Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1875-04-28

they would have been provided for,
Even Calkins secured his claim. Here
the office had the public patronage, and
It's friends attempted to defeat us with
the funds we had contributed They
desired to monopohze the state offices
and play full hand in city affairs"
Taylor saw the point, the subject was
dropped, and the chat went on without
further illusions to monopoly Of city
printing. rs ~.
Railroad Aid debts in Michigan and
Wisconsin.
Really, as. tar as municipal credit
goes, Michigan ought to have a much
poorer reputation than Wisconsin has
with all its nefarious Potter aud Quinn
by laws. 1t will be recollected that
several years ago, their Supreme Court
decided that all the laws under which
county and other local railroad aid
bonds were issued, were unconstitu-
tlonal, and that the bonds were inval-
| id. 1.-THE case referred to is Judge
| CooIey's we'll known opinion holding
municipal bonds issued in aid of rail
roads invalid. But the Supreme Court
of the United States has since in Toll
cottagh Township, OF Pine Grove,
(Mich.) 10 Wallace 666 overruled this
decision of Judge Cooley and of the
courts Of Michigan. And such munic-
! ipal bonds are now enforced in that
State by the Federal Courts, the same
as in the other states. Ed. REP
There was subsequently an attempt
made by constitutional amendment to
legalize all such debts, but the propo-
sition was voted down and defeated by
an immense majority. This left the
bondholders without any remedy or
chance for even partial payment of the
amount held by them against such mu-
inequalities.
We now learn from the Detroit Free
Press that bill has, recently passed the
Legislature of that State, authorizing
municipalities to raise money for the
payment of this class of debts. This
offers way out Of the difficulty, and
to restoration of the credit of the
State, If the people have sense of
honesty and honor which will impel
them to adopt it. 1t is believed that
the bill will be declared constitutional
In tact 1t is asserted that if the whole
question could come up again the court
would decide on the validity of the
bonds differently from hat it did before
Under the new law, the question of
paying the bonds will be submitted to
each locality owing debt; so that,
after all, a majority can defeat the pay
ment, if they see fit; and if majority
Should vote the payment, the minority
can resist until the whole question is
tried by the highest tribunals. Where
the desire to pay such bonds is unani-
NOUS, OF course the law is not needed.
The payment of the railroad aid
bonds Of Western counties, cities and
town, and of the farm mortgage bonds
which are akin to them, seems like
great hardship; and it is. In most
cases, to be sure the railroads have
been built In aid Of which the bonds
were issued. But there was generally
an agreement that the railroad compa-
MES would pay the interest on the
bonds, and tie bonds at maturity The |
same was the understanding in regard
to the farm mortgages. Then the bonds
and these mortgages passed from hand
to hand till they came into possession
of the present holders for a song; and
it is not just that the face of the obi
cations should be demanded.
Still, the cities issuing these bonds
have been built up, and the property
quadrupled In value by the railroads.
The railroads have vastly increased the
value OF property in towns and counties
which have issued bonds, far beyond
the nominal sum Of the bonds issued.
The railroads have added to the mort
gagged farms value far in excess of the
amount OF the mortgages.
These two facts-that the obligations
passed into the hands of present hold
ers at much less than their face. and
| that the railroads into the construction
OF which the obligations entered have
added greatly to the value of city and
farm property, form basis upon which
all debts of this kind ought to be com
promised. The bond holders can afford
to take less than the face of the bonds.
The people whose property has been
doubled and quadrupled in value by
the railroads, can afford to pay a part
OF the debt. The two classes should |
come together, and effect seettlem ent.
1t is of the highest importance that
the stain of repudiation should be
wiped off from Western municipalities.
1t is not civilized condition of exist
ence, to owe public debt and refuse
payment. 1t is TO be hoped that all
these cases Of municipal Indebtedness
will ho cotftoI n - e. a ~ I