History of Green County, Wisconsin. Together with sketches of its towns and villages, educational, civil, military and political history; portraits of prominent persons, and biographies of representative citizens, Part 56

Author: Union publishing company, Springfield, Ill., pub. [from old catalog]
Publication date: 1884
Publisher: Springfield, Ill., Union publishing company
Number of Pages: 1168

USA > Wisconsin > Green County > History of Green County, Wisconsin. Together with sketches of its towns and villages, educational, civil, military and political history; portraits of prominent persons, and biographies of representative citizens > Part 56

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).

9th. The railroad system of the western continent; already has it entwined the flags of two Nations.

10th. Panics. The thunder storms of the financial atmosphere purifying it, and compell- ing, as politicians say, a recurrence to funda- mental principles.

11th. The State of Wisconsin, nestled be- tween two great highways, scooped out by nature. The energy of her people will com- plete the work in crowning with success her splendid projected system of railways.

12th. Our invited guests-by the aid of yonder iron arms, may we often grasp them with the hand of fellowship and welcome.

There were a few incidents and arrangements of the celebration that had some little effect to mar the festivities, and for which our citizens may be unjustly blamed. We have not time to allude to them, and it would perhaps do no good if we.could.

We cannot close without giving in our testi- mony to the very affable, kind and courteous manner in which Conductor Sanburn discharged all the duties of his station. He never wearied in answering the thousand questions that were

given him by inquisitive folks unaccustomed to railroad travel, greeted all with the same un- varying politeness, and assiduously labored for the comfort and safety of the large family he had to provide for. It is of vast importance to a railroad corporation to have obliging and courteous employes, such as we feel and know Mr. Sanburn to be, and we are twice glad that we have such upon the Southern Wisconsin Railroad.

HOW THE RAILROAD WAS BUILT TO MONROE.

So great was the desire of the people of Green county to have a railroad, that, at an early day, they had subscribed liberally toward the build- ing of the one contemplated from Janesville to Monroe; but, with all their liberality, there was still a lack of means to carry forward the enter- prise. The system of "Farm Mortgages" was therefore resorted to, which, in the end, caused a great deal of trouble and anxiety to many of the farmers of Green county, although no very great pecuniary loss (except in a few cases) was the result-thanks to the energetic and self- sacrificing efforts of E. D. Clinton of Brod- head, Brooks Dunwiddie of Monroe, and per- haps one or two others in a less degree.

"In mortgaging their farms," says Miss Bing- ham (History of Green County, pp. 34-36), "some of the farmers were influenced wholly by a desire to get the railroad here, but most of them were also moved by a spirit of specula- tion. Stock in the railroad company was given them for their mortgages, and the general opin- ion of its value was such that farmers made their mortgages as large as the company would allow them to be. The company promised to pay the interest on all the mortgages, and promised that no mortgages on land west of Brodhead should be sold until the road reached Brodhead, and none from west of Monroe until the road reached Monroe. In October, 1854, stock to the amount of $485,900 had been taken. The greater part of it was in Green county, but the mortgages given in the vicinity of Shulls- burg amounted to $128,000. By February, 1856,

39]

HISTORY OF GREEN COUNTY.

work on the road had begun. The mortgages were taken to New England, where they sold readily. The company also obtained money at three different times by mortgages on the road; but much of the money obtained in these ways was used on the Prairie du Chien road, and work on the Sonthern Wisconsin was not prose- cuted with the vigor which the mortgageo's had hoped for. The road to Prairie du Chien was finished in April, 1857, but the company had not then the money to push forward the other road. It was really Green county, not the railroad company, that brought the road from Janesville, and a great number of citizens are entitled to a share of the credit of it; but, much as it cost in money, the greatest cost of the road was in the anxiety and. long suspense it brought the mortgageors.

"The company assnmed an appearance of great fairness towards the mortgageors. Some- times a director was chosen from among them, and, as was especially the case in the election of Judge Dunwiddie, this was conducive to the interests of both the company and the mort- gageors; but the appearance was frequently de- ceptive. On one occasion, all the stock-hold ers and their wives were given a free ride to Milwaukee, to attend a railroad meeting. They were all urged to go, but, after their arrival at the meeting some pretext was raised by which almost every one of them was prevented from voting. The agreement of the company in re- gard to using the mortgages from the country west of Monroe was so far kept that, before the sale of the road in August, 1857, all those given west of Green county were released. The de- sire for the road was so great in Lafayette county that E. D. Clinton, the general agent of the road, and the man who, more than any one else, was the cause of its extension from Janesville, found more difficulty in releas- For the purpose of giving them an under- standing on what condition the mortgages were taken, we appointed a county meeting at the court house in Monroe, and invited all the peo- ing the mortgages than he had found in obtain- ing them. Two men refused to comply with the condition of a release, which was to pay the re- eorder's fee, and in these cases Mr. Clinton paid I ple of the county interested to be present.

the costs himself. The mortgages given in the western part of the county were all sold before the road reached Monroe, and the promise in regard to paying the interest on the mortgages was not fulfilled. After the completion of the road, the stock was raised by a fictitious divi- dend and by some other devices to ninety per cent. The holders of the mortgages were by this time glad to sell them, and the company bought them and settled with the mortgageors by buying their stock at ninety per cent. A few of the farmers had previously effected a settlement with the purchasers of their mort- gages, and paid more; but ten cents on a dol- lar was all that any of them were obliged to pay, and a few of them never paid anything." FARM MORTGAGES.

[By E. D. Clinton.]

I was sent by the Milwaukee & Mississippi Railroad Company, as their stock agent, to as- certain what could be done to build the road west of Janesville. I went to Monroe, there being very little interest at Janesville, and called on Judge Dunwiddie and Mr. Ludlow, also on Judge Bingham, who has since died. These men introduced me to John H. Bridge, who then lived eight or ten miles south of Mon- roe (now in Monroe). I informed them there was so little money in the country, we could not build as rapidly as we wanted to without resorting to farm mortgages. We had taken farm mortgages and used them successfully in building the road to Janesville. I consulted with the men referred to at Monroe, and others they introduced me to. I tried to impress upon them that giving farm mortgages would seeure an early completion of the road to Monroe, and that they had only to convince the farmers that by mortgaging their farms they would not put their property in jeopardy.

392

HISTORY OF GREEN COUNTY.

There was a general rally, and the court house was filled. Quite a number of the directors of the railroad were present, with the chief engi- neer. I was called upon to explain the object of the meeting. I then said: "I am glad the directors are present, as I have just come from the La Crosse road. In my explaining the plan of the company, if I do not state it correctly they will correct me." I then laid on the table a large number of copies of reports of work the previous year, which, as it re- gards correctness, was certified to by John Cat- lin, the president of the company, and Wil- liam Taintor, secretary, by affidavit. Their veracity was not doubted by any one acquainted with them. I requested each one interested to take stock by mortgage; also to take a copy of the report home and look it over carefully. "After you have heard what I have to say," I continued, "and these directors in explanation, if you feel safe and wish to secure the road to Monroe, you will come to Monroe, where Dr. Peck, who is with me, and is a notary public, will fill up the mortgages and take the acknow]- edgement at your houses. We do not wish any but genuine mortgages, with the expectation of your paying it; if the company fail to pay, just as you would have to pay a bank note. We want to do everything in good faith, so that we can realize the money on the mortgages to build the road withont loss. I now attempt," I said farther, "to explain the proposition of the com- pany to take your mortgages-This is the plan, that you give your note and mortgage to the company or holder, for any amount you wish to take, to run ten years, with coupons attached, interest payable annually, at the rate of 8 per cent., for which the company authorizes me, as their agent, to give you a receipt in full for the shares of capital stock, or any number of shares, of $100 each in said company. The company will give you an indemnifying bond that they will pay the interest for ten years, also pay you 2 per cent. annually, making it that the company allows you 10 per cent.

interest, while the coupons called for 8 per cent."

Perhaps this is not worded precisely, but it is the general idea, as I now recollect. At the close of my first talk in the court house at Mon- roe to induce men to give their mortgages, the directors were called upon to speak. They fully endorsed what I had said in regard to the good faith and responsibility of the company. If you give your mortgages you will be pro- tected as the mortgageors have been heretofore, and you will secure the completion of the road to Monroe. One of the dircetors said the first man that will give his mortgage to the amount of $10,000 shall have an engine put on the road bearing his name. I believe John II. Bridge secured that honor, and the company fulfilled their agreement. There was a full representa- tion of Green county at that meeting. I then explained to them that the mortgages given east of Green county a number of years pre- vious to this drew 10 per cent annually, the company agreeing to pay 12 per cent. in- terest, also the 2 per cent. bonus. "Now you will find in these reports," said I, "that the company have promptly paid the interest as agreed. [If I recollect right this report was for the previous year's earnings.] After the road was completed to Madison, that year the road earned, after paying interest on farm mortgages and mortgages on the road, and run- ning expenses, enough so that the company gave 15 per cent. dividend to paying stock- holders, as you will see by the report. I gave $5,000 among the first. I have never been called upon to pay 1 cent of interest, and no other mortgageor. I am credited upon the stock book annually 2 per cent., to lay there until the principal becomes due. You know the country better than I do. I have never been west of Monroe on this line. I know of no reason why the company cannot be as success- ful in the future as in the past. I see no waste land from Janesville to Monroe that compares with the non-producing land next to Madison

393

HISTORY OF GREEN COUNTY.

on that line half way to Rock river. I do not want you to give mortgages because I have. After you look the report over, if you want to give a mortgage, let me know."

I told them also I believed their land would be doubled in value by having the road com- pleted to Monroe. I think that has been more than realized. There is one farm, to my knowl- edge, that was sold for $20 an acre, the highest price that could be obtained at that time, which has since been sold for $64 an acre. The rise of land, and increased facil- ities for transportation, have exceeded my repre- sentation. In Rock county, farmers could not get their wheat taken to market at the halfs. I presume the same fact existed in Green coun- ty. After the road was built to Whitewater, they could market their wheat from that point at less than 10 per cent., while before they could not get it done for less than 50 per cent. The same facts existed along the whole line. Circumstances occurred that the cost of the road exceeded all expectation and greatly exceeded the expense of the road that had been built. At that time there was very little prospect of any benefit from the road until completed to the Mississippi river. The company gave such an extraordinary contract to complete it in so short a time that I have no doubt they were slaughtered a half million dollars; consequently they piled up liabilities of bonds to pay interest upon without a corresponding income from the road. This embarrassed the mortgageors. The company failed to pay annual interest accord- ing to agreement. When the road was com- pleted to Prairie du Chien, the company found themselves in competition with the Mississippi river, and was compelled to carry wheat from Prairie du Chien to Milwaukee for nine cents a bushel, which was a very little, if any, more than from Madison to Milwaukee, half the distance.

The company suffered a great loss in negoti- ating farm mortgages with irresponsible parties who made a ficticious company to perpetrate a

frand on the railroad company. They got pos- session of $130,000, only paying $10,000. The company lost in that transaction at least $130,000. These circumstances combined had a tendency to discredit the company, and dis- able them from making any negotiations with capitalists, for further means to build the road. They had issned, under press of circumstances, third mortages to the amount of $300,000, and the coupons had become due, and there were no means of paying them in hand. It was thought best by some of our directors to negotiate with parties who would take the road on the irrespon- sible foreclosure of the third mortgage bonds subject to the first and second mortgage, on conditions that all of the common stock-holders should not be entitled to vote until the earnings of the road should be sufficient to pay up rin- ning expenses and interest on bonds, and yield a dividend to common stockholders; then, they should be restored to vote as provided in the charter. This proposition was acceded to by the directors very reluctantly. However the road was sold and taken possession of by Mr. Myers from New York, their president. This measure being adopted, left no provision to carry out the obligations of the former company to the mortgageors.

I explained the obligation of the old company, and said there was no necessity of giving the road up. The crops on the ground if they could provide rolling stock to move it to market would pay every cent of the interest, and the bonds and farm mortgages before they could get judgment or foreclose on the mortgages. The road was worth in cash all the mortgages and bonds, including the farm mortgages and the president could well afford to provide for the latter. He appeared very friendly to the mortgageors. I could not get him, however, to agree to make any provision to protect them. Believing, as I did, that the road was well worth all the liabilities, I turned my whole at- tention to the legislature. I paid my own ex- penses at three sessions to get legislation to

394

HISTORY OF GREEN COUNTY.

compel the railroad company to protect the mortgageors from paying interest as agreed when the mortgages were taken. I did not believe the directors had a right to hand over the road voluntarily to be foreclosed, and dis- franchise the stockholders from representation of their stock. When I held meetings I read the charter which showed that each stockholder was entitled to one vote for every share of stock held by him. I consulted with lawyers; they agreed with me that it was an illegal organiza- tion until recognized by the legislature. I con- sulted with Mr. Harvey while he was a candi- date for the governorship. I submitted to him what had been agreed upon by the friends of the mortgageors, that we would ask the legis- lature to pass a bill to appropriate 3 per cent. of the freight of every bushel of wheat, and all other freight in proportion, and of the fare of passengers, for a sinking fund to pay off the farm mortgages. Ile said if he was elected he would include that in his message. Ile considered it reasonable and just. 1Ie was elected, and failed to include the fact in his message. I went to him, after reading his message, to know the reason of his not fulfilling his agreement. He said he went to Milwaukee and consulted with the principal railroad men who said it would em- barrass mortgageors if we provided a sinking fund to pay off the mortgages, because it would raise the price of the mortgages so they could not be bonght. Then I said: "Governor, your advisers do not care anything about the holders of the mortgages. They bought the mortgages in good faith; we have their money to build the road when we could not raise it anywhere else; they ought to have their pay."

The governor replied: "I will do anything in my power for the right, to save all parties."

We went to work to get up a bill while the legislature was in session to carry out our idea of a sinking fund. Mr. Spencer, the manager of the road, had a bill that would legalize, if passed, their organization. When offered, this

bill was laid on the table, and our bill was in- troduced, and referred to a committee. Mr. Spencer come to me, and said if their bill was passed it would protect the mortgageors. I said to him, "Mr. Small holds large amounts of these mortgages to collect. If you can bar- gain with him to surrender the mortgages for the stock, you can have any legislation you want, that is reasonable." He consulted with Mr. Small, and they came to an agreement and Mr. Spencer's bill passed.

It seemed impossible at the time we took the mortgages that any man should suffer by mortgaging his farm if the company had ful- filled their agreement that they would pay the interest on the mortgages and hold the givers of the same harmless for ten years, besides paying them the 2 per cent. annually. It will readily be seen that if the stock was worth only 80 per cent. at the end of ten years, the 2 per cent. per annum, which the company agreed to pay would make up the amount of the princi- pal. At the time the mortgages were given in Green county, the stock was, I believe, worth 100 cents on the dollar.

FARM MORTGAGES-EXTRACTS FROM THE MONROE

SENTINEL. 1 .- Milwaukee & Mississippi Railroad.

[Sept. 6, 1854.]

The plan for the consolidation of the above railroad interests under the name and style of the Milwaukee & Mississippi Railroad Com- pany is now in process of completion, through the agency of E. D. Clinton, agent for the M. & M. R. R. Co.

Mr. Clinton is authorized to procure stock for the consolidated company.

The plan which he has adopted comprises two kinds of stock. The first, personal or cash subscription ; and the second mortgage or real estate security stock.

The first of these plans will require the pay- ment of cash at the rate of 25 per cent. per annum; the second requires merely the giving I of a mortgage for one-half the value of the real

395

HISTORY OF GREEN COUNTY

estate named therein, the valuation thereof to be made by your own neighbors, and the ap- praisals to be made in good faith. The condi- tions of this valuation will be fully explained by the agent at each meeting.

We suppose this proposal to be stated suffi- ciently clear to meet the understanding of all.

It remains for us to give our opinion of the plan, the policy of which will be questioned by some, and the deep interest we believe the owners of real estate have in taking all the second kind of stock that lies within their power. We believe the plan to be thoroughly feasible, safe and desirable, and that the oppor- tunity to take stock in this way, should be em- braced by every one with a view to his own interest alone.

The plan is safe. The company will pay the interest on all money borrowed for the use of the road upon the credit of these real estate securities, and allow to each of the mortgage- ors the sum of 2 per cent. per annum, giv- ing a certificate for stock to the amount of the mortgage, more or less, as if the whole had been paid up or into the treasury of the com- pany. The money borrowed upon the strength of these securities will be carefully appropriated for the building of the road, and by the legiti- mate operation of the process for the liquida- tion of the debt the mortgageor becomes a bona fide stock-holder to the amount of his mortgage without the ontlay of a dollar. In fact it amounts to the payment of all his stock as a bonus for the use of his credit.

Now, in our judgment, every farmer, every real estate owner, should deem it a privilege to have the opportunity under the mortgage sys- tem. The great advantage offered by railroad facilities in getting produce to market, we need not dilate upon. But the additional advantage of receiving into our own pockets the propor- tional net earnings of the road, is a considera- tion too important to be lightly thrown away.

Should the farmers of Green county let an op- portunity pass for becoming stock-holders when

the opportunity is offered to do so without the outlay of a dollar of consideration, further than loaning their credit to a perfectly reliable company, of which they may become a part ? We think not-and we feel very sure that that man, whoever he may be, that lets this oppor- tunity pass, will have occasion to regret it at no distant day, when it is too late to remedy the evil his timidity has wrought to himself and family. We would rejoice to see our farmers become stock-holders to the amount of $500,000 if it were possible, and it is pos- sible. Why should not the farmers of Green and the counties west, become the real owners of this line of railroad at no dis- tant day ? Is it really an object for you to pay into the pockets of eastern capitalists the necessary expenses of transporting your own produce ? Why not have it return to your own pockets ? Answer, if you please.

When you have notice of a meeting or meet- ings in your respective neighborhoods, by all means turn out. You will then meet with the agent, who will explain to you fully and clear- ly, the mode and manner of all these things, and when you come out to the neighborhood meetings bring your women folks. They have an interest in all this matter. Your wives, your daughters, have an interest in common with yourselves, men. They should have an op- portunity to become informed in the premises. It is necessary that the wife should join her husband in executing the mortgage. She should be permitted to understand it, and thereby en- abled to give an intelligent signature to the papers.

Mr. Clinton will be able to satisfy any man or woman who may be desirous of making a permanent investment under circumstances peculiarly favorable to those persons, that it is not only a privilege, but really a duty they owe to themselves and their dependants.

Since writing the above, the committee hay- ing the matter in charge have made the follow- ing appointments in the township.

396

HISTORY OF GREEN COUNTY.

At Delavans school house, in Clarno, Thurs- day, August 31, at 2 o'clock.

Twin Grove, town of Jefferson Friday, Sep- tember 1, at 2 o'clock.

Juda, Saturday, September 2, at 2 o'clock.

Clarence, Monday, September 4, school house.

Decatur, Tuesday, September 5, at 2 o'clock. Sylvester, Wednesday, September, Thomp- son's school house.

Jordan, Thursday, September 7, 2 o'clock, Morton's school house.

Cadiz, Friday, September 8, 2 o'clock, Swank's mill.

We earnestly recommend a general attend- ance at these meetings. It may be pretty safely estimated, judging from the manifestations here to-day, August 30, that Green county will take of mortgaged stock about $300,000. At this place, the meeting to-day, have subscribed over $66,000. The work goes bravely on, and we are bound to have the road.

Here are the proceedings of the meeting held at the court house, in Monroe, on Tuesday afternoon, 29th inst .:

Pursuant to adjournment of a meeting held on the evening of Angust 19, a large number of the citizens of Green county assembled at the court house, in Monroe, at 2 o'clock, on the af- ternoon of Aug. 20, 1854, to deliberate upon the construction of the Southern Wisconsin Railroad.

The meeting organized by appointing James L. Powell chairman and Edmund Bartlett sec- retary.

David Noggle, Esq, of Janesville, was then called upon for a speech, who responded by a few pertinent remarks in reference to the im- portance to Green county of the speedy comple- tion of the road.

E. D. Clinton, Esq., agent of the Milwaukee & Mississippi Railroad Company, was then in- troduced to the meeting, who addressed the audience upon, Ist. The feasibility of the route; 2d. The certainty that the road will pay; 3d. The ability of the farmers to build the road;

and 4th. The safety of mortgaging real estate to raise the necessary means to get the road into successful operation, and the benefits which would accrue to the farmers should they mort- gage their farms to build the road and own it themselves.

Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.

History of Green County, Wisconsin. Together with sketches of its towns and villages, educational, civil, military and political history; portraits of prominent persons, and biographies of representative citizens, Part 56

Author: Union publishing company, Springfield, Ill., pub. [from old catalog] Publication date: 1884 Publisher: Springfield, Ill., Union publishing company Number of Pages: 1168

Author: Union publishing company, Springfield, Ill., pub. [from old catalog]
Publication date: 1884
Publisher: Springfield, Ill., Union publishing company
Number of Pages: 1168