, 1873-12-26

We havo already shown that tho suggestion
that tho Slate has assumod any liability for these
bonds is untrue, and directly repellcd by tho
1ottor Of tho law. Purchasers Of these bonda
may form their own conclusion as to the prob
ablo ability Of these hundreds Of small muuiol-
palitioa to pay either principal or interest,"
6. Tho assorsion contained In tho declaration
tint this is tho tonly debt tho State of Illinois
has to provide for" is not tr,ls 30 far as It I'M
plies TINT the State Of Illinois has to provide for
this debt at all. THIS debt is not first lop
{eyon IN caBes where the bonds arc yalid) upon
tho property Of tho towns, &C.. that owe it; 1t
takes It's chances with all other dobtH.
7. It is truo that for these bonds tho munich
pa1ities Issuing thcm have received Bill equal
amount Of tho capital stock in tie railroads;
but. as many Of the railroads have been leased
Or sold, tho stock in them represents no proper
ty, and can be purchased at an average Of 10
ccnts on tho dollar, and the purchaser would bo
Bwindlcd at that price.
8. Tho letter Of cx-TronBurer Bates is chiefly
remarkable for what 1t doea not say. When
road carefully and attontive1y 1t says nothing
whatever tho statement that the interest shall
bo collected and paid in the samo wny as the
interest on tho State debt Ia meaningless. All
interest on public debt is collected and paid in
tito same way.
Having noticed these specific points, Justice
to tho public requires TINT We add an e1plana-
tlon OF few othors. The act Of 1860 fixed tho
state assessment Of 1868 as a standard, md
provided that all State taxoB for general row
onto collected on tho increase in tho assessed
value OF the property Of the towns owing thcao
railroad-aid debts, over tho assessed value Of
1868, should be applied, for the term Of ton
years. TO tho payment OF tho interest on
these bonds, when collected. There has
been no increase in tho assessed values
Of the property in these localities since
1869, until tho assessment Of 1878.
there WAS combination made to give these
bonds, which arc largely fraudulent and void, o
market value. Tic State asseHamont was tbore-
fore Increased. and for the first time tho legality
OF diverting any part Of the tux levied for state
purposes. to apply to purely local debt, has
been raised. There Is general protest against
it, an.l TINT point is now before the Supreme
Court in as many aB twenty different casoe. Even
assuming the improbable event TINT tho Court
shall decide such diversion Of taxes to be legal
that law applies only for six years after that
date 1t will cease. In the meantime there ia q
general oyerhauling Of the corruption and robbery
Of the railroad companies who obtained these
bonds. There is an investigation by tho plum.
dered people as to the circumstancos Intending
the original issue. These Investigations have
shown that some Of the acts Of tho Legislature
under which the towns wero driven to voting the
bonds wero bogus, no such laws having ave1
been passed. all tho bonds issued to the Otta.
wa, 0swego i Fox River Valley Railroad have
already beon blottod ont by tho Supreme Court,
and it is probable TINT fast tue cases con be
presented other equally bogus issues will bo sot
aside. Apart from tho legal questions involved
tleso bonds are morally covered MI oyer Will
fraud, and re do not believe TINT tho principal
even of tloao legally issued, will ever bo paid
except after years Of litigation.