The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-08-11
NEW ORLEANS BULLETIN WEDNESDAY,, AUGUST H. 1875
THE VALUE OF FAIR DEALING.

THE VALUE OF FAIR DEALING.
paragraph condensed and abbreviated frol
some journal not remembered, noting
transaction in which the city of Chicago, be
fiscal agents Duncan, Sherman & Co.. an
the holders of her bonds are interested.
correspondent of earnest convictions crit
cises the paragraph in his own terse an
pointed style, quoting and commenting a
follows:
| 1.-THE city of Chicago made Duncan, Sher
man Co. their fiscal agent for paying il
| New York the interest coupons on her bonds
and deposited with that firm q sum of none,
| for that purpose. The firm failed with abou
$4l 600 Of this interest money in their hands
leaving that amount of matured coupons un
paid. The deposit was ample for covering al
interest due. Bondholders were duly notified
OF the agency Of Duncan, Sherman & Co.
Legally the city was not liable for this loss,
as is claimed, but the City Council has wisely
authorized the Mayor and Controller to pay
all coupons to date, thereby shouldering the
loss"
/ clip the above from your paper of this
morning. and ask if you really mean to say
that the conduct there described is, in your
judgment, aoise9 call it, In the highest de-
gree, dishonest, and hesitate not to say that, if
the statement be true, every member of that
Council who gave his sanction to such an act
ought to be in the Penitentiary; for he has
committed most fragrant breach of trust. If
the debt was paid and the city was no longer
liable, what right had the Council to pay it
over again, because the money had been lost
to the creditor through his own negligence?
Is 1t not plain and clear malversation of the
public funds, which can only be sustained on
the principle that these belong to the men
who are charged with their administration?
In the name of common honesty, ask per-
mission to enter protest against the doctrine
Of that paragraph, and to say that the man
who is entrusted with public funds is trus-
zee. and is bound to administer them with the
'trictest regard to the law, and has no right to
give them away even to that character-so
'acred in the eyes Of many-a creditor. B.
We really think that the city of Chicago
acting through her agents and representa-.
ives, the City CounciD did wisely in keep
ng faith with her bondholders, in paying to |
hem the interest which she solemnly prom
sed to pay, and in refusing to take a mean
dvantage of any technically by which she
aight have shifted her liability over to her
ankrupt agents in New York. It may be
hat Chicago could have compelled the hold
RS of the $4l,0O0 in coupons to have
ecourse. in the first instance, to Dun
aD, Sherman & Co. But as the ulti-
late equitable liability to pay the interest
q her bonded debt is with the city, and as
lere was no equitable excuse for delay, Chi
'go was in our opinion wise in waving the
gal technicality. If her agents (the Mayor
I'd CounciD had been shysters and pettifog-
RS they might have involved the city in
lndry lawsuits, delayed the payment Of the
y, 900 for some months, inflicted some dam
70 on the credit Of the city, and lessened the !,
ances of recovering the interest money de-
'sited with her fiscal agents in New York.
First and last Chicago has had occasion to
rrow much money, and her Council and
liens know quite we'll that she will in time :
SO circumstanced as to make it desirable to
ROW more. They undoubtedly think that
their case the loss of municipal credit,
nting as it must the personal credit of citi.
Is, would be great misfortune. Chicago
8 built up to great extent with money
rrowed on mortgages, and after her great
aster still larger proportion of new build :,
70 were erected with imported means. What
uld these creditors Of the government and
'ple think of an attempt by the city to =
lffle out of the payment of paltry debt of v
900? A refusal to pay or a resort to liti-
ion in order to evade payment, would have
N esteemed an act of sheer stupidity, to "
nothing of its immortality. "
With due regard to the brevity Of human "
we have not studied the laws and ordi- %
ces of Chicago governing her Mayor and !"
neil When they do official acts the fair :.
is that they are acting with "
be scope of their official powers. What a,
! is done officially by sworn officers is :.
'umed to be done in pursuance of the
, by which they are bound. If not pre- r !,
ption in law, this is analogous to it. If %
ees fit to look into this legal question and o.
9 thereby able to say what the Mayor and v.
ncil of Chicago may or may not do with -
city's interest funds, and if he fails to find n
al authority for the payment of interest -. ..e
oons in cases Of the nature of that in ques- -
, he will have good opportunity to GEN. -
} them. We shall still insist, neverthe- W.
that shouldering the loss, instead of al !,
wing it on her creditors, was the best
8 to be done. ue'
his
QUARANTINE AT PENSACOLA. the
ne good people of the ancient and quiet Blu