Prescott journal. [volume] (Prescott, Wis.) 1861-1871, 1870-04-21
The Local Aid Question.

N~'i W 'HeN'Soe 1Hioo hOut euo ethtcs-
The people are examining its provisions
with good deal of care, and there
seems every prospect that if no catch is
discovered, many roads will be pushed
ahead by this aid.
The people of Whitewater, Mr.. Ester
ly's home are about TO vote on the CUES
ton of subscribing 10 the capital stock
of the N. w. r. r. Co, under the pro-
visions Of this Bill. A communication
in the Register, evidently written by
Mr.. Esterly himself, explains many
parts of the Bill, illustrates IFS fairness,
argues its safety and gives various forms
for its application. We quote from the
article, the main portion of which is of
general interest:
VA The toWns Subscribing stock under
this law, become liable TO pay any other
nay than by bonds?
Certainly not. Section 2. which au-
thOrizss the subscription says, towns
NAV subscribe for stock aud pay in
bonds, and the subscription is authorized
in no other way.
The notice for the election sh1ll con
tain, among other things, the amount
Of the subscription and of tho bonds to
be issued" Subscription" aud " bonds, +"
again in the same sentence, and TO be re-.
garded as inseparable, as the single words
Of any sentence which are necessary to
make complete sense.
All the conditions being required to
appear in the notice, shews conclusively
that the law contenplates that the vote
shall be an expression of approval, or
d;sapproval Of each and every PROPOSE
lion therein contained; any one of
which, if Objectionable to majority of
the voters, must carry with it in its de-
feat all the others.
Then let US ask the directors: How
can the vote authorize the subscription
unless it at the same time authorizes
and compels the payment thereof by the
bonds and in no other way--when the
track is down, and the cars running TO
the point agreed upon in each case, and
not before!
Section 8, says, " The bonds shall be
delivered in payment at par, for shares
Of stock subscribed for by any such
town." Now how can language be
made palmer; or the question of how,
and when, the subscription is TO be paid,
and what the company is to do. to au-
thorize them to receive, or demand
payment on the subscription, than is
found in the law. and in all the forms
of papers to be used in connection
Herewith in this act, and published
herewith.
The bond, even, are to contain all
the conditions upon which they are is
sued. A very unusual thing, yet, per-
feet safeguard against their being used
except for the purpose for which they
were intended 20 be used.
The clause in Section which says,
And subscription shall thereupon be
made ETC." can certainly mean nothing
more nor less than that it is one of a
series of acts, which, when all perform
ed, shall complete the mutual obliga
tons of the town and the Company
Where is there single word on which
to hang p'etense, that this is to be nm
independent act of the town, and for
which it becomes independently, and
generally liable. Not in the form of the
subscription certainly. This is not an
evidence of ali Indebtedness, until it is
made so by the specific performance of
the railroad company, or of its success
ors or assignee.
INTEREST on TIE TOWN BONDS.
1t has been said the interest is too
high, that it should not have been more
than s per cent. This is true, provided
the money could have been had for
that. And had Western Town bonds
not been so often repudiated or COM
promised, at about half their original
face, think we could have negotiated
at that, but as it is, j. would be impos
sible to negotiate them East, for the
present at least. In few years, after
having redeemed our credit by meeting
our payments promptly, We may do it;
hHt for the present we must depend up
on our home market, and they caunot be
negotiated here short of 10 per cent, as
money has baen, is, and will be for
sometime TO come worth that, and h nee,
the reason why they should draw that
rate of interest. At lower rate of in.
terest, they must be sold at discount
greater thon the difference az the interest.
and this would defeat the road; as we
must have the five thousand per mile TO
insure its construction. One
REASON WHY our PEOPLE WILL TAKE
is, that bonds issued under this law, are
in reality as good as Government Bonds.
So far as security for their payments is
concerned, they are entirey different
from common town bonds. As the
town issuing them can in no way inter-
fere with their payment, there is no way
that they car repudiate them, as will be
seen by reference to the law, that the
state is required to collect from the towns
giving such bonds, the taxes provided for
to be paid by said towns, and also the
six per cent, tax of the railroads, which,