History of Johnson County, Iowa, containing a history of the county, and its townships, cities and villages from 1836 to 1882, Part 32

Author: Johnson Co., Ia. History. [from old catalog]
Publication date: 1883
Publisher: Iowa City, Iowa.
Number of Pages: 980


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 32


Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).


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These men professed to have money sufficient to build, indefinitely; and without then fixing any intermediate points, they gave us moral assurance that Iowa City should be upon the main line, but that Muscatine and Cedar Rapids must have branches, to keep them quiet and head off rival projects. They also astonished us their with pretentions, that they could build three lines through Iowa easier than one.


Probably fearing that we could not very clearly demonstrate this latter proposition, they also determined that they would accompany us on our return to the state and make the thing clear to our people.


Arrived at Iowa City, in a public meeting assembled, these railroad magnates unfolded their plans and honey-fugled as follows:


263


HISTORY OF JOHNSON COUNTY.


1. They assumed to build the first division of the main line to Iowa City in two years.


2. To extend a branch from Iowa City to the Minnesota line, through Cedar Rapids.


3. To construct and operate another branch from Iowa City through Washington to the Missouri at St. Joseph.


4. To pay all interest on county and city bonds issued until the road paid dividends at the rate of 10 per cent.


In consideration whereof they required local stock subscriptions in money and bonds to the extent of $2,500 per mile, estimated at one hun- dred and fory thousand dollars, and second, a gift of the right of way from the east line of the county to Iowa City.


About thirty thousand dollars of individual subscriptions were then made by our citizens, and the propositions for county and city bonds were voted on and carried.


The Lyons company, by a fraudulent ruse practiced upon Judge Lee, of which he was amply forewarned by |Messrs. Byington, Murray and others, got possession of their bonds, without doing any work of conse- quence; and the M. & M. company laid their last rail to Iowa City, by the light of burning tar barrels at midnight, on the last day of December, 1855.


In anticipation of the event, a grand celebration had been inaugurated, and an illuminated card of invitation, sent broadcast over the land, of which a preserved copy, now before me, reads as follows, viz:


GRAND RAILROAD FESTIVAL.


Iowa City and the Atlantic cities connected by railway! The National Trunk road half completed to the Pacific!


IOWA CITY, Dec. 18. 1855.


You are respectfully requested to attend a celebration at Iowa City, of the opening of the Mississippi & Missouri railroad to the capital of Iowa, on Thursday, Jan. 3, 1856. We hand you, herewith, a card, which will serve you as a pass over the Chicago & Rock Island railroad, over the Mississippi & Missouri railroad to and from Iowa City, and to the hospital- ities of our citizens.


LEGRAND BYINGTON, H. D. DOWNEY, H. W. LATHROP,


GEO. W. MCCLEARY, SAMUEL WORKMAN. R. H. SYLVESTER, Committee of Invitation.


This festival occurred with many hundreds of guests from abroad, and thousands of delighted citizens, at the old capitol building, on the coldest day I ever experienced anywhere; and was closed with a feast and ball, under the auspices of Iowa City ladies of the olden time.


So liberal had been the contributions to the reception festival that upon its brilliant close, the committee of management found themselves in pos- session of quite a surplus of cash, after all bills had been paid.


264


HISTORY OF JOHNSON COUNTY.


At their final meeting they enthusiastically resolved to appropriate this with the hearty assent of all the contributors, to an immediate re-inaugur- ation of a north and south road, to-wit: The old Dubuque and Keokuk, under another name. Accordingly we summoned the counties upon the line thereof, to a convention at Iowa City, and effected the organization of the lowa Union R. R. Co., the details and meagre results of which will require a separate chapter of this history.


A short space of time elapsed, however, before the aspect of affairs began to appear less encouraging. Dr. Murray, Col. Trowbridge, Sam. Workman and myself had obtained from the county judge, T. H. Lee, a solemn pledge that no bonds should be issued to the Lyons Central com- pany until the road was operated to Iowa City according to stipulation, but he early succumbed to the influence of its champions, and the Adamses secretly and fraudulently fobbed $50,000, after doing a little surface work on the high knolls above town, and then "petered out," as most of us apprehended at the start.


[Remnants of this old skin-deep grade can still be seen (1882) on the Reno property, on Brown street between Linn and Gilbert streets; also in spots along on Brown street and out northeastward in Dewey's addi- tion. Remnants of the digging done for the first abutment of the pro- jected bridge are also still visible. This bridge, according to the grad e established and the point fixed for crossing the river, would have had to be seventeen hundred feet long, from bluff to bluff, and one hundred and fifty feet above the surface of the water-which was a project of railroad bridge building so utterly preposterous and impracticable at that time, and especially by that company, that this fact alone showed the fraudu- lent character and the egregious folly and impudence of the whole scheme. Yet many good citizens were deceived by its flaming and high- sounding pretentions, for the county voted $50,000 to it, by 407 majority. This was the tune they danced to, and this they paid the fiddler.]-HIS- TORIAN.


The M. & M. company refused to allow the county or city any voice in its management, failed to inaugurate their promised branches, which were to contribute so largely to our prosperity-misapplied to private use the large earnings of the road, that had been pre-pledged to the payment of the bond interest-borrowed money on our credit, to make a sham divi- dend to favored stockholders (themselves) so as technically to escape their assumed liability for interest, and cast the burden upon county and city- exacted higher passenger and freight rates, to and from river points, than stage coach and lumber wagon charges -and in every conceivable manner, evinced their settled purpose to bleed this community to the utmost extent possible, and especially to pocket the $130,000 of our stock, without con- ceding us any just equivalent therefor, either in accommodations or coin.


Their contract bound them to finish their road into Iowa City by Jan-


265


HISTORY OF JOHNSON COUNTY.


uary 1, 1856. Also, to apply its net earnings inviolately, to dividends on the first division thereof, (extending from Davenport to Iowa City) to meet interest so as to increase the value of the stock of that division. Instead thereof, they made their terminus outside of the town, for more than three years, and have perversely kept their depots there to this day-and have always used the revenues which were pledged to the interest fund, to pro- mote private coal-mining and hotel speculations, and to build plug roads in the State of Illinois.


In a word, instead of managing to make our stock marketable at par and productive and self-sustaining, the purpose early became manifest and successful, to reduce it as near to a nonentity as possible, so that the Rock Island & Pacific Company (themselves in disguise) could gobble it up for less than a mere song.


And when the apple was ripe they plucked it, in this way:


Although the Rock Island road was doing the most profitable business of any road in the United States, with two exceptions, and its stock was at the head of the Wall street market-(away up to 30 premium) and although our "division " was earning as much, in proportion to cost, as the Rock Island,-and although the managers of the latter were principally owners of the former-they voluntarily defaulted in the payment of their mortgage bond interest, foreclosed against themselves, and bought in their own property, (and ours) for a few cents on the dollar.


As debtors and sellers, they were the M. & M. Company-as creditors and purchasers, they were the C., R. I. & P. Company. As both, they were Tracy, Durant, Farnum & Co., experts in Credit Mobilier swindling, obtaining large sums of other people's money for nothing.


Whilst this interesting process was going on the city treasurer's books show that the hard-working people of Johnson county were paying more than seven thousand dollars a year, in the shape of interest to these sharks, to supply the place of the road earnings which belonged to us, but were purposely withheld, so as to destroy the marketable value of our stock, to suit their ulterior designs.


Finally, the county government became restive, and cast about for effect- ual means of escape. Suits had been brought for delinquent interest, on the municipal bonds, and pettifogging defences upon such utterly insig- nificant technicalities as the non-appearance of the county seal upon cou- pons, had stuck us for considerable sums, but had left the merits of our cause untouched. Still, as was doubtless intended by the pettifoggers, or some of them, the ever odious doctrine of estoppel began to be mouthed in respect to the principal and remaining interest of these bonds.


Two or three specimen facts may be appropriately stated here, to illus- trate the way in which Johnson county was always treated as a principal stockholder in this corporation. The bonds were issued about September, 1853, in full payment of an equal amount of company stock, upon assur-


266


HISTORY OF JOHNSON COUNTY.


ances that the company would pay the interest thereon, until dividends from road earnings equaled, interest. Nearly eleven years afterwards, and after the people had paid more than sixty thousand dollars of interest on the bonds, without receiving a cent of cash dividends, a special committee of the Board of Supervisors (S. H. Fairall and E. Carroll), were instructed to proceed to New York and sell the stock; and were compelled to report at the June session of 1864, that their mission was a total failure, because said stock had never been subject to the control of the county, and was then wholly unavailable, for the reason that the certificates had been placed by the company " in the hands of one Flagg," who told the committee that he held them as trustee for the bondholders !!! Johnson county had never appointed any such trustee, and knew nothing of the transaction! This " man Flagg," I take to be no other than Azariah C. Flagg, whom I well knew as treasurer of the M. & M. Company, and the shadow of Presi- dent Dix, and who had been a member of the ald "Albany regency " in the days of Marcy and Silas Wright-(see supervisor's record, book 1, page 396.)


Four years afterwards, the mysterious embargo upon this stock seems to have been removed, for Edmonds & Ransom, railroad lawyers, gobbled it, at less than six cents to the dollar.


The efforts of Johnson county to defend herself, in the multiplied suits brought on the railroad bonds, were entirely unsuccessful. Taxes and costs accumulated to such a fearful extent, that bankruptcy of the com- munity seemed inevitable. At the same time, the roads became more unconscionable in their tariffs and discriminations, whilst enjoying invidi- ous exemptions from equal taxation with the citizens upon their property.


The Iowa courts-inimical at first-had at last reached a final decision, that these bonds were not within the commercial law, and that the levy of taxes to pay them, unauthorized by legislation, would be perpetually enjoined. Nevertheless, it was observed that the bondholders were stiff- ening in their demands, and that they could find purchasers for their bonds, even under the shadow of our own court house. Finally, the supervisors determined that they would not further levy, and the community, almost to a man declared that they would no longer pay.


The process of mandamus from the U. S. Circuit Court to compel the county boards to levy exorbitant taxes, was then invoked upon the one side; while measures were taken to enlist the legislature and judiciary of the State, upon the other.


In the course of a decision, lately promulgated by our Supreme Court, [in 1868] Mr. Chief Justice Dillon makes the following declarations in refer- ence to these bonds:


"I believe the bonds are void-that there was no semblance of power to issue them-that there can be no such thing as an innocent holder of such paper-that it is the settled adjudication of this Court, having before it the question, as a Court of last resort for the State."


267


HISTORY OF JOHNSON COUNTY.


Railroad bond matters worked along in this mysterious way, until the month of May, 1869, when the conspirators having everything in readi- ness, pounced down upon the non-levying supervisors and city councilmen with a warrant for contempt, and took them bodily before the U. S. Cir- cuit Court at Des Moines.


[Here Mr. Byington adds many personal and partisan matters, which we omit. But the upshot of it all was, that the board of supervisors went home and levied the railroad tax, (Byington says "a quarter of a million"), as required by the Federal Court.]-HISTORIAN.


The cry then became universal that the payment of the taxes thus lev- ied, could not and should not be enforced.


Mr. Cloud of Muscatine (who had been Attorney General), issued a programme of resistence, for the people of that county, who were in the same boat with us. Men of all occupations, and every persuasion, declared they would not voluntarily pay; and such was the pressure, that county treasurer Hershire announced that he would takeno measures to enforce payment, or charge up delinquent interest. This feeling became conta- gious, and spread to nearly every county in eastern and central Iowa. Among others ex-Governor Kirkwood put himself upon record, in sev- eral masterly essays, in which he upheld the non-tax-payers' purposes with the most irrefragable arguments.


[See article headed wrestling with the railroads.]


From this time until after the ensuing session of the legislature, the bond battle raged all along the line with unabated fury.


In a foot note in his history, dated June 18, 1874, Mr. Byington says:


NOTE .- Mr. county treasurer Swisher certifies to me that from the manner in which the books of his office were kept, he cannot, without immense labor, ascertain the amount of levies for railroad bonds previous to 1869, but that for '69, '70, '71, '72 and '73 the county levies for that pur- pose aggregate $228,093.64, and the city levies, same years, amount to $82,814.67. Total for five years, three hundred and ten thousand nine hun- dred and eight dollars!


NOTE BY THE HISTORIAN .- This historian found the same difficulties which Mr. Swisher alludes to, in trying to get hold of connected, system- atic and complete data in regard to the railroad impositions practiced upon the county. They are not to be found; but the people had to pay the money, all the same. Johnson county, in common with many others, has suffered the gravest and deepest wrongs through the greed and chicanery of railroad speculators, who took advantage of the trusting eagerness of the people to do anything that was proposed which promised to secure them a railroad. Johnson county, or more especially Iowa City, seems always to have had more "leading men" to the square acre than was healthy for her; hence they jostled and crowded and elbowed each other to death, while some were blind leaders of the blind, and leader and led


268


HISTORY OF JOHNSON COUNTY.


all fell into the railroad ditch together. Some had political or financial axes to grind for themselves; some were ignorant or stupid in such mat- ters, and easily used as tools by others; some were enthusiasts, over-zeal- ous, over-confident, and missed their aim; some were jaundiced, sour, suspicious, off-ox sort of men, always croaking and hindering; some were narrow, short-sighted, pig-headed, but honest; some were cunning and far-reaching plotters for personal gain; some were public-spirited, dis- creet, and true to the public trust reposed in them. But each is accused of being to blame for some swindle upon the county, or the loss of some railroad which Iowa City paid for but never got. We will "never, never tell," the dozen or more names which have been given us confidentially as the particular scape-goat of the county or city's woe in particular cases. We assume that each man did what he thought at the time would be best. But of course when a man in public position makes a big mistake, though perfectly honest in his intention, the whole community suffers by it. An honest mistake can be forgiven, for the best and wisest are liable to err in judgment; but for complotters, connivers or perpetrators of fraud, LET NO GUILTY MAN ESCAPE, in Johnson county .


CHAPTER III .- PART 3.


FINANCIAL HISTORY.


First Tax List, 1838 -- First Taxes Collected, 1839-First County Orders-Financial Reports-A Loan Voted-A Lost Record-Financial Troubles in 1861, Etc .-- Statistics of 1881 -- Finances in 1881-'82.


FIRST TAX LIST OF JOHNSON COUNTY.


The capital of Wisconsin Territory was in 1837 the same as now-the city of Madison. But the act to organize Johnson county was passed at a special session of the Wisconsin Territorial legislature, held at Burlington, [then in Wisconsin Territory] commencing June 11, 1838.


Johnson county had been formed or designated as to name and bounda- ries, by an act of the Wisconsin Territorial legislature, approved Decem- ber 21, 1837; but it was not "organized," or given a system of county government of its own, until the act passed at the Burlington special ses- sion above mentioned had taken effect. Meanwhile, it was nominally under the authority of Cedar county, or "attached to Cedar county for civil purposes." Accordingly, the sheriff of Cedar county, James W. Tallman, brought the tax list for 1838 to S. C. Trowbridge, deputy sher- iff of Johnson county, for collection, the business of assessing and collect- ing taxes being at that time part of the public duties devolving on sheriff's. While looking up the men named in this list, Trowbridge had the special object secretly in view, of showing to the legislature that Johnson county


269


HISTORY OF JOHNSON COUNTY.


had enough population to entitle it to be organized as a civil jurisdiction by itself; hence the hunt for noses to count was made very thorough, for home use, but no names were reported to the Cedar county authorities except those who had some taxable personal property. There could not be any real estate tax, for no man had yet obtained title to his land claim. But the people of Johnson knew that they were soon to be in shape to "run their own machine," and they were not willing to pay in as taxes a lot of money to be carried off to the coffers of Cedar county. Hence that tax was never collected. However, the list as made out, has a rare his- toric value, for it shows who were property owners in Johnson county at that time, being the first tax list that was ever made here; it shows what personal property and live stock there was in the county then, and what val- uation was put upon them. We are indebted to Col. Trowbridge for the use of the original paper in the handwriting of Robert G. Roberts, clerk of Cedar county, which he had preserved among his own private relics of the pioneer days; and here we print it for preservation as a choice bit of Johnson county history. It has never been published before:


270


HISTORY OF JOHNSON COUNTY.


TAX LIST OF JOHNSON COUNTY, PREPARED IN MAY, 1838, BY AUTHORITY OF JAMES W. TALLMAN, SHERIFF OF CEDAR COUNTY, WISCONSIN TERRITORY.


PROPRIETOR'S NAME


Value of house-


hold goods and


merchandise.


No. and value of


working cattle


No. of cows and


stock cattle over


3 years old.


No. and value of


horses over 3


No. and value of


No. and value of


Cash on hand


and at interest.


No, cattle under


3 years old.


Amount of prop erty taxed.


Amount of taxes


Wheten Chase.


200|10|$ 375|


$


31$


195|


1|$ 30 $


$725 00|$ 3.63


Philip Clark.


50


8


200!


3


35


1


10


245.00


1.23


Wm. C. Massey


50


1


18


1


5


20


43.00


22


Wm. Devall


10


350


350.00


1.75


Benjamin Miller


60


285


4


80


1


50


1


6


4


455.00


2.28


Nathaniel Fellows.


50


2


80


1


25


105.00


.53


Thomas Bolster


75


75.00


.38


Yale Hamilton


50


8


200


2


40


3


265.50


1.33


Jacob Witter.


100


2


40


1


75


1|10


2


167.00


.84


William Ward ..


60


6


190


1


40


230.00


1.15


James W. Massey .


50 10


325


1


25


1


358.50


1.79


Pleasant Harris ..


200 14


455


75


180


1|10


1


20


3


828.50


4.14


Jacob Earhart.


60


8


200


2


40


248.50


1.24


Joel Dowd


50


1 20


1


30


50.00


.25


Jas. S. Wilkinson


20


7


245


£45.00


1.23


Elias Secor


30


4


100


100.00


.50


Elijah Parsons


60


6


150


2


40


1


98.50


.49


Salem Taylor


50


2


50


25


1


83.50


.42


Robert Walker


50


6


180


3


60


1 10


2


292.00


1.46


Isaac N. Lesh.


125


2


60


2


40


3


175.50


.88


John Morford.


75


200


3


60


5


302.50


1.51


Joseph Weaver.


50


4


160


2


40


1 10


2


227.00


1.14


Joseph Stover


175


8


300


80


80


536.00


2.68


Samuel Walker


40


4


120


120.00


.60


James Walker.


2


60


John Smith


60


200


22


1


230.50


1.15


John A. Cain.


75


4


100


35


2


1


10


4


234.00


1.17


Geo. W. Hawkins.


60


1


30


20


1


30


2


97.00


.49


Wm. Sturgis


5


150


1


20


1


50


1


7


227.00


1.14


Wm. Kelso


50


6


170


3


60


100


5


363.50


1.82


David Sweet


50


5


110


1


20


1


70


100


290.00


1.45


Wm. Howe*


Michael Ritter.


50


130


1


25


1 10


1


173.50


.87


Benjamin Ritter


4


130


140.00


.70


John McLucas.


75


4


120


2


40


2


177.00


.89


Abraham A. Street


40


6


150


150.00


.75


Green Hill.


50


8


1701


40


1


75


1 10


70


1


375 00


1.88


Henry Felkner


Eli Myers.


16


480


1


10


490.00


2.45


John Gilbert*


Total.


$46.74


.


60.00


.30


4


1


2


55


1


2


.


4


1


10


8


4


2


1


3


2


years old.


clocks.


watches.


1


1


8


*Property not listed.


2


271


HISTORY OF JOHNSON COUNTY.


In addition to what is printed in the foregoing table, Robert Walker had five hogs, valued at $25; Joseph Stover had one horse under three years old; and Wm. Kelso the same.


It is singular to note that for some reason or other Sheriff Tallman did not put Samuel C. Trowbridge's name on the above list.


FIRST TAXES COLLECTED.


The first collected tax list for Johnson county was made by S. C. Trow- bridge, county assessor, appointed by the board of county commissioners, April 1, 1839, and was based upon the assessment of personal property only, for territorial purposes, as no one had any title to land then, other than " squatter's claims." The following is a list of all the taxpayers in the county at the time of the assessment, May, 1839, together with the amount assessed against each person. The rate of levy upon this assess- ment was fixed by the board of county commissioners at its meeting July 1, 1839, thus:


Ordered by the Court : That the rates per cent to be laid for tax should be one half per cent on the dollar:


Green Hill, $423; Charles Jones, 559; John I. Burge, 245; Joseph Stover, 600; Jonathan Harris, 182; John Eagan, 325; Joseph Eagan, 50; Asby D. Packard, 5; Joel Dowell, 97; John Williams, 10; Robert Walker, 313; Yale Hamilton, 205; Peter Crum, 33; John Trout, 175; William Ward, 324; Stephen Brown, 10; Thomas B. Mulholland, 10; John A. Sweet, 170; John Moore, 50; Stephen Chase, 60; Knight & Wilson, 450; Eben- ezer, Douglass, 294; Wheton Chase, 588; William C. Massey, S5; Henry Hart, 85; John Morford, 228; John G. Coleman, 34; Samuel Walker, 302: Joseph Walker, 110;] James Walker, 68; William Kelso, 414; James Magruder, 15; David Sweet, 249; William Sturgis, 168; George W. Hawkins, 95; Isaac McCorkle, 242; William Wolef, 180; Henry G. Reddout, 10; John Gardner, 42; William M. Harris, 10; Pleasant Harris, 577; Henry Earhart, 10; Abner Wolcott, 6; Allen Baxter, 10; David Switzer, 462; Samuel Sprague, 31; James L. Wilkinson, 70; Jacob Earhart, 427; John Earhart, 67; Nathaniel McClure, 374; Lewis Ranzhan, 287; James Smith, 280; John Royal, 35; Eliza Seacor, 179; William Morris, 212; James Scahorn, 443; McPherson Davis, 332; Josiah Davis, 114; Charles H. Berryhill, 400; Isaiah P. Hamilton, 50; William Brown, 128; Thomas B. Brown, 60; James Duglass, 160; John Shoup, 5; Benjamin Miller, 373; Patrick Smith, 21; William Dupont, 435; John Hawkins, 220; Mrs. Mary Ann Dennis, 65; John N. Headly, 281; Jonathan Sprague, 349; John Guilor, 311; Alonzo'C. Dennison, 230; Joseph Dennison, 170; George L. Dennison, 190; Addison, Chapman, 50; Martin Harless, 262; Jesse McCart, 205; Nathaniel Fellows, 103; John Mathews, 436; Elijah Hurley, 11; James Harden, 281, John Morris, 235; William Jones, 333; Eli Myers, 175; Harry Tyman, 122; Jesse McGrew, 431; Abner Arrowsmith, 244; Samuel Conlogue, 180; Warren Stiles, 445; Josiah Lyman, 50; Jahial


272


HISTORY. OF JOHNSON COUNTY.


Park, 169; Presley and Lewis Conley, 370; Warren Spurrier, 78; Daniel Slone, 88; Andrew Binegal, 15; Marge Belford, 225; Ebenezer M. Adams, 150; Peliezene C. Brown, 120; Thomas B. Prague, 95; John Agy, 85; John Rickman, 20; James Buchanan, 325; Isaac V. Dennis, 30; Samuel B. Trotter, 40; Allen C. Sutliff, 335; Thomas Maxwell, 35; Thomas G. Lockhart, 407; Samuel M. Lockhart, 290; Benona Haskin, 50; Thomas Fitz, 15; Thomas Ford, 165; Elias Rogers, 155; Wiley Fitz, 35; Henry Rogers, 110; William McGinnis, 25; David A. Burns, 40; Isaac Cox, 20; John S. Hollar, 275; Abner States, 20; Elijah Cox, 243; Edwin Brown, 55; Orestes Lovett, 100; Robert Mathews, 301; Isaac Bowen, 365; John Parrott, 545; Philip Clark, 570: William Morford, 125.




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