Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1871-08-03
wholly imneinsrx mis- true d. sooner

or later the stock gets into the market and
is bought by dealers in stock but no cap
italist ever goes into company" orputs
in dollar, until the people along the lire
have fixed good place Tor him TO put it
or started the work so that il looks favor
able; then, if he can see it safe, he will
lend il to the company to finish the road
the same as he will to the county Board
TO finish the new court house. Having
got the right to build road, the land to
build it on, and the bed and ties ready to
lay iron, they have got something to
pledge or mortgage for iron; SO they i'm
agi,.e the iron is already bought and laid,
the rolling stock bought and put on, the
sidings, buildings, depots, machine shops,
DC, all on the road, and they calculate
how much it will all cost, and then they
get bonds printed for enough to pay for
it all, select some trustees, mortgage
everything to them to secure the bonds,
and go among the moneyed men to bor.
row money to get this iron and rolling
stock and finish up the road, These
moneyed men look il over; and if they
think the road will earn money enough
TO pay expenses, keep il in repair and pay
the interest, they will buy the bonds; il
not they will not buy them and the ''com-
pany" cannot complete the road. But in
looking at it they say thcse people are
in earnest They want the road. Sever
nj hundred of them have formed ''com-
pany," and put their money together and
got it ready for iron. II is in good
country that needs such an outlet. With
the line fully completed think the road
will pay. These bonds pay seven per
cent Interest, and are due in thirty years.
4 Il f.af IL. MI inv -
the bonds are sold, and the company"
complete the road.
| Who owns this road? Why these far
mers and laboring men; these counties
and townships " no voted tax. They oqrn
it. 1t is their property. They control it
| by their directors. Let Us SEE the paral.
lei. This county was poor and could mt
build court house such as she wanted
SO she waited until she needed one very
much, and uutil she got more inhabitants;
and more taxable property. Then she be-
gan levying 8 cents on the 500, each
year just the railroad company began
with Il few men and small assessments.
After a while, when the board got enough
in this way to partly build it, they got
their plans, made their contract and then
issued and sold bonds, drawing interest.
secured by the taxable property OF the
county and TO be paid out of the taxes to
be hereafter levied. Ii pestilence and
famine come and the people cannot pay,
the bondholders must sell the county
property, or wait longer and take new
bonds. So the railroad company at first
| had nothing. 1t levied small assessments
To pay the expenses, and waited until il
got more subscribers; and then il run out
I its line Of road, contracted its road bed
and ties, and then issued its bonds secur-
ed by mortgage on its property and the
income to bc derived from the road when
il shall be finished. Ii hard times come.
or from any cause it does not earn enough
to pay the bonds, the bond holders must
sell it, or they must wait longer and take
new bonds. The cases are alike, only one
Is a municipal corporation and the other a
! prir-t, corporation; and there is just as
much sense in saving: I'VE will never
help build a court house, if the Commits
sioners want one or the county needs one
let the Commissioners build it, as in say
ing: II will never help build a railroad !:
if the country needs one, let it build
itself" When the railroad is built, il is
real estate. The money of many men !,
got together and laid down on he GROUND.
To the amount Of about $4,000 per mile
and lcft there for all time to come, and is
taxable the same as any other property,
while ii increases the value of all prop
erty around it or TO which ii gives an out
let. The FIT Wayne road pays taxes on
$4,000 per mile, for twenty one miles in
this county, or on $4,000; a far larger
sum than all the farms il crosses are
worth; and without the road they would
not be worth one-half as much as they
are now. Now as to this tax "why dom
they tax the whole county," asks one
man. Because nnless the road runs
hrough the county the law will only per-
NIT you to levy tax i'll the town:hi2s il
enters. The tax is paid into the county
treasury and remains the money of the
township paying it. 1t cannot be donat-
cd to the company. One half may be paid
out by the Commissioners when the com
pany have expended an equal amount in
the township, and the certificates of stock
for 1T are the property of that township
When the road is finished and the cars
run over ii, then the Commissioners NAV
take stock for the balance Of the tax and
that belongs TO the township. If the road
is not built, the money remains in the
treasury and that township has SO much
less taxes to pay hereafter. Ii the road is
built, the township gets her dividends of
profits on her stock Under the contracts
OF the L. h. d L. railroad, the township
can make il a preferred stock or convert
il into income bonds. The stock to have
seven per cent dividends or the bonds
seven per cent interest, payable out Of the
net earnings OF the road and the net earn
ings are to he divided each year whether
they amount to seven per cent or less.
the road earns that, over and above ex-
penses and interest on bonds, they will
get il; but they will get no more lfthey
leave it common stock and the dividends
are more than seven per cent they will get
more. The common stock gets no divi-
dends until this is paid The Fl. WAYNE
stock pays seventeen DER cent sometimes.
and this road will be part of the Fort
Wayne road. Let us see West town
ship will own about SO 900 of stock. That
will pay into the treasury for her $500
each year In fifteen years il will paw all
her taxes back and go on paying TO her
over $4,000 every fifteen years Centre
township will own about $2S, COO of stock.
That will pay into the treasury for her
$1,000 year. provided they take prefer
red stock or income bonds and the road
earns it above expenses and interest on
bonds. Nell, nearly all the roads earn
over $4,000 per mile on an average, and
that will pay it and leave large surplus.
So these grumblers about taxes will be
gamers after all and not losers. And no
portion of their money can be stolen BY
any one. Besides this, the company will
have TO expend in Centre and West town.
ships from 100000 to 100000 and leave
it there on the ground, as real estate, sub
ject to taxation for all time TO come, at
such rate as may be fixed on it, and that
will make the peoples taxes so much less
by giving them so much more to make il
from.
This railroad "com pany" hopes the
earnings of the road will be enough to
pay something on the stock after awhile.
That is an experiment with all roads and
depends on management and general bu-
siness. For few years there cannot be
much profit, until the road is fully per-
fected in itselfand its management But
after awhile We hope it will b9 like other
good stocks and pay good dividend, and
that the money paid in will be well lent.
Some companies set aside certain por-
ton of earnings to make a sinking fund