The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1870-05-26

/ or person, I'D, 2Jl, and, where the matter
| is unnecessarily stated by way OF inducement,
and might be struck out surplusage and,
as we shall show hereafter, may be said of
! that in the present case, the failure to make
! proof of the statement is not material.
The action, then, being founded upon the
/ coupons, the material question arsings on
this branch of the case is, whether or not the
plea of the statute of limitations constitutes
ii good defence. 1t is admitted that more
than six years have elapsed since the interest
accrued on the coupons. and, if barred by
this lapse of time, the defence is complete,
and the court below erred in sustaining the
demurrer.
AS we haye seen, the coupons were made
cotemp oraneously by the city with the bonds
for the accruing interest thereon. This ap.
pears on their face. The city OF kenosha on
the first September, sc, will pay twenty five
dollars at the Peoples Bank, SC, on presen
tation of this coupon, being the
interest due that day on the
bond of said city,, numbered one,
contains a covenant for the same interest.
The coupon is not an independent instru-
ment, like promissory note for a sum OF
money, but is given for interest thereafter to
become due upon the bond, which interest is
parcel of the bond, and partakes OF its nature
and the bond, being of higher security than
a simple contract debt. is not barred by
lapse of time short of twenty years and, as
we have seen, this contemporaueous coupon
does not operate as an eXtinguishment of the
interest, unless there has been 40 express
agreement to that effect These coupons are,
Substantially, but copies from the body of
the bond in respect to the interest, and, as is
well known, are given to the holder of the
bond TOR the purpose, first, ofenabling him to
collect the interest at the time and place
mentioned without the trouble of presenting
the bond every time it becomes due; and,
second, to enable the holder to realize the in
terest due, or TO become due, by negotiating
the coupons to the bearer in business trans
actions, on whom the duty OF collecting them
devolves. This device affords great convent
ence to all persC MS dealing in these securities
especially to the holders in foreign countries,
who otherwise would be obliged to forward
the bond 10 the place of payment of the in
terest each time it became due, or trust them
to the hands of their correspondents in the
country where the payment is made
This convenience in the collection by the
use OF coupons, asis apparent, very mych ia
cllltates The negotiation of these securities
abroad, and enhances their value in the for
elgn market. And any decision that would
have the effect to lessen or impair the higher
security tor the interest as found in he bond, |
by the Il of these coupons, would necessari
~, to that extent, d.ieat the purpose Tor
which they were designed As we have seen, |
there is nothing in the contract between the
parties that would lead to the conclusion the
nature or character of the security by the |
bond for the interest was TO be changed or
lessened by the issue of the coupons, but the
contrary tor II any such CT ange had been in |
tended, it should have been in some way in |
dicated in the body of them. .here was but
one contract, and that evidenced by the bond, |
which covenanted to pay the bearer five hun
dred dollars in twenty years, with semi-an-
nual interest at the rate of ten per cent. per
annum The bearer has the same security
tor the interest that he has for the principal
The coupon is simply mode agreed on BE-.
mar iae ma a.NnU "a nj anna nf hp
holder in collecting the interest as it becomes
due. Their great convenience ami use in the
interests of business and commerce should
commend them to the most favorable view
of the court; but, even without this consd |
GRAFTON, looking at their terms, and in con-
neclion with the bond, of which they are a
part, and which is referred TO on their face, in
our judgment it would be a departure from |
he purpose for which they were issued, and
from the intent OF the parties, to hold, when
They are cut OF from the bond Tor collection, |
that the nature and character of the security
changes, and becomes simple contract debt, |
INSTEAD OF partal;ing of The nature OF the high |
er security ihe bond, which exists for The |
same Indebtedness. Our CONCLUSION is, tn L
he aIse OF action is not barred by lapse of
time short of twenty years. Recurring again
to the declaration, we have said that the pre-.
amble, or inducement, was unnecessary, and
mig t well be rejected as surplusage. As we
have seen, it recltcs ngyery general terms,
suit were annexed Now, eachGoupon itself
contains substantially, on its face, all this in
formation 1 Is issued for interest due ~ a
certain day and place on bond, giving It's
number and date. Another form add the
amount bat this is unlmportant, as the bond
is sufficiently identified without it,. The pro-
duction OF the coupon, theI eore, at the trial,
Will shCw The relation it bears to the bond,
and, if our opinion is sound, that in this con
nection 1t cannot be legally severed from it
till the interest Is paid, countupon the cou-
pom is all that can be MATERIAL e# ~f ~.
The only remaining question in the case is
rs TO the authority otthe city.of kecosha to
issue bonds TO which the coupons. We're an
ncXed @fFAFtfs
The act of 1857 OF the legislature, (chap
1873. private laws, whichsamends and con-
s0ildates the several acts relating TO the char
ter OF uleclty, confers full authority upon
! the common council TO borrow on the corpor-
ate credit OF the city any sum of money Tor
any term OF time, at any rate OF interest, and
payabieakany place deemed cXpedient, issu-
| ing bonds or scrip therefor.
| 1t is admitted this authority would be SUI
ticient, but II IS insisted that the statute eX-
ceeds The authority Of the Legislature under
! the 3d section Of the nth article Of the state
4 con. Tuition, which, it is claimed, requires
til. legislature TO limit or restrict the amount
OF money 10 I've raised by the Without
enquiry into this question, it is sufficient to
say that, after the city had passed. the ordi-
nance ] Gaming its creditsto the railroad com
pany to Tic amount of 800, 600, the legisla-
! ture ratified it THIS was equivalent to an
d original limit of This amount.
1t is urged also that the Supreme Court of
Wisconsin, has held that the act. of the legis
latrre comforting authority upon the city to
| loanlts credit, and issue rbe bonds III ques-
ton, was in violation Of the provision OF the
/ constitution above referred tos-z{1G Wis Il !,
GIG But, at the tine this loan was made,
and bonds issued, the decision of the court
4 OF the state favored the validity Of the law.
4 lowed. &C Wall, 175 Geipcke We Dubuque
/ The Judgment is affirmed.