Town Bonds Held to be Invalid. In 1870 several towns interested decided to bond in aid of the Utica, Chenango and Cortland railroad company, and the Commissioners issued and delivered to said company their bonds. In return the railroad company commenced to grade the road and build bridges, but abandoned all work on its line, and the road has never been operated. The towns of Solon and Taylor in I878 refused to pay any further interest on the bonds, and denied that the so called bonds had any binding force against their respective towns. In 1881 these towns brought a large number of actions to procure their cancellation. Two cases were tried at the Cortland Special Term, held in October 1882 before Judge Murray. He holds the bonds void: 1st, because they were not sealed, as the statute requires; 2d, that they did not run the length of time the statute requires; 3d, that they had material changed by the wrongful affixing of seals, without authority or consent of the town. It is probable that other towns will now contest the validity of similar bonds. Cortland is interested to the extent of $146,000.
The above suits will probably be appealed.
Source: The Freeman’s Journal, Cooperstown, NY, 17 March 1883, p. 2, NYS Historic Newspapers.