The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1882-11-01
WATER POWER BONDS.

A dispatch was received in the city on
Monday from the Clerk of the Supreme
Court of the L. S, at Washington, annoue-
cling that the suit OF Cary VS.. The Guy Of
Ottdua, involving the validity Of about
$4,000 of the so called water power bonds
issued by the city IN 1870, known as the
"Cary bonds" had been decided in favor
of the city, the bonds beng declared void.
The amount OF the bonds with interest %
date would have been in the neighborhood
of 100000,
The decision, although relieving our city
of a heavy debt and wiplng out in fact sub
stantlally the last OF Its indebtedness on any
account, is not the source of any particular
Joy or satisfaction to most of our people.
The money on these $4,000 of bonds, as
on the body of the 100000 OF which they
were part, was paid IN good faith, and
though the city was swlndled in the cree
ton OF the dams in aid OF which they were
issued, the holders Of these bonds had 70
part or lot IN the swlndle and gave their
money not only with the impression that
they were making safe investment, but
with the further idea that they were really
contributing to the prosperity of the city.
To "go back" on the payment of bonds
issued under such circumstances ard es-
peciully to public spirited citizens of our
own whom the whole city holds IN the
highest estimation, certainly has a bad
look about it, and is a transaction from
which the city can gain no honor.
Yet the city is not without pleas in ey.
tenuation. Two years ago very earnest ef.
forts were made by the city council TO set.
tie with the holders of these bonds. They
were past due, the city had really received
nothing for them, its finances we're at the
lowest stage, yet it offered to take up the
old bonds and issue new ones for them, TO
include full interest, we believe on the old
bonds and the new to bear a lower rate of
interest For reasons which we could new.
er fully understand the city authorities end
the attorneys for the holders OF the bonds
were unable to .gree and the proposed
compromise fell through, resulting IN this
suit which was commenced in the United
States District Court at Chicago July 10,
1881, by Cary against the city and which
has now terminated in the decls sion of the
highest court IN the country that the bonds
are null and VOID. The result is unfortu-
nate IN this respect, that it places il out of
the power OF the city hereafter to pay these
bonds either in whole or IN part, for no
such payment could ever be made without
the levy oil tax, and any one taxpayer
could at any time enjola the collection OF
such tax.
SO far as concerns the "laurels" won by
attorneys In defending this important suit
for the city, no doubt city attorney Molon-
ey is entitled to the largest measure. The
city placed the suit IN his charge and gave
HIM Samuel Nicholson of this city and
Lawrence, Campbell & Lawrence of Chi.
cago TO assist him, and while the assist.
ants, as older lawyers and of established
reputation, Will no doubt receive the Chiel
credit for the success, it is nevertheless
true, as 1t generally Is in such cases, that
the younger and comparatively unknown
attorney did most of the solid thinking and
about all the hard work.