, 1873-05-11

which domestic tribunals are apt to furnish a
great abundance.
-. ANOTHER RAILROAD BOND FIGHT:
The contest between the People and tue Rail-
road Corporations is about to DO intensified.
Under the notorious and infamous act of the
Legislature Of 18C9,I the valuation Of property
t for State taxes in 1868 Was noado q standard in
all counties which had or might vote county
bonds in aid Of railroads aud 1t was provided
that, in case the valuation. for taxable purposes
Was increased beyond that OF 1868, the proceeds
| Of the tax upon this increase should be applied
to the payment OF these bonds The incroaae Of
valuation over that Of 1868 has not been very
| great--the ta1 resulting therefrom in 1871
amounting to only 9o5ooo. The whole amount
Of those bonds outstanding was s13,693, 1858,
bearing an average interest Of over per cent.
But the State Auditor tas given instructions
that tho assessment for 1873 shall be according
to the full valno and, consequently, taking the
| valuation Of 1858 as one-ffth valuation Of the
property in those counties at this time, the tax
collected for 1873 in those counties will be
divided-2o per cent for tho State Treasury, and
80 per cent for tho bondho1ders. 1t is easy to
understand how q tax Of this proportion, levied
annually upon the real and personal property OF
one-half tie counties in Illinois, will rapidly
constitute o fund for tho redemption Of those
bonds, making them securities Of the best char;
acter. - 10. -; -
During the period OF 1se8-7o, TEE Cmc4ao
TRIBUNE warned the people Of these counties and
towns Of the danger that threatened them; We
warned them that tho time Of payment would
cartainly como. and that the bondho1der would
be unrelentiug in his demand for interest and
principal. The Constitutional Convention in
1870 put q stop to all such donations; and among
the countios which hastened to mortgage them
selves to aid rai1toad was the small County Of
Kendall This county has but nine townships;
the majority OF its population is in the towns Of
Fog, Kendall, and Oswego~ Fox voted e14, 900,
Kendall $4,000, and oswego $4,000. BY the
united vote Of these towns the county was com.
mitted to an additional issue OF 945,oo0 making
an aggregate Of s1s1 200. The bonds ali bear 10
per cent interest. run twenty years, and
were issued to the Ottawa. Oswego &
Fox River Valley Railroad Company. The
road is fifty-aoyen miles long, and ex-
tends from Streator to FOX River juno
ton. The Company, in addition to the $751;
900 OF bonds received from Kendall County, re-
ceiyed from towns in Kane; Lasalle and Mar
shall Counties, bonds to the amount Of e923, ,ooo,
or a total amount Of local aid Of e454, 900. In
addition to this, it Issued it's own bonds to the
amount Of s1,2G0,00o, bearing sper cent inter-
est, these bonds being secured BY. first mortgage
on tho road. This issue WIS in excess Of $40, 600
per mile: The Company, therefore, had tho pro-
cecds of 81 ,260 coo OF its own bonds and $751;
GOO OF county and town bonds. It's capital stock
(unpaiD is probably not less than 2,0o0, 900.
Tho Directors then Leased the road in perpetuity
to tile Chicago, Burlington & Quincy Railroad |
The people of Kendall County havo taken this |
matter into consideration, and claim that the |
leasing Of the road !. in. pe1pctuity to !
the Chicago, Burlington Il Quincy Rail |
road Company has vitiated tho contract, /
or in some other WY released them from |
paying the bonds or paying any more interest.
Carrying this conclusion into: effect, they have
omitted to pay tho interest, and now tho bond
holders have instituted suit upon the coupons to
compel them to do 80. We suppose that in the
present state OF public feeling tile payment OF
interest will DO stopped until this matter shall
have been judicially settled, and perhaps
[onre~ In t1a mnnntirne the other tn,yns in tha |
other counties, having M equal interest in the
matter, will avail themselves Of any defense that
Kendall County may establish: 1his resistance
to any further payment Of interest on these rail-
road-nid bonds is not confined to Kendall County.
aut is showing itself il. various parts Of tho
KI2TQ2 :. :.