The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1870-06-23
Railroad BOnds-Not Valid in
Michigan.

D6Gn Tunl1luS IIOb III Cno AonuO VI A'"Ai
road bonds Michigan has been for some
time issuing them at Railroad speed-not
as state, but by Villages, Towns and
Counties. There are now issued in that
state about 100000 anu the rapidity
of issue was increasing from Railroad to
Telegraphic speed. AS it was going on
no one could tell where the end would
be. Every village, town and county was
ready to issue its bonds in amount sui
ficient to secure a railroad, The prospect
of payment seemed not to be taken into
consideration, or if thought Of to be held
In allowance for future consideration, on
the principle that sufficient unto the day
IS the evil thereof" To issue bonds
and to secure railroad, was suf-
ficient for the present. The payment Of
the bonds was altogether another thing,
belonging to the future, and might look
out for itself
In Michigan, as IN other States, there
were some who, doubted the propriety Of
issuing bonds,and the constitutional right
todoso. A case was got before the Supreme
Court which has recently been decided.
The Court has decided the bonds to be
Invalid. Three of the four Judges bold
the issue of bonds to be unconstitutional.
It is held railroad is not public property,
and that private property cannot be taxed
for its construction. 1t is understood that
the decision covers all the bonds issued IN
the State. Of the $7,000,000 issued, only
about $1,50O,000 have been sold. The
decision causes much excitement through
the state 1t is proposed to amend The
constitution so as to authorize the issuing
of bonds, and even to legalize those which
have been sold But by the time the
constitution could be amended, the sober
second thought of the people will have
time to come forth. And in place Of
amending the constitution, they may
thank the Judges of the Supreme Court,
who have arrested the people in their
madness, and prevented them from bring
ing about their own destruction.
In this connection we take the follow
ing from the GAINESVILLE Gazette
RAILROAD BONDS.
If the present season has been thus far
an unfayorable one for crops of grain and
hay, it has not been so in regasd to the
Wisconsin crop of Railroad bonds. The
way the bond business has opened this
spring, gives promise of an amount of
city, town and county Indebtedness that
must remain banging about the neck of
those who issue them for a long time, to
cripple their energies and 1etard their
growth, unless our Supreme Court takes
the same view that the Supreme Court In
Michigan has taken, and declares the
whole batch of them void. Since April
hrst Manitowoc county has voted 100000
Brown county $150,000; Appleton $780,.
600; Neenah $4,000; Menasha $4,000
Sheboygan 100000; New London $75,
900; Port Washington $4,000; White
water $4,000 and numerous other cities,
towns and villages similar sums. 1t is
a noticeable fact, also, that the vote on the
question of issuing bonds, is nearly unar-
imous in many insta noes, and quite so In
others in fact, the experiment goes to
show that one of the easiest things to dc
is, to get city or town that needs 9
railroad, to vote its bonds in quantities
to suit purchasers. Some fifteen OF
twenty new lines of road were chartered
by the legislature last winter, nearly all
OF which depend upon the issue of bonds
for the construction of the roads.
In consideration of what has already
been done, and what is still wanted by
the people living on the lines of thesf
proposed roads, it is easy to see that tht
stock market will be glutted with this
sort of securities" unless the courts put
some check upon them and restrain the
people from mourning obligations which
they will never be able to pay. Tha Su
preme Court of Michigan has put q
uuietus upon the bond question which is
clearly set forth by the Nation.
"The late Michigan Legislature passed
an act enabling towns and cities to aid
railroads by issuing bonds, which was
taken advantage of in all parts of the
State, there being plenty of railroad en-
terprises. The Supreme Court has just
decided the enabling act unconstitutional
and the result is widespread eonsterna
ton, and paralysis of numerous projected
roads, and many cases of individual hard
ship. Abuse of the Court, however is
left to one or two Of the less decent news
papers, while the majority of the press
and the people recommend that steps be
taken to amend the constitution, first
calling an extra session of the Leglsla-
ture. It is admitted, however, that even
this cannot make good the bonds con-
damned hu the Court and there seems To