The Andrew County Republican. [volume] (Savannah, Mo.) 1871-1876, 1874-03-06
RAILROAD BONDS.
Tho County Must Pay What She Has
Agreed to Pay.
Somebody to Blame for the Coun
tvs Loss.

In the proceedings of the Supreme
Court in session at. st. Joseph, we no.
tice that the case of Armstrong Beattie,
respondent, against Andrew County,
appellant, was affirmed; which means
that the county is bound to pay the
bonds, principal and interest, that were
issued to the Platte County Railroad
Company in 1859 and 1860. This merely
confirms what everybody acquainted
with the facts believed. These bonds
amount to nearly 100000, the interest
amounting to $4,000 year. For ten
years ending with July, 1870, the inter-
est was paid annually, Il tax being levied
and collected each year for that purpose.
In that year, we arc informed. one Of
the County Judges, who has a ''finan-
cial" reputation, disposed of the bonds
he had, and advised his friends to do the
same or bring suit on them. In accord
ance with this hint from 4 county Off
cial, several judgments were rendered
against the county in the Andrew Coun-
ty Circuit Court. Then Il written
agreement (%supposed to be on file now
in the office of the County Clerk was
made between the members of thc Coun-
ty Court and a leading law firm of the
Northwest, to defeat the payment of the
bonds for ten per cent. of the amount re-
allied to the county-Or, in other words,
ten per cent. of what they beat the hold
ers of the bonds out of. There never
was a serious doubt that the bonds would
have to be paid. Those who sold their
bonds received a nearly par value there
for. 1t was thought that when the ac-
ton of the County Court became known,
the effect would be a depreciation in
their market value, so that any bank or
institution" could buy them ut 4 low
figure. When the case vas disposed of
AS it was bound to be-in favor OF the
bonds, they would become valuable
again. But this financial movement
did not rebound to the advantage of the
taxpayers of Andrew county. Instead
of Il debt of 100000 which we had to
meet in 1870, we now have m interest
bearing debt. commencing with July
next, of one hundred and forty thousand
dollars. The holders of the countv's
paper never doubted its worth, and-very
Unexpectedly to some-thc value Of the
bonds remained on 4 par with other
good paper.
Three partics-W. S. Earls, l.. X.
Lancaster and \. Beattie-institutd
suit in the Andrew Circuit Court. Judg-
ment WAS rendered on Beattic's bonds
in his favor. and the attorneys employed
by the County Court appealed to the
Supreme Court, alleging that they were
entitled to u rebate of the difference be-
tween the seven and ten per cent. in
terest on the face Of the bonds, relying
upon a statute authorizing counties TO
subscribe for stock of railroad compa-
mics in anticipation Of the collection of
tax to issue bonds ut Il rate of interest
not exceeding seven per cent. LIST vol.
Stat. 1870, secs. 30. 81, 33. pages i27.
i29l, when the bonds were issued under
an entirely different law. authorizing
counties through which the Platte County
Railroad passed to subscribe Tor capital
stock Of the company and issue bonds of
the county to pay for the stock sub
scrihcd for. leaving them to contract for |
interest under the general interest law,
which authorized ten per cent. on con-
tract; and the Supreme Court decides
they were so issued, under the last cited
law. Every member of the present
County Court. we believe, has expressed
IN opinion, privately, that the county
would have the bonds to pay, but they
seem to have neglected to make provi>-
ion for their payment, or the payment
o. even the interest. One member of
the County Court stated in our hearing
last May, that he was in favor of max
ing Il levy last year,to pay, not only the
interest, but one-iourth of the principal,
and on the next morning refused to vote
in favor Of making Il levy for the pay
nicnt of the interest, after the attorney
defending the suit told the Court it would
be acknowledging the validity of the
debt, Notwithstanding the county had
paid the interest for ten years. The