Mineral Point weekly tribune. (Mineral Point, Wis.) 1859-1868, 1867-02-27
ARGUME MENT
of NJ. N. COTHREN, before the Judiciary COM
mittee Of the Assembly.

81 OF the private laws of 1866, which
this bill is intended to repeal, it is
necessary to examine the law of 1853.
OF which the act is amendatory.
That act Is Chap. III. and will be
iound on page 759 private laws of
1866.
1t provides for counties and towns
| through which the Mineral Point Rail.
road shall run, issuing their bonds to
aid IN the construction of the road.
1t requires that a vote Of the peo.
ple-before it can be done-sbaIi he
had upon the question.
1t provides for the Railroad issuino
IFS bonds to the County or towns in
exchange for county or town bonds.
1t requires (aahorizes) the Railroad
COMPANY TO execute and deliver to
the State Treasurer a mortgage 10 be
second and subsidiary to a first mort.
gage, which first mortgage shall not
be issued TO secure to exceed $4,000
to the mile Of the whole of the Rail.
road
10 accomplish an exchange Of bonds
II was made necessary for the Rail
road to submit definite proposition
to the County or each individual town
containing the amount and terms of
the proposed exchange of the resDec-
tive bonds.
The County and towns are not
limited by this act to any amount for
which their bonds might be given to
the Railroad.
Soon after the passage of the law
the Railroad Company submitted a
proposition to the County of Iowa to
exchange bonds to the amount Of
$3.50, 0,000-the Railroad bonds 70 he
secured by a second mortgage to the
State Treasurer for the sum OF S320.-
600, which mortgage was to be for the
benefit of the County to the extent
OF 81 80 900, and to secure SI70. 600
of similar bonds 20 be issued bv the
Company, TO an individual or indi-
viduals.
The people Of the COUNT voted and
the bonds of the County were issued
to the Railroad company for $3.50
600, and the Railroad company ex.
ecuted and delivered to Edward Jams
sen, State Treasurer. its second mort
gage, 10 secure the payment of 1920,
600, Of which Sl50,00O wa secured
to Iowa County, and $4,000 was
secured 20 the holder of that amount
of bonds issued 10 others Of \ like
character with those issued to Iowa
County.
The Railroad company issued its
bonds secured by tire mortgage for
$500, 600 to the State Treasurer and
gave to the County its proportion
Sl50,000, and used the other Sl70..
600 in the construction Of the Road.
The State Treasurer by the terms
Of that mortgage became mortgagee
in trust for Iowa County and ali other
holders of those Railroads bonds
Under the second mortgage the State
Treasurer became invested upon de-
fault of the Railroad, with all Of the
rights; franchises and property of the
Railroad company, subject alone to a
first mort rtgage, which the railroad
might make to secure sum not ez
ceeding $4,000 a mile for the whole
length of the Road, amounting in fact
IN the aggregate 10 the sum of $780,
600.
The Railroad Bonds we're made by
the terms Of the law transferable bv
( general or all special endorsement or
by delivery, so that the State Treas
urer was trustee for any and every
one of the holders OF the $50 bonds Of
$1,000 each.
/ 1t was made the duty of the trustee.
the State Treasurer, upon the de-
mand OF a certain number Of the hold
ers Of these bonds, in case Of default.
/ to foreclose this second mortgage by
/ taking possession Of the property and
I franchises OF the Railroad company
and selling the same.
( The County Of Iowa after the ex-
change Of bonds, determined TO con
test the validity Of its bonds, and to
do this It was obliged to ignore the
mortgage to the State Treasurer and
his trusteeship under the mortgage.
The County suffered itself It to be
sued in the Federal courts upon the
coupons of its bonds. and contested
their validity, until the Supreme
Court Of the United States decided in
favor Of their validity.
The railroad company executed
what they claim to be first mort
gage. in accordance with the terms Of
I the second mortgage TO the State
: Treasurer Ths uortra raes and