History of Walworth County, Wisconsin, Part 67

Author: Western Historical Co
Publication date: 1882
Publisher: Chicago, Western historical company
Number of Pages: 998

USA > Wisconsin > Walworth County > History of Walworth County, Wisconsin > Part 67

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HISTORY OF WALWORTH COUNTY.

broached to build a line from Milwaukee to Beloit, to pass through East Troy and Troy, crossing the old stage road. but not running parallel with it, it found the Troy people, as well as others along the line, all too ready to further the project by loaning the credit of the towns, or by the still more imprudent means of personal subscriptions or loans, secured by mortgages on their farms. The litigation that grew out of the railroad farm-mortgages, and the hardships they brought upon the farmers all over the county before they were finally wiped out, would, if fully detailed, furnish ample material for a chapter, and a record of bad faith on the one side and credulity on the other, almost unparalleled in business history. It is sufficient here to explain the plan and workings of the farm-mortgage system, as it came into vogue as a means of build- ing railroads through the new country, and the outcome of it at a later day when the day of payment came.

As it is well known, when the railroad fever first began to rage in Wisconsin, there was absolutely no surplus capital in the State. It was, therefore, necessary to raise the capital at the Eastern money centers, which could easily be done if by any means a margin of home capi- tal could be raised sufficient to guarantee the Eastern capitalists from ultimate loss. This was effected through various methods -- by obtaining stock subscriptions from those most directly in- terested in the road: by obtaining stock subseriptions from counties and towns along the pro- posed route, for which municipal and county bonds were paid; and by the more reprehensible means of indueing individual farmers to subscribe for stock, mortgaging their farms on five or ten years' time as security for their ultimate payment for the stock taken. With these in hand, the directors would issue bonds, on which annual or semi-annual interest was to be paid, the bonds running a series of years, giving as security the municipal bonds, the farm-mortgage bonds and all the rights and franchises of the road. On these bonds thus secured, money was raised (often at ruinous sacrifice), wherewith to build the roads. Some were pushed to com- pletion, others were abandoned, half finished, and a few were seareely begun. It is believed that in every case the roads were sold or went into the hands of the bond-holders, when built, not one of them being now owned or controlled by the original stockholders.

These roads were, many of them, started during the years 1852, 1853, 1854 and 1855. Those finished before the close of 1856 are now running under the control of new owners. Those in process of construction when the financial panie of 1857 paralyzed business, and brought all enterprises requiring money to a stand-still. have never been built. The municipal bonds, as well as the farm mortgages, had, however, all passed into the hands of Eastern money- lenders, and, after years of litigation, they were decided by the higher courts to be valid, and payment enforced, whether the railroad for which they were given had been built or not. When it is stated that nearly half the farms in the county were mortgaged, and that two of the prin- eipal roads projected through the county were never built, the injustice. and, in some cases, villainy, of the transaction is apparent. For years, this eloud of debt, incurred without con- sideration, and the payment of which was enforced in accordance with law, but in violation of right and equity, hung over the county and overshadowed its prosperity. Some farmers Jost their homes and many toiled for years before the incumbranees were removed.

Having thus given an outline sketch of the processes by which the roads were built or be- gun, the history of the railroad system of the county can be given without further digression.

From 1853 to 1855, three lines were projected through the county, viz., the Wisconsin Central, diagonally across the county from the southeast to the northwest corner; the Mil- waukee & Beloit, from the northeast to the southwest corner, and the Racine, Janesville & Mississippi, extending from east to west through the center of the county. Of these three roads only one was completed before the panic of 1857.

The Racine, Janesville & Mississippi Railway Company was chartered in 1852. The route as originally laid out was in nearly a direct line from Racine to Janesville, and passed through the northern half of Lyons, Geneva, Delavan and Darien, touching the village of Delavan. Through local inducements held out, the route was changed before the road was built. Beloit became the first objective point, instead of Janesville, and the course was deflected north to Elkhorn. These changes were effected through the energetie efforts of the enterprising citizens of the towns named. Elkhorn subscribed $20,000-$15,000 in bonds and $5,000 in individual cash subscriptions; Delavan subscribed $25,000 in bonds: Beloit and vicinity succeeded in

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HISTORY OF WALWORTH COUNTY.

drawing the road from Janesville to that place by a large issue of bonds to aid in its construc tion. Farm mortgages were resorted to before it was finished to Beloit. The road was com- pleted to the eastern border of the county in 1855, and through to Beloit during the following year. This was the first general railroad communication established through the county. In 1859, the road passed into the hands of the bondholders, and the original stock became worthi- less. The road was completed to Freeport that year, and subsequently built to Savannah, thence to Rock Island. In 1866, the road was sold by the bondholders, and a new organization effected under the name of the Western Union Railroad. A controlling interest was purchased a few years after by the Chicago, Milwaukee & St. Paul Company, which has since operated it as a division of its road, designated as the Southwestern Division. The Eagle Branch road from this road, running from Elkhorn to Eagle, and connecting with the Chicago, Milwaukee & St. Paul Railroad at that point, was built in 1869. It passes through La Fayette and Troy. It was built by the Western Union corporation, and is a part of that road, but, like the main trunk road, is a part of the Chicago, Milwaukee & St. Paul system. Although the aid given this road never brought any direct return to towns granting it, the object was attained. The road was built and the general enhancement of the value of property along the line, with other benefits derived from it, if computed, would far exceed the individual and municipal losses sustained in its establishment.

The Wisconsin Central Railroad Company was chartered in March, 1853. The leading spirits of the organization were residents of Elkhorn, and the officers of the embryo railroad were at that place. Le Grand Rockwell was the first President; Edwin Hodges was Treasurer, and Messrs. Winsor and Smith, attorneys. The Board of Directors took in citizens favorable to the project all along the line of the road, with a fair proportion of Elkhorn men. Otis Pres- ton and George Bulkley, as well as Rockwell and Hodges, were on the board; also Rufus Che- ney, of Whitewater, C. M. Baker, of Geneva, and other leading citizens of the county, whose names are not remembered. The charter empowered the company to construct a railroad from the terminus of the Fox River road, at the State line, at Genoa Village, to some point on the head-waters of Lake Superior. Its proposed connection with Lake Michigan was with Chicago via the Fox River road to Elgin, Ill., thence to Chicago over the Chicago & Galena Railroad.

The route through Walworth County passed diagonally through the county from Genoa in the extreme southeast corner, through the villages of Geneva, Elkhorn and Whitewater, in the northwestern corner. Thence, in nearly a direct line via Jefferson and Portage, it was to take to the woods and come out on Lake Superior at some point near where Superior City is now .sit- uated.

The project at once became extremely popular, and liberal subscriptions in money were made and bonds issued by the towns to give it a start all along the line as far as Jefferson, in Jefferson County, which was to be the first resting-point in building before extending it farther north. Whitewater, Elkhorn and Geneva all issued bonds in aid of the enterprise-Geneva. $25,000; Elkhorn, $15,000; Whitewater, $40,000.

The work of building the road did not progress with the vigor shown by the directors in raising the stock. Considerable grading was done at various points along the line as far as Whitewater, and the rails were laid as far as Geneva, in June, 1856. Then the panic of 1857 overtook it, and the enterprise fell into a state of confusion and insolvency. The offices and books were transferred to Whitewater, when the company dragged out a sickly corporate exist- ence for a few years in vain endeavors to raise funds to revive it, and then gave up the ghost, leaving only a heritage of blasted hopes, unfulfilled pledges, the unfinished road-bed and eight- een miles of railroad, with its corporate name and franchises to show that it once lived a plaus- ible dead-beat life, and drew its sustenance from the too credulous inhabitants of the county.

The history of the completed portion of the road, from Genoa to Geneva, and the hand Geneva took in the Central Railroad game, is given in Simmons' History of Geneva as follows:

"Many, if not a majority of our citizens, preferred a connection with Racine or Kenosha, but some believed that a direct line to Chicago would prove most beneficial to the interests of the village. That, at all events, was the best we could secure, and it seemed just within our grasp. Consequently our capitalists directed their means and their energies to the construction of that road. The same year an act was passed authorizing the towns along the road to issue

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HISTORY OF WALWORTH COUNTY.

their bonds in aid of its construction. Under this provision, a special town meeting was held August 21. 1855, and a vote passed by a majority of fifty-seven, to issue bonds to the amount of $25,000, payable in twenty years with S per cent interest, to be exchanged for stock of the road. The bonds were issued accordingly on the 27th of February. 1856. This was considered a glo rious opportunity to get something for nothing. as the bonds would pay for the stock-and the stock would in turn pay the bonds-and the dividends would pay the interest. * * * * * *

"In June of this year the long-expected railroad was completed to the eastern boundary of the village, and a great jubilee was held upon the occasion of the arrival of the first train of cars from Chicago. Trains immediately commenced running daily to and from Elgin, in con- nection with the Chicago trains on the Galena road, and great benefits were anticipated from the opening of this communication with that great mart of the West. A heavy job of grading through the hill in the east part of the village remained to be completed before the rails could be extended to the permanent depot grounds at the head of Broad street, and, as no great delay was anticipated, there was no inducement for any one to build warehouses for the reception of produce at the temporary stopping-place, and consequently but little was purchased to be shipped over the road. In 1857, A. Ferguson and James Simmons erected the red warehouse which stood near the depot grounds until the spring of 1873, purposing to use it for storing grain and produce: but, on the arrival of the railroad at that point, it was rented and used for a depot. Shortly before this, a great financial crash had put a quietus upon nearly all railroad projects, and it was only by the aid of subscriptions among the citizens that the cars were brought into our village. For several years they continued to visit us regularly, the travel and freight constantly increasing, notwithstanding the general stagnation of trade through the country, and the failure of crops, and we began to realize some of the benefits we had so long anticipated, but some time in the fall of 1860 they ceased coming. The road being laid with the old style of iron, in long flat bars spiked to wooden stringers, previously used on the Galena road, had become out of repair, and business on so short a route was hardly sufficient to war- rant any extensive outlay for its improvement. For some two years after the trains ceased to run, a flat car was operated by a pair of horse or mule engines under the superintendence of Ben Fish and others, during which time one of the engines jumped the track and broke its back, and the other was compelled to go it alone.

"In October, 1867, the holders of the bonds issued by the town in aid of the Wisconsin Central Railroad, submitted to our electors a proposition to accept half the face of the bonds in full satisfaction. Our people knowing that they had received no value for them, and believ- ing that they were neither morally nor legally bound to pay them, almost unanimously rejected the proposition. The decision proved unfortunate, as the bonds subsequently fell into the hands of unscrupulous parties, who have succeeded in overcoming all our defenses and recovered their 'pound of flesh.'"

In 1871, the citizens of Geneva obtained a charter under the name of the State Line & Union Railroad Company, C. M. Baker, President. The charter authorized them to construct a road from the State line, at Genoa, to Columbus and onward to some point on the Fox or Wisconsin River, at or between Sauk City and Berlin. The company contracted with the Chicago & North-Western Railway Company to construct the road over the grade of the old Central, which had been in disuse since 1860, to the village, they leasing the road to that com- pany for ninety- nine years. The road was thus completed a second time to Geneva, July 26, 1871, thus renewing her railroad connection with Chicago after an interim of eleven years. This branch has been run to that point since its construction to the present time. That the old Wisconsin Central was considered a totally defunct institution is shown in the fact that its name (Wisconsin Central) was ruthlessly appropriated in June, 1871, by the Portage, Winne- bago & Superior Railroad Company, and is still retained by it. Its franchises, right of way, road-bed and whatever else was left of the old wreck, is now claimed by the Chicago, Portage & Superior Company, under a sale on foreclosure of a mortgage. The company was chartered by the Illinois Legislature in 1872. The route is intended to be an air-line from Chicago to the southern terminus of the old Central at Geneva, thence, under its franchises, over the old road-bed through Walworth and Jefferson Counties in a direct line to Duluth. Under the stim-

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HISTORY OF WALWORTH COUNTY.

ulus of land grants in Wisconsin, considerable work has already been done in Northern Wis consin as well as in Illinois, and it is not improbable that, after the lapse of thirty years under this company, the rails may yet be laid along the old line, and the sanguine hopes and vision- ary schemes of the projectors of the old Central become a reality to the later generations .*

The Milwaukee & Beloit Railway was chartered in 1854 or 1855. It was a Milwaukee en- terprise. The offices of the company were there. Horatio Hill, of that city, was the President. Of the directors, a majority of them were Milwaukee men. It was proposed to run the route in nearly a direct line from Milwaukee to Beloit, passing in a southwesterly direction through East Troy, Troy, Elkhorn to Delavan, thence over the route of the Racine & Mississippi road through Darien and Allen's Grove, to Beloit. It was a feasible railroad project for Milwaukee, and running in a direct line through a rich farming country, held ont plansible hopes of being a paying road, if built. Having raised sufficient cash capital among its Milwaukee friends to give it a start, the ordinary methods of obtaining aid from the towns along the road, and by farm-mortgages were resorted to. The farmers along the whole line through East Troy, Troy, La Fayette, Elkhorn and Delavan, were thoroughly canvassed, and almost a clean sweep of farm- mortgages in those towns was made. It was the old story-considerable grading done, some bridges built, the road nearly ready for the rails, the crash of 1857, credit gone, a struggle for a few years and a total collapse. The road was never built, and thus far no successor has ap- peared upon the scene of its ruin, to renew the enterprise, as in the case of its unfortunate com- panion in tribulation-the Wisconsin Central. Every dollar of stock subscribed proved a clear loss. The farm-mortgages had not all been disposed of at the time of the financial collapse in 1857, and, as it was impossible to negotiate loans on them East, during the long period of de- pression that followed, many of them were sold to Western money-lenders in lots to suit pur- chasers and at prices to suit the emergencies of the occasion. They gradually floated into strong hands and payment in full was enforced through the comts, when compromises were not effected. The poor farmers, in addition to the injustice of being forced to submit to legalized robbery, were subjected to the bitter chagrin and helpless humiliation arising from the knowledge that the holders of the mortgages, with whom they were forced to settle, had, in many cases, doubled their money by the nefarious speculation. It is no wonder that, remembering the bitter experi- ences of twenty years ago, an undercurrent of bitterness toward railroad corporations prevails among the farmers even to the present day. In addition to the roads already mentioned. two others have just entered the boundaries of the county.

The Kenosha & Beloit Railroad Company was incorporated in 1853, to build a road from Kenosha to Beloit. The route was afterward changed to Rockford, and the road became known as the Kenosha, Rockford & Rock Island Railway. It runs west through Kenosha County, striking the State line at Genoa. It was finished to that place in 1862. Like all other rail- roads of that time, it failed, and was sold out on foreclosure. It is now a part of the Chicago & North-Western system, and is designated as the Kenosha Division of that road.

The Chicago & North-Western Railway Company, after various discouragements in its in- fantile struggles for existence, under various names and diverse charters, both in Wisconsin and Illinois, got consolidated and fairly on its feet under the name it now bears, in 1855. In 1856. the Wisconsin Division was completed to Janesville, passing through Sharon, the south- western town of the county.

The railroad connections and communications which have grown out of the efforts, labors and sacrifices of thirty years are summarized as follows:

The Chicago, Milwaukee & St. Paul Railway (South-Western Division) passes through the towns of Lyons, Geneva (the northern part), Elkhorn. Delavan and Darien. . There are within the county on this road six passenger and freight stations, viz .. Lyons, Springfield, where stage connections was made with Geneva Village. Elkhorn. Delavan, Darien and Allen's Grove. Two passenger and two freight trains pass over the road East and West daily. The Eagle Branch, connecting with the road at Elkhorn, passes through La Fayette and Troy. It has three stations in the county -- Peck's Station, in La Fayette. and Mayhew and Troy Center. in

* Since the text was written, a transfer of $1,000,000 pail-up stock of the Chicago, Portage & Superior Railway Company to the Chicagor St. Paul, Minneapolis & Omaha Railway Company, operateil to transfer the land grant also to the latter-unmed Company, which, apparently, will not best serve its own interests by building the road so long hoped for by the people of Walworth County, to wit, from Chicago, by way of Geneva, Elkhorn and Whitewater, to Jefferson or Portage.

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the town of Troy. A mixed train, freight and passenger, passes over the road each way daily.

The Chicago & North- Western runs three trains through Genoa to Geneva each day. The village of Sharon. situated on the main trunk line of the Wisconsin Division, has all the facili- ties of the most favored stations on that well-appointed and well-managed road. Three passen- ger trains pass daily, going north and south.

Telegraphs were established along the lines of the railroads nearly as soon as they were built, and offices established at every depot. In addition, a telephone line is completed from the office at Mayhew Station to East Troy, which is the only point lying off the main lines having telegraphic communication.

CORPORATE HISTORY.

The corporate history of Walworth County began January 7, 1839, at which time the first meeting of the first Board of Commissioners was held at the house of Daniel Bradley, in Elk- horn, where the first county business was transacted. There were present Benjamin Ball. Na- thaniel Bell and William Bowman, who constituted the first Board of Commissioners, The board proceeded to organize by appointing a clerk. The first and only business done at this meeting was to grant a license to R. W. Warren " to keep a tavern at the village of Geneva. for the sum of $5." after which the board adjourned to meet at the same place on the Sth day of March, 1839.

At the adjourned meeting, the full board being present. Hollis Latham was appointed Clerk pro tem., and it proceeded to select " the following named persons for grand and petit jurors, to serve at the District Court (the first held). April term, 1839:"

First Grand Jurors-Joseph Griffin, Isaac Williams, R. W. Warren, George Clark, Rod- erick Merrick, Palmer Gardner, Charles Dyer, Solomon A. Dwinnell, David Whitmore, Elias Jennings, James Tripp. Adolphus Spoor, William Weed, Morris F. Haws, Asa Blood, Marshall Newell, Zerah Mead. Jeduthan Spooner, Christopher Douglass, Henry Phoenix, Salomon Thomas, John Bruce, Nicholas Comstock.

First Petit Jurors -- William Stork, William K. May, Allen McBride, C. M. Baker, Allen Perkins, Benjamin C. Pierce. A. L. Merrick, Solomon Harvey, Elias Hicks, Milo E. Bradley, Gaylord Graves, Truman Hibbard, Othni Beardsley, Gorham Bunker, Edwin Perry. George W. Kendall, Elijah Worthington, Willard B. Johnson, Israel B. Cornish, Joseph Barker, James Maxwell. John Lippitt, William Hollinshead. William A. Bartlett.

Following the selection of jurors, the board received a petition for the first county road which was " to commence at the center of the county, and running to Mr. Barker's house. thence north to the north line of the county." The board then adjourned sine die.

At the next meeting, held April 1. 1839, election precincts were designated and Judges of Election appointed as follows:

Geneva-At the house of Robert W. Warren; Judges, Charles M. Goodsell, William K. May, Thomas MeKaig.

Spring Prairie At the house of A. A. Hemenway; Judges, Thomas Miller, Roderick Mer- rick, Solomon A. Dwinnell.

Troy-At the house of Othni Beardsley; Judges, Gaylord Graves, Augustus Smith, Sylvanns Spoor.

Delavan -- At the house of Milo Kelsey; Judges, Henry Phoenix. William Hollinshead, John Bruce.

Elkhorn -At the house of Elijah Worthington; Judges, George W. Kendall, Jared B. Cornish, Zerah Mead.

Walworth -- At the house of James A. Maxwell; Judges, Christopher Douglass, Amos Bailey, William Bell.

William Hollinshead was appointed County Treasurer, following which appointment it was voted " that there shall be a special election held in the county of Walworth for the purpose of electing township officers on Thursday, the 9th of May next, in the several towns of said county, said elections to be held at the several places above mentioned."

It was further voted that the " Board of Commissioners require that the following persons make an application to them immediately for license to keep an inn or public house in their

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HISTORY OF WALWORTH COUNTY.

respective towns, and that the said persons applying for such license shall pay $5 for each license." The early landlords thus invited to contribute were G. S. Warren, A. A. Hemenway. Israel Williams and Othni Beardsley.

It was further voted that the following named persons " shall make immediate application for license to keep a store or sell goods. etc.," for which license they were to pay $10 into the County Treasury. The early merchants thus mulcted were Andrew Ferguson. Geneva, and H. & S. F. Phoenix. of Delavan. It is presumable that they were at that time the only men in the county doing a mercantile business.

Following the defining of the road districts, the laying out of several new roads, the grant- ing of a license to sell goods, to H. & S. F. Phoenix, and a tavern license to G. S. Warren, the meeting adjourned.

At these meetings the county was fairly started in its corporate career. Its further his- tory will partake less of detail or chronological order, presenting, in varied form and manner, all points on which the county records throw light.

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History of Walworth County, Wisconsin, Part 67

Author: Western Historical Co Publication date: 1882 Publisher: Chicago, Western historical company Number of Pages: 998

Author: Western Historical Co
Publication date: 1882
Publisher: Chicago, Western historical company
Number of Pages: 998