Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1871-07-13

between-GaI ana Ma aison, was not =
very extravagant; but in the light Of
fourteen years operation Of the road,
it is shown to be about four times tool
large. Yet this statement as extravEf
giant as experience has demonstrate I
it to have been, cannot be fairly calle
a misrepresentation. 1t deceived
body, but every one judged for HID !
self Of the probable accuracy OF the
Directors estimates.
So, if it was said, as it was very !
often: "There is no danger in issu-
ing these bonds; the Railroad Com
pany will pay them; the people will
never be called on to pay one cent Of
them" No one was thereby deceived. |
Such expressions could not be and
were not regarded as anything more
than the ardent opinions Of sanguine
believer in the value Of the Railroad,
and every voter would apply 70 them
the test of his own Judgment, and
cast his vote accordingly, or perchance
according to his interest. To call
such expressions misrepresentation,
does violence to the meaning Of
language and at the same time Inn
putes an unworthy motive, to what,
at the worst was but an exuberance
OF zeal in an endeavor to accomplish
great public benift. - q
:
THE COUNTY WAS SECURED.
1t is safe to say now, in the light of
experience, and the result justifes the
statement; that when the county de-
hvered its bonds for $4,000 to the
railroad Company, upon the undertake
ing OF the Il. r. Co., specified in it's
bonds that it would pay the principal
and interest of the county bonds, and
save the county harmless; the county
nad ample security for that undertak-
ing,and never would have been subject
to any liability,if the home stockholders
mad retained the management of the
road, and elected competent directors,
VINO would have applied the income of
the company in discharge of it's liabili-
Ties, In the order Of their preference.
Ibis statement is made too upon the
supposition that the r. r. Co. had ex-
ercised its reserved power ofissuing a
mortgage of $4,000 per mile at per
cent. interest, paramount to the secu-
rlty OF the county, which by the way
it never did.
Such first mortgage would have
been tor S32O,00O. The annual inter-
est upon it at 7 per cent. would have
been S22,400. A sinking of 8 per
cent. per annum would have been So
600, which would have required an an
nual appropriation from the income of
the company of $4,000. This would
have paid off the whole of the princi-
pal and interest of the first mortgage
in seventeen years and halt, and at
the end of fifteen years would have
reduced it below $4,000. The annual
interest on $4,000 Of county bonds
at per cent. would have been Sl2,-
900, and a sinking fund of $4,000 per
annum would have, made the further
sum of $4,000 per annum to be APP
propriated out Of the income; which
would have paid off the principal and
interest of county bonds in fourteen
years and half. These two amounts
would have been $4,000 per annum
The company had guaranteed annual
income Of $4,000, out of which it
could have paid this sum of $4,000,
with balance of $4,000 per annum
left for other subordinate liabilities or
for dividends among stockholders
But in point of fact, At the time
resigned the only mortgage that had
ever been issued paramount, to the Sc
curity Of the county, was the Schuy-
Ter Mortgage, and which was lien
only to the amount of $4,000, so that
less than one years income would
have paid off that, and elevated the
security to that Of the first mortgage
lien upon the road, the income of
which was nearly four times as large
as was necessary to pay the principal
and interest Of the county bonds be-
fore maturity. The Directors in pow
er Feb. 81, 1857, however; as it is
said; by issuing $33O,OOO of stock
without consideration voluntarily
gave up the power to control the man
agement of the road, aud to appropri-
ate It's income so as to protect the
county. l do not propose to cast re-
proaches, but trust it is not improp-
er for me to say that if had consent
ed to the issue of &33O,OOO of stock
without consideration in a company,
whose entire capital was only $780,
600, it might justly have been regard
ed as Il greater error and mistake, than
any for which have been so unspar-
ingly condemned.
have shown that the county was
amply secured for its bonds, and pro-
pose now to show
HOW THE SECURITY WAS LOST.
On the sth of April, 1856, the r. |
4. Co. by Farley Eaton, its President, |
executed a mortgage for s320,0OO to
ID. Il. Martin d l.. ID. Conan. The
parties claiming rights under this
mortgage chose to call il n "FlyT Mart.