The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1881-02-26
THE WATER POWER BONDS.

| ! nc CASE ~ W w, H. l"'y w y" S"g "
Oitalna, in which the plaintiff seeks 10 recov
or principal ana interest al some $40 oO0 worn
Of the welt knoWn "Wac' prMcr' bonds ISSUED
in 1869 lN this city, raine on tor trial IN The
L. ), Dl>'rcl Conr--JUdgc B'mlE't-M chi
cage un Wednesday. Hons, g. Eldredst
and j, d, Cation appayd tor the pI"int'il, and
Judge Lawrence of Chicago and Mayor kch
olson AMI C,iy Attorney Mnl"ney nj Ottawa
appeared FIR the defence Ga The CASE being
duly opcn.d. Iudg, E'drrds" proposed to put
IN, ~ ,he evidence of hi, claim, The said "a
or 50 bOu,ls tor $500 each IN question. Judge
Lawrence objected, on the ground that the
boLds were made pa, able to W. II. w. Cush.
man or bearer, and that hy the laws Of this
Stale, notes, bonds. &c., 80 made payable could
pass only 10y endorsement by the payee therein
named, notwithstanding they were also made
payable 10 "bearer" Judge Lawrence quoted
an Illinois stalule 10 that effect, and numerous
decisions OF our courts recognizing and sus-
tanning it. The opposite party seemed to lie
taken by surprise and were evidently at n loss
how u meet the point The Judge WAS inclin.
cd to regard the point d. well taken, but SAID,
rs il was u mailer of considerable importance,
he would adjourn tue courl-it being IL
IOclock-fOr two hours, and in The meantime
look il MP. Ga the rc.assembling Of the court
a, 9 o'clock Judge Blodge,t sand there WAS no
doub, thai the law in Illinois WAS as claimed
by Judge Lawrence but the L. 5. Courts, he
found ON examination, held ditfcreully. and he
nstauced Pennsylvania case, and one or two
Oth9rs, which had been taken up 70 the Su'
prcmc Conrt of the U1ited States for final de-
termination, III which 1t hal been held that
paper like county, city and town bonds, though
made payable to q particular corporation or
individual, if they were also made payable to
"bcarer," under the rule recognized by the
great commercial world in such cases, chang
ed ownership by the mere act of delivery. The
Judge therefore allowed the bonds to go in,
and the trial to go on. The opposite party
might have replied 10 Judge Blodgett, that
while the f,dcr,l courts, consistently with the
tendency on the part of all the federal au.
thorites to belittle and ignore state usagcs aud
state laws, no doubt paid little attention to de.
cisoas of state courts on such question, yet
they had never gone TO the length of overrul'
ing or ignoring statute Of sovereign"
state. However, Us the motion of Judge Law.
renee was only dilatOry in It's nature, and III
sustained, could only have compelled Cary to
take u non SUIT and begin anew in another
name the decision was probably ofno great con
sequence one way or the other, though, If tax.
en- up to tho Supreme Court of the T. s., as
the case doubtless will be, It may make a
strong point for the city. Judge Lawrence
also objected to the admission of the bonds on
the ground that the law under which they
were issued had been disrcgsrded in their moi
having been issued by commissioners" ap'I
pointed tor that purpose, but consented to
waive the point until he came 70 the argu.
ment.
The admission Of the bonds constituting the
case OF the plaintiff Mr.. Maloney, on behalf
of the city, stated briefly the points and evi.
dencc they relied upon on that side This
consisted in the introduction OF 4 series OF
statutes of the legislature, ordinances and pro
cecdings Of the city council of Ottawa. the
contract with Col. Cushman, evidence of its
authenticity evidence in regard to the trans.
fer of the water power contract from Cushman
to hc"Ottawa Manufacturing Company" &c,
&c. The whole of Thursday was taken up IN
81
most Of yesterday In the argument; and then,
no doubt, Judge Blodgctt, after the trial Is
closed may want week or a month TO make
up his mind how to decide.