The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-07-26
A TOWNS BONDED DEBT.
How Elizabethtown, KF,, Has Been Fight
ing off Her Creditors Brought
to Bay at Last.
louisville courier.JournaI ]

4 mass meeting Of the citizens of Elizabeth
town, KY, Was held Ia the courthouse on July
fifth last TO consider some plan by which q
final settlement OF the town 5 bonded indebt-
edness Ia aid OF the ElizahetE5own and Pa
dueah Railroad could be effected 10 prop
erly understand the preGieaEaenb IN which the
town Is situated it will be necessary 20 give
brief resume OF the proceedings OF the last
few years in regard TO the collection OF the
interest on the bonds.
The town, at q vote taken in 1868, we think
by an overwhelming majority decided to issue
bonds to the amount OF $4,000 III aid of the
construction OF the EEizabeJhtown and Pada-
eah Railroad. This vote was obtained by the
representations Of those most prominent in
the enterprise, that the principal machine
shops OF the road should be located there
The bonds were issued TO the road and all
sold oY the corporation, and stock IN the road
town. On these bonds the interest. at per
cent Der aIlnura, was paid up to 1874, when
the Cecilian branch OF the Padueah road
was completed and the trains ran through TO
Louisville. OF necessity the machine shops,
such as they were, were built ia this city,
none having ever been erected az that place.
Then it was that the people OF EhZabetht0wn
refused to longer pay the interest on the
bonds, claiming that the management of the
road had violated their contract In erecting
the princi pal shops in another place. DrexaI
Morgan Il Co. and Hailgarten i Co., which
firms had become the possessors of about
$40, 500 worth of the bonds, then brought suit
against the trustees OF the town on the an-
paid coupons, and, after a hardly fought battle,
Judge Ballard decided the case in their favor
and rendered q judgment against the trustees
for about ST. 500.
When this Judgment was rendered the trls-
tees resigned, and the town was without city
government, and, though successors have
been elected each year, they have repeatedly
refused to qualify. After their resignation
the bondholders began a series of efforts to
compel a levy 5S Ptasgs Ptas their islftasra ent
and to this end procured q mandamus to be
issued by the Federal court compelling the
trustees TO levy the tax The trustees were
summoned before the court and responded.
Judge Ballard held tnat their resignation was
not good, and that they were trustees until
They were put under bonds OF $1,000 each
and again ordered to make the levy.
| Upon their return home they met appointed
an assessor, and decided on a levy ct six and
one-haH per cent, or S6 50 TO the hundred dol
lars worth OF property, to pay the iudg-
ment When the levy had been completed
they appointed several collectors, but each
one in turn refused TO qualify or give bond.
They even went so far as to advertise for a
collector, but no one responded to the call
When the rule against them was returnable
they appeared before Judge Ballard, reported
| their action and he very promptly discharged
them The bondhoiders then advertised for a
collector, offering twenty per cent, but
no one WOuil uiIl4sI bssho bAS JOG. III
despair Of ever getting anything by
this plan, the bondholders hit upon
another scheme. They based their plea on
the ground that the execution against the
trustees having been returned, mo property
found" and that they had made a levy OF a
certain sum, those levied on were Indebted TO
the trustees in the sum levied, and they We're
sued by way of garnianment, and prayed that
the garnishees be compelled to pay into court
the amount of their Indebtedness to the trus-
| tees in discharge OF the bondhoIders debt
were made defendants and garnishees, and
all who were levied upon were In
Guided, though not specially named
This plan scared the people. The question
whether they are liable under this new pro-
ceeding is still pending. On the call of tine
case, demurrers were filed to the action on the
ground that the face of the bond states that
| the town OF Eiizabethtown will pay such and
| such sum, when the trustes were sued for
| the debt. Other matter is set up in the de-
| nlurrers to virtually the same effect. Judge
Ballard has not yet rendered decision, but
| it is thought, and even Intimated, from
what he has been heard to say in regard to
other similar matters, that his decision will
| be rendered shortly, to the effect that the
action OF the bondholders Is well taken in
making the Individual taxpayers garnishees.
| Enc debt now amounts to about SI20,G60, In
etudlng principal, unpaid interest, tile iudg-
ment rendered and the costs. Various meet
ings have been held at different times to con-
slider the question OF compromise, but 10
IsetIied and definite plan could be agreed on,
and, after feeble agitation. the matter vas
dropped The trouble always was that there
were too many TO lead ia the dl1fsrsns plsnss