Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1871-07-26
MUNICIPAL AID SUBSCRIPTIONS

We have repeatedly called attention
to the business ofsubscriptions by cities,
towns, aud counties in aid Of railroads
and other extra municipal corporations.
We have warned the people of the State
Of the re ult which has followed such
subscriptions in all other States. The
municipalities Of this State have voted
! enormous subscriptions, estimator at not
less than $50, 100000. We published,
few days ago, a decision of the Su-
preme Court Of the United States, in
which Fulton county was sustained In
refusal to pay either interest or prin-
cipal upon subscription of s75 900 for
one of these railroads, and that, too,
upon mere technieality in the proceed
ines, and after the county had for some
years recognized the debt and paid the
interest There are other Of these
bonds issued by counties in aid Of rail
roads now in suit, and, from the opin
ion of the Supreme Court of the United
States in the Fulton County case, any
infornality in the proceedings relating
to the issue Of the bonds, orany depar
ture from the strict terms Of the stat
ute, will render the bonds void, even in
the hands Of innocent holders.
Now comes Livingstone County.
That county voted a subscription of
$4,000 county, bonds as a bonus for
the location of the Reform School at
Pontiac The bonds were issued in
1869, and the interest was paid until Ju-
ly, 1871. The mistake was not discov-
cred by the people until after the bonds
had been issued Il was then proposed
to repudiate the obligation by a refusal
to pay the interest. When the Super
visors met in June, so strong was the
opposition to any further appropriation
to pay interest, that that body submit.
ted the question to a vote ofthe people,
at an election to be held gu the 9Th of
July, whether the Supervisors should
appropriate money to pay the interest
or rot The electiod was h ED, and out
of l, $50 votes polled oyer 1000 was
against payment of interest. The Su-
pervisors, therefore. are instructed not
to make any appropriation to pay the
interest on the county bonds, and to
restrain the the County Treasurer from
using any money in the treasury for
that purpose. Here is a Ct lear case Of
reputation, on the ground that the
origlna! issue Of the bonds was illegal
and unauthorized. We do not know
the grounds upon which the illegality
is placed-whether it rests upon the as
sumod unconstitutionality Of such pro-
ceedlng, or whether it rests upon some
failure in following the statute strictly.
1t is, nevertheless, a clear cese of repu-
diation. The unanimity of the people
in voting to pay no more interest. and
to force the bondholders to make out a
clear case of Indebtedness, cannot be
mistaken; and we think it safe to say
that, should the $40, 000, 600 of railroad
and other aid subscriptions voted by the
towns and counties of this State ever be
issued in the form of bonds, the exam
pie Of Livingson county will be followed,
and, after paying few years interest,
there will be refusal to pay any more.
A Springfield paper suggests that
this view of the question ought not to
be discussed, because it is likely to les
sen the value Of the bonds in the mar
ket. But it is not just to permit bonds
to be issued, and be purchased in good
faith, and then have them repuai
By the decision ofthe Supreme Court
i'll the FutoA county case, the bonds
are not Of themselves conclusive evil
dence of debt. Any Indebtedness Gre
ated under the authority Of a statute
must, in all its details, conform to the
terms and conditions of the statute, aud
purchasers are bound to satisfy them
selves that the debt has been contract
ed in strict conformity with the re-
quirements of the statute. Voting sub
scriptions is one thing, but taxing a
town to the amount of 50 ceats to 81
per acre annually to pay interest on a
donation to private company, aud to
pay this tax for twenty years, is quite
another thing. The twenty millions of
dollars voted III this State are mort
gage upon the farms of the towns and
counties which voted the debt, and like
any other lien, are to be deducted from
the sable value of the land. Adding
| principal and interest, those lands will
have to pay during aud at the end of
twenty years an aggregate of tax for
this purpose OF $50, 600, 000-S20, 000,-
geo for principal and $50, 100000 for
interest. For the payment Of this sum
these lands are mortgased, and to an
extent of not much less tuan $40 per
acre. When the payment Of this debt
begins, the universal practice has been
refusal Of the people to be taxed for
any such purpose. Under these cir
cumstances, the issue Of the bonds to
innocent purchasers looks very much
ike a contemplated fraud = Chicago
Tribune, july Is.