The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1904-04-14
Finance Committee to Meet
Again to Take Up Compromise
Roberts a Co. 10 Force a Trial in
the $40. 900 Damage Suit
NJ. S. Court
CITY WANTS TO COMPROMISE

III III tOtiOAhOW 'fNhbat W ItflfOnN
OF considering the matter Of compro.
missing the Roberts & Co. bond suit
against the city. The city officials
have repeatedly refused heretofore to |
compromise the case. and the sttor-
neys for the bond company are going |
10 force a trial OF Il this time. and
the administration is becoming
alarmed.
The suit 10 for %, 9i5 damages, but
the total amount in interest and costs,
should the city lose the case, will he
q great deal more than $4,000. The
suit was brought several years ago as
a result OF IA breach Of contract on part
OF the city. There were about s65, 900
In bonus which the city decided to re.
fund at . lower rate OF interest, and a
contract. after the usual prelimi
naries, was made with Roberts 4 Co.,
OF New York, to take ths new issue
when the time arrived for refunding
the bonds.
In the meantime some OF the city
officials decided that the bonds might
be refunded at . still lower rate Of
interest or that the rate already agreed
ON was too high. ana the old question
that had been ignored by the Republi-
eau council. and which had for the
sake Of the oity's good name and In
tegrity never been seriously considered
by any Observation-Disclosures of the
bonds validity-was then sprung by
the city officials with n view Of de-
feating the refunding Of the bonds.
The allegation was that on account
OF some trivial technicality the bonds
were illegal, and could not he refund.
ed 1T any rate OF interest. This
opinion was rendered by City Attor'
nsy Lightfoot. aud ON the strength OF
his advice the city refused to comply
with its contract with Roberts & 90.
aud the bonds were not refunded.
Roberts & Co. was willing to CON
cede hat the city officials had acted
in good faith, and offered TO compro'
mise for s576, the amount OF aetna
expenses In sending q representative
to PaducAh, printing the bonds sn'
other costs, but the city declined q
pay even this small amount.
In short time. when the intercs
on the bonds which the admipistra
ton had decided were illegal. Eel
due, some Of the able tinanciers in tn
council sprung the point that as Oh
bonds were ille gal according to tb
city attorney. IL would be illegal &
pay any interest on them, so the,
completed the reputation by refusing
TO pay the interest.
The innocent bondboldcrs, most o
whom live In st. Louis, then brough
suit and won 1t. Judge Waller Evans
ia federal court. held that the cit
was liable In every particular, an
that as the city had gotten all tn
railroad had promised. had resped a.
tho benefit from the bonds. and ha
lodged the debt by paying IN
terest on Il for many years, that
was nothing more than right that th
city should comply with her part
the contract. The total amount G
interest and costs had by that time az
cumulated until it amounted to abou
els, 900, which has never yet been pal
by the city. tho banks here taking u
the coupons for the city.
Roberts & Co. then sued for breao
OF contract, claiming that tho bond
Psducah contracted to refund and SO
the company had been sold in sdvanC
by the latter at profit Of over ~, OO'
for which amount they ask damage
The case has been dragging along Il
several years, and the bond company
attorneys are going to force a trial
il this time, and say that IL is evidoi
from Judge Evans decision In the II
terest case involving the city's actie
relative to the bonds that Roberts
Co. has good case.
The last proposition to compromi
was for 2.00o. which the city rejec
ed, aud now that ii has become eS
dent that the attorneys are going
push the case, the city officials a
preparing to take up the compromi
again.
One of the attorneys for the Dol
company stated today that so far
his clients are concerned, they o