Quasqueton guardian. (Quasqueton, Buchanan County, Iowa) 1856-1858, 1857-05-16

EE As next Monday week, the 25th
inst, is the time designated by the Coun-
" Judge for the County to decide at the
polls whether it will loan its credit to the
Wapsipinicon & st. Peters Valley r. r.,
and as the subject is one of such para
mount importance to the people of Blu
chanan--atfecting SO vitality their inter-
csts-wc design to offer few remarks
upon the subject. We have heretofore
spoken somewhat fully of the benefits
likely to accrue from the construction of
this road, and thought it hardly necessa
~ TO say anything further in reference
10 it. But as there is some misapprehen-
sion in regard to the proposed loan, we
think it necessary that the facts should
be more clearly exhibited.
Some persons seem to think that the
adoption of this proposition involves the
necessity of an immediate tax upon the
county in order TO raise the amount of
the loan. Others, again, suppose that
the County is asked to become stock
holder to the amount proposed. A third
class suppose that the county is to be
yearly taxed for the interest upon that
amount, and that at the end of twenty
years the principal must also be raised
BY tax. W. believe we can best answer
the objections urged by stating what we
understand to be necessary in the prem
i.es.
Il the county should decide to loan its
credit 10 the Railroad Company, the
company is required TO give satisfactory
security that the proceeds of the county
bonds shall be expended in the county,
ald to place in the hands of Trustees APP
pointed by the County Judge, as the
bonds are issued 10 them, stock of the
company equal to the amount of the
bonds Il, collateral security for the pay
mcnt Of the bonds when they mature.
The County does not become stockhold-
er, but merely holds certain amount of
the stock as collateral security for the
payment of the bonds by the company at
the end of the twenty years. If the stock
of the Company should, at that time, be
at par, then, of course, the county will
not have 10 pay a cent. There is no tax
involved in the matter. The Company
deposits in the hands Of the Trustees
sufficient security for the payment of the
principal at the end of twenty years, and
also is forced to give full and satisfactory
security for the payment Of the interest,
before the bonds are issued TO them
Where, then, is tie necessity for tax ?
Certainly nonc--and none is Intended
The one per cent spoken of in the proc
lamalion is put there in order to meet a
provision of the Code, which prescribes
a specific form. Chapter Nv, Sec. ia,
81 Inc NOue, SAYS.
/" The county Judge may submit to the
people of his county, at any regular
elec N or at Il special one called for that
purpose, the question whether money
may be borrowed to aid in the erection
of public buildings; whether the county
Will const uct, or aid to construct, any
road or bridge" dc.
Section l6, OF the same chapter, pro-
viJcs that
:. When a question SO submitted in
wolves the borrowing or the expenditure
OF money, the proposition of the ques
ton must be accompanied by provision
TO lay tax for the payment thereof, in
addition to the usual taxes, as directed
in the following section, and no vote
adopting the question proposed will be Of
effect unless 1t adopt the lax also
II was therefore necessary that such a
provision should be incorporated in the
proclamation, but the fact that the pay
ment OF the bonds and the interest is Sc
cured, as we have stated, does away en-
lirely with the prospect of a tax ever be-
ing levied, unless the company should,
al,er having used the bonds, become
fe.nkrnp< and their stock worthless-and
in this connection it must be remembered
that The proceeds of the bonds must be
expended in the county. The PROPOSE
ton, then, narrOws itself down to the
rcmunerating prospects of the road. Ii,
ri tie end of twenty years, the stock of
The company is below par, tax would
,heD haze to be levied to make up the
amount OF the depreciation. But if then
nj par. not "A cent of tax viii be required.
Some persons seem TO think that there
j. a want Of consistency in the course of
dose who yoled against the Dubuque d.
Pacific proposition and now support the
present one. But the cases are by no
means parallel. The Dubuque & Pacific
,sn,v,.y a ,lad tho county 10 hccon1a n