Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1883-06-28

600 to the same road, which had
changed its name to the Milwaukee,
WATERFOWL & Madison Railway. These
bonds were given under promise of
the constructors that they should be paid
dollar for dollar by the road, and as Sc
curity for such payment they executed
what purported to be a first mortgage
on the road, but which proved after
wards to have been a second mortgage.
The usual sequel followed The road
was wrecked and sold out under the
first mortgage, and became afterwards
link in the Milwaukee & st. Paul; the
bonds passed into the hands of specu-
lators, who bought them in at five to fif-
teen cents on the dollar; and it is on
these bonds that collection has been es-
sayed at different times for the past
twenty years, but without success.
About the time of the last issue of
bonds mentioned above series was is
sued for the benefit of what was then
known as the Rock River Valley Union
Railway, now known as the Chicago &
Northwestern. These bonds, after the
road came into the possession of the lat
ter company were honorably paid and
the city relieved from the debt.
Efforts were now began to collect the
fona vaItto nf tbo M,l,va,,l,oo - w..
town bonds, which were frustrated by
the city in the resignation of the mayor
and enough of the aldermen to break
quorum SO as to prevent the levying of
taxes. The modus operandi was the
election of a full city ticket, the meet
ing of the mayor and common council
with closed and guarded doors when
all business necessary to be transacted
by full board including levying of
taxes for the year was accomplished,
the mayor and one alderman from each
ward resigned and the remainder re-
solved themselves into board of street
commissioners, which board had been
granted certain powers by the legisla-
ture. that enabled the city to run for
another year without council. Dur
ing these years however the city has
made numerous efforts to compromise
with the bondholders and has succeeded
in doing so with number of parties,
at terms varying from forty to fifty
cents on the dollar, face value. But
the majority of the bonds are held by
parties who refuse to settle on any other
basis than dollar for dollar, with inter-
est included, which the city refused en-
phatically to pay. on the ground that
the debt not an equitable one, but was
obtained by fraud and therefore not
honestly due.
Such has been the state of affairs up
to within few weeks. A recent de-
cision of the United States district court,
by which it is held that service can be
obtained ON the board of street COM
missioners, appears TO have opened
way for the sticklers for the pound of
flesh. Should the United States supreme
court sustain this decision Watertown
will have to put up or shut up. In
either of which cases one of the brightest
cities in the state will be reduced to a
point from which it is doubtful if it
ever RECEIVERS. Had the debt been just
it would have been settled years ago,
instead of hanging like a black cloud
over the city as it has done, crush
ing out its life. 1t is peculiar case
and one in which the sympathies of
honest people have been and will con-
tinue to be, enlisted on the side of the
defendant.