USA > Iowa > Johnson County > History of Johnson County, Iowa, containing a history of the county, and its townships, cities and villages from 1836 to 1882 > Part 29
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I am, dear sir, yours,
EDWARD LANGWORTHY.
237
HISTORY OF JOHNSON COUNTY.
CHAPTER III .- PART 2.
Railroad Bond Votes-Frauds-Swindles-Lawsuits-Big Taxes to Pay-Etc., Etc.
The original records of the Davenport and Iowa City Railroad Com- pany are before us, of which the Secretary, H. W. Lathrop, of Iowa City, writes:
This was the first railroad company organized in the State, (Oct. 14, 1850,) and although it has ceased to exist, the Mississippi & Missouri Company, phoenix-like, has risen from its ashes. The stock subscribed never amounted to more than $15,000, and only sufficient was paid in to procure a survey of the route from Davenport to Iowa City, and a publi- cation of the engineer's report and accompanying diagram.
At the last meeting of the Board of Directors, the record of which was lost, a transfer of all the rights, privileges, benefits, franchises, etc., etc., in the possession of the company, was made to the Mississippi & Missouri R. R. Co. The meeting was held late in the afternoon, and at its close, Dr. Henry Murray was dispatched immediately to Davenport with a transcript of the proceedings, that he might lay it before the directors of the latter company at a meeting to be held in that place the next day. Traveling on horseback most of the night, he reached Davenport in time to lay before the directors at the commencement of their meeting the pro. ceedings in relation to the transfer. The grant was accepted and the conditions complied with by making Iowa City a point on the M. & M. road.
We next present all the votes ever given in the county to aid railroads by bonds, tax levies, land grants, etc.
TAX VOTED FOR THE LYONS I. C. R. R.
In June 1853, the people voted on a proposition to aid this railroad enter- prise, the main features of the proposition as voted upon being as follows:
That the county of Johnson will aid in the construction of the Lyons' Iowa Central Railroad within the limits of said county, in case Iowa City be made a point in said road, by subscribing fifty thousand dollars stock; that county bonds shall be issued therefor bearing interest, and payable within twenty years; that an annual tax of three mills on the dollar be levied for the payment of the interest annually on said bonds; that after ten years the rate of tax for such purpose be increased to an amount not exceeding one per cent on the taxable property within the county for the purpose of paying off said bonds and interest thereon, to be continued until said bonds and interest are all paid.
The vote on this proposition, on June 16, 1853, is shown by the follow- ing returns:
Townships.
For R. R . Against Tax.
Townships.
For R. R. Tax.
R. R. Tax
Cedar.
16
2
Liberty .
30
6
Washington
22
1
Newport.
31
6
Penn .
29
6
Big Grove
39
7
Pleasant Valley ...
16
10
Union
11
2
Monroe
11
2
Scott.
17
4
Total.
453
46
Iowa City
231
. .
Majority for railroad tax, 407.
Against
R. R. Tax
.
238
HISTORY OF JOHNSON COUNTY.
VOTE ON THE M. & M. R. R. TAX .- AUGUST, 1853.
The main features of the proposition in this case were as follows:
That the county of Johnson will aid in the construction of the Missis- sippi and Missouri railroad, within the limits of said county, in case Iowa City be made a point in said road, by subscribing fifty thousand dollars stock; that county bonds shall be issued therefor, bearing interest, and payable within twenty years; that an annual tax of three mills on the dollar be levied for the payment of the interest annually on said bonds; that after ten years the rate of tax for such purposes be increased to an amount not exceeding one per cent on the taxable property within the county, for the purpose of paying off said bonds and interest thereon, to be continued until said bonds and interest are all paid.
The following shows the vote of each township, August 6, 1853:
Township.
For the Rail- Against the R. road and Tax. R. and Tax.
Total.
Iowa City
371
1
372
Big Grove.
52
23
75
Washington
47
2
49
Penn .
38
ยท
38
Pleasant Valley
31
5
36
Liberty
20
6
26
Newport.
55
1
56
Clear Creek
28
. .
28
Scott.
32
. .
32
Union
15
2
17
Cedar
16
9
25
Monroe
5
38
43
Total.
710
87
797
Majority for the railroad and tax, 623.
On September 1 the $50,000 of county bonds were issued, and " placed in the hands of Ebenezer Cook, of the city of Davenport, Iowa, (of the banking firms of Cook & Sargent, at Davenport, and Cook, Sargent & Downey, at Iowa City,) to be by him negotiated in the city of New York, upon the best possible terms, for the said county of Johnson, for the payment of said stock."
$225,000 RAILROAD BONDS VOTED.
On April 6, 1857, a vote was taken on two railroad bond propositions, at the same time. One was to subscribe one hundred and seventy-five thousand dollars ($175,000) to the capital stock of the " Iowa Union Rail- road Company," in the name and by the authority of Johnson county ; and the other was to subscribe fifty thousand dollars ($50,000) to "the Great Western Railroad Company, or to such other company as shall first suc- ceed in constructing a continuous line of railroad from the Mississippi river, via Dewitt, in Clinton county, and Tipton in Cedar county, to the east line of Johnson county, and make Iowa City a point in the continua- tion of such road."
239
HISTORY OF JOHNSON COUNTY.
The result of this vote was as follows:
Union Railroad.
G. W. Railroad.
Township.
For.
Against.
For. Against.
Iowa City
840
19
830
17
Cedar.
8
48
S
48
Big Grove.
6
83
3
85
Jefferson
18
16
2
26
Monroe. .
10
52
12
49
Clear Creek
2
45
1
45
Penn.
25
88
28
84
Newport.
19
18
25
14
Graham.
7
23
26
17
Scott.
17
43
19
41
Union
1
52
1
52
Washington.
1
115
3
103
Liberty
6
90
3
90
Pleasant Valley
41
6
30
8
Fremont.
47
6
6
12
Total
1048
704
997 691
IOWA CITY RAILROADS IN 1857.
To show the glowing prospective of railroad matters in 1857, we copy from the City Directory, published in that year for the first time, the fol- lowing items:
There are two railroads in contemplation, that, if completed, make the future prospects of Iowa City truly encouraging.
The first is the GREAT WESTERN RAILROAD, running from Camanche, on the Mississippi river, in Clinton county, by the way of Tipton, in Cedar county, to Iowa City. The company was incorporated and permanently organized, by the election of the following officers: President and Chief Engineer, Chas. B. Stuart, of New York City; Vice-President, S. J. Crew, of Tipton; Secretary, Geo. W. McCleary, of Iowa City; Assist- ant Secretaries, N. H. Parker, of Camanche, and J. B. Betts, of Tipton. The road is under contract, and whenever the weather permits the work progresses.
The second is the IOWA UNION RAILROAD. It has also been incorpo- rated and organized by the election of the following officers: President, Legrand Byington, of Iowa City; Vice-President, Geo. Greene, of Cedar Rapids; Treasurer, M. L. Morris, of Iowa City; Secretary, Geo. W. McCleary, of Iowa City; Executive Committee, Legrand Byington, ex-officio, John Clark, of Iowa City: D. H. Downey, of Iowa City. This road is to run north and south, through the State, intersecting the Keokuk road in the south, and the Dubuque road in the north, thus forming a link in the great chain extending from St. Paul, in Minnesota, to St. Louis, in Missouri.
SPECIAL APPROPRIATIONS.
January 4, 1866, the county board appropriated $1,200 to aid the St. Louis and Cedar Rapids R. R. Co. in making a survey through Johnson county. On June 5, 1866, the board voted to transfer this $1,200 donation to the Iowa Northern Central R. R. Co., and at the same time they
240
HISTORY OF JOHNSON COUNTY.
donated another sum of $1,300 for the same purpose, making $2,500 in all, to aid the I. N. C. Co. in making its surveys.
THE IOWA UNION RAILROAD.
Proceedings of a Railroad Meeting held at Iowa City, Oct. 14, 1865.
Hon. S. J. Kirkwood was elected chairman, and N. H. Brainerd and Jno. P. Irish secretaries. Report of St. Louis committee and correspond- ence was read for information of the meeting. On motion, the chair appointed a committee of five, consisting of Geo. Boal, W. B. Daniels, Cyrus Sanders, Jesse Westenhaver and Jas. B. Edmonds, to draft resolu- tions expressing the sense of the meeting upon the matter under consid- eration.
Mr. Byington moved the reference to that committee of the following resolutions:
1. That a committee of five citizens of Johnson county be appointed and charged with the duty of procuring such action of the Iowa Union R. R. Co. as will insure the building of a road from Cedar Rapids via Iowa City to Mt. Pleasant.
2. That a committee of five citizens of Johnson county, be appointed, whose duty it shall be to consult with the directors of the Chicago, Iowa & Nebraska Railroad Company, and ascertain to what extent and upon what terms said company will aid in building a railroad from Cedar Rapids to Iowa City.
3. That a like committee be appointed, whose duty it shall be to consult with the directory of the Keokuk & Mt. Pleasant Railroad Co., and ascertain to what extent and upon what terms said last named com- pany will aid in building a railroad from Iowa City to Mt. Pleasant.
These resolutions were referred, as asked in motion. Committee reported the following resolution:
Resolved, That in the judgment of this meeting, the citizens of Johnson county should and will aid liberally in building a north and south railroad through Iowa City.
The resolutions of Mr. Byington were reported back, with recommen- dation that the committees asked by them be appointed. Report adopted, and the following gentlemen appointed by the chair: Under the first resolution, G. E. DeForrest, P. A. Dey, Cyrus Sanders, W. H. Hubbard and Jas. McConnel. Under the second resolution, R. S. Finkbine, Jno. Williams, E. Clarke, T. S. Parvin and Geo. J. Boal. Under the third resolution, Jno. R. Van Fleet, N. H. Brainerd, Thomas Hughs, Geo. Paul, M. T. Close.
On motion of Capt. F. M. Irish the chair appointed W. B. Daniels, C. W. McCune and E. T. Seymour, a committee to confer with the citizens of Cedar Rapids and the officers of the C. R. & S. S. R. R. as to the terms upon which Iowa City can secure a position upon this line.
E. Sheppard and R. S. Finkbine were appointed a committee to confer
241
HISTORY OF JOHNSON COUNTY.
with the business men of Washington as to the aid they will give the proposed line.
Mr. Boal introduced the following resolution:
Resolved, That a committee of three be appointed to confer with the business men of St. Louis, interested in this road, and secure, if possible, their co-operation in locating the road down the Iowa Valley, via Iowa City, and report to some future meeting at this place.
Which was adopted, and Geo. J. Boal, Jno. Powell and Jas. B. Edmonds appointed as such committee.
On motion, the meeting adjourned to Saturday, Oct. 21, 1865, at two o'clock P. M., at which time and place all of the above committees, save the last named are expected to report.
JNO. P. IRISH,
S. J. KIRKWOOD, President.
N. H. BRAINERD, Secretaries.
PROCEEDINGS OF ADJOURNED RAILROAD MEETING.
Meeting convened in pursuance of adjournment.
The committee appointed to confer with the I. U. R. R. Co., reported through Mr. Dey. Had consulted with officers of that company, and thought there would be no difficulty ,in constructing a road from Iowa City to Columbus City, but there would be on that part of the line from Iowa City to Cedar Rapids. Mr. Dey thought it was only necessary to make a proper effort to present our advantages fully to Mr. Angle and his company, and we would have but little trouble in getting a position on their line.
Committee appointed to confer with the C., I. & N. R. R. Co. reported through Mr. Brainerd that nothing had been done.
Committee of conference with S. L. & C. R. R. Co. reported through its chairman, Mr. Daniels, most favorably. Efforts had been made by gentlemen from Cedar Rapids to secure for Iowa City a representation in the late convention at the former place. Mr. Angle was strongly in favor of the road coming to Iowa City, and would be here himself in a few days for a personal inspection of the route, conference with citizens, etc.
Committee to confer with business men of Washington county reported that nothing had been done.
Mr. Byington moved that a committee, consisting of six members from Iowa City township, and two from each of the other townships in the county, be appointed and charged with the duty of ascertaining the amount of money that can be raised in Johnson county by donations, or stock subscriptions, or both, to be expended under the direction of the C. R. & St. L. R. R. Co., upon condition that Iowa City shall be made a point upon said route; and that said committee make report to an adjourned meeting on Saturday, the 28th day of October, 1865. Adopted, and the following gentlemen appointed:
242
HISTORY OF JOHNSON COUNTY.
Iowa City-John Powell, Wm. B. Daniels, Joseph McConnell, James H. Gower, E. Clarke, Sylvanus Johnson.
Clear Creek, George Paul, Bryan Dennis.
Big Grove-C. W. McCune, Cris Pratt.
Pleasant Valley-B. B. Boydson, G. F. DeForrest.
Penn-D. A. Shafer, Capt. Stewart. Scott-John Parrott, L. W. Lee.
Oxford-Luther Doty, Squire Hartwell.
Liberty-M. B. Cline, Wm. L. Figg.
Graham-W. H. Boyce, Jesse Westenhaver.
Union-Phineas Harris, M. A. Humphries.
Madison-David Wray, James Chamberlain.
Jefferson-A. Sulek, Capt. Shuey. Newport-H. Felkner, Brad Henyon. Monroe-W. W. Kirkwood, Wesley Dean.
Cedar-Allen Sutliffe, Squire Collins.
Sharon-Joe. P. Miller, S. H. Bonham.
Washington-Elias Howell, T. R. Fry.
Hardin-A. D. Packard, Squire Hardin.
Fremont-Richard Huskins, H. Welch.
Committee appointed to solicit subscription in contiguous points in Cedar county, Robert Gower, W. Gonsales, W. C. Atwater, Ed. Wright.
The meeting was addressed upon the various questions before it, by Robert Gower, Wm. B. Daniels, N. H. Brainerd, John Williams, Legrand Byington, F. M. Irish, James B. Edmonds, Capt. Gaston, Judge Miller, P. A. Dey, and many others, all manifesting the warmest interest in the object in view. On motion, a committee of three, consisting of Gov. Kirkwood, F. M. Irish and Wm. B. Daniels, was appointed to draft an address to the people of Johnson county, and procure publication of same for distribution.
On motion, the chair appointed Wm. B. Daniels, N. H. Brainerd, Jas. B. Edmonds, P. A. Dey and John P. Irish, a committee to confer with and entertain President Angle during his visit to Iowa City.
On motion, the chair appointed P. A. Dey, Cyrus Sanders, and John R. Van Fleet a committee to carefully examine the proposed route south from Iowa City, in order to be prepared to report upon the same to Mr. Angle, and also to a future meeting.
C. W. Hobart and Robert Hutchinson were appointed a finance com- mittee to raise funds immediately to defray current expenses involved in these initiatory steps.
JNO. P. IRISH, Secretary.
S. J. KIRKWOOD, President.
THE RAILROAD LAND GRANT VOTE.
At their June session, 1866, the county board of supervisors-
Resolved, That we hereby give to the Iowa Northern Railroad Com- pany, all the indemnity lands of Johnson county, located with the swamp land scrip of said county, to aid in constructing said railroad on the line purposed by said company, such grant to be first submitted for ratifica-
243
HISTORY OF JOHNSON COUNTY.
tion to the electors of said county, at the general election, in October, 1866, on due legal notice given by the clerk of this board.
Resolved, That the grant of said lands be made to Jeptha Cowgill, as trustee for said I. N. C. R. R. Co., to be by him granted and conveyed to said company, as follows: twenty-five per cent of said land, immediately upon a ratification of this grant by the electors at said election; twenty- five per cent when one-fourth of the grading of said road in Johnson county is completed; twenty-five per cent when one-half of said grading is completed, and twenty-five per cent when the railroad is graded ready for the ties.
Resolved, That on the completion of said I. N. C. R. R., said Cowgill, trustee as aforsaid, shall be required to distribute the full amount of stock that may have come into his hands in pursuance of the provisions of all the foregoing resolutions, pro rata, among all the individual stock holders of said Johnson county.
The announcement or official notice for this election was a. lengthy docu- ment, the main points of historic value being the three resolutions above quoted. The remainder of the document recited various incidental details of the manner of carrying out the general purpose intended. The result of the vote in the county on this proposition was as follows: In favor of the land grant, 2168; against it, 380.
ELECTION ON COMPOUNDING R. R. DEBT.
October, 1869, after various votes and counter-votes in the county board at different sessions on the matter and manner of settling up the county's railroad bond debts, a popular vote was finally ordered on the following proposition :
WHEREAS, heretofore, to-wit: on or about the first day of September, 1853, the sum of fifty thousand dollars in bonds of one thousand dollars each, payable on the first day of September, 1863, at seven per cent per annum, was issued by the County of Johnson, State of Iowa, to the M. & M. R. R. Co., with coupons attached, payable semi-annually, and,
WHEREAS, afterwards, to-wit: on the first day of December, 1853, fifty thousand dollars in bonds, of one thousand dollars each, payable on the first day of December, 1873, with seven per cent per annum interest, payable semi-annually, was issued by said Johnson county, to the Lyons Iowa Central Railroad Company, and,
WHEREAS, after all of said bonds were issued as above recited, a disa- greement arose between the holders of the same and the authorities of said Johnson county as to the value of said bonds, and the legal right of the holders to compel the payment of either principal or interest of said bonded indebtedness, thereby causing vexatious and interminable litiga- tion, and,
WHEREAS, the 12th General Assembly of the State of Iowa, at its session begun and holden at the city of Des Moines, on the 13th day of January, 1868, enacted the following law, to-wit: An Act to enable public corporations to settle indebtedness. * * *
Shall the county of Johnson settle its debts under and by virtue of the provisions of the act as follows, to-wit: " An act to enable municipal and public corporations at their election to settle, adjust and compound their indebtedness, and to provide for the issue of new bonds, and for the pay-
244
HISTORY OF JOHNSON COUNTY.
ment of such new bonds by the levy of specific taxes, and for this pur- pose altering and amending existing charters and laws." Passed April 2, 1868.
The result of the vote upon this question was as follows, (October 12, 1869):
For or against the propositon. For.
For or against the proposition. Against. For.
Big Grove.
58
102
Hardin
59
56
Pleasant Valley
30
97
Oxford.
42
86
Scott.
63
44
Cedar
46
49
Monroe.
26
57
Sharon
7
101
Jefferson .
60
21
Union .
37
59
Newport
17
73
Fremont.
29
87
Madison .
35
70
Washington
1
105
Clear Creek
24
69
Iowa City
326
655
Liberty .
50
37
Graham
38
65
Total
948
1833
Township.
Against. Township,
IOWA CITY VOTES A RAILROAD TAX-1878.
June 18, 1878, Iowa City voted in favor of a tax within the city limits, of three per cent on the assessed valuation, "to aid in constructing the Iowa City and Western Railway from the south line of Iowa City, to the south line of Johnson county."
In 1870 and '71, Iowa City township (then including Lucas township and the city) had voted a tax to aid in constructing the Iowa Southwestern Railroad. But that project went dead, and its assets, consisting of the above promise of aid, which never became due at all, besides a small record book, an ink bottle, a wooden ruler, and several rusty steel pens, all fell into the hands of E. F. Winslow, as trustee: and on May 1, 1879, he formally and officially transferred, sold and made over all of this valua- ble property to the Iowa City and Western Railway Company-"for and in consideration of the sum of one dollar in hand paid by said Iowa City and Western Railway Company, the receipt whereof is hereby acknowl- edged," etc. This latter company went dead too, and its proposed road was never built.
WRESTLING WITH THE RAILROADS .- THE BIG FIGHT BEGINS.
As early as 1855-'56, Johnson county began to struggle with her pet railroad-bond anaconda, which had ungraciously commenced tightening upon her and squeezing out blood. We have carefully traced through the county records and gleaned such points from time to time as will serve to show how they struggled with the monster, and finally played the drama of " the lion and the lamb shall lie down together"-with the lamb inside of the lion.
February 1, 1861, a report was made to the county board which cov- ered the whole ground of the county's railroad "investments" up to that time. Hence we preserve it here:
245
HISTORY OF JOHNSON COUNTY.
To the Honorable Board of Supervisors of Johnson County, Iowa :
Your committee on railroads, to whom was referred all questions per- taining to the railroad interests of the county, respectfully report-
That September 1, 1853, Johnson county, after vote submitted to the people, subscribed fifty thousand dollars stock to the Mississippi and Mis- souri Railroad Company, payable twenty years from date, with semi- annual interest at seven per cent, the interest coupons being attached to the bonds, and payable at the office of E. W. Clark, Dodge & Co., New York City; that said bonds are all out, and the interest has all been paid up to September 1st, last, and that seventeen hundred and fifty-eight 58-100 dollars, with the exchange thereon, will be needed to meet the interest now accruing, and due the 1st of March next. The county at the time of issuing the bonds received certificates of stock (500 shares of one hundred dollars each) for an amount equal to the bonds issued, and have since received certificates of stock for interest on the bonds prior to the declaring of any dividends, to the amount of one thousand three hundred and forty-three dollars. No litigation has grown out of our connection with this company, which is the only company which has built a road, or any part of a road within the limits of this county. The committee desire to represent that no revenues have been derived to the county, arising from dividends of the company, or taxation of the road, other than one dividend of four per cent.
Your committee further report, that Dec. 1, 1853, the county subscribed fifty thousand dollars stock, to the so-called Lyons Iowa Central Railroad, and bonds of a like character were issued and certificates of stock received. These bonds are all out, and in existence, held in the hands of third parties who claim to be innocent purchasers, while no portion of the road has ever been built. In consequence of the bad faith of the company, our county has not paid the interest on the bonds as it accrued, so that numerous suits have been preferred against the county on interest coupons matured, the history and condition of which will appear by accompanying documents from the attorneys of the county.
Your committee have ascertained that one judgment of $5,000.00 has been rendered against the county, after appeal to the Supreme Court, and a tax required by mandamus of the court, of two mills, levied on assess- ment of 1858, which has in part been collected and a small amount paid to the company. This judgment was obtained by Paul B. Ring and assigned to H. P. Dox, and there seems to be no legal method of avoiding the payment of the tax levied. A similar judgment of $455.00 has been obtained by S. Whitaker against the county, to be paid out of the tax levied to pay the judgment assigned to H. P. Dox. No other judgments have been obtained which are now binding on the county. Several cases have gone up to the Supreme Court on argument of counsel, and some cases are still pending in the District Court of Muscatine county, as will appear by the accompanying document. Your committee are of the opinion that these suits have been properly resisted by the county, and that there is a prospect of decisions of the Supreme Court in our favor. We would therefore recommend that the committee or some other person or persons be authorized by your board to continue the suits now in court until some final decision shall be rendered for or adverse to the county, which shall definitely determine the liability of the county upon these bonds. Your committee are informed that doubtless these bonds could be bought up by
16
246
HISTORY OF JOHNSON COUNTY.
the county at prices of from twenty-five to forty cents on the dollar if deemed expedient.
Your committee have further ascertained that upon a vote of the people, subscribing $175.000 to the Iowa Union Railroad, $3,500.00 of bonds were issued on Oct. 30, 1857, one half of which (in October, 1860,) has been paid and certificates of indebtedness for the remaining half issued to the said company. This road nor any part of it has been built, and from want of time your committee are unable to decide whether the certificate of indebtedness is a legal claim against the county or not.
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