The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-11-21
THE LAMAsCO BONDS

THE LAMAsCO BONDS
There have been some proceedings in
our City Council the past week which
may have a serious effect upon the credit
and character Of the city. We shall sim
ply state the facts, and leave every citi-
zen to form his own conclusions upon the |
consequences Of the measures that ap
pear to be resolved upon by the Council.
Lamasco was a subscriber to the stock
Of the Straight Lane Railroad to the
amount Of $4,000 for which she was to
pay in bonds. Twenty five thousand
dollars Of the amount were issued to the
Company. After this issue, some doubts
arose in regard to the legality Of the pro-
eeedings in making the subscription, and
when the second portion Of the bonds
was called for by the Company, they were
refused on the ground that the subscrip-
ton was not valid and binding on the
town. The matter was referred to cOun-
sci. and compromise entered into by the
Corporations of Lamasco, and the Railroad
in which it was stipulated that the latter
should relinquish one half the subs.rip-
ZION to the stock on the condition that
the town should waive all legal excep-
tons to the bonds already issued, and
provide for the future punctual payment
Of the interest. This agreement was
ratified by both parties, and Lamasco
provided for the interest and paid it up
to last year. Many Of The citizens. indi.
vidually continued to protest. against the
payment Of the bonds, and some refused
to pay the tax assessed to meet the in
terest, but the Corporation Of Lamasco
always continued to provide for the in
terest in her assessments.
When the cities were annexed, La
maseo transferred to Evansville call
her corporate property, rights. credits,
monies and effects Of every description
and the "said city Of Evansville shall
he liable for all the debts, contracts and
liabilities of said town OF Lamasco." In
the negotiations for the consolidation Of
the city, the S25. 600 bonds issued to the
Straight Line Railroad were enumerated
among the debts Of Lamasco, and were
estimated as an offset to portion Of the
debts due from Evansville, which were
assumed by the consolidated corpora
ton. A petition presented to the
Council last week for the payment Of
thirteen interest coupons, amounting to
sass. with 5 per cent. exchange, was
referred 10 a committee, who reported
that it had been "the custom and agree
ment to pay the interest on the bonds
out Of the revenues collected for that
purpose at the Treasurer's Office in the
town Of Lamasco, without commission
or exchange; and as a d'ubt is enter
tanned in the minds Of your committee
rs to the legality Of the bonds issued by
the Trustees Of the town Of Lamasco to
the Straight Line Railroad, they are I'M
willing to recommend the payment Of a
larger sum than the face Of tho coupons
due and presented" BY this report. the
committee by implication, recommend
the payment Of the coupons. The Coun.
Gil, instead Of accepting this report, re-
ferred it back to the committee with in.
structions to obtain the legal opinion Of
Messrs. J. G.. JONES and CONRAD BAKER
City Attorneys, upon the legality Of the
issue Of the bonds. At the last meeting
Of the Council the committee report the
following opinion Of Mr.. JONES, who, We
are told, was himself one of the Attor
neys by whom the compromise between
the town OF Lamasco and the railroad
was effected.
''To Peter Sharpe and others, Committee
GENrLEMEN:-It is my opinion that tn
City of Evansville is not legally bound t.
pay either principal or interest of the s25,
900 of bonds issued by the town of Lamas
co City to the E, /. & C. Straight Line Il
K. Co. This opinion is based upon dcci
sion of the Supreme Conr: of Indiana in
similar case, and will be sustained as correct
If the Supreme Court itself can be relied on
Respectfully, &C., JAS. Co. JONES"
1t appears that Judge BAKER gave nj
opinion-or did not sign MR. JONES
opinion. The Council accepted the Re
port, thereby approving it; and thus th'
matter stands. Whether it be the in
tention of the Council to adopt actua
reputation of these bonds can be judged
by their acts. l. is said on one sid'
that the Straight Line Road have thes'
bonds unused in their possession, anC
are collecting the interest without apply
ing the funds to the building Of the Road
The managers of the Road say they have
been sold and are held by innocent par
ties. 1t is small sum for which to sac
rifice the credit and reputation Of the city
A technical or valid legal defence t.
tho nav ment will not save rs from TN,