The daily journal. (Salem, Or.) 1899-1903, 1901-05-16
BUSINESS VIEW
OF THE ANSON BOND
II Was Not Executed TO Secure the
City Against Damages.
But as Forefeit Money for Non
Performance of Contract.

point Of a layman, the matter OF the suit
Of the City Of salem agoinst the Fidelity
& Deposit Co. Of Baltimore, offers some
considerations TO the interested citizen
not common to the general run of
1 i,at;on.
The sction OF the city being based upon
the bond for 5000, furnished by Mr..
Anson, as principal, and the Fidelity 4
Deposit Co.. as surety, I gave the text
OF the bond q business-man's scrutiny TO
ascertain, il possible, the predicate upon
which the city relies for recovery, and
while my conclusions may differ radical.
" from those Of the attorneys engaged
in the prosecution and defense OF this
suit, and even more broadly from the
fnal decision Of the Judge closing the
matter, ! would ike 10 state the in
ferences that remain with me after the
analysis: To determine the true nature
OF bond the terms and tenor of its
CONDITIONS must be carefully and
Justly weighed; and in this instance the
text Of the conditions are 90 simply and
plainly set up, As TO preclnde all
ambiguity and 6x exactly, (in the mind
OF man Of business, at least,) the
purposes for which the instrument was
given; rs witness the wording
The condition Of the above obiga-
ton is such that,
"W hereAs, the above bounden Frank
lin X. Anson, has entered into q certain
contract or agreement with the said city
Of Salem, through and by means Of the
| pas sage by the Common Council and
approval by the mayor Of the said city
oi salem, OF certain ordinance, known
AZ Ordinance No. 37S of sail city OF Sa-
/ lem (; and the acceptance Of the provisions
Oi the said ordinance on his part, whore.
/ by the said Franklin r. Anson under.
takes and agrees to install within the
said city Of Salem, Oregon. an electric
/ plant having 2 maximum capacity OF az
least one hundred horpe power, on or
before the lst day Of April, A. D., 1901.
and that the said plant shall be in actual
operation on said date, now therefore, II
the Faid FaPLklin r. Anson, or
his successors and assigns, shall well
and faithfully, duly and fu ly, perform,
complete and discharge said contracts
upon his, or their part TO the extent Of
installing within the said city OF Salem
an electric plant having a maximum
capacity at least one hundred hOrse-
power, and shall have the same in actual
operation and in condition 10 furnish
electric lights or currents 10 customers
along the route OF its lines, upon the
tlrst day Of April A. ID. 1902, then this
obligation shall be null and void and Of
no effect, otherwise 10 remain in full
force and virtue"
There is not, iu the whole OF this
text, one single declaration or refer.
ence TO DAMAGES: The bond was
not demanded nor given for the pur.
pose Of fixing or secering the payment
Of DAMAGES: 1t is forfeit, pure
and simple, for the non performance Of
an express contract, Ii is a penalty,
set up in unequiyocal Enlgish, to be paid
by person, Tor his surety for the fail.
ure te DO certain and specific act, by a
certain day agreed upon Mr. rAnson broke
his contract, failed in his agreement,
both in scope and time Of its terms, and
thereby becomes liable, land his surety,
as we'll to pay the sum OF the bond,
not by way OF damages, but upon the |
Identical basis upon which a defend. T.
ant In a criminal action in court be-
comes liable to the state, by reason q
his failure to appear in court for trial
when he has been admitted TO bail.
In the latter instance, the court, the
state, or any other interested element,
Suffers nothing in the line OF damage,
| II the defendant proves recalcitrant to
his bail-bond, but the State proceeds
against that defendant and his guaran.
tors upon penal grounds, as definite
punishment for the anton disregard
OF his and their engagement: Aud
when this is done, no one thinks Of
charging the state or court With de.
sire" 10 get someting for nothing. It
10 a well-established aud universally ac-
cepted, procedure for any neglet Of which
the taxpaying public would Justly CEN
sure the authorities: And the same
would be said OF the the city author.
tiles OF Salem had they failed to proceed
against Anson and his suretes. upon
his rank and Wiliul abandonment of his
contract to put in this electric plant.
That the city has been compelled to
sue for this 81, 900 need excite but little
wonder the tn de steele corporation.
such as this guaranty company that
vouched for Mr., Anson's performance Of
his contract, does not pay anything but
what the law compells it to pay; and if
by any access OF common honesty il
should realize its responsibility and nav
the sum it has forfeited, before judicial
eompulsion, It would depart vastly from
the uniform tenets OF corporate procedure
as known in this day and age; and
such as ae)nsummaton need scarcely be
apprehended: but the event would have
atWo-told effect, It would be an expires.
sion OF bnsinessintegTity aud wholesome
commercial goOd-tAith as would leave
the worli agape and build up the Ore.
son business Of the Fidelity ( Deposit
Company, OF Baltimore, Maryland in a
fashion Al once extensive and lasting
and do the city Of Salem, Justice
wholly commensurate with eysry rule Of
equity that may be quoted in cases Of
this kind.