Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-26


neghborhood. few years after the close
of the there was popular fever for
railroad building-an epidemic that affected
other states well Missouri Every
county wanted a transportation line, and
so eager were the citizens that they We're
willing to make all kinds of pledges, pay
any bonus that might be required, and
issue bonds to any amount. St. Clair
county, in 1870, when it had only few
thousand inhabitants, issued s250,010 of
bonds. bearing 10 per cent interest, and
running for twenty years. to assist in the
construction of railway from Kansas
City to Memphis. De Witt c. Stone and
A. D. LIE Due of Sedalia We're the pro-
meters. The bonds We're issued by the
judges of the county court-or the county
commissioners as they would be called in
an eastern state-upon petition signed by
what purported to be a majority of the
taxpayers. There was no vote of the peo-
pie, is usual when such transact tons
under discussion. A remonstrance was
prepared and largely signed, but it received
no attention whatever, and 1t is the gen
eral understanding that the text was cut
off and the signatures pasted to the end
of the petition.
Little Work Done on the Railroad
Having been authorized in this irregular
way, the full amount of the bonds was
issued and delivered to the promoters of
the railway when they had graded road
bed for about five miles at different spots
throughout the county. The promoters sold
the bonds in the New York market and
soon after quit work Nothing further was
ever done by them toward the construc-
ton of the road. The original right-of-way
and part of the roadbed has since been
utilized by the Frisco company. The
same plan worked in several other
sections. About fifty counties in Missouri
bonded themselves to promote railroads,
but not more than one-third of them ever
the roads.
The people of ST Clair county paid the
interest the bonds for the first year,
but after work stopped they refused to pay
any more, and have since defaulted both
on the interest and the principal. The
second year a tax levy was made usual,
but instead of using the proceeds to pay
the interest, the commissioners bought in
nineteen of their own bonds and destroyed
them After default of five wears suit
was brought by the innocent holders OF
the bonds issued by st. Clair and several
other counties that were in similar pre-
dicament, and by mutual agreement the
case of Nicolay VS.. Henry county was
made a test in the federal courts. The
judgment was against the county.
The County Held Responsible.
An appeal to the supreme court was then
taken. with the late Senator Vest and Judge
Phillips mow on the United States circuit
bench for this district, representing the
county as attorneys The judgment of the
lower court affirmed. The court held
that it made no difference whether the issue
was irregular or not whether the tax
payers derived any benefit from it; that the
bonds were sold by authorized agents of
the county and had reached the hands of
Innocent purchasers, and the taxpayers of
tho several counties which issued them
var CT hnt nrin ri NAL nd in
ter est.
Upon this decision all of the counties in
volved made a settlement except Cass, Ma
con, Dallas and st. Clair. Most of them
were able to compromise a an amount less
than the face of the bonds. Cass county
afterward settled but has not fully paid
the debt because some Of the bondholders
refused to accept the agreement and de-
maj ded their ounce of flesh. There was
more trouble In Cass county than in any
other. The citizens We're SO indignant at
the fraud that they lynched the county
commissioners who issued the bonds; also
county clerk who was involved in the
transaction. Four officials were taken from
a railway train one night and hung to
tree. The whole state in a turmoil.
The people Of st. Clair county threatened
to hang their commissioners, but the latter
escaped the lynchers. Macon county held
out until q few weeks ago, when a COM
promise was effected and the claims of the
bondholders Will be paid by the next tax
levy. Dallas and ST. Clair counties the
only two that still refuse every form of
compromise.
County Officials Sent to Jail.
In 1880 Judge Phillips of the federal court
who had been of the attorneys of the
defaulting taxpayers before the supreme
court upon the petition of the bondholders
issued a mandamus commanding the county
courts of St. Clair and Dallas counties to
make levies upon the property in those
the refusal of those officials 10 obey his or
ders, he committed them to jail for con-
tempt of court. They remained In jail I'M
til the end of their terms. The mandamuS
was served upon their successors who were
in turn committed for contempt, and the
judges of st. Clair county have been almost
continuously in Jail for the same reason
ever since Some of them have been able
for a time to elude the United States mar
shals who were sent down with writs, and
have often transacted their official business
in the bush and at secluded farm houses;
but the refusal to pay the bonds has been
a political issue, and since 1880 no judge in
ST Clair county has been elected without
pledging himself that he Will never agree
to compromise or issue a tax levy to meet
tho judgment of the court. So stubborn
have the people been that the bondholders
have not demanded the execution of the
writs for the past three years.
Compromise offered.
In 1890 Judge Phillips, acting in an extra
judicial capacity, visited Osceola as a con-
ciliator and addressed mass meeting of
citizens at which he declared that the pay
ment of $500 600 would be a fair basis OF
settlement, and hoped that 1t would be ac-
capted by the bondholders and voted by the
county. At one time years ago the people
offered to pay the face value of the bonds
outstanding which is $231, 0OO-S19, 600 hav-
ing Been redeemed and Cancelled in 1872;
but the principal and accumulated interest
now amount to more than million and
half of dollars.
The interest on the principal is ten per
cent a year: the interest on the judgment
which Is readjusted every ten years is six
per cent The population of the county is
1900 by the latest census. The annual
revenues, including school taxes. are about
s45. Oo0-the school tax being AS mills on
the dollar and the tax for ordinary pur-
poses SIS mills. The total assessment OF
taxable property is 100000. The COM
promise OF Judge Phillips was based upon
that amount.
John B. Henderson of Washington. for
merly United States senator from Missouri.
who is one of the bondholders. publicly &C
cepted the proposition; but the other bond