Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-01-24
ANOTHER VICTORY.
a BOND DECISION THAT SAVES THE
CITY A VAST SUM.
Judge Hunts Late Judgment Affirmed
by the Supreme Court-Nearly
$1,000 Saved.

The most important decision that the
Supreme Court has made in many years
affecting the interests of this city was
handed down yesterday. 1t is one of the
city bond cases, and afirms the judgment
rendered by Superior Judge Hunt-that
coupons do not draw interest after matur-
ity. The decision is by Justice Works,
and is concurred in by Justices McFar-
land, Fox and Patterson, Justice Thornton
alone dissenting. Its text is as follows:
THE object of this action is the same as
Bates VS.. Gerber, No. 1899, opinion filed
January 16, 1890, the case referred to being
mandamus against the Treasurer to COM
pei the payment of interest on overdue
coupons, and this is an action directly
against the city to recover such interest.
We held in Bates VS.. Gerber that the cou-
pons did not draw interest after maturity,
and the decision in that case is decisive in
this. 1t was held in Davis VS.. Yuba
County, rs CAL, 452, that the coupons of
certain bonds issued by said county bore
interest after maturity, but that case diff
fered materially from this. Here a specific
fund is provided for the payment of the
bonds and annual interest and nothing
more, and no other means OF paying any
thing more is provided. In the case cited
it appears that the county was made gen.
orally liable to pay the bonds and interest,
and if the fund specifically provided for
their payment was insufficient, the Treas
urer was authorized 10 draw on the general
fund, and if that proved insufficient, the
Board of Supervisors was authorized to
raise the necessary funds by contracts or
loans. As the county was made generally
liable for the annual interest, and means
provided for meeting it, we see no reason
why the county should not have been held
liable for interest on the coupons if the
same were 2ot paid at maturity. But for
the reason stated in the opinion first above
referred to, we are of the opinion that no
such liability attached under the circum-
stances of this case, and that for that rea-
son the demurrer to the complaint was
properly sustained"
GREAT VICTORY.
Both A. P. Catlin and W. A. Anderson,
who have figured prominently in the city
bond suits as counsel for the city, assured a
RECORD UNION reporter last night-when
informed of this decision-that it was a
great victory for the city. They both said
it would save to the city close upon $780,
600 that the bondholders have been en-
deavoring to get in the way of interest on
coupons that are past maturity.
If the Courts had decided in favor of the
bondholders the result would have been a
hard blow to the city, but as it is, the latter
comes out of the severe struggle for the
supremacy with flying colors.
THE MAYOR JUBILANT.
Mayor Gregory was also agreeably exer-
cised on being told of the good news.
THAT decision" said he. virtually
breaks the back of the bond litigation. 1t
places the city squarely on top in the fight,
and leaves her in a position to make almost
her own terms with her creditors"
What proportion of the debt is still un-
matured? ?" the reporter asked.
'Only about $500 600. replied the Mayor,
'and that will mature three years from
DOW. The holders of these past-due cou-
pons that can bring no interest will now
naturally want to dispose of them on the
best terms. The city is in the market as q
buyer, represented by the Funded Debt
Commission, and as nobody else wants to
buy reproductive paper, the owners will
be glad to take reasonable figure from the
city. If the Commission takes advantage
of the situation and manages the business
with the same good judgment displayed in
the past, the city will soon be out of the
Slough of Despond in which she has been
laundering these many years. Oh, it's a
big thing, tell you, for our taxpayers !"