The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1884-04-24
THE BONDS.
New YORK, April 1, 1884.

New YORK, April 1, 1884.
EDITOR OF MANITowoo PnoT-DEAR
SIR.-I notice in your paper of the 9th
of March, an article encouraging the
county of Manitowoc to attempt repu-
diation of its bonds issued to build a
railroad through your county. 1t seems
to me you do not give any good reason
for such course. You say the county
was deceived by the r. r. Co. Is this
any reason why innocent purchasers of
the bonds should suffer- They were
issued under due form of law by the
proper authorizes of your county, or at
least purport TO have been SO issued. /
invested my money in them, believing in
the genuineness of the bonds and the
ability of the county to pay them.
] saw that Msnitowoc county was one
of the principal counties in the state as
to wealth and population, aud | did moi
believe 1t possible that such county
would attempt Republication OF debt so
small and so little burdensome t. its tax
payers,-the whole debt being less than
; per cent. OF its assessed valuation
Far different from so many counties and
towns whose debts have been nearly, if
not quite, half of their valuation. In
such cases there has been some palliation
for attempted reputation. The credit
of your county has become SO good in
consequence of its position for wealth,
population and promptness in paying its
interest, that the bonds have been sold
above par; and when the bonds mature,
if the interest continues to be paid, there
would be no trouble in getting them re-
newed at per cent. interest and probably
less, in this city. Now let me predict
what the result will be if your county
attempts reputation. OF course you
will find plenty of lawyers who will adj
wise such course, for they will make
money out of it in any event. But the
result will be that the county will be
beaten and will have to levy a tax for
large arrears of interest, aud will be I'M
able to renew their bonds at even per
cent. interest. Any honest lawyer, |
believe, will tell you or your people, that
the result of nearly all the attempted re-
/ quotations by counties, cities and towns
has been failure, and in many cases
almost disastrous to their people. |
have been practicing lawyer for more
than twenty years. I have been inter
ested in bonds that have defaulted and
| litigation followed. [ have necessarily
watched the decisions in the United
States court, and it is really extraordi-
nary how seldom reputation has sue
ceeded. The town of Thompson in this
state has been in litigation with holders
of its bonds for number of years, issu-
ed to build a railroad. The regulators
succeeded in the high court in this state,
but the United States court, about year
ago held the bonds valid. The town, OF
course, under that decision, had to pay.
Last fall they levied heavy tax to pay
back interest, and they have to pay prin-
cipal and interest in the future. OF
course they found a lawyer who advised
them to repudiate. They paid him and
! other expenses, about gao, 900 IF was @
pretty hard case for the town as the debt
was $150,000 and its assessed valuation
less than $1,000 900. Compare this debt
and valuation to those of Manitowoc.-
! The towns each side of Thompson had
bonds issued for the same purpose-to
build railroad-they did not default:
hence their debt is less and their credit
| better.
I can only say in conclusion that it will
be great pity and shame if Manitowoc
county, after paying interest SO many
years, should default apd be compelled
to pay principal and interest at the end
of litigation whereas the tax for inter
est on the bebt is less than one.seventh
of one per cent. on its assessed valuation
and the whole debt less than per cent.
remain yours very respectfully,
B. L. LUGNGToN.