The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1879-03-29
WATER POWER BONDS.

!
in the case of HaclcH Is. Tie CITY IF Otto,ro,
has decided that the city must pay the water
power bonds issued to W. II. Cushman, in the
name of the Ottawa Manufacturing Company
in 1870, to build certain dams and otherwise
! improve the water power "a Ottawa. ThcCou-
tract Of the city with thccomplny wa, thof the
dams should be built in substantial manner,
kept in repair and made permanent The cS-
innate at the time wa, that the dams with a
sufficient race to unite the dam Of the Illinois
with that of Fox River on the same level and
make them substantially one would cost from
100000 to $4,000. The city voted 10 the
company $4,000 as Il bonus towards under.
taking this work, and before the work wa, be
gun voted $4,000 more TO the company rs in.
tcrcSl on the bonds for two years, (Which lat
ter have since been paldJ The company let
the work on Il contract to build the two dams
at Il cost Of about $4,000, and with omcslight
expenditures otherwise, had, after paying for
the dams from one 10 two thousand dollars
left, which the members, four or five in mum.
Der, divided among themselves The Dams
were so ilimsIly built that within two years af.
ter their completion the one in the lllnol, was
partly destroyed by the spring food, and after
wards the Fox dam was also 50 damaged as 10
be useless. \ few hundred dollars could have
repaired and saved the latter dam, and ten or
fifteen thousand could have restored the other
But the company, even alcrp Ockcting Il tnous-
and or two of the money given them by the
city, refused 10 cXpcnd the few hundred dol
lars to save the one dam, to say nothing Of the
few thousands to restore the other. Under the
circumstances the city, with the understanding
from the beginning that It's power to issue the
bonds was questionable and that the company
must rely on ITS own good faith IN rcdccming
its engagement with the city fortheir ultimate
payment, refused, aitcr1Si3, topay any further
interest on the bonds.
Mr. William IIcwcy IIackctt citizen of
Maine, happened to have come into pos
session OF few of these bonds 0hc bulk of
them are understood to be held IN Ottawa and
commenced Il proceeding in the [. :. District
Court at Chicago, before Judge Blod-cu, to
enforce their payment The dcclsion wa,
against him, but an appeal being taken TO the
Supreme Court Of the |. s., that court decided
that as the bonds by their recital of the titles
Of the ordinances under which they were IS
sued assured the purchasers that they were to
be used for municipal purposes, with sanction,
duly given, of majority of the legal voters of
the city, this relieved the purchaser Of rcspon-
sibilty Of making personal examination, Ill
was, in effect, Il declaration by the city 10 the
purchaser that he need not examine the ordi.
nanccs, The city is therefore eStopped by its
own representations, from maintaining as
against Il bona idc holder Of bonds that they
were not ISSUED for municipal or corporate
purposes
The case comes now back to Judge BlOdgctt
for trial under directions of the supreme court.
We understand at that trial other points will !
be presented Upon which reliance Is placed |
still to avoid payment of the bonds, but as to |
the natrrcof these points we are unadvised |
Our impression, however, is, that the people of
Ottawa would prefer to have no further itiga-
ton on the subject, but with certain rcasona.
BILE concessions ON the part Of the bondhold-
crs, to pay the debt. For instance, the owners
Of the bonds got them at adiscount; they paid
no taxes on them in the last seven years; ten
per cent is an cXOrbltant rate of interest &c |
The city ought to be able to effect reasonable |
with the holders of the bonds. AT. |
er that it would be no more than Justice that |
hey should be paid, rs they are probably now
mostly in the hands of persons who took them
N good faith. Were they still in the hands Of
Col. Cushman or other members of the social |
ID Ottawa Manufacturing Company doubt.
css the case would be very different
Nor need the city be II loser TO the full en-
ent Of the amount Of the bonds. The Fox
lam is still worth a few thousand dollars and
he half Illinois dam and the work on the 9th
II half still left are worth quite a sum also.
Then it is Il question whether the company
,ould not be held for an assessment on its
stock, of which We believe not II dollar was
,vcr paid in Besides all which Col Cushman
conveyed to the company quite valuable real
state, and the company obtained other valua-
DE rights by the condemnation otccrtain lands |
Il would seem, at least that by proper pro |
,ccdng, the city ought to be able to get pos. |
session of this property and ultimately save
quite penny 10y It's conversion.
ADVICE GRATIS OF \ STAI.wART. The |
Strcator WOHit0rIader, II stalwart republican