The Council Bluffs nonpareil. [volume] (Council Bluffs [Iowa]) 1857-1867, 1857-06-06


their address 1t this once, or give 1t to the Cal.
nE1. See tsrms It the head Of Paper.
ts73 The Railrssa Lem.
One week from this date, the qualified
Foters Of this county viii have to decide an
important practical question, and it may be
pertinent to ask, If they are fully prepared
Q meet II Understandings. Az We believe
I i fully conceded, and the precedent long
since establiahed, that counties have the
right, in then corporate capacity, to SUBJ
scribe to the Capital Stock Of similar cor
porations, the issue simply resolves itself
into the significant question: ssShall the
County Of Pottawattamie subscribe three
hundred thousand dollars to the Capital
Stock Of the Mississippi and Missouri Rail-
road Company" We do not wish to be
unde1tpod as il any way attempting to die
tate the sDnrse that ought to be pursued in
relation to this question, as ouspqH desie
is, to state the issue rs it exists and the
reasons why we think it would be fOicy to
vote for the loan. Affair as we have heard,
or are cognizant of tRg OBJ ections against
the proposed loan, the only one urged, is
the untenahle one of an increase Of tax
This, at afst sa,M, would seem to be an in
surmountable objection, but upon closer
scrutiny, it proves to be devoid of signif-
canoe. The Bonds, as set forth in the PROF.
Iamation Of the County Judge, are not to
be issued, until the road is actually under
process Of construction within the county;
further, the said Bonds wiH not draw inter
est until after the company have n 6tiated
them. After they have been negofi1ted, the
Company guarantees to the county, payable
in stock, eight per cent. per annum on the
stock subscribed, until the completion Of the
road. If tho road is not completed until
one year after the negotiation of the Bonds,
the County will be entitled to, and receive
So, 900 more of Stock, making the total
1924 900. The interest on the Bonds for
$500, 900, at 10 per cent, amounts to $780,
900, of which amount, the County receives
from the Company the value Of $24, 900,
thus leaving the county ST, 900 of real inter-
est to pay. Therefore, it will be seen, that
at the most liberal calculation, the county
pays out but sir thousand dollar, for the
first year, without securing an ostensible
and nominal equivalent. At the expiration
Of that term, if the road is completed, as it
undoubtedly will be, the county will receive
the dividends on its Stock, the same as any
other stakeholder. During the past year,
the road now running fifty miles, has Melted
the Stockholders dividend Of Sper cent.
over and above all the expenses Of improve
ments, and we understand that it is now
earning, on an average, t,oelre hundred dol
lars per day. Allowing that the road will
declare dividend of 8 per cent. per an
mum, very liberal calculation truly, the
county will receive her dividend on the
whole 1924 900 stock, while she pays inter-
est on but $500, 900, showing the following
result:
Interest County Bonds for $500 at 10 Pc. cent
Dividend on 1891. 900 Capitol Stock, at sper cent 49,.
per annum % go
S. osO
thus leaving the county but 5000 interest
to raise by taxation. But should the Com
pany declare dividend of 10 per cent, a
result in no wise improbable, there would
then be left to the county, an excess of 81
400 on the earnings of the road over and
above the interest accruing on its bonds.
Now, to raise the remaining interest, al
lowing that the Road declares dividend Of
but per cent, without levying any addi-
tional tax upon the citizens Of the county.
is the desideratum. We believe that the
Code of Iowa provides, that the whole
Stock Of Railroad Company may be taxed
at either terminus of the Road. Now, we
understand, that the Company has signi6ed
its Willingness to allow this county the priv
ilege of taxing one-ha!f of the entire, pro-
vided the County votes to take the proposed
$500, 900 stock. Thus it will be seen, that
If the loan is adopted, the county thereby
secures to itself, the privilege of taxing one
ha!fo astupendous enterprise.
Now, If the Railroad and its equipments
cost $l5, 0OO, 900, and this county is allowed
to tax one-ha!E, that is $7,50O, 900, even at
one mill on the dollar, would amount to
sufficient to make up the additional amount
over and above the dividend of the road,
necessary to pay the interest on the bonds
of the county. Then too, the company has
large grant Of land lying in this county,
which is not now subject to taxation, nor
will not be, until it comes into the hands of
the Company. This will not take place un-
til the road is in actual process Of construc-
tion in the immediate vicinity of the lands
granted. Now, upon the approaching COM
pletion Of the Road, these lands will pass
into the hands of the Company, and win be
subject to taxation at their nominal value
say from $40 to SIS per acre.
The tax upon this land, at its increased
value, would amount to several thousand
dollars. Taking this view of the subject, and
We think it is nearly correct view, that SO
far from the people of the County having
m additional tax imposed upon them, the
rate per cent. would actually be less than at
present. This too, without taking into con-
sideration the increase in value Of property
throughout the county, and the additional
influx Of capital that is sure to follow tho
advent Of the Railroad.
There is one other objection urged against
the policy Of the County taking stock in the
Mississippi and Missouri Railroad Company,
and that is, that the Railroad will be built,
whether the county decides to take stock or
not. Tint may be true; At any rate
we arc not disposed to dispute it. The
question, il, then, win the road be compile
ted at Is early day, If left to shift for itself,
~ it would, # it met with the encourage
ment now asked of this County. We do
not believe that this can be answered in the