Samuel Blatchford

“ Although an acknowledgment need not, under the Kansas statute, amount to a new promise, yet the rule is applicable: that an acknowledgment cannot be regarded as an admission of indebtedness where the accompanying circumstances are such as to repel that inference, or to leave it in doubt whether the party intended to prolong the time of legal limitation. ”

“ The city council of Fort Scott address this to each person holding bonds of the city of Fort Scott, Kansas, with a view to bring about such an amicable adjustment of the indebtedness of our city, if possible, as will be fair to the bondholders in view of our circumstances, and at the same time be such an one as the city can reasonably expect to be able to meet. Nearly all of our county, city, and school-district indebtedness was incurred at or about the year 1870, which was what would be called our times flush, when money was plenty and property of ready sale at good figures. ”

“ From this statement it will be seen that the ratio of our total indebtedness to our assessed valuation is about 40 per cent. Of our indebtedness, our school-district, bridge, and funding bonds bear ten per cent. interest, and for these the city has had something in the shape of value received. In the matter of our railroad 7 per cent. bonds, however, both county and city, the universal sentiment of our people is that we have not been rightly treated. Each of the railroad companies promised that their machine shops should be built and located in Fort Scott. ”

“ That the class of bonds sued on herein are described on their face as 'special improvement bonds,' but were commonly called 'Macadam bonds' by the holders thereof, and by the officers of said city, and were issued by said city in payment for macadamizing certain streets in said city.
On the foregoing findings of fact the court held, as matter of law, that the plaintiff was entitled to recover on the bonds $26,385.23, and to have judgment accordingly, and judgment was entered for that amount, to bear interest at the rate of 10 per cent. per annum. The defendant has brought a writ of error. ”

“ But this applies, necessarily, only to those who hold bonds which are to be compromised and refunded. There is nothing in the circular letter which makes, or which evidences any intention of making, an acknowledgment to holders of Macadam bonds. In view of all this, the placing in the list, under the heading 'A statement of our indebtedness,' of the item, 'city special improvement bonds and accrued interest, 45,000,' cannot be held to amount to an acknowledgment to the plaintiff of any then existing liability to him on the Macadam bonds he held. ”

“ To effect this compromise we will need new legislation, and, in obtaining this, we propose and suggest the following provisions of law, as a protection to the holders of the compromise bonds against a subsequent overissue, which might compel a new compromise, to-wit: A tax levy for interest, to be made annually, sufficient to pay the interest then due. At the end of 10 years one-twentieth, or five per cent., of the principal to be collected, and for each year thereafter, until the whole refunded debt is paid or liquidated. ”

“ Canada Southern R. Co. v. Gebhard, Id. 527; S.C.. 3 SUP. CT. REP. 363; East St. Louis v. Zebley, 110 U.S. 321; S.C.. 4 SUP. CT. REP. 21. The trial being without error, if the finding is sufficient, the same judgment is to be given as would be given on a special verdict. ”