Iowa County, Wisconsin - Chapter 7: Iowa County Boxds, 1881

Chapter 7: Iowa County Boxds

Building Contracts - Coukty Repcdiation of Bond Indkbtednfss - First SriT - The Enemy Storms Mineral Point - The Legislature to the Rescue - A Compromise Attempted and Opposed - Settlement, Proceedings and Final Report.

The history of the Iowa County Bonds is so intimately allied with the inception of the Mineral Point Railroad, the financial ramifications of which are illustrated in another division, that it is with difficulty it can be narrated in a single chapter. Realizing that the subject has been fecund of acrimonious discussion and bitter feeling, the historian has carefully culled his information from a variety of sources, the result being given herewith, from an unbiased standpoint, and with the aim of ingenuously recording the truth.

Before launching forth on the question, it is necessary to a faithful understanding that the specific deeds should be premised by a pithy review of the railroad, from the time it was projected. The Mineral Point Railroad was incorporated by an act of Legislature, approved April 17, 18.52. Stock subscription books were opened in Mineral Point in June, 18.52, and after many weeks of strenuous exertion, the amount of stock essential to organizing was subscribed and the first installment of 10 per cent was paid. A Board of Directors was then elected by the shareholders, and the initiative steps toward constructing the road were inaugurated. During the year 1852, the preliminary surveys and estimates were completed, and additional stock amounting to $130,000 subscribed. By order of the Directors, an act authorizing the county to issue bonds in aid of the railroad was submitted to the Legislature by Levi Sterling, P. \V. Thomas and H. Madder, and eventually approved. The title of the act was " To authorize the counties and towns through which the Mineral Point Railroad passes to aid in its construction." Through the agency of H. H. Gray, of Darlington, a proviso was inserted exempting La Fayette County and the towns and villages therein, from participating in any proposed subsidy.

On the passage of this law. a resolution was adopted directing the President to submit a proposition to the County Board of Supervisors for the exchange by the county of §150,000 of county bonds for a corresponding amount of convertible railroad bonds in conformity with the provision of the act. The proposition of the railroad company specified that in return for bonds of the county aggregating .§150,000, the principal and interest would be guaranteed, and as security for such payment, the company offered to issue an equitable amount of railroad bonds, convertible into stock, and secured by a mortgage on the road and all its equipments. The County Clerk, on receiving the proposition, as required bylaw, convened a meeting of the Board of Supervisors, to take into consideration the offer. The meeting occurred May 25, 1853. John Messersmith was elected Chairman, and the board adjourned to the following day, when every member was present. As anticipated, the expediency of holding an election was fruitful of warm debate.

After an excited and earnest discussion, the voice of the meeting was registered in the affirmative by a vote of ayes 8, nays 3. An analysis of the vote shows the following as having cast their vote in the affirmative : G. M. .\shmore. Arena ; John Messersmith, Dodgeville ; John Covin, Linden; R. D. Pulford, Mineral Point; Francis C. Kirkpatrick, Mifflin; John B. Skinner, Ridgeway ; Samuel Zollinger, Waldwick, and E.. L. Geddings, Wyoming - 8.

The date of election was fixed for June 20, 1853, and a printed notice of the election and implicated interests was distributed broadcast in every section of the county. Appended is a true copy of the election notice:

Election' Notice

WnERE\s, The Mineral I'oint Railroad Company has, in pursuance of an act of the Legislature, approved the 23d day of March, A. D., 1858, submitted to the Board of Supervisors of the county of Iowa, a proposition in writing for the exchange of $1.50,000 of second mortgage bonds, of said railroad company, bearing 8 per cent interest, payable semi-annually in the city of New Vork, for f)ne Hundred and Fifty Thousand Dollars of Iowa County Bonds, bearing 8 per cent interest, payable semi-annually in the city of New York, both of said issues of bonds redeemable in the year A. D. lSt5S, the said railroad company binding themselves to meet the interest upon the said county bonds, as the same shall fall due and payable from time to time.

In pursuance of said law, the Board of Supervisors for the county of Iowa, hereby give notice to the voters of said county, tlial an election will he held at the sever.al places of holding elections on .Monday, the 20th of .June next, when the voters are required to deposit a ballot upon which shall be written or printed the words " For the railroad proposition," or " Against the railroad proposition," which said election shall be held in the same manner and form and under the same laws which govern State and general elections.

The appearance of this election notice created much animosity in the northern districts, which at that time, animated by the county seat removal, were allied against all legislation tending to improve Mineral Point. The election was held, and the following returned as the official statement of the canvass :

Towns. For. Aoainst

Captious critics impugned the legality of the election on the ground that the vote had been obtained by fraudulent practices, and by the exercise of deception. However this may be, the county bonds were issued.

One hundred and fifty bonds for $1,000 each, dated July 26, 1853, payable to Francis Vivian, Treasurer of the railroad company, on July, 1868, with 8 per cent interest, payable the 1st day of January and July of each year, at the bank of the Manhattan Company, in the city of New York, with coupons for the interest attached.

In exchange for these bonds, the county received from the railroad company, 150 bonds of the railroad, for $1,000 each, bearing the same date and interest as those issued by the county, due at the .same time, and payable to Edward H. Janssen, State Treasurer, but without interest coupons being attaclied.

To secure the county for the payment of its bonds, the railroad company gave a mortgage, dated July 27, 1853, to Edward H. Janssen, then Treasurer of the State, as Trustee, on all its railroad and property ; the same mortgage being intended to also secure $170,000 of other bonds to be afterward issued as the company might need them. This Janssen mortgage was in point of time the first mortgage ever given by the railroad company, but it was specially agreed and provided that it was to be tleemed as a second mortgage, subsidiary to another mortgage afterward to be executed, and to be called a first mortgage. The bonds were floated in New York. Following the appearance on Wall street of the county bonds, two advertisements, purporting

Building Contracts

On December 16, 1853, the railroad contracted with Robert & G. L. Schuyler, of New York City, in which the Messrs. Scliuyler agreed to build, equip and put the railroad in running order for ^1,000,000, all payable in the bonds and stock of the company. The contract provided that $150,000 of Iowa County bonds should be loaned to the Messrs. Schuyler as collaterals to borrow money on. After the completion of the road, they were to be returned and given up to Iowa County to be canceled.

The contemplated first mortgage was executed January 2, 1854. This mortgage was on al' the railroad and property of the company, and was given to G. L. Schuyler to secure the payment of 1,000 of the bonds of the company for §.500 each, due January 1, 1874, with interest at 7 per cent, payable on the 1st days of January and July of each year, and having interest . coupons attached.

In the spring of 1854, Messrs. Schuyler proceeded vigorously to fulfill their contract. About March 1. 1854, $500,000 of the Schuyler railroad bonds, and $150,000 of county bonds were deposited in New York, the money used being obtained by the officers of the company drawing on Messrs. Schuyler, in New York, payable four months after date. These drafts would be accepted, and the company discounted them, and procured the money from various banks.

As stated elsewhere, Messrs. Schuyler faile<l to meet their monetary obligations on July 3, 1854. Up to this date, the company had drawn at four months for §137.000. About §77,000 had become due, and was paid by Messrs. Schuyler, thus leaving §60,000 for which the railroad company was responsible to the banks.

On settling with the assignee of the bankrupt contractors, it was found that they had used $30,000 of the county bonds, and §20,000 of the Schuyler first mortgage bonds. The company obtained the release of the remaining §120,000 of the county bonds, and §45,000 of the Schuyler bonds. By this transaction the railroad was saddled witii a debt of §60,000 for the unpaid acceptances of the Messrs. Schuyler, and a home debt of $15,000 for grading, etc.

The debt of the company, about $75,000, was carried with great difficulty, by putting up the Iowa County Bonds, and by using the first mortgage bonds as collateral.

Eventually a contract was signed with Alvin AVilkins, of New York, for the payment of the company's debt and the completion of the road. That gentleman was dissatisfied with the form of the Schuyler bonds, and, at his instigation, a tiiird mortgage, or an alleged new first mortgage, was prepared and executed by the company. This issue was for the sum of §320,000, in $500 bonds, each dated January 1, 1856, due January 1, 1881, with 8 per cent interest, payable semi-annually. The new mortgage given to secure these bonds was dated January 1, 1856, and was to D. R. .Martin and L. D. Coman as Trustees.

By the cancellation of §50,000, tlie balance of the Schuyler First Mortgage Bonds, the Janssen Mortgage, by priority, became the first mortgage with the Martin and Coman deed subsidiary to it.

On June 4, 1856, Alvin Wilkins made an assignment of his contract to Luther Beecher, a brother-in-law, residing in Detroit. By the terms of his contract. Mr. Beecher was to receive $1,000,000 in cash bonds and stock of the company, including §150,000 in Iowa County Bonds; $60,000 in Town of Mineral Point Bonds, and $10,000 of Town of Waldwick Bonds, for which Mr. Beecher was to complete and equip the road, and pay and deliver up to the company to be canceled all the interest coupons due on the Iowa County Bonds, including those of July 1, 1857. It is idle to recount the financial operations of this contractor, through whose shrewdness and business capacity the road was ultimately completed, and under whose auspices the inaugural train was run in the spring of 1857.

To justify a repudiation of the bonds, it was asserted that a second mortgage, subordinate to a first of $10,000 per mile, was no security at all ; that even the first mortgage was valueless.

On the other side it was insisted, and detailed statistics were presented in proof, that the net earnings of the road would pay off both mortgages and leave a surplus for dividends to stockholders ; and the convertible feature, which the bonds of the county were to contain, was a valuable one of which the county would at some future time avail itself.

The more brilliant prospectus was generally accepted by a confident and enterprising people as a correct view of the merits of the undertaking, and, in support of their opinions, the citizens cast their vote, and accepted the proposition. Reviewing the canvass now, in the light of subsequent experience, it is contended that the action was justified by the prospective profits, which, despite delusive statements, were not wholly chimerical. In this plight it becomes interesting to contemplate the course which eventually canceled the guarantee, and left the tax-payers in the relentless grasp of financiers, whose only aim was to eke out payment to the last stiver. Anterior to the popular indorsement of the county loan, the railroad was subject to a bonded indebtedness of $10,000 per mile, or, in the aggregate, $320,000. But in reality the only mortgage that had been issued, paramount to the security of the county, was the Schuyler mortgage, a lien to the amount of $50,000.

On April 8, 1856, the Railroad Company, by Parley Eaton, its President, executed a mortgage for $320,000 to D. R. Martin and L. D. Coman. These parties claimed for the deed all privileges pertaining to first mortgage bonds, although there was nothing on its face to indicate that it was a first mortgage. In fact it was actually a third mortgage, and the bonds issued were subordinate to the mortgage issued to secure the county.

Owing to the recalcitrancy of the railroad, in failing to provide payment for interest maturing on county bonds on July 1, 1858, a suit was instituted in the United States Court, upon forty-three of those bonds.

County Repudiation Of Bond Indebtedness

At the annual meeting of the County Board of Supervisors, on November 11, 1858, the members were called upon to adopt a definite plan of action regarding the present and prospective litigation arising from the railroad company's inaction, and it was

Rexolved, That the Iowa County railroad bonds were obtained by fraud, issued against the wish of the people, first oftered in market, against the published protest of a majority of the County Supervisors, and that the people never will consent to the payment of one dollar of them.

Keiohed, That in view of a suit now to commence, or about to commence, against Iowa County, for some portion of said bonds, it is ordered that a defense be made to such and all suits for any of said bonds, to the utmost extent of law.

liesolveti, That the Chairman of the board be associated with the District Attorney, and that they be directed to employ the best legal talent of the State, at a cost, if necessary, of any amount not exceeding $5,000 per year, to assist in conducting the defense.

Ifrsoloed, That $1,0110 be appropriated out of any money in the treasury, for present use, and the Chairman of the board be instructed to draw orders for the sum as needed, to carry out the objects of the foregoing resolutions.

Notwithstanding this repudiation, the United States District Court has always, and in all cases, rendered judgment against the county, the first decree having been entered on September 3, 1860.

The allegations of misrepresentation and fraud specifically defined are : That it was represented by those who advocated the issue of the county bonds, and especially by the Directors of the railroad company, that if the bonds were issued, the railroad should be extended northerly through the county. The Railroad Company would pay the bonds, principal and interest, and that the people of the county would never be called upon to pay one cent. Finally, that the election itself was fraudulent, and the apparent majority was obtained by illegal and fraudulent voting.

It is admitted by the most ardent supporters of the railroad, that it was represented that the road should be extended northerly through the county. These representations were, however.

more the act of individuals, who, laboring to render the issue of county bonds more palatable to the popular taste, did nit always hesitate to qualify their promises, but unconditionally stipulated verbally that such extension would be completed. As a corporate body, no official emanation sanctioned the projected northerly branch. However, arrangements had been made with R. & G. L. Schuyler to extend the road to the Wisconsin River, whenever they had completed their main line to Mineral Point. Injustice to the contractors, it is only equity to presume that they would have done it, liad not their disastrous failure of 1854 intervened, to cause a suspension of operations on the main line for nearly two years, and defeated all hopes of the extension for an indefinite period. The only grounds existing for the charge of misrepresentation were the acts and utterances of the Directors, some of whom, in an ebullition of excitement and transported by super-zeal, addressed mass meetings of citizens on the topic uppermost in their minds. Extravagant expectancies were incubated, and the golden prospects of the railroad depicted in roseate tints of the most vivid character. So impressed were the Directors of the ultimate success of their project that, prior to the election, a circular, entitled " An Appeal," was printed and industriously distributed among the voters. In this '' appeal " the income of the rnad was estimated at ^I'l.OOQ per annum, and this amount the Directors expressed their confidence would be found "far below the truth." On behalf of the railroad, it is claimed that this prospectus deceived no one, as the figures of estimated profits were submitted to each ta;cpayer to either verify or disprove.

First Suit

Notwithstanding the secondary nature of the Martin & Coman mortgage, a suit for the purpose of foreclosure was brought in April, 18.59, in the United States Court, in which it was charged that the .Janssen mortgage "was subject and subsidiary to the Martin k Coman mortgage, and that the latter had precedence to and priority over the former and all other liens and incumbrances."

In this suit, the county was not made a party defendant, but the Trustee, the State Treasurer, was. While this suit was pending, before decree or sale of the road, two citizens of Mineral Point made strenuous efforts to induce the Chairman of the board to instruct the attorney of the county to answer in this suit, asserting that the Janssen mortgage, held for the security of the county, was the first and paramount lien on the railroad. Every argument that could be adduced was used with the Chairman, and he was '"urnished with the written opinion of an eminent law firm in Milwaukee, stating that if the county did not assert its rights in this suit, it would, by a decree, be forever debarred from so doing.

The records of the Board of Supervisors do not show that any action was ever taken by the board upon the question of entering the appearance of the State Treasurer as trustee of the Janssen mortgage in the foreclosure suit of the -Martin & Coman mortgage ; but it does appear on the other foreclosure suit of the county, that Samuel D. Hastings, State Treasurer, was served with a subptsna, and that he transmitted tiie same to the Chairman of the Board of Supervisors of Iowa Countj\ and gave the officers of this county authority by letter, "to use his name in any way in defending said suit."

On reception of this authority, L. W. Joiner, the Chairman, met in consultation with the District Attorney, and was by him advised not to defend the Martin & Coman suit, as such action, by asserting a claim to the Janssen mortgage, would compromise the suit wherein the county contested the legality of the railroad bond issue.

The Janssen mortgage provided that $320,000 might be issued under it. Of this, $1.').000 was issued to Iowa County in 1853. and the balance to other parties in 18.")6. The State Treasurer was the trustee under the mortgage for the several mortgagees, as well for the other parties as for the county. Under the circumstances, it is strange that a legal counsel with the undoubted ability of Chief Justice Ryan, should have considered the county litigation compromised by an appearance in the Martin & Coman suit by the State Treasurer as trustee.

[Publisher's Note. - After this chapter was printed, several errors were discovered. To correct them, the greater part of the defective pages were re-printed. The construction of the booli necessitates the following errata : Page 5.32. fourteenth line from bottom, for "equitable," read "equal;" line below, for a "mortgage," read "a second mortgage." " Jansen," wherever it appears, for "Janssen." Page .536, thirteenth line from bottom, read " summons" for " subpoena." Transpose the second paragraph from bottom to follow " debarred from doing," and make it read : " On reception of this opinion, L. W. .loiner, the Chairman, met in consultation with the late Chief Justice Ryan, employed by the county, and was by him advised not to defend the Martin & Conian suit, as such action by asserting a claim to the Janssen mortgage would compromise the suits on the county bonds wherein the county contested the legality of the county bonds issued to the railroad company." Also, sixth line from bottom, read |150,000. From this point to the end, the chapter is reprinted].

In pursuance of a decree granted by the United States Court in the Martin i Coman suit, the railroad, equipments, etc., were advertised aud sold at Marshal's sale on November 6, 1861, to James C. Carter, a New York attorney, for the sum of §75,000.

In the spring of 1866, Moses M. Strong and William T. Henry were employed by the county to foreclose the Jansen mortgage, and to assert it as being a first lien on the railroad and all its property for the benefit of the county, and as a just offset to the claims made against the county. And at this time, Henry and Smith were employed by the county to defend it in all the other suits by the bond-holders, and they had been before so employed from 1860 by the city and town of Mineral Point, and a short time after by the towns of Waldwick and Moscow. The attorneys. Strong and Henry, agreed with the County Board to prosecute the Jansen foreclosure suit for a fee which should be satisfactory to the board, and contingent upon succe-s, and if they were not successful they would only receive from the county their actual expenses. According to this agreement, the suit was commenced in the Circuit Court of Iowa County in September, 1866. Messrs. Reese & Mulks were employed by the county to assist in the suit. The case was brought to trial October 28, 1868, and the court adjudged that the Jansen mortgage was the first and paramount lien upon the railroad and all its property. Luther Beecher, President of the Mineral Point Railroad corporation, through his attorneys, appealed the decision to the Supreme Court of the State. The .Supreme Court reversed the decree of the Circuit Court, and ordered that the case be dismissed, holding that the county had lost its privilege by not appearing in the Martin & Coman foreclosure suit; that the county was by that decree forever barred and prohibited from setting up any claim by virtue of the Jansen mortgage.

By authority of the act " to authorize the counties and towns through which the railroad passes, to aid in its construction," the town of Mineral Point issued $60,000 and the town of Waldwick §10,000 of their bonds, accepting stock of the railroad in return for the subsidy. Waldwick subsequently liquidated about one-fifth of their bonds.

In 1870, this outstanding liability against the tax-payers had assumed threatening proproportions, which speedily promised to seriously impair the finances of the county.

Subjoined is a statement of the bonded indebtedness of the rate-payers of Iowa County, together with accumulated interest, as compiled by W^illiam T. Henry in 1870 :

The claims against the county were thus augmented to §16.82 for each person, or §84.10 for a family of five persons, and 6-i^ per cent on the high valuation of 1870. In the cities and towns that grantcil subventions, the claims of local bonds were to be added. In the city of Mineral Point, the citizens were burdened with an oppressive debt of (|uadruple proportions, embracing a tax respectively for the county, town, city and railroad stock a.ssessments. Accepting the county and city debt in the aggregate, the assessment levied would be equivalent to 17^^ per cent. Including the town debt, the rate was increased to the startling figures of '20-^^ per cent.

In the town of Waldwick, a tax to cover the indebtedness would subject the inhabitants to an assessment of 10y\ per cent. In the town of Moscow the rate of taxation would be 9^ per cent.

The Enemy Storms .Mineral Point

The first judgment against the county was September 3, 1860, and the first one against the city and town of Mineral Point was September 26, lSti4, these being rapidly followed by other suits and other judgments.

One curious circumstance, connected with the first judgment against the county, which was in favor of Clark. Dodge & Co., of New York City, was that at the trial of said case in the

United States Court at Milwaukee, the original 150 bonds for $1,<I00 cacli, issued by the railroad company to the county, were produced in court by the plaintiff's attorney (George B. Eley), and although afterward the most exhaustive search and investigation was had, every possible trace or clew being followed to its very end, parties being examined under oath, and every possible means taken and used to find said bonds, it has never been found how they got out of the possession of the county, or where they went out of said court.

From the time of the first judgments, the bond-holders continued to bring suits and to obtain other judgments for different parties, and of course by different attorneys, and at the same lime was trying in every known way, from 1860, to compel actual payment, and for years the county, city and town boards of Mineral Point could scarcely hold a meeting to transact the public business without having the Marshal appear and serve them with mandamus writs and other compulsory processes. In all these were seventy-five to one hundred suits in different stages of progress, giving the county attorneys plenty of occupation in attending to them. All processes were avoided or evaded, but, as practice makes perfect, the attorneys for the bond-holders, the principal and most active being the late Hon. Matt H. Carpenter, succeeded in so perfecting their processes that the usual taxes could not be collected, without also paying the bond judgment taxes; so for 1870 no taxes whatever were collected in Iowa County. For 1871, they managed to collect the usual taxes, but for 1872, the bond holders had the people in the same situation as for 1870 ; so for 1872 no taxes whatever were collected in Iowa County, and the people having their revenues stopped, were deprived of means with which to continue the public schools, to pay their State tax, or to carry on their local governments. While all this was going on, the attorneys of the county, city and town, as opportunities offered and funds could be had, settled a good many thousand of dollars of county, city and town bonds, at prices varying from 25 cents to 50 cents on the dollar not at any time having any trouble to settle for 50 cents when they could get money.

At this time, the only active parties being the attorneys engaged in supporting the legal warfare and parrying offensive thrusts delivered against their respective clients. Tired of fruitless skirmishing, in August, 1870, Matthew II. Carpenter, representing Luther Beecher and the majority of the claimants, indited a letter demanding an immediate settlement in full, under penalty of Marshal's execution. The County Attorney replied in a tone of firm moderation, advising a compromise. An answer was vouchsafed rejecting the offer, and ordering " an advance all along the line." The County Attorneys were aided by the legal firms of Emmons & Van Dyke on the part of the towns, and Palmer, Hooker & Pitkins, of Milwaukee, on the part of the county.

In the fall of 1872, at the instigation of Mr. Beecher, all the Town Clerks, Town Treasurers and the Mayor and Aldermen of the city of Mineral Point, thirty-seven persons in all, were suddenly arrested by United States Marshal Hamilton, and taken to Milwaukee on attachments issued without any notice, for pretended contempt of court in not obeying the mandamus writs issued in 1870. The offenders were, taken before the United States Court in Milwaukee on November 13, 1872, and after being granted a hearing as to the officers of the city of Mineral Point, they were each fined §100 and costs, exceeding in the aggregate $1,000. The fines were paid and the gentlemen released. Their names were William T. Henry, Mayor ; David Jacka, S. E. Shepherd, James Argall, Albert Sprattler, William J. Healy and Peter Frieden, Aldermen. The other cases were adjourned to the next term of court. The captive city and town officers were permitted to return home as prisoners on parole, with a most emphatic direction from Judge Drummond to collect money and pay the judgments, as the next time they came before him in this way, the fines would probably be the full amount of the debts and costs.

The cause of this action shows that the tax was levied in compliance with the orders, but the Treasurers, who are required under the laws of the State to give bonds for twice the amount of tax to be collected, found it thus impossible to obtain securities, and on being ordered by the court to appoint others who could give bonds, no person could be found who would accept the office. As the clerks could not lawfully deliver the tax lists until the Treasurers had complied with the statutes, the tax was not collected, hence the decree of the court was contemned. The Judges in this case were Justices Drummond and Miller.

At a meeting of the Common Council of the city of Mineral Point, held November 20, 1872, the appended resolutions, which speak for themselves, were adopted :

Rftolvfd. That in obedience to the orders and decrees of the Circuit Court, in and for the United States of America, for the Oistrict of Wisconsin, made January 4. 1870, in the nine cases of .Tohn C. Hayemeyer, Charles 0. Wel>b, J. C. Carter, Henry llaTemeyer, William F. Haveiiieyer. .lames Bruce, William F. Ilavemeyer. James Lee and Joshua F. Lamson, against the town and city of Mineral I'oint. ami in compliance with the notice of Malt H. Carpenter, solicitor and counselor for said parties, there be and is hereby levied upon all the taxable property of Mineral I'oinl, the sum of thirty-three thousand one hundred and one dollars and thirty-six cents, as a tax for the year A. D. 187*2, to pay and satisfy the share of the said city of Mineral Point, of the said judgments, costs and interests thereon, as is lixed and adjudged by the said court.

Resiilfd, That the City Clerk be, and he is hereby requested and directed to put the taxes so levied in the tax roll for the year A. D. 1872, with the other taxes acconling to law. and the City Treasurer is also hereby requested and directed to proceed and collect said tax, with the other regular taxes according to law, and when so collected, pay the same over to said parties or their solicitors, to satisfy said respective amounts due them as aforesaid.

Resolrrd, That with all respect for said Circuit Court and the Judges thereof, the Common Council of said city deem it right to say that said judgments are not by said decrees properly equitably, justly or correctly apportioned or divided between said defendants - the town and city of Mineral I'oint, and the said Common Council levies said tax to comply with the order and decree of said court, but in no way acknowledging said amounts to be correct, and reserving the right to adjust and settle such sum or debt with the town of Mineral Point, upon the share and terms heretofore settled and agreed upon between them.

On motion. Mayor Cooper, with Aldermen Argall and Sprattler, were appointed a committee to confer with the town authorities and the attorney for the town and the city, on the offer of T. A. Keep, on town bonds and on the fines and costs in the late cases of contempt before the United States Circuit Court at Milwaukee. When the city was organized out of the territory of the town, they had a settlement by which they divided all assets, and agreed to pay all liabilities on the basis of 59y^ for the city, and 40^'^ for the town, and said fine and costs were settled on that basis as have been all settlements of railroad bond debts.

The Legislature To The Rescoe

At the Legislative session in January, 1873, William T. Henry visited Madison, and by interesting the members of the Legislature, procured the passage and approval of various bills, embodying every conceivable clause capable of protecting the city from paying assessments for the payment of railroad bonds. Following are the bills that were introduced into the Legislature :

By Senator Little: No. 110 - A bill to amend an act to incorporate the city of Mineral Point, approved March 16. 1861. and also all acts amendatory thereof.

By Senator Little: No. 132 - A bill to provide for investing a portion of the State school funds in bonds of the county of Iowa, and city and town of Mineral Point, which may be issued to settle and compromise their railroad indebtedness.

Judge ^^ AL Cothren appeared before the Judiciary Committee of the House, representing the Mineral Point Railroad. He was opposed by William T. Henry for the consolidated county claim. The four bills were all passed and approved at that session, together with a law authorizing the Governor to appoint a commission to investigate and examine the affairs and management of the Mineral Point Railroad from the time of its inception, with a view of repealing the charter if certain charges of misconduct and abuse of the people through their charter privileges were sustained. This act was approved March 10, 1873, and was published on April 1 of the same year.

This attack on the franchise of a railroad was the first recorded, and, in the boldness of its design, was startling. When introduced into the Legislature, its provisions were laughed at, and the bill was at once characterized as Utopian in conception, never destined for practical application. Subsequent events dispelled the fallacy of this idea, and, when approved, Iowa County possessed an instrument that enforced a recognition of her rights. The commission was never appointed, but the bill precipitated a settlement by the bond-holders. Negotiations for an amicable understanding were re-opened with Luther Beecher and others, and on June 12, 1873, and a short time after, an agreement was concluded whereby the bond-holders, representing all the county, city and town bond debts, except that in the control of one Mariner, an attorney in Milwaukee, who, like old Shylock, insisted on every drop of blood, bound themselves to deliver up the bonds and coupons in their possession, in consideration of 65 cents on the dollar, payable in six annual payments, with 8 per cent annual interest thereon, payable at the Detroit Savings Bank, the first payment to be made on April 15, 1874. The proposition was submitted at the July meeting of the Board of Supervisors, in a communication from William T. Henry and J. M. Smith, attorneys for the county.

A Compromise Attkmpted And Opposed

Whkreas. It is believed that llie above proposals, and others substantially similar promised soon to be made> cover .ind include more than three-quarters of said indebtedness, and that it is to the advantage and benefit of said county to accept and approve said proposals, therefore, be it

R'xnlved. That said proposals so made and to be made as above stated be, and hereby are, approved, in accordance with said compromise la«s, and the faith of Iowa County is irrevocably pledged for the faithful and prompt fulfillment of the terms thereof, etc.

On motion, G. C. Meiggs, of .Vrena, was appointed a Commissioner to supervise the issue of compromise bonds. " To see that said compromise bonds are properly made, signed, issued in proper amounts, recorded and delivered only upon settlement, on the terms aforesaid, of at least three-fourths of said debt ; and that the proper lawful stipulations are filed in the courts where said judgments are in each case, so that on payment of the compromise bonds the judgments will be surely released and satisfied, and to report fully their acts and doings in regard thereto to the board at its next meeting. "

The publication of these resolutions aroused a feeling of resentment from center to circumference of the county, and an acrimonious newspaper discussion was instituted by men who fancied their interests endangered, and consequently felt themselves aggrieved. More litigation was engendered by this puerile opposition.

The same proposition was made to the Common Council of Mineral Point, and unanimously approved at a meeting of the Railroad Bond Committee held July 14, 1873.

In the early part of August, 1873, Joseph Blake, President of the Ridgeway Farmers' Grange, obtained an order from Judge Wilson restraining the Board of Supervisors from consummating the compromise. In the demand for an injunction, it was alleged that the County Board was about to issue §300,000 of new bonds which were to be delivered to Messrs. Luther Beecher, Dodge, Carpenter and others. It was also asseverated that, by the terms of the contract, in the event of a single non-payment, the county would be rendered liable for the full amount of the assigned judgments and the new redemption bonds. Tiie plaintiff was represented by NL J. Briggs as legal counsel, with whom were associated in this case Messrs. Strong k Weber, Reese & Carter and the Hon. Alexander Wilson.

In support of the injunction, a public meeting was held at Dodgeville August 12, 1873. Joseph Blake was chosen Chairman, and E. T. Wrigglesworth was elected Secretary. A series of resolutions were adopted, and a comtnitteo of three was appointed to present them to the County Board for their consideration. The committee consisted of James Stephens, of Ridgeway ; Samuel Hoskins, of Dodgeville, and Alex Wilson, of Mineral Point. At the meeting of the County Board, the following resolutions of the meeting were read :

Resolved, That as fast as said fifty per cent upon one dollar of said indebtedness is paid, the owner or owners of said indebtedness shall release and discharge one dollar of said debt, and so on until the whole amount of said imlebtedness is liquidated and discharged.

Resolved, That we are opposed to the issue of new bonds, unless double the amount of the old debt is surrendered therefor; that we are opposed to the recent settlement of a large amount of said indebtedness by the Boird of Supervisors of this county for the following reasons: That we thereby incur new obligations without canceling or discharging any of the old 'V the issuing of new unuegotiable bonds, and delivering the same to the judgment creditors. That in case of the failure of the county to pay any and all of its installments, at the time and manner agreed upon, the payments made are only to be credited dollar for dollar on the judgments, and no provisions for the return of the new bonds. That in case of failure, the old judgments are to be held good and binding with no deductions or offsets except payments actually paid.

This session of the board, in character, was one of the most turbulent and noisy that ever occurred in the precincts of Iowa County. The board met at 2 o'clock in the afternoon, and adjourned at 10 P. M., only to meet ne.xt day. Messrs. Wilson, Weber and Strong all delivered cogent arguments against the ratification of the compromise. They were followed by Messrs. Henry and Smith in justification of the agreement sanctioned by the board at its previous meeting. During the second day's session, a variety of resolutions and declarations were presented for adoption. The introduction of these measures served only to prolong the arguments pro and con, and intensify the e.xcitement, which soon ascended to fever heat. Finally, a committee, composed of G C. Meiggs. Joseph Bennett, II. Van Dusen and W. T. Henry, was appointed to visit Detroit and New York, and confer with the bond-holders for a modification of their terms, and §;)00 was appropriated to defray the expenses of such negotiation. A report was presented at a special meeting of the Board of Supervisors, convened September 16, 1873. In their report, the committee set forth that they had, in pursuing their instructions, visited Detroit and New York, where they had interviewed the principal bond-holders on the question of settlement. The New York claimants had referred them to Luther Beecher, and, on application to that gentleman, he nnd his attorneys refused to make any concessions. A? to the second modification, they insisted that they must have new negotiable bonds, but entirely repudiated any idea or intention of having them so issued that the county would, in any event, be liable to pay anything twice ; expressed great astonishment that any one should hold such an idea, and said that the proposal and agreement fully provided for the entire safety of the county in that respect. Mr. Henry, one of the attorneys, then and there drew up a form for the stipulation provided for in the proposed agreement, and the .same was ratified and agreed to by both Mr. Beecher and his attorney, Mr. Miller. As to paying all in one payment next April, Mr. Beecher, having evidently formed the idea that the county would prefer to and was likely to do 80 any way, would only agree to discount the difference between 8 and 10 per cent interest for any payments made before due.

The foregoing stipulations, consisting of four closely written pages, were submitted to the meeting, and, on motion of Mr. Robinson, were adopted. On application of Mr. Meiggs, the resolution passed at the July session, appointing him to act in conjunction with W. T. Henry, was amended by the insertion of the name of Joseph Bennett instead of that of the applicant.

On a motion todissolve the Blake injunction. Judge Mills rendered judgment adverse to the county, and re-affirmed tlie powers of the writ which enjoined the Supervisors from issuing any so-called compromise bonds.

Jeing restrained from canceling the railroad bonds by the issue of redemption bonds, the of Supervisors, at a meeting held November "21, 1873, resolved to levy a tax of $150,000 on all the taxable property as shown by the assessment rolls for that year, it was levied, and nearly all of it promptly paid by the people, paid over to the Fund Commissioners of the county, by the County Treasurer, as the funds came into his hands from time to time, and used in making the first payments on the bond debts previously contracted to be settled. The payments were based on the settlement of 65 cents on the dollar, in six payments, with 8 per cent interest, each payment to cancel one-sixth part of the interest and debt.

According to the provisions of Chapter "207 of the Private and Local Laws of Wisconsin for 1809, entitled "An Act to provide for a Board of Fund Commissioners," Joseph Gundry, Samuel Iloskins and David McFarland were appointed Fund Commissioners, to hold office for the respective terms of three, ttvo and one years, according to the above order of mention. Joseph Gundry returned his commission and respectfully declined to act. John J. Ross was then appointed to fill the vacancy.

The Committee on Bond Settlement reported, March 19, 1872, that to meet the bonds held by Charles H. Tweed, of New York, the sum of $21,000 was borrowed for sixty days at 10 per cent interest. The proceeds were paid to C. H. Tweed, in New York, to meet nineteen bonds of $1,000 each, with accumulated interest from 1857, at the rate of 8 per cent. The total of these bonds, including interest, was $41,166.66, for which the sum of $20,583.33 was paid. County notes, bearing 10 percent interest, and redeemable in one year, were issued at William T. Henry's banking office, for $8,865. The County Clerk issued similar paper covering $2,135.

In November, 1876, the Fund Commissioners submitted a report, showing the extent of their operations since the date of their appointment. It was shown that a loan of $50,000 had been received from the State Treasurer, which, together with a balance of $11,441.05, had been invested in United States bonds, leaving a net cash balance of $2,678.25.

On June 12, 1878, the Bond Fund Commissioners submitted their final report to the Board of Supervisors. The report was duly audited, and, the accuracy of the statements having been verified the Commissioners were relieved from further labor. As the report contains a succinct review of the bond redemption, it is deemed worthy of publication in full :

Grntl'inen^The Fuuil Commissioners beg leave lo report that since the dale of their last report, they have settled the Curtiss and Bradley judgments, and have paid in part the only other outstanding Judgment, anil have made arrangements for its entire extinguishment, as will lie seen V)y the stipulation submitted herewith for your approval. They were the following judgments docketed September I'.i, 187S I'.'l, in the U. S. t'ourt for the Western District of Wisconsin, as will be seen by the copy of the release hereby submitted, viz., Daniel Ogden Bradley and Charles Curtiss vs. the Board of .Supervisors of Iowa County ; judgment and costs, $17,168.14. Charles Curliss vs. The Board of .Supervisors of Iowa (.'ouniy ; judgment and costs, $1 '.-.:!-')*'. 8:i. On computing the original judgments, of which this was a result, the Commissioners discovered an error of !?1.7''>0, by whicli sum this judgment was reduced. These judgments, with interest computed from date of judgment to daleof payment, April U), 187'>, amounted to $38,622.83. This was jiaid at '.lb cents on the ilollar. amounting to $'M') bill. 69.

The only other judgment is the H. E. Bowen judgment, commonly known as " The .Mariner Claim," and which has been so fruitful of inandanmses and arrests for contempt. This judgment was recovered April 20, 1870, for $')0,284.36. To this is to he added eight years' interest, at 7 per cent, and $973. :i7 costs on mandamures, etc., in all amounts toS70,400. On this judgment, the Commissioners paiilall extraneous amounts with interest, and issued new bonds dated May 1, 1878, for the balance of $'6 0 10. These bonds were to bear interest at 7 per cent, and to become due : $1(1,000 in 1886, $20,000 in 1887. $20,000 in 188s, and .$!.".. (lOO in 188'.t, thus deterring the payment of any part of the principal until the moneys borrowed from the State simll have been paid. It will be seen by the stipulation with .Mr. Mariner that lo remove any doubts as lo the legality of the new bonds, rlie county is required to procure the passage of a special act, legalizing the issue of the new bonds before the judgment can be fully satisfied. Cniler ordinary circumstances, this would have delayed the final settlement until after the session of the next Legislature. Being anxious lo finally release themselves and the county from any further trouble in the nia'ter, the Commissioners thought it best to endeavor and get such law passed at tlie lale special sessinii of the Legislature

For this purpose. Mr. Mariner was requested to draw up such an act as would best satisfy himself, and Commissioners Vivian and Bennett visiteil Madison to secure, if possible, its passage at the special session, in this they were successful, aliliough both Houses had resolved lo do no business except the special business for which lliey were convened. A certified copy of said law is herewith submitted, with copiesof the Slate pa|ier in which it is puMished. The thanks of the Commissioners are due to Senator .Archiba'd Campbell for its passage through the Senate, and to Hon. William Carter, who championed it in the .Assembly. From the best information ihpy can get, there are outstanding yet in unkn pwn hands one bond and some coupons. If presented before the regular session, t'le t."oniniis- eioners will have enough funds to settle them. Mr. Mariner also claims that some errors hare crept into his compulation, which will alter, possibly, the figures of the final seitleiiient. For these reasons the Commissioners propose to delay their financial statement until your regular session, when, having finished the business intrusted to them, they will be prepared to submit their accounts and pay over any balance.

The settlement will leave the county indebted to the State $150 OOll, to -Mariner JtJo.OX), in all $215,000, a fraction over 3 per cent on the county assessment as equalized by the County Board. By this settlement, the county will have to levy $20,000 of the principal, and the interest on the whole debt eachyear until 1889, when there will remain only $15,000 to be paid. The annual tax for this purpose will be little more than it has been for the last two years, as the interest is larger, but the interest charge will decrease each year as the principal is reduced. The payments for the coming year will be in rouml numbers $35,000. which is a fraction over the half of 1 per cent on the county assessment, as equalized by the board. This will be the largest payment, as the interest will be steadily reduced eachyear. Respectfully submitteil. John II. Vivian,

The last recorded event in the bond history is found in an entry on the records under date of November 13, 1878, which satisfactorily disposes of the nefarious business.

Reiolved, That a hearty vote of thanks be and the same is hereby tendered to said Kund Commissioners, for the able and satisfactory manner in which the most vexed matter that ever luwa County has been engaged in, has been finally and forever tettUd.