Prescott journal. [volume] (Prescott, Wis.) 1861-1871, 1871-04-26
what IL win cost to aid the Railroad.

payment; third, the amount required to
meet the obligation.
1t is proposed to call upon the towns
along the line of the Prescott, River Falls
and Northern railroad to aid in its con
strBctlon. Thew are authorized TO do this
by the terms Of the charter of the rail
road company. To accomplish that OBJ
ject each town must vote a certain sum
in bonds and take railroad stock to that
amount. 1t is contrary to the laws OF
this state for any town or city to tax it
self to aid any private corporation with
out receiving some consideration in re
turn. No town can vote to give single
dollar to a railroad, or any other COM
pany, but it can vote to take a certain
amount of stock. and pay for it as an in
dwidual would, either in cash or bonds.
For example, we will say the town of
| Clifton has voted to aid the road to the
amount of $4,000. The board of super.
visors will cause bonds TO be issued for
that sum, with interest coupons attached
the bonds to run fifteen years, at seven
per cent. per annum. The bonds are
held Oy the board and are not to be de.
livered to the railroad company until
the road is bull into that town. When
| the road is so built the chairman Of the
town is authorized to subscribe to the
capital stock of the company to the
amount of SO 600, or whatever sum is
voted. The town thus becomes a stock
holder in the company and is entitled by
its chairman, to cast as many votes in the
election of directors as it owns shares of
stock. This stock is as valuable to the
town as TO the individual stakeholder and
will bear the same market value. The
towns. moreover can sell this stock when
ever they deem it proper to do so.
Assuming that the towns along the
line from Prescott TO the West w sconsin
agree to raise 500, 900, and assuming,
further, that the apportionment of this
amount among the several towns as made
| by the late railroad convention be accept
able to said towns, let us consider mo.
ment how much it will cost yearly to pay
these bonds, interes; and principal.
Prescott, in that report, is called upon
for $4,000. Bonds for this amount will
be issued, drawing interest at seven per
cent. and running fifteen years. During
the first five years, only the interest will
be be paid; after that time the interest
and one tenth of the principal will be
paid until the bonds are liquidated. Now
then, how much will our taxes be
increased to meet this obligation? The
amount required annually to pay the in
terest is $3.50. The assessed valuation
of real and personal property Of this city
last year, as equalized by the county
board, is, in round numbers, 1913, 900 T..
Upon the assumption that our present
valuation is not increased a single dollar
in the next five years. tax of only fire
mills on the dollar will be required TO
/ 1ha tl,o,o Ionl, /. a L.
expiration of the sixth year the interest
and one-tenth of the principal amounting
to $4,000. must be paid. This payment
which is the largest we would have 10
meet would require tax on our present
valuation Ct about twelve mills on the
dollar. But in six years. with the adYan
tages and benefits of railroad, the valu
alton ought TO increase at least 25 pei
cent, which would make the rate for the
sixth year less than one per cent. From
that time the payments would be lessen
ed in proper ton to the amount Of inter
est stopped as fast as the principal was
paid. ANY taxpayer in this city know
ing bis assessed valuation can tell in 9
moment the railroad tax be will be obllg
ed to pay each year. Only S25 is re
quired of man answering an assessment
of $4,000. Is there a taxpayer in towr
who will say he can't afford it9
What we have said will apply with
equal force 10 River Falls, for its assessed
valuation is about the same as Prescott
and s27, 900 is required of that town &C
cording to the plan of appor:ionment.
In other towns the rate of taxation
will not be so high. Clifton stands on
the assessment roll at $225,000. The
aid asked is $4,000. A tax of $3.50 a
year will be required for five years, which
would be about mills on the dollar
The average taxation for the fifteen years
would be about four mills, assuming that
the valuation of the town remains the
same, which assumption, we admit, is un-
warrantable.
Ooh Grova IL oasaesod ~ &Oeo naa