Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1857-12-19

1870,
chosen Secretary. Mayor Stein. ct the request of
the chair, stated tho object Of the meeting lie sx-
planned the nature of the contract, ind intimated
pretty clearly that he thought Mr.. Butler and his
associates ought to be held to it. The circumsan-
scs of the case, as developed in the speech of the
Mayor and in those Of Messrs. Butler and Richman,
whn followed him, are substantially as follows: In
Nay last, Mr.. Butler and his associates proposed
in order to relieve the city from its indebtedness so
that its bonds for $4,000 for the Galesburg Rail-
road IN ght stand better in markct-to assume the
payment of $4,000 bonds already issued to the
Mississippi and Missouri Railroad Company, provi-
ded the city would transfer to them its stock in
said company for said amount, with bonus of
$4,000 interest stock and $4,000 additional city
bonds The proposition, as is generally known
was accepted, and the proper city officers made the
transfer to the said parties: When Mr.. Butler and
his associates however, attended the annual election
of officers Of the NJ. 4 NJ. r. r. Co., in june. and
attempted to cast the votes for the shares of stock
which had been transferred to them by the city,
they were not permitted to do so. They were told
that their right to assume the ownership Of the
stock would be decided at meeting of the Directors
in New York. This meeting finally decided that
the Company would not recognise the transfer of the
stock, and the Treasurer Of the Company, A. c.
Flagg, positively declined givngup the stock which
he held in trust for the payment Vt the interest on
the bonds and the final payment Of the principal.
So the matter rests. Mr.. Rchman, attorney for
Butler ami his associates, contended that The con-
tract had not been fulfilled by the city. 1t agreed
to transfer its right to the stock to Mr. Butler and
associates but had not done so, therefore the con-
tract could not b. made to stand good in law. Mr.
Butler stated that if the railroad company could
have been induced to recognize himself and assoc'-
ates as Occupying the relation the city to the
stock even though its possession wonld be retained
by Mr.. Flagg he would not have desired an abroga-
tion Of the contract. As it was, he considered that
he and his associates had right to throw of their
| obligations under the contract. This they did on
the 18th of September last, and he nolonger consd
cred himself bound by it. A resolution was intro
duced by Mr.. Rchman instrueting the City Council
to recognise the rescission of the contract which
Butler and his associates claim to have made al
ready. Pending this resolution, OF motion of Mr.
Stein, the meeting adjourned till Tuesday night.
If, as Mayor Stein stated all the facts concerning
the matter were spread before the meeting, it will
not be difficult matter for any one to decide how
to vote on the resolution. It is clear to our mind
that it should be adopted. We doubt whether we
could compel Mr.. Butler and associates to abide by
the contract under the crcums snces, and also the
justice Of such procedure, if ve could.
II is, perhaps, proper to stae in this connection
that annulling this contract dies not contemplate
an abandonment Of the Galesturgh Railrond. The
$500 600 bonds already ssuedin its favour will BE-
retained till the times become more favorable for
the building of railroads, VIII this enterprise will
be pushed forward with oil tae energy with which
| it was undert AIKEN
! PRoPosIr1oN TO REEiED s'rHE BUTLER
CoNrRAcr."-The adjourned meeting at the Court
Huuse, last night, called b authority of the City
Council for instructions hregard to resembling
tn. cont act made between he city and Mr.. Jacob
Butler and Others concerning thu stock of the city
m the NJ. l. NJ. R. R. Co., VS. large and exciting
me. Mayor Stein opened tie discussion by reading
he original papers If the sdnract from the recori,
and stating that he, as Mayor, wished to stand
sin statu quo on that reord, and that he had deter
mined, as thu policy of tie city authorities, unless
otherwise instructed by be people, to permit the
matter to rest in its preent shape until the Janu-
ary interest on the railroad bonds fell due, and if
said interest was not paid by the parties to whom
the city had transcend its stock, then to take ac-
ton against them furforeach OF contract. Mr. ).
II. Wallace, after beig called upon, followed IN a
few remarks opposed TO resembling the contract,
He did nataYu pIye Mr.. su Ter and associates in
possession If the sbck. S. o. Butler followed, ex-
pressing the opnin that the gentlemen who Wee
parties to this eoIrac. With the city ought 10 blush
for their inAttempting to rescind it merely
technical ground: Mr.. A. L. Mason offered res
elution giving as the sense Of the meeting that
the contract shold be annulled provided the city
: was placed in tie same condition before it was
made, and ais that the $1,000 bonds for the
Galesburs roat DO destroyed by fire. fThis resolu
. ton was fnlly voted down. H.. s. o. Butler
again took he floor and contended that public
meeting wa not the proper place to decide the
question uIer discussion. 1t should be left with
the City Concil. In reply to some Of his remarks
d Mr.. Cloud one Of the Aldermsn) stated that the
I Council I'D appointed committee to consider tn,
question, Inch committee had reported that tn,
!, citizens i'd in public ,eting instructed the
. Council make the contract, they thought it ad.
the question Of its rescission-hence the public
= meetiny. He himself did not wish to shrink from
n any responsibility in the matter, and free to
say bat if left to act in accordance with his owl
convtions, he should vote for the rsscssion of the
i contpct. Mr.. A. Humphrey was called for, and
afte speaking some time, alluding to the "mora
Obligations" which one of the contracting parties
hal in his opinion lost sight Of in consequence Of
th lack of the glittering promise of gold in con
notion with the contract, finally confessed that he
id not unders tand the question. We presume be
Oesn't take the papers. He expressed himself in
avor Of app.inting committee Of citizens to in.
r ,estigate the matter. Mr.. O'Connor being called
upon considered the proposition that the city should
enforce the wrong both in law and equity
4 He compared it to assigning land warrant
81 (which few years ago was not assgnable in law
to another man, both being ignorant Of the illegally
Of the act. The assignee had no other recourse
against loss but to fall back on the honesty Of the
| original hoder.of the warrant. He thought if the
city to embark into heartless system of spec
ulation, it had best commence others than
its own citizens He deprecated the calling OF
meetings to consider questions like the under
discussion, believing il the business Of the City
! Council To decide them. Mr.. 5. o Butler made a
motion tU appoint committee Of seven to investi-
gate the matter and report at subsequent meeting
which motion was seconded by Mr.. Humphreys.
MIR. J. Scott Rchman took the floor, but was r.
peatedy called to order by Mr.. ). 0. Butler, who
coitendcd that he was not speaking on the motion.
! The audience in the meantime much excited,
and the cries for "the notion" "Kichman," &c.
created great confusion. Mr.. Rchmau finally fin.
ished his statement. which that the transfer of
stock in railroad company is always regulated by
The articles Of association Of the company and that
stockholders must abide by such articles The arti
Giles Of association Of the NJ 4 NJ. r. r Go. inter
dicted any such transfer contemplated by
"the Butler contract" Mr. Candee put few in
terrogatories to the meeting, and was followed BY