The Kenosha telegraph and tribune. [volume] (Kenosha, Wis.) 1859-1860, 1860-02-23

n - q on1nge OF climate, and with no design of en-
terhg upon any kind of public business Dnrin
the subsequent winter however was frorI,o ~
sonclted by the friends of the La Crosse enfarnr;
then in its early infanoy-to attempt the nap,ot
/ atlon ct its bonds. Nothing had been done AT fba
time In the way of construction but hnndrads =
thousands of doll had been subscribed to its
. ltal stock, and payment made or rather promise
by the pledge of real estate. 1t was these NOR
cages which WIS requested to sell to my nume
2 our friends and acquaintance throughout the Ea
e tern States. Of course, my first enquiry was :,
gardng their validity. And this was assured b
f an py judges and lawyers, by these who had take
anu nose who had so generously and freely give
INC me mortgages, was unquestonable. Before dec
ueu on accepting the proposition went myself q
the line OF road for some five miles and o.
SonVerslng with the mortgagors, was satisfied tina
sacredly binding, beth in law and equity The,
sad GU see our position. We have eountr;
u pouholess resources and inexhaustible fertility
But we arelsolated from commerce. Our product
must pc Wagoned for many miles over heavy road
anG WIZ hardly pay transportation. Give us al
OUTER, and our land, which is now worth four o.
hye dollars, will readily pay interes on a yalnatio,
Oh twenty i've or thirty dollars per acre. Give vi
ROAD TO the Lake, and we afford to paw these
i mortgages IN full. A any rate we have executed
them, and they ale good against us if not a spade
Iul OF earth Is eye thrown up. Sell them then and
secure us market" Oths RS ent still farther aud
sue, as heard the man who executed the mort
gage you allude to say to you few months later
/ = mat bonds triple security. Iregard my own
hote as good for that amount and never gave a
note more bindil than this. The land is worth
no" at least TWICE the amount, AID be frecosed
uponat the first forfeiture ana we think the rail.
ROAD pond reliable one 1t is farmers railroad
Tor any man who has Pledged his farm is one of the
company, and has voice in its mana cement
| 1t was on the strength of these assurances. nv
gear sir, that L accepted the financial agency and
me tfeasurership q the Company, and 1t was nv
repettion OF these statements in many cases to my
OLDEST and most esteemed personal friends which
GuSCtOQ q commencement TO fine sale of
Iufhlsned the means, without which the great road
winch Is now IN successful operation from the
ono!eS OF Lake Michigan tie the banks of the Mis-.
sisslppl could not lave been-certainly could not
nave been at that tme-successfully inflated
here IS then, nothing palmer than the fact that at
least those who, ILL., yourself purchased bonds at
ln early period IN the history of the company are
III tDe eyes of the law innocent holders of the
NOR cages Of any frauds or misrepresen
tatlons at the beginning, for you were solemnly as
su!ed by competelt authority that such did not
exist and assuredly innocent of alleged corrupton
ana Encouragement on the part of the Directors of
Inc corporation, for they occurred subsequently,
ana were perpetrated not by your agents, but 6y
the representatives or misrepresentation of the
moftgagOrs themselves.
1t appears to me hat have now said enouob to
snow the original position OF the two parties; the
Sf8ntors and the purchasers of the Bonds and
confess know of no circumstances which could
StTengt hen the obligations either in Justice or in
what is unfortunately not always identical with JUS
tce-lts legal validity
but, as you intimate, strong opposition is tbrea,
tehed 10 It's enforcement. society has been
formed, with Its pass words and grips and other
DARK lantern mumn cry, for the express purpose of
aHofdng organized MISUNDERSTANDING common
cause against those whom the farmers now affect to
IeSulu us common enemy, for doing what few
years since they gay them written authority sign
ed oy their own names and acknowledged before a
public officer, to do
Able counsel are retained and an assessment Of
TWO per cent Oh the amounts of the mortgages civ.
of hp opcro1 ,isyof
sala, already been made and paid to them with the
pieuge OF an additional eight per cent in case thew
succeed IN detrauding the Eastern holders and
clearing the lands OF their encumbraucas The
courts are given to understand that DuhIic sent
ment favors general population. One or two ca
ses nave been litigated and decided adversely to
the claims of the mortgages, but none, L believe
IA winch thew were really tried upon their merits
In one instance, the prosecutor who ATTEMPTED to
iorecIose small MOI gage, had himself given one
ol zen tmes the amount. In another, the prosecu-
tlon was carried on under the direction of the ar
already referred.
But will not believe that our Supreme Cont
before which one of these cases is TO be brouCbt nv
appeal, almost immed iately will allow itse3+ 10
msled or blinded. The case is a vital one TO the
credit nd financial standing of the State. and I
ust mat the court Will not allow itself to become
committed by decision which shall be bndino mn |
til it is thoroughly argued on both sides mon a
case brought before ii fairly and without collision
upon NICE points OF law, |, of course, do not as
mere civilian, pretend to give an opinion but | |
fal to see that any which have as yet been raised
are OIL suhcent importance to oyerrule the positive
ana unconditional promise of the mortgager or to |
cancel theJust claim of those who have advanced
money, that 1t be repaid according to agreement
IL is said that the Railroad Stock Certificates which
the farmers accepted in payment of the noortoaqes
were not valid consideration. But this ouesfion
can only be raised between the original parties not
as against an innocent purchaser of the securities
Iney were the identical considerations stipulated
f0r at the time OF subs prlOtiOn tod
as satisfactory, and for many years were allowed to
pass unquestioned while the parties knew the mort
cages We're being transferred into the hands of in
nocens holders, and even themselves urged the
sale If the stock has been depreciated and the
Company even gone out of existence, it may be the
result of financial TevHlsons which the mortgagors
might have anticipated and may be the result of
regulations and dishonesty of those whom they
elected as their agents but the mortgagorsiare re-
sponsible for neither.
1t is said that the Charter fails to give authority
10 the Corporation to receive pledges of real estate
in payment for its stock. But this cannot be nee
essary. 1t is power incident to Corp ration of
thus character, both to give and TO receive evden
ces OF Indebtedness in the form of bonds or notes.
and these may be collaterally secured by mortgage
or otherwise, in the discretion Of the Contracting
parties.
When the La Crosse Charter was granted there
was not a member in either House of the Legisa
ture, who not fully aware that the corporation
which they created, if successful, must resort to
that method of fnanceerng. They knew that ano
ther Company, with chan ter more liberal than
the one which they approved, had been taking that
course, honestly regarding it as legal one And
they also knew that the La Crosse Company wod
go on with it, equally sincere i'll the same belief
For series of years they did pursue it, openly and
undisturbed, to the knowledge of every man, wo
man and child that had reached the age of Giscre
ton, in tie State And now, to plead flaw in the
Enabling Act, and that to the detriment of hon
est parties, many of whom never it, and none
OF whom responsible for its provisions is very
pahl both in ay and mo
On the question whether the farmers in a
condition to fulfil their pledges, there may be some
difference of opinion Our state like other states
has yet hardly recovered from the effect of the
late financial reaction and depression which in its
turn resulted from overtrading ann speculation
That the property of the Commonwealth has been
enhanced in value by the completion and operation
of railroads, many times the amount of the farm
mortgages which were given to secure them, and,
| may add, which were essential to their success,
there be no doubt. And it is equally clear,
that leaving out of view the base injustice OF gene
raj reputation, the financial injury which 1t would
effect would be much greater than that OF losing
either from the public treasury, to be refunded by
taxation or from fund provided in any equitable
manner by the people OF the otate' sainclent 10 re-
AS general thing, the individual farmers have
received in the increased value OF their land, and
the facilities afforded for dsposing of its products,
quite enough to compensate them for all they are
pledged to pay. There are exceptions of course
There are many who encountered their entire pro-
perty, and who would even now have little
thing left after redeeming it. And there many
bonds held by parties who purchased them at "A
large discount after their reliability had become
questioned, and who in equity should be satisfied
If they are refunded with interest. the money III
vested. / do not apprehend that the Eastern PEG
pie who h I'D these bonds are anxious for lmmedi-
ate payment Of principal. In fact it has not yet
matured, except forfeiture or the non pay
ment of interest nv the Railroad Company. Ihope
and am sanguino in the belief that justice may still
be done to all parties; that while the capitalist may
treat with lenience those who so strongly hoped
that the roads ould prove paying investments to
the stockholders, and have been so bitterly disap
pointed that on the other hand, they may become
willing to make an equitable compromise, either
executing new mortgage for both principal and