Page:Federal Reporter, 1st Series, Volume 8.djvu/216

 202 FEDERAL REPORTER. It further appears that two private corporations had been char- tered or created by the legislature of the state of Illinois, with power to improve the water power of the Fox and Illinois rivers in the immediate vicinity of the city of Ottawa, and that, by an act of the legislature, approved February 19, 1867, certain persons had been appointed commissioners to subscribe for and in behalf of said city, to the capital stock of one of said companies, the sum of $100,000, and, for and in behalf of the city, to make, execute, and dispose of bonds to the amount so subscribed. On the twenty-sixth day of July, 1869, after the adoption of the ordinance in question and its ratification by the voters, a committee was appointed by the eommon council to confer with W. H. W. Cushman, and negotiate with him in relation to the proposed water- power improvement on the Illinois and Fox rivers in the vicinity of the city. It is also fairly inferable, from the proceedings of the city council, that either before the adoption of the ordinance for the issue of the bonds, or during the discussions in relation thereto, a propo- sition had in some f orm been made that the proposed bonds should be placed in the hands of W. H. W. Cushman to be in some way used by him in making the proposed improvements, Mr. Cushman being at that time a wealthy and influential citizen of Ottawa. On the twenty-seventh of July this committee reported to a regu- lar meeting of the eommon council that they had a full and free conference with Mr. Cushman, and on the subject — " Understand. him to be prepared, in consideration of the proposed bonus, to enter into an agreement or arrangement with tiie city substantially as fol- io ws: He will agree in writing to erect as soon as practical, by the use of all reasonable energy, a good, substantial, and saf e dam to bring into use all the available water-power of the Illinois river at Ottawa, and to construct suffl- cient head-races and tail-races to make all the water-power created by said dam available for use as rapidly as called for; also to erect the proposed dam across Fox river to unite the wuters of the Fox with those of the Illinois, as soon as such improvement may be found necessary to bring into use all the available water of both rivers at Ottawa." And the committee recommended that an ordinance be passed directing that the bonds for $60,000 recentiy authorized to be issued be placed in the hands of Mr. Cushman, to be used by him for the benefit of the city in developing the natural advantages of the city for manufacturing purposes ; and at a special meeting of the eommon council held on the twenty-ninth of July an ordinance was adopted directing the mayor of the city to issue the bonds contemplated by the ordinance first mentioned, —