The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-12-02
NOW THEN. PAY UP!


Judge Dickey, at Washington announce 'Ha'
in the case involving the Legality OF 'he
bonds issued by the town of Ottawa to the "
tawa, Oswego and Fox River Valley Railroad
Company, the Supreme Court OF the United
States has decided IN favor of the validity OF
the BONDS. The town of Ottawa thus be
comes liable to pay $4,000 and South OF
lava $4,000 of those bonds with back inter
est at ten per cent. for about five years-in all
about $250,OOO.
Most of our readers are familiar with the
history of these bonds. They were issued in
payment of stock in the railroad mentioned
The stock certificates were issued to the
towns and the bonds paid over to the contract
ers and others, who sold them to whoever
would buy them. To raise more money, the
road was mortgaged for twice Its worth, he
mortgage together with all the unsod stock
being turned over to the c. B. & @. Company
who advanced about 100000 to complete the
road and then, on its completion, the road
was leased to that company in such way
that no part Of principal or interest OF the
mortgage can ever be paid, and Of course the
Burlington gobbles the road, extingulshing
the stock, and leaving the original stockhold.
ers out in the cold The case has Its hard
ships from the fact that the road from the uay
of its completion has done heavy business,
and if the original stockholders had been
fairly dealt with their stock would now
be valuable.
Winclng, doubtless, under this wrong, real
or supposed, the original stockholders began
10 look around to see if there was no way to
escape the payment of the bonds they had
issued for this worthless stock. Investigation
showed that the pretended law under which
the bonds had besn issued had never passed
the legislature, and thereupon they refused to
pay any more interest on the bonds. The
holders of the bonds commenced suit in the
state courts and both in the circuit and su.
preme court were defeated. Then a case was
commenced in the L. 5. District court at Chi
cago, where the decision was in favor of the
bonds, and that case was carried to the Su-
preme Court of the L. s. which has just
sustained the decision of the District Court
as above Intimated. Well, it is hard, IN
several respects. It's hard tina. the people of
Ottawa and South Ottawa must pay so large
a sum for which they get nothing in return; ;
and 1t Is hard in another and really more Sc
rious aspect. The Supreme Court of Illinois
had in two or three cases unanimously decid-
ed that these bonds were worthless; and the
decisions of the Supreme Court of the United
States can be cited by the dozen in which
that tribunal has uniformly held that
where the highest judicial authority of state
makes decision on question involving the
validity or construction OF its own laws. the
Supreme Court of the L. s. will abide by that
decision There was not point, or sem.
blance of one, in this case, to take it out of
that broad rule
Yet the Court, by rote of to a, in this
ship Of it consists in the fact that the uniform
decisions OF the Court heretofore encouraged
the towns at heavy expense to engage IN
this litigation, and now the Cour: does them
the injustice TO reverse its long recognized
rule. If the courthas not self-respect enough
to be consistent in its decisions, the law
should compel them to be, TO avoid future
cases of such palpable injustice.
The judges, it appears, who voted" for
the validity of these bonds were
Waite, Swayne, Clifford, Hunt and Strong,
all but one appoinlees, we believe of Grant,
and men, too, as report said, who had been
appointed for purpose and on pledge TO
decide in certain way. The judges who
dissented from this unjust decision were Brad.
ley, Field, Miller and Davis--confessedly so
far as brains go, the heavy weights of the
Court
There is some prospect, we are told, that
new hearing may be granted; but, upon the
whole, we guess our people had better get
ready to pay up.