The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1902-08-12
Opinion Of Judge Evans is Against
the City Of Paducah for Interest
It Virtually Means that Psducah Will
Have to Pay $4,000 or
Perhaps More.
A VERY IMPORTANT DECISION

Tho most important ueclslon ooh-
corning Paducah and the people OF
Paducah that has been rendered for
many years was received this morning
by Judge James Campbell, Of Camp
bell and Campbell, and decides that
the 800. 900 OF -the-river railroad
bonds are legal; that the city will
have to pay the interest defsulted on
since 1898, and all future interests,
and will have to pay the principal
when il falls due.
1t means, Furthermore, in the opin-
ion of several attorneys who are fsmil-
lar with the case, that Roberts and
Company, who contracted to refund
$50, 900 worth of city bonds, will be
awarded the SO, 900 commission they
would have made had the city COM
piled with its contract.
The history Of the bonds is that in
1887 the people on May 14th voted on
issuing 500, 900 Of city bonds to get
the st. Louis railroad to come here.
The railroad came here, the bonds
were issued and showed on their face
that they were legal and were legally
issued, and were sold in open market.
The city paid interest on them for
ten years, and no one questioned the
legality Of the bonds until 1898, when
= contract had been made to refund
portion Of them at lower rate Of
interest. Some of the members of the
Democratic council then in Office rails
ed the question of legality Of the bonds
on a technicality, claiming that
three questions were voted on on the
same day, while the law allows only
one.
The city attorney, Judge r. 7.
Lightfoot, gave it as his opinion
that the bonds were not legal, and that
they could not, accordingly, be re-
funded, and the council acted on his
advice, and refused to refund them,
thus violating its contract with Rob
erts and Co, Of New York.
When the interest next fell due, the
council was informed that as the
bonds were illegal, the interest on
them could not be legally paid, and the
city of Paducsh through Democratic
council defaulted on tine interest
Roberts and Company, who had al
ready sold the refunded bonds at a
profit of $4,000, and because Of the
city's action could not deliver them,
sued through Bloomfield and Crice. for
$40, 900 and damages.
The holders Of the bonds did not sue
for sometime, but finally il was agreed
that q test case was to be tiled, and it
was filed by Ohio weitzell, Of st.
Louis, trustee for money Of children,
which had been invested in the bonds.
Campbell and Campbell, of the city,
brought the suit, assisted by Shipley
and Shipley, Of st. Louis, and it was
tried at the last term Of federal court.
A Jury was waived, the evidence hoard
by deposition and 1t was submitted to
the court for decision.
This is the opinion received from
Judge Evans today. 1t is very vol
luminous, and after citing the facts.
declares that the city secured the
railroad, issued the bonds, which
are valid on their face, and paid the
interest on them. IL is absolutely
iniquitous, states the opinion, to at
tempt to escape the payment Of them
on such Himsy teohnioalities. The
amount Of interest involved Is about
o. 800 only, but it means that the
city will now have to pay the back
interest for four years, amounting to