USA > Wisconsin > Jefferson County > The history of Jefferson county, Wisconsin, containing biographical sketches > Part 68
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" The answer (or argument made in the brief upon it) set up among other things that 'the ty of Watertown contained a population of but 7,553 inhabitants ; that the value of its prop- ty was assessed at but little over a million of dollars; that the debt of the city is $750.000; hat it was impossible for the city to pay this debt; that it was expected and provided that the ilroad company would pay the bonds in question; that the city had compromised and settled portion of its debt ; that it had levied the taxes necessary to effect sueh compromise, and that was ready to compromise all outstanding bonds and judgments at as high a rate as can be llected of the people of Watertown ; that there was no law to compel the retention of the fice by Aldermen to levy taxes ; that the plaintiff took his chance of its being voluntarily one, and that, not being voluntarily done, there was no violation of law.'
" The ease was tried in June, 1872, before two Judges holding the Circuit Court. * * They were divided in opinion, and the bill was dismissed. The case is now here on ertificate of division and appeal, the error assigned being that the Court dismissed the bill when ought to have given the relief prayed for."
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HISTORY OF JEFFERSON COUNTY.
The foregoing is a correct and carefully prepared statement of the case. The points in Justice Hunt's opinion are given herewith :
" This case is free from the objections usually made to a recovery upon municipal bonds. It is beyond doubt that the bonds were issued by authority of an act of the Legislature of the State of Wisconsin, and in the manner prescribed by the statute. It is not denied that the railroad, in aid of the construction of which they were issued, has been built and was put in operation. Upon a class of the defenses interposed in the answer and in the argument, it is not necessary to spend much time. The theories upon which they proceed are vicious. They are based upon the idea that a refusal to pay an honest debt is justifiable because it would distress the debtor to pay it. A voluntary refusal to pay an honest debt is a high offense in a commercial community. and is just cause of war between nations. So far as the defense rests upon these principles, we find no difficulty in overruling it. There is. however, a grave question of the power of the Court to grant the relief asked for. We are of opinion that this Court has not the power to direct a tax to be levied for the payment of these judgments. This power to impose burdens and raise money is the highest attribute of sovereignty, and is exercised, first, to raise money for public purposes only ; and, second, by the power of legislative authority only. It is a power that has not been extended to the judiciary. Especially is it beyond the power of the Federal judiciary to assume the place of a State in the exercise of this authority, at once so delicate and so important.
* "Entertaining the opinion that the plaintiff has been unreasonably obstructed in the pursuit of his legal remedies, we should be quite willing to give him the aid requested, if the law permitted it. We cannot, however, find authority for so doing, and we acquiesce in the conclusion of the Court below that the bill must be dismissed."
" Judgment affirmed ; Mr. Justice Clifford, with whom concurred Mr. Justice Swayne, dis- senting."
This is one of the most important decisions ever rendered by the United States Supreme Court. It is frequently, and will doubtless continue to be, cited as a precedent in similar cases. The situation in Watertown, however, is an embarrassing one, and the people are anxious and willing to acquiesce in some equitable arrangement for removing the shadow which hangs over their prosperity like a pall. It is natural that they should resist every effort of the bondholders to make them pay an enormous sum on a property whose emoluments are enjoyed by others.
RAILROAD HISTORY.
Chicago &. North- Western .- In this connection, something of the history of the progress of the roads in question will be of interest. The Rock River Valley Union Railroad was the one, perhaps, to which the people of Jefferson County looked forward to as affording them the first and best outlet. Every movement in connection therewith was eagerly recorded by the local newspapers. The commencement of operations in 1851, at Fond du Lac-which had then been decided upon as the northern terminus of the line-and the completion of a few miles of the road southward from that city was joyous news to the citizens of Jefferson County. Every- body had railroad on the brain, and it is not surprising that the voting of bonds became of fre- quent occurrence. To give the minor details of the many phases of the railway history in ques- tion would encroach upon valuable space in this work which must be devoted to subjects of quite as great importance. Brief mention of the most essential events must suffice :
The Watertown Democrat of October 26, 1854, speaking of the Rock River Valley Union Railroad, said the Company had " apparently passed through the ordeal of all projects that con- flict with the lake shore interests."
About this time, A. Hyatt Smith of Janesville, and John B. Macy retired from their posi- tions as Directors, and an entire new Board was elected as follows : A. G. Butler, of Fond du Lac ; Alonzo Wing, Jefferson ; L. P. Harvey, Shopiere; George P. Delaplaine, Madison ; Daniel Lovejoy, Cooktown : Milo Jones, Fort Atkinson ; J. B. Doe and Joseph A. Wood, Janes- ville ; William B. Ogden, Daniel Brainard and Henry Smith, Chicago; Charles Butler, New
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HISTORY OF JEFFERSON COUNTY.
York ; William Jarvis, Middletown, Conn .; John Wooster, Boston ; J. W. Hickok, Burlington, Vt. At a subsequent meeting held at Janesville, the following officers were elected : Charles Butler, President ; J. B. Doe, Vice President and Treasurer ; J. W. Currier, Secretary.
The report of the Directors at this meeting showed that $1,067,073.80 had been expended on the road. Soon afterward, the bonded and floating debt of the Company was converted into stock. About the same time, soon after the election of the new Directory, a meeting of citizens of Watertown was held in Cole's new block, to give expression to the feeling on the subject and to allow certain parties interested to state their views. Mayor Prentiss presided, and E. Quiner acted as Secretary. Speeches were made by Mr. Hickok, of Vermont, Ex-Gov. Tallmadge and A. Hyatt Smith. The following resolutions were adopted :
" WHEREAS, It is now proposed, under new auspices, to push forward to completion the Rock River Valley Union Railroad ; therefore,
" Resolved, That the people of Watertown look upon this uew movement with the deepest interest, believing as they do, that this work, wheu completed, will be of incalculable benefit, not only to this city, but to the State at large.
"Resolved, That they tender their full confidence and cordial co-operation to the new Board of Directors, believ- ing them all to be honest and honorable men, capable of bringing to a speedy and successful termination the work intrusted to their charge.
" Resolved, That they cordially approve of the main features of the new movement to wit : An appeal to the people along the line of the road for subscription to its stock, and that the people of Watertown will contribute its full quota of the material aid necessary to the completion of the work, in full confidence that it will liberally remunerate its stockholders.
" Resolved, That measures be taken to procure the passage of a law for submitting, at an early day, to a vote of the people, the question of loaning the credit of the city to this Company, in aid of said road, to the amount of $120,000.
For some reason there had been a loss of confidence on the part of the people in the early management of the Rock River Valley Union Railroad. While the citizens of Jefferson County were with patience awaiting its completion, Janesville and Beloit were engaged in one of their periodical quarrels as to which should pay the largest sum toward the building of the line. When the difficulty had been settled and the road passed to new hands it became necessary to rc-assure the people of Jefferson County that the scheme would thereafter be vigorously prose- cuted. To this end a meeting was held at Jefferson on December 1, 1854, at which Fort Atkinson, Watertown, etc., were well represented.
J. B. Doe, one of the new Board of Directors, defended the company from the damaging aspersions circulated against it, and denied a statement that the bonds had been sold at nominal and various prices. David Noggle, a Janesville lawyer, said he knew that there had been too much "gas" about the early management; that the manner in which the affairs of the com- pany had previously been conducted was a matter of no practical importance, and no indication of the future. He advocated the mortgage system of taking stock, saying that every man who had $2,000 worth of real estate could take $1,000 in stock, give his mortgage running five years at 5 per cent, and, at the expiration of the time, in his opinion, the road would pay the principal and the individual would have his stock clear. The force of Mr. Noggle's argument was manifested by a large number of farmers present following his advice.
Work on the line between Fond du Lac and Watertown was being pushed rapidly, the route being graded nearly the entire distance. A new locomotive, which was taken from She- boygan to Fond du Lac by teams, was announced to have arrived at the latter place for service on the completed portion of the road running from that city, and from this time forward confi- dence was restored.
On the 27th of November, 1854, the Watertown City Council passed a resolution ordering an election to be held on the third Monday of December following, for the purpose of voting upon the question of issuing city bonds to the Rock River Valley Union Railroad Company, to the amount of $120,000. The result of this election is already known. Similar action was taken by several other cities and villages along the route.
It was subsequently arranged that the cities and villages voting in favor of the issuance of bonds to the road should take stock and use these bonds in payment therefor. This conversion
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HISTORY OF JEFFERSON COUNTY.
of bonds into stock, it was claimed, would make the bondholder more than ever interested in its success.
The embarrassment experienced by the early management, and under which the Company still continued to labor, soon necessitated a change, and we find that, on December 30, 1855, the Trustees disposed of the road at public sale for the benefit of the bondholders. William B. Ogden, J. H. Hicks and C. C. Wolden, of New York, became the purchasers, paying $20,000 therefor. The road was then consolidated with the Illinois & Wisconsin line, at that time in course of construction from Chicago toward the Northwest, and the Company was thereafter known as the Chicago, Fond du Lac & St. Paul Railroad Company. The issuance of the bonds voted by various cities and villages along the route, then became an important question. Con- cerning this subject, the Watertown Democrat, of May 3, 1855, says :
" If this railroad company strictly comply with the provisions of the act authorizing the issue of the city bonds, and give ample security that the payment of neither the interest nor principal shall fall on the city, we think the bonds should be granted. We want the railroad, and should be willing to help its completion, when we can do so without loss to ourselves. We hope that, so far as the success of the enterprise depends on us, we shall be found ready and willing to do our part. This is a subject for the deliberation and action of our City Council."
Owing to a failure of the managers of this Company to agree upon a course of action, the building of the road was delayed beyond a reasonable length of time, and the people of Jefferson County, so long kept in a condition between hope and fear, were again upon the point of despair, when an extract from a letter written from New York August 23, 1855, by Mr. Ogden, the President of the Company, published in the different papers throughout the county, re-assured them, and restored, in a measure, their lost confidence. The letter was as follows :
" The affairs of the road are looking up. Five thousand tons of iron have been bought, and a part of it is now being forwarded, with a view of getting to Janesville early in the spring, and of finishing the upper end of the road to the junction of the Milwaukee & La Crosse road. In fact, the whole thing looks very encouraging. The purchase of the balance of the iron will probably be closed to-day."
At a meeting held at Cole's Hall, in Watertown, on October 11, of the same year, Mr. Ogden addressed the assemblage. He said that most of the old bonds of the company had been converted into stock, the liabilities incurred under the former Board of Directors liquidated, seventy miles of the road placed in running order, and iron purchased for a large share of the balance of the line. The Directors, he said, were then making efforts to complete the road from Woodstock to Janesville, and from Waupun to the crossing of the La Crosse road within the following year, and the balance of the road as soon thereafter as possible. Mr. Ogden said the Company looked to the people along the line for bonds and stock subscriptions to the amount of $1,000,000. About one-third of this sum had already been secured at the north end of the road, and to Watertown and Janesville and the villages lying between these cities, the Directors looked for the balance. Before the meeting adjourned, Daniel Jones, A. L. Pritchard and William M. Dennis were appointed a committee to solicit subscriptions.
The next event of interest in the history of this road, was the voting of the $200,000 in bonds by the city of Watertown, already referred to.
In August, 1856, the road was completed between Chicago and Janesville. In the mean time, work upon the northern end of the line had been pushed slowly forward, and all that was now necessary to insure the eternal happiness of the people of Jefferson County was the comple- tion of the connecting link.
In the Democrat of January 15, 1857, occurs the following, which will give some idea of the exertions then being made by both the railway managers and the citizens interested :
" At a late meeting of the Board of Directors of the Chicago, St. Paul & Fond du Lac Rail- road, a resolution was passed to put the road under contract as soon as stock to the amount of $600,000, on the line from Junction to Janesville, and they expect the following amounts to be subscribed at the places named ; Fort Atkinson, $100,000; Watertown, $150,000; Jefferson,
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HISTORY OF JEFFERSON COUNTY.
$75,000; Johnson's Creek, $25,000; Juneau, $50,000; Watertown bonds, $200,000; total, $600,000. Of this amount, there is now subscribed : Watertown (individual subscriptions), $75,000; Fort Atkinson, $112,000; Jefferson, $75,000; Watertown bonds, $200,000; total, $462,000.
" The Directors are now here, and will remain this week, and the amount set down for Watertown should be made up at once. We are assured that, if the required amount of $600,000 is not now subscribed, the road will not be put under contract ; but, if promptly taken, it will be put under contract immediately."
Within a month, the required amount was subscribed, and the Directors took their depar- ture for Chicago. But the embarrassments which had attended the construction of this road from its first inception, seem to have increased, and the memorable railway crash of 1857 so crippled the Company that it was only by the most remarkable management the finished portions of the road were kept in operation. It was not till late in the fall of 1858 that the Company began to show signs of recovery from the paralyzing effects of the panie. The first evidence of this is found in the Demoerat of September 30, 1858 :
" We have been called upon during the past week by the Directors, bondholders and Trust- ees of this Company. They have visited the various places on the line of the road to ascertain the state of the work and take the views of the stockholders and inhabitants as to what should be done in the present embarrassed condition of the road. The line is now completed and trains running regularly to Oshkosh, and the land-grant secured for the benefit of the Company. The grading and bridging from this city to the La Crosse Junction is finished and ready for the iron. The plan now proposed is to capitalize the second 8 per cent mortgage and the floating debt of the Company on some fair and equitable basis-the present stock to be taken up and new stock at a reduced amount issued therefor ; and, if not done voluntarily, the first mortgage will be foreclosed by the Trustees, and the present stock, floating debt and secured mortgage will be rendered worthless. The plan as proposed is a good one, and meets with the hearty approval of all the larger stockholders, and, with proper exertion, can and will be successfully carried out ;
indeed, it seems to us that there is no other alternative, and it is either this or nothing. * * * * With this fortunate turn in their affairs, they can go on free from debt and complete the road from Janesville to the La Crosse Junetion within twelve months, and thus we shall be put into connection with Chicago direct on the south, and Fond du Lac and Oshkosh on the north.
* We understand that the towns along the line, the stockholders and people gener- ally, approve of the plan proposed, and will adopt it almost unanimously."
In March, 1859, a meeting of the bondholders and others interested in the Chicago, St. Paul & Fond du Lac, was held at the New York office, at which it was agreed that the old stoek should be exchanged for a new issue so soon as arrangements for the sale of the road could be completed. This was consummated early in June, the creditors being the purchasers, and the Chicago, St. Paul & Fond du Lac Railroad Company became a thing of the past. With the change in management also came a change in name, and the institution has ever since been known as the Chicago & North-Western Railway. A 10 per cent assessment was levied upon all the stock to enable the Company to complete the road from Janesville to La Crosse Junction.
The following from the Watertown Democrat of June 30, 1859, will give an idea of the importance of the change :
" Work on the Chicago & North-Western Railway is fairly commenced, and we really begin to believe that the Company are in earnest in what they say. Under the old regime, or what was known as the Chicago, St. Paul & Fond du Lac Company, we were so often humbugged into the belief that the work was to be prosecuted with renewed energy and ' finished up this time without any mistake,' that we had about made up our minds that the next time we believed it, or announced it, would be when we saw it done and heard the whistle of the locomotive. Gangs of men are scattered all along the line of the road. Hon. Perry H. Smith is securing the right of way, and pays cash in hand for the damages when agreed upon."
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HISTORY OF JEFFERSON COUNTY.
The North-Western bridge over Rock River, two miles below the city of Watertown, was built in the summer and fall of 1859.
October 8, of the same year, Wells & French, railroad builders on the North-Western road. gave a " railroad supper " in Watertown, at the Exchange Hotel. Among others present on that occasion were Russel Sage, Judge Rose, D. C. Jackson and Gen. Chappell.
November 3, a terrible accident occurred eight miles south of Watertown. The south- bound passenger train ran over a large ox and was thrown from the track, five passenger cars being smashed to pieces. Eleven persons were killed ontright, three fatally injured and twenty- five badly hurt. Among the killed was Theron Minor, formerly editor of the Watertown Chronicle.
In March, 1860, the road was completed to Watertown; work was continued on the route north, but the events attending its progress ceased to be of any great interest to the people of Jefferson County.
In March, 1861, the Legislature passed an act authorizing the Chicago & North-Western Railway Company to consolidate their line with any road north of the La Crosse road. Grad- nally, the North-Western extended its Briarean arms until to-day it is one of the most powerful and important corporations in the United States.
Chicago, Milwaukee ยง. St. Paul .- Originally known as the Milwaukee & Watertown Rail- road. This road was originally incorporated in 1853. The interest taken in its success by the people of Jefferson County, and especially those of Watertown, is manifested by the readiness with which they voted substantial aid for it. The road was completed to Oconomowoc, from Milwan- kee, in the fall of 1854. Here the enterprise rested until the following spring, when work was resumed. June 5, 1855, a contraet was made with A. L. Graham & Co., for grading, bridging and ballasting the road from Oconomowoc to Columbus, via Watertown, the work to be com- pleted by August 1, 1855. The receipts upon the completed portion of the road, from Decem- ber 15, 1854, to the last of May following (five and a half months), amounted to $33,848.52.
The road was completed to Watertown September 21, 1855. The event was to have been celebrated by a grand demonstration on the part of the people, but the Common Council having refused to vote funds for that purpose, the movement, beyond the opening of a few baskets in a quiet way, was a failure, and the Milwaukee & Watertown Railroad soon became an old institu- tion, the object of frequent complaint when its managers assumed to dictate terms to those who had aided in its construction. In less than a month after its completion, the following item rela- tive to the transportation of freight appeared in the Watertown Democrat :
" At both ends of the route. there are heavy and rapidly accumulating amounts of freight of all kinds, ready and waiting for immediate transportation, with no means to move it but such as the railroad furnishes. In fact, as things now are. the owners of this property are entirely dependent upon the Company. Under these circumstances, it is earnestly to be hoped that some effectual way will soon be devised to do away with all causes of complaint.
" Later .- Since writing the above, we learn that freight trains will commence running again to-day, and make regular trips hereafter."
Another illustration of the power of the press !
Immediately following the foregoing item in the Democrat was a disquisition on " omni- buses." commeneing thus :
" Railroads do great things in the way of introducing ' city fixings' into inland places, when once the iron horse begins to make his regular visits. We notice that Mr. Peter Rogan, the proprietor of the American, has just bought a large and fine omnibus. This is the second establishment of the kind in the city, the one belonging to the Planter's having been bought some months ago. Our hotel-keepers are up to the times."
The next complaint on the part of the citizens of Watertown against this Company was of more serious nature. City bonds to the amount of $80,000 having been issued to the Company, they had failed to give the stipulated security. This was the source of much caustic criticism by the local press.
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HISTORY OF JEFFERSON COUNTY.
In May, 1856, the village of Waterloo voted twice on the question of extending aid to the Madison & Watertown. The first election showed eighteen majority against the proposition. The Board of Supervisors, not being pleased with the result, ordered a new election, which resulted in fourteen majority for the railroad subsidy, $35,000. About the same time, a con- solidation took place between the Watertown & Madison and the Milwaukee & Watertown Com- panies, and on the 10th of June, 1856, ground was broken on that part of the road which now connects Watertown with the State capital. A month later, 400 men were engaged on the work.
September, 1856, a consolidation took place between the La Crosse & Milwaukee and the Milwaukee & Watertown Companies. This had the effect of harmonizing the many railway interests which had at that time begun to assert themselves. Under the new arrangement, three of the former Directors of the La Crosse retired, and Eliphalet Cramer, Alexander Mitchell and W. B. Hibbard were elected to fill their places. Byron Kilbourn continued in the office of President.
As showing the importance of this road and the interest with which it was regarded abroad, the following from the New York Tribune's money article of April 14, 1857, is given :
" The Watertown & Madison Railroad Company have disposed of $150,000 of the $200,000 of its Watertown city bonds, issued in aid of that road, at very satisfactory rates. They have also sold a portion of the Madison City bonds. This negotiation places the completion of the road to Madison by the 1st of October next beyond a doubt. The iron is all proivded, and the grading is two-thirds finished."
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