Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1871-07-14

al
fourteen years operation OF the road,
it is shown to be about four times too
large. Yet this statement as extrava-
giant as experience has demonstrated
it to have been, cannot be fairly called
Misrepresentation. 1t deceived no.
body, but every one judged for him.
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; u 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 a sanguine
believer in the value OF the Railroad,
and every would apply to 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 J 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. ~. .51H b4d2i
TIE 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-
livercd it's bonds for $15O,O0O to the
Railroad Company, upon the undertak-
ing of the r. r.. Co, specified in it's
bonds that it would pay the principal
and interest of the county bonds,a and
save the county harmless; the county
had ample security for that undertake
ing,and never would have been subject
to any liability,if the home stockholders
had retained the management of the
road, and elected competent directors,
who would have applied the income of
the company in discharge Of it's liabili-
ties, in the order Of their preference
This statement is made too upon the
supposition that the r. r. Co. had ex-
ercised it's reserved power of issuing a
mortgage of $4,000 per mile att per
cent. interest, paramount to the secu-
rity of the county, which by the way
it never did. ... s.-., ..>.+..- ...s- +
Such a first mortgage would have
been for $4,000. The annual inter-
est upon it at per cent. would have
been $22,400. A sinking of 3 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 a halt, and at
the end of fifteen, years would have
reduced it below $4,000. The annual
interest on $150,O0O of county bonds
at per cent. would have been $12,-
600, and 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 a half. These two amounts
would have been $4,000 per annurn.
The company had guaranteed annual
income of $56,000,, 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 I
resigned the only mortgage that had
ever been issued paramount, to the Sc
curity of the county, was tho ,lSchuy-
Ter Mortgage, and which was a lien
only to the amount off$50,000, 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 fouE times, as large
us was necessary to pay the principal
and interest of the county bonds be-
fore maturity. The Directors in pow
er Feb. 81, 1867, however; as it is
said; by issuing $330,00O of stock
without consideration voluntarily.
gave up the power to control the man
agement of the road, aud to appropri-
ate its income SO as to protect, the
county. I do not propose to cast re-
proaches, but trust it is not ,improp-
er for me to say that if ] had consent
cd to the issue Of $33o,Oo0 of stock
without consideration" in a company,
whose entire capital was only $780,
900, it might justly have been regard
ed as q greater error and mistake, than
any for which | have been so unspar-
ingly condemned ad9 H.. -ls..afan7
have shown that the county was
amply secured for its bonds, and / pro-
pose now to show saa1e ~ssT =,
now TIE SECURITY WAS HOST % q
On the Sth of April, 1856, the r.
r. Co. by Farley Eaton, its President,
executed q mortgage for $4,000 to
.. r. Martin & L. D. Conan. The
parties claiming rights under this.
mortgage chose to cali it a e Z '5irst Hort.
qaqe," and the bonds which il, purport-
cd to secure q First Mortgage Bonds"
But there was nothing on its face, to
show that it was, or was ever intended
to he Fslrst Mortgage. On. the con
trary, it was the Third Mortgage is
sued, and was in fact subordinate to
the mortgage issued to secure. the
county, as the decision of the: court
in the suit brought to foreclose the
last mortgage satisfactorily shows. y
II II n =.