settle the debt.
• Unanimous Emergency Vote: All six present aldermen voted to suspend normal procedural rules and pass the payment ordinance immediately, indicating the urgency of the situation.
Full Transcript
48: Called Meeting of the City Council of Austin, Texas May 04, 1901 Hon. R.E. White Mayor presiding Roll Call Present: Aldermen, Low, Nitschke, Schneider, Shelley, Shumate and Stumpf. 6 Absent, Alderman Gillis 1 The following call of the Council was readA Special meeting of the City Council of the City of Austin is hereby called to convene in the Council Chamber at the City Hall in said City at eight o’clock and thirty minutes P.M. this date, for the purpose of appropriating money now in the City treasury to the credit of the Interest Fund of the Water and Light bonds of the City, to the payment of such over-due interest coupons of said bonds as have been sued on in the cases of H.H. Church vs. the City of Austin, numbered 234, 235, and 236 on the docket of the Circuit Court of the United States for the Western District of Texas. R.E. White Mayor Theodor Low Joseph Stumpf J.D. Shelley H.B. Schneider W.H. Shumate J.A. Nitschke H.A. Gillis (sick) I hereby certify that the above Aldermen have been served with all legal notice of this call. H. Montgomery City Marshal $17.787.53 By Alderman Shelley, an ordinance appropriating also saw the sum of $17,787.53. for the purpose of paying certain interest coupons of the Water and Light bonds of Coupons the City. The ordinance was passed under suspension of the rules by the following voteYeas- Aldermen, Low, Nitschke, Schneider, Shelley, Shumate and Stumpf 6 Nays - none On motion the Council adjourned
Jno. O. Johnson City Clerk