Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1882-03-29
The TOsCn Bone Salt.

Under the above caption the last Fort
Atkinson Union publishes the particulars
of the late decision of the U. S. Supreme
Court in favor of that place. AS the case
of Fort Atkinson is somewhat analogous
to that Of Watertown we copy the article
entire for the benefit of our citizens:
Recent information discloses the fact
that the decision of the u. S. Supreme
Court in favor of the town, is of much
more Importance than was first supposed.
As the decision affects many other cases
of like character, we will give full state
ment of the matter as it appears that
there is some misunderstanding as to its
scope and Importance
In 1857 the town of Koshkonong issued
bonds to the amount of $50, 900, in aid of
what is now the Northwestern Railroad
These bonds were OF the denomination OF
s., 900 payable in twenty years each, with
interest coupons attached. In the course
of time, all the bonds were taken up by
the town, except two, the ownership of
which for long time could not be ascer-
tanned. Finally they were discovered to
be lodged in the hands of one Oscar A.
Burton, of Vermont. Negotiations were
entered into for their payment, but owing
to the fact that Mr.. Burton demanded not
only the face of the bonds and interest,
but interest on the interest as well, nego-
tiations we're blocked. The town Super
visors took counsel of Hon. l.. B. Caswell
and offered $4,000 for the bonds. This
offer was rejected. Finally they wrote
to inquire if he would take $4,000 but he
still refused, demanding Shylock-like
the full interest. This the town refused
to pay, and suit was commenced in the
u. S. Circuit Court at Madison in May.
1880, for $500 by Mr.. Burton. In this
court Mr.. Caswell appeared for the town,
and set up the plea that the coupons
were simply notes given for interest, and
as such, were subject to the Statute
of Limitations which barred payment af-
ter six years. The case was decided
against the town, and an appeal to the
q. S. Supreme Court was taken. The
position taken by Mr.. Caswell as attorney
for the town, was new one, and all the
lawyers of his acquaintance believed he
would not succeed. Strong in the be-
lief that the doctrine was sound one,
he prepared for the Supreme Court
powerful argument in support of the the
DRY that the owner of the bonds was bar
red by the Statute of Limitations from
taking interest beyond six years previous
to the time the action was commenced
The Supreme Court sustained him on
every point taken. The amount obtain
ed in judgment in the Circuit Court was
$500 with COSTS The amount awarded
by the Supreme Court against theztown
is $1,000 without the payment of costs; a
saving to the town of $5000
The decision is of immense Importance
to other cities and towns. The city of
GAINESVILLE is defending suit on bonds,
also issued in 1857 land hundreds of other
cities and towns like Kenosha, and Water
town and Waterloo, in this county, are
greatly interested in the effect of this de
cision 1t will learn holders of bonds
that they cannot lay back as did this Bur
ton until near the time the bonds become
due, ard then claim interest on interest
or the full life of the bond IF they ex-
pect to keep their interest coupons alive,
they must present them for payment with
in six years after due, or they are forever
barred. BY the successful prosecution of
this suit, Mr.. Caswell has proved himself
to be one of the foremost lawyers of the
state, in the breadth, soundness, and GER
tainty of his legal Judgment.