, 1870-03-10
RAILROAD DEBTS N IOWA.


By towns, counties, and cities, tho deplora-
bic results Of that policy in Iowa have been
frequently rsferred to. It will be remam-
bered that about fifteen counties, ai1 or
eight cities, and some few townships voted,
as some OF the counties, cities, and town. of |
this State are now doing, large subscdp-
tions to aid in the construction Of local rail- |
ways. There dsbta when contracted
amounted t. considerable sum, but by no
means anything like the amount already
voted for ike purposes in this State. For
= few years ths tax to pay tho interest on
these debts Was paid, but the contemplated
benefits from the roads did not follow.
Emigration, instead OF going into such
towns, cities, and counties, avoided them;
emtRrants did not regard the railroad faotll-
ties as at ali compensating for the enormous
ta1es, nor Tor thefaet that every aero Of land,
and every head Of cattle, aqd every BAN and
dwelling house was mortgaged for ha1f ia
value to the bondholders- Many men who
owned land IN such couutiez took advantage
Of the first enthusiasm to sell cut
and move with their capital to other
counties, cities, md towns not thus rnozs-
aa&Hd md taxed, and, after few yeara,
those who remained found themselves taxed
excessively TO Ply debt for which they
had nothing TO show. They found out, also.
that the aid they had voted the railways, in
rtead Of adding to the value Of their prop
e1ty, had detractad from 1t, and that land,
when sold 1t III, was sold at price lass par
ac1e The proportion Of the mortgage and
the interest thereon When too Late, they
discovered how they had been de1udea, and
how ixa1tricably they bad become involved.
The next resolve was to 1epudiats, and this
they did. Tha original debt 1in stands un-
paid. The interest ooupons have been sued
upon and converted into judgments beat-
| ing interest, until now the executions hctu-
ally levied upon the land and other proper
ty Of such counties, towns, aud cities, for
tho interest alone, amount TO more than
tho original debt. AL tho property Of al
those sowna, cliea, and counties Il held by
The United States Ma1shAl, and the judy
uents and executions in his hands are liens
upon The same. Under these circumstances
the settlement and prosperity Of all such
p1aces have not only been seriously checked,
but in more than one instance destroyed
While ali the rest of the State has grovz
and dou1ished, these debt-eovered place.
are comparatively deserted. The people
say-and it Is t1ue-that an enforced pay
neut OF the debts now would be to takt
nearly MI they have.
At the present session Of The Legislature
OF Iowa bill was introduced, to which tn
attention OF our State Convention is called
rs indicating what mar happen in our State
len years hence. Tho bill Is founded upo1
! the ratne principle as the ta1.stea1inR net o
1869. It proposed that whenever AZ,
county, city, or tovn is indebted for rai
, road-aid subscriptions, all the tux collect
! cd in said counties, towns, OF cities, fo
State purposes, ahan be paid bAck to sue
= corporations, 10 cousitute railroad des
. fund, to be applied to the payment Of suc
ID debts< In other words, after ten yeara {
e rep1diation the bondholders and the +
'e pudlatiug communities apply to the Sta
o to appropriate snnrally from the Sta
) taxes sum Of money to pay thesa railroa
l. aid debts. It is proposition, Ike that e1
s bodied in our ta1~stealin9 act, that the Sta
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