Jasper County Democrat, Volume 4, Number 44, Rensselaer, Jasper County, 8 February 1902 — GALVESTON’S SORROWS. [ARTICLE]

GALVESTON’S SORROWS.

The Sorely Afflicted City Now Face to Face with Bankruptcy. Galveston, Texas, may rightly be termed the city of misfortunes. The heavy hand of affliction whieh descended upon it with such frightful force Sept. 8, 1900, when a tidal wave swept over the city, engulfing thousands of people and causing a catastrophe at which the American people and the world in general stood appalled, still bears with crushing force upon its almost helpless victim. A series of adverse conditions has all but rendered extinct the ambitious ami hopes of those who survived the staggering blow of that menlbrable day in 1900 and now the future of the city is in grave doubt. The matter of the city's future welfare rests with a few men in New York, who have the power to say whether it shall be declared bankrupt or, with its burdens lightened, be permitted to work out its own salvation. Thes£ men hold the bonds whieh represent the city's debt, and so far they have insisted on receiving every cent of interest from the taxpayers, notwithstanding the fact that in the terrible storm one-third of he taxable property was lost and the value of the romaiuing two-thirds was greatly depreciated. The gross municipal debt of Galveston is $4,000,000 and $1,000,000 has been absorbed in the sinking fund, leaving $3,000,000 net outstanding. The city requests that the bondholders readjust the debt on a basis of three and a half per cent, the present rate, which was made when the city was prosperous and its future appeared bright. The concession asked by the city would affect the bondholders to the amount of $52,500, a year in interest, but it would menu the salvation of the city. Negotiations are now under way and within the next few weeks n committee from Galveston will meet the bondholders in New York and endeavor to perfect 41 plan which will save the city from having added to its burden the blot of bankruptcy.