pg 217

Louisa county has its share of railroads and has had its full share of railroad projects, but the one which at one time caused the people to indulge in the most buoyant hopes, and later, to feel the keenest chagrin, was the Air Line project—a project for which the people of Louisa county paid nearly $300,000 without getting the railroad.

In 1851 a number of distinguished men, among whom were General Robert C. Schenck, General Wilson, Judge Humphrey and others equally noted, began a movement to organize an air line railroad from some central point in Pennsylvania to Fort Wayne, Indiana. Meetings were held in 1852 along the proposed line, newspapers advocated the movement and companies were formed to prosecute the work. In 1853 the star of this agitation took its way as far westward as New Boston, and from there into Iowa. It was confidently believed by that time that this road could and would be put through Louisa county and on to the Missouri river. To further this project, articles of incorporation of the Philadelphia, Fort Wayne & Platte River Air Line Company were filed in this county, on June 23, 1853, signed by the following named board of directors: James Noffsinger, John Bell, Jr., John Bird, H. T. Cleaver, William L. Toole, S. M. Kirkpatrick, J. W. Isett, Wright Williams, Samuel Townsend.

These articles provided that the main track of said road should commence on the Mississippi river at or near Toole's Landing and run through or by Wapello, thence westerly on or near an air line to the Missouri river, opposite the Platte river valley. The amount of the capital stock was fixed at $5,000,000 to be increased as emergency should demand. The shares were $100 each and it was provided that when one hundred shares should be taken, the subscribers should assemble at the courthouse in Wapello, at which time one per centum on each share should be paid to the presiding officer of the board, to be by him ...

pg 218

... paid to the treasurer of the corporation. It will thus be seen that this corporation was expected to commence business on a paid up capital of $100. But one hundred dollars would not go very far toward building a railroad, and the following petition will indicate the source whence it was expected to get some of the necessary aid:

"To the Hon. the County Court of Louisa Co.:

"The undersigned, your Petitioners, would respectfully ask that you submit to a vote of the people the question of Louisa Co. taking stock in the Philadelphia, Fort Wayne & Platte River Air Line Railroad Company, to the am't. of 1 Hundred Thousand Dollars, believing such investment would be for the best interests of the Co., and we humbly ask your Honor to submit the question to vote as soon as may be practicable.

(Signed)” John Bell, Jr.,
         Samuel Townsend,
         S. M. Kirkpatrick,
         H. T. Cleaver”

Board directors Philadelphia, Fort Wayne & Platte River Air Line Railroad Co.
         “A. M.. Taylor,
         Dennis Williams,
         Joseph Thomas”

The endorsement on the back of this petition is as follows:

The within submitted this 30th day of July, 1853,
         W. Williams
             County Judge”

After a spirited campaign an election was held on Saturday, September 3, 1853, to pass upon the proposed subscription of $100,000 in aid of this railroad. It seems that the sponsors of the project had been able to satisfy a majority of the people in all but two of the seven townships in the county. The proposition was carried by a vote of 619 for to 230 against. Wapello and Jefferson townships were unanimous for it, and there were fair majorities in Florence, Grandview and Columbus City townships, while Concord and Oakland townships were practically unanimous against it.

So far as the records show, nothing seems to have been done in the "air line" business until August 11, 1855, at which time, as appears by a notice filed in the county judge's office, the directors of the company met at Wapello and formally located the Philadelphia, Fort Wayne & Platte River Air Line Railroad through Louisa county.

The next thing was to begin the construction of the road, and this was done with much ceremony and flourish of trumpets, on Saturday, September 29, 1855. History says that it was a cold, disagreeable morning, unfavorable for the beginning of any enterprise, but notwithstanding this, the people came flocking into...

pg 219

... town from almost every direction, and at one o'clock a large crowd assembled in front of the court house, formed in a procession, with the Virginia Grove brass band at their head, and marched out west of town to a point on the lands now owned by Dr. and Mrs. Woodruff. Sheriff A. M. Taylor was marshal of the day, and the following was the order of procession: First, Virginia Grove brass band; second, speakers of the day, being Dr. John Bell, L. P. Wells and E. Hurd, at that time chief engineer of the road; third, board of directors of the Iowa division; fourth, corps of engineers with their instruments; fifth, invited guests in carriages; sixth, citizens and strangers in carriages; seventh, horsemen. The procession moved down Main street to Clinton street, down Clinton to Second, up Second to Merchant, and out Merchant street to the point of breaking ground.

Arriving at the appointed place, the directors stepped forward, each taking his station opposite his respective wheelbarrow, and seizing his respective shovel, prepared to throw dirt. The first shovelful was raised by Dr. H. T. Cleaver, which exercise was of course preceded by music by the band. Next Dr. Bell mounted his wheelbarrow, or undertook to, but impartial history says that both the Doctor and the wheelbarrow were upset. Dr. Bell made a second attempt, however, and was more successful, and delivered his speech. Then the work was commenced in earnest and ground was broken upon the great Air Line railroad in Iowa. A box was deposited in the earth, containing a plate, upon which was inscribed: "Philadelphia, Fort Wayne & Platte River Air Line Railroad, September 29, 1855, E. Hurd, Engineer," together with a glass jar containing a scroll on which was written the names of the directors of the road, with a brief statement of its history up to date.

This exercise was followed by another piece of music, and then L. P. Wells, editor of the Wapello Intelligencer delivered the oration of the day, which was received with great enthusiasm. Mr. Wells gave a short history of the road, spoke of the troubles through which it had passed, the neglect and contumely that had been shown it and the constant cry of humbug that had been raised against it, but he was proud that all difficulties had been overcome and that now the road was in as good condition as any in the country. Mr. Hurd, the chief engineer, then made a few remarks telling of the progress of the road through Illinois, promising its early completion to the Mississippi river and the speedy completion of the forty miles west of the Mississippi. The procession then marched back to the court house to partake of a dinner that had been prepared by the good ladies of Wapello. From an article in the Mount Pleasant Observer, whose editor was present, we quote the following extract to show how it was looked upon by outsiders: "We visited Wapello the latter part of last week in order to witness the breaking of ground on the Philadelphia, Fort Wayne & Platte Valley Railroad, which came off at that place on last Saturday. It was evident during the forenoon that a large crowd would be in attendance, for from all quarters came wagons, buggies and horses carrying people into town. Delegations were present from Marshall, Brighton, Washington, Lancaster and Indianola."

Then after giving a brief account of the exercises, the Mount Pleasant paper proceeds as follows: "Mr. Chase, of St. Louis, has the contract for building forty miles of this road west of the Mississippi. He is to complete the road, put on ten first class engines and rolling stock in proportion, at $23,000 per mile.

pg 220

There has been two routes surveyed west—one running via Marshall, in this county, then to Brighton, and from thence westward to Council Bluffs. If the road should go to Marshall it will pass along the northern line of this county, thus adding increased facilities and wealth to Henry county. The citizens of Wapello are awake on railroad matters and express a willingness to vote stock to the Keokuk, Mount Pleasant and Muscatine Railroad, whenever called for. Wapello is finely situated on the west bank of the Iowa river; considerable improvement is going on. Her railroad prospects are giving an impetus to trade and causing an advance in real estate. The town contains about a thousand inhabitants, has a large and handsome court house and a number of churches. She lacks good hotels—the complaint was general in this respect. We would not, however, complain, for we were kindly invited and enjoyed the hospitalities of Dr. Cleaver during our stay there. The celebration was a fine affair and will long be remembered by the people. It appears to be a fixed fact now that the Air Line railroad will be built."

This project was looked upon with favor by people outside the state and away from its proposed route. A correspondent in the Missouri Republican, over the signature of Uno, published an article about this time, from which we make a few extracts: "By articles of association filed with the secretary of state for the state of Iowa, in the month of February, 1853. this company (referring to the Air Line company) is fully empowered to construct a railroad from the Mississippi river, opposite New Boston, through Wapello to Council Bluffs. This is the Iowa portion of that great road, which, on account of its air line peculiarities, turning neither to the right nor to the left for any consideration, is considered the shortest road, even from Philadelphia to Sacramento City, the distance from Philadelphia to Council Bluffs by this line surveyed and located all the way, being only 1,242 miles, while the distance from New York to Sacramento by this route is stated as 3,108 miles—the distance from Council Bluffs to Sacramento being estimated at 1,829 miles. . . . This railroad from the Atlantic ocean to Nebraska territory,—an air line more than half the way— has been viewed by the people of St. Louis as a visionary scheme, but when they hear that one of the contractors of our Pacific railroad, L. Thompson, commenced building one of the divisions from Lacon, in Illinois, early last July, and that Mr. Levi Chase, another and heavy contractor, on our Pacific railroad, who completed our railroad to Herman last August,—eighty-one miles—and who is now finishing his contract so that the road will be pushed on to Jefferson city, one hundred and twenty-five miles, next month; when they hear that he has taken the contract to build the eastern division of this Iowa road, beginning on the Iowa river at Wapello, and working both ways, east and west, at once, they may be sure that solid men have taken hold of the Air Line route of Iowa."

At this time Francis Springer was county judge, having succeeded Wright Williams nearly a year before. It is a part of the unwritten history of the county that Judge Springer, although many of the promoters of this road were warm personal friends of his, did not have much faith in the project, and after he succeeded to the county judgeship he was approached as to his attitude in the matter of the issuance of the proposed bonds, which had been previously authorized by a vote of the people, and he expressed the opinion that if the bonds were issued there should be a proviso in them making their payment conditioned upon...

pg 221

... the construction of the railroad, and he declared that he would not issue them without such a provision, unless clearly convinced that such was the desire of the people of the county.

We find on the county court records under date of December 10, 1855, a proclamation for a vote of the people of the county on the question of subscribing $50,000 to the capital stock of the Keokuk, Mount Pleasant & Muscatine Railroad Company, the election to be held on January 12, 1856. Toward the close of this proclamation is the following clause: "The adoption of the above proposition will be considered an expression of the opinion of the people of the county in favor of authorizing a subscription to the Philadelphia, Fort Wayne & Platte River Air Line Railroad Company, which was voted on the 3d of September, 1853".

The insertion of this last clause gave great offense to all the friends of the Air Line project. How it was looked upon by some may be gathered from the following communication, which was published in the Wapello Intelligencer of January 1, 1856: "It is a custom in all countries governed by constitutional authorities, for the rulers to give an account of their actions to the governed, whenever called upon, and those rulers who do not explain to the satisfaction of the governed, any or all of their actions, are looked upon as acting despotically. In the columns of your paper is a proclamation, calling upon the citizens of this county to vote upon a question upon which they have already given a very decisive voice. A large and respectable portion of the voters of Louisa county would like to have Mr. Francis Springer's reasons for submitting the question anew, as to whether the county shall take stock in the Philadelphia, Fort Wayne & Platte River Railroad. You may rest assured, Mr. Editor, that a large portion of the voters of the county feel outraged by the latter clause in the proclamation. Perhaps Mr. Springer would favor us through your columns with the reasons for his actions in the premises. It is an old axiom that 'the salve must be as broad as the sore.'"

The attitude of Judge Springer on the subject of issuing Air Line railroad bonds was a matter of extended comment and rather exciting debate all over the county, and it is said that at one time while he was holding county court here, an immense throng of people attended the session of court and were very excited and demonstrative in urging the issuance of the bonds. The writer well remembers to have heard from the lips of the then county judge that he did not issue the bonds until he had been presented with petitions signed by a respectable majority of the legal voters of the county, including many of the largest property owners and most prominent citizens; but in subsequent years the fact that such petitions were ever presented, has been doubted by men who were supposed to be quite well informed about such things. It was with some satisfaction, therefore, that we found these petitions with the signatures attached (some nine hundred and seventy-one names), and we append herewith as a necessary part of the history of this transaction a copy of one of the petitions, with the names of some of the leading signers.

To the Hon. Francis Springer, County Judge of Louisa County, Iowa.

The Undersigned, voters of Louisa County, having understood that, from the recent vote upon the proposition to subscribe Stock, you did not feel authorized...

pg 222

… to take the stock in the Philadelphia, Fort Wayne and Platte River Air Line Railroad, we would respectfully request you to subscribe said Stock, authorized by the vote September 3rd 1853: Wm. J. R. Flack, T. W. Bailey, Alanson F. Bemis, Edward B. Isett, John M. Brown, Jesse Vanhorn, James Davison, J. S. Marshall, John R. Sisson, James Cummings, Franklin Griswold, John N. Baldrige, T. R. J. Ellis, Wm. Kemp, J. C. Stirlen, Jerry Browning, Forgay Owens, R. S. Strong, V. Willoughby, John Hurley, Henry Marsden, H. P. May, James F. Patton, Robert Coulter, Oliver Benton, Wm. T. Nichols, James H. Marshall, Joseph Higbee, J. B. Nichols, Joseph Bates, J. T. Cowles, John Keck, J. C. Tucker, J. L. Browning, William Shoop, James Keever, Jeremiah Smith, John Hays, Thomas G. Taylor, E. Keach, W. A. Knowlton, John L. Sweeney, Wiley Gregory, Samuel Jamison, Harvey Bell, John Deihl, George Jamison, John R. Springsteen, Samuel Hamilton, Alexander Hamilton, Mark Davison, Henry Myerholz, James Brogan, William Clark, Wm. Shipman, Francis Wykert, Amzi Donaldson, Henry Thompson, Dennis Williams, C. W. Bras, George L. Coe, Wm. L. Toole, George H. Mosier, T. M. Parsons, G. W. Wesley, John Hale, George Grasham, Ephram Owens, S. K. Helmick, H. Hawkins, John Griffith, John Morgan, D. W. Herrick, Thomas Newell, A. D. Hurley, Peter Lambert, George Presbury, James R. McDaniel, J. M. Herrick, Francis Curran, William Brogan, John M. Wilson, George Vanhorn, Oliver Mickey, S. B. Cleaver, B. H. Druse, Samuel Barr, Fredrick Weber, John Allison. G. F. Thomas, William Keach, George Nearhood, R. E. Archibald, J. R. Kinsey, John Jenkins, John Sprinkle, James A. Fleming, J. H. Trask, Nathaniel J. Ives, C. Morgan, M. Jamison, William Jamison, James Semple, John P. Walker, George Hutchison, Abram McCleary, Thomas Fleming, Samuel Duncan, George Key, S. G. Blackborn, B. F. Wright, F. M. Ong, W. J. Hewitt, O. A. Taylor, J. B. Miller, Franklin Bras, D. N. Sprague, J. H. Graham, Ozias Smith, Aug. Wehmier, James Sterrett, Samuel Chaney, A. M. Taylor, H. McClurkin, R. Archibald. W. B. Robison, Dennis Gregory, Chas. Downs, Royal Prentiss, Lewis Kinsey, J. B. Latta, George Beck, Andrew Brockert, David Grimes, William H. Creighton, Richard Staige, Robert Gillis, John Huff, J. D. Barr, Samuel Bell, Levi Woodruff, L. P. Wells, A. Hodge, W. H. Milligan, Wm. Owens, Merit Jamison, Ernst Winter, J. B. Grubb, W. J. Ronalds, H. T. Cleaver, H. C. Blake, James Drake, J. G. Umphreys, John A. Brown, A. P. Hensleigh, R. W. Gray, Hugh Paisley, John L. Foor, V. Massie, M. P. Vanhorn, Joshua Marshall, Joseph Mickey, Levi Bozman, Jesse Hamilton, John Stafford, H. H. Mickey, D. P. Curran, Jno. Bell, Oliver Ball, Parkis Woodruff, Gustavus Jones, Thomas Stoddard, Alfred Limbocker, Joseph Storey, John Bird, H. Christy, Joseph B. McDill, James Blanchard, T. A. Ball, Kennedy Storey, G. B. Williams, G. A. Hook, Harmon Mallory, Willard Mallory, Harvey Harris, Henry Jennings, Barton Jones, Joseph Paschal, Jos. L. Derbin, J. W. Isett, Wm. McClemm, John Reed, Elias Marshal, John Le Cornu, James Crawford, John Milligan, Abiathur Williams, Wilson R. Woodruff, P. C. Brown, David Woodruff, Zebina Williams, B. P. Weston, George England, Gideon Bayne, J. S. Hurley, Christian Heins, Joseph Schofield, Jacob Mintun, Jesse Graham, David McMichael. James D. Martin, Stephen McKinley. Thomas Garvin, H. J. N. Parsons, Joseph P. Parsons, Jacob Syphrit, John Kennedy, G. H. Crow, B. F. Coe, H. J. McCormick, John Dill, David McKinley.

pg 223

The election on the question of subscribing $50,000 to the Keokuk &c. railroad enterprise, was held on January 12th, 1856, and it was found that the returns from Wapello, Morning Sun, Oakland, and Union townships did not meet the legal requirements. By throwing out these four townships, the proposition would be carried by 27 votes; by counting these townships, it would be defeated by 30. The county judge solved the difficulty by again submitting the question to the people, and it was carried.

From about 1850 to 1858 several counties in Iowa issued their bonds in aid of railroad building, exchanging these bonds for a like amount of stock in the railway enterprise. The question of the validity of these bonds was not long finding its way into the courts. One of the early cases, perhaps the first one, was that of Dubuque County vs. The Dubuque & Pacific Railroad Company, reported in 4 Greene, p. 1. This decision held that the bonds were valid obligations against the county: it was followed by some six or seven more similar cases, decided the same way, the last one of these being a Johnson county case, decided in 1859, and reported in the 10th Iowa, p. 157. In the latter case, and in most of the others, there was a marked division of opinion among the Supreme Court judges, and some strong dissenting opinions were rendered. In 1862, in a case from Wapello County, the Iowa Supreme Court took a different view, and reversed its former line of cases, and held that the county bonds in aid of railroads were invalid, and they continued to hold to that view as to all bonds issued during the period we are considering. But, about 1863 a case reached the Supreme Court of the United States, involving these same questions, as to bonds of the city of Dubuque, which had been issued and sold under the sanction of the first decisions of our court, holding such bonds to be valid. The United States Supreme Court followed the earlier decisions of our Supreme Court, and held the bonds to be valid, and that court continued to hold the same day as to all such bonds which were issued and sold under the authority and sanction of the first decisions of our court.

Then came the question as to paying the bonds, and as to the power and authority of the State and Federal courts in the matter, as to how in case the Federal courts proved to be the more powerful, they would go about it to have the judgments paid.

On January 26, 1856, it is recorded that the board of directors of the Air Line company applied for the county subscription of $100,000, and desired to have their application considered in connection with sundry petitions, and we may presume that the sundry petitions were those to which we have already referred. At that time it was ordered that the further consideration of the application be continued until the next regular term of the court and that the contractors be requested to furnish the court with a certified copy of any contracts they had made for the construction of the road and an official statement of the actual available means of said company.

There seems to have been, about this time, a very good list of signers to a petition asking the county judge not to issue the Air Line bonds. There are two of these petitions among the old papers of this date. They are not in very good condition and some of the names can hardly be distinguished. The prime mover in getting them up seems to have been J. B. Latta, Sr., and these petitions contain one hundred and sixty-one names, chiefly from Grandview and Concord ...

pg 224

... townships. We cannot tell from anything in the records of the county court nor in the files which are still preserved, just what showing the Air Line company made to the county court in reference to its available assets and the contract it had made for the construction of the line in this county, but it is to be presumed that they made some showings which satisfied the county judge of their good faith in the matter. We find that on February 25. 1856, Air Line bonds for $1,000 each, numbered from one to ten, inclusive, were issued, signed by Francis Springer, county judge, and by Lewis Kinsey, county clerk, and that thereafter, from time to time, during the year of 1857, the remainder of the $100,000 subscription was taken and bonds issued therefor. As these bonds figure extensively in subsequent Air Line history, we give herewith a facsimile of bond No. 43, with two of the coupons still attached. We also give a facsimile of the endorsement made upon the back of this bond, signed by Robert Schenck, president, and Lewis Kinsey, secretary.

About this time congress was making land grants in favor of various railway enterprises and had some few years before made a very valuable land grant in favor of the Mississippi & Missouri Railroad Company, which was built through this county and is now known as the Rock Island, and the friends of the Air Line project had presented a petition to congress in 1854 praying for a grant of land in aid of its construction. This matter was up in congress, and seems, according to the files of the Wapello Intelligencer, to have been opposed or at least sadly neglected by one of our Iowa senators, Hon. George W. Jones, of Dubuque. An idea of the progress of the work may be gained from the following article in the Wapello Intelligencer of July 29, 1856: "We understand Levi Chase, the contractor on the above named road, has gone east to purchase a locomotive, iron, and the various implements necessary for the completion of the same. The work is progressing as rapidly as the most sanguine could expect, although it is difficult to get hands to stand up to the work this hot weather. Today we walked down First street, to where they were digging away for the hutment of the river bridge. Having removed several feet, perhaps fifteen, of soil and sand, they came to solid blue clay which goes down to the bed of the river and we do not know how much further. They had dug down about eight feet in the clay, where they were making a smooth surface, on which the immense piles of huge stones that covered the ground for acres around, were to be laid. The masons are to commence laying the stone this week who, by the way, will have a most interesting time handling those monster stones, some of which are nearly as large as an Irish shanty."

The interest in the Air Line project was by no means confined to Louisa county. It excited a great deal of interest in many of the counties west of here, especially in Washington, Mahaska and as far out as Warren county. Canvasses were made and meetings were held in its interest during the spring and summer of 1856. One held at Indianola about this time will serve as a sample of others. Resolutions were adopted expressing deep interest in the speedy construction of the Philadelphia, Fort Wayne & Platte Valley Air Line Railroad, and expressing the belief that it was the only road which proposed to pass through Warren county and favoring a proposition that the county judge should take $100,000 stock in the road and calling for a meeting to be held of…

Photo of document of Air Line Railroad Bond No. 43 and also of the Endoresement on back of the Air Line Railroad Bond No. 42

pg 225

… the citizens of the whole county at some future date and of preliminary meetings looking toward securing a full attendance.

About this time the town of Burris, which was to be the starting point of the Air Line railroad on this side of the Mississippi, began to assume some proportions. The history of that town will be found elsewhere, as it probably deserves a small chapter by itself.

On February 28th a meeting was held at Wapello "for the purpose of furthering a project of the utmost importance to Wapello, Burris City, the county of Louisa, and the whole country west of Louisa county. Levi Chase, the contractor, stated, in response to a request, that the county bonds issued to the company had been taken by him and the money advanced upon them and expended upon the work, and that $100,000 in money, or its equivalent, would enable him to grade the road and secure its completion from the Mississippi river to a point some five miles west of Wapello. On motion of Dr. Cleaver, a committee of three, including Dr. Cleaver, John Corson and E. Foster, was appointed to wait upon the mayor of Wapello and the council and solicit them to order an election on a proposition to aid the Air Line railroad, and Samuel Townsend, Leonard Sawyer and Ambrose Key were appointed a committee to confer with the citizens of Burris City in regard to obtaining a subscription from them for the same proposition. We find in the Wapello Intelligencer of March 31, 1857, a little item to the effect that the proposition for the city of Wapello to subscribe $20,000 stock to the Philadelphia, Fort Wayne & Platte River Air Line railroad had been submitted to a vote of the citizens on the Saturday previous, being the 28th, and that the vote on the question was 124 in favor of the subscription and one against it. In the same paper also we find a statement of the financial condition of the Air Line company, which will be of interest in this connection, and states a number of facts which we do not find recorded anywhere else. It will be noticed that the private subscription collected in Louisa county at that date is stated at $26,986, and that the "assets for Louisa county" were stated to be $10,335.30, or just $335.30 more than the amount of the ten bondsrecently issued by the county judge:

"STOCK ACCOUNT.
"Amount stock subscribed by Louisa county	$100,000.00
Amount private stock in Louisa county	42,400.00
Amount by Levi Chase, on contract	25,000.00
Amount Washington county subscription	50,000.00
Amount private stock in Washington county	25,000.00
Total subscription	$242,400.00
AMOUNT OF STOCK COLLECTED.
Of Louisa county, in bonds	$100,000.00
Of Washington county, in bonds	5,000.00
On private subscription, Washington county	2,000.00
On private subscription, Louisa county	26,986.00
Total amount collected	$133,986.00

pg 226

ASSETS.
Amount of unpaid Washington county stock	$45,000.00
Amount of unpaid Washington private subscription	23,000.00
Amount of unpaid Louisa county	15,414.00
Amount Washington county bonds in the hands of R. C. Schenck, the president, to be sold on account	5,000.00
Amount Louisa county bonds in the hands of Levi Chase, to be sold, to apply on the payment of company's notes, given him for cash	29,000.00
Amount Chase's subscription on contract	25,000.00
Amount Louisa county bonds in hands of S. Townsend, to be sold to pay for money advanced by him	5,000.00
Total assets	$14,741,400
LIABILITIES.
For bills payable to Levi Chase	$30,869.45
For retained percentage	25,983.64
For bills payable to engineers	1,275.61
For bills payable on sundry accounts	8,000.00
Total liabilities	$69,078.70
AMOUNT OF MONTHLY ESTIMATES TO DECEMBER 1, 1856.
For grading and ties	$110,922.02
For bridging	18,996.20
Total	$129,918.22
Less 20 per cent, retained percentage	25,983.64
	$103,934.58
Amount paid for right of way	2,546.50
Amount paid for engineering	11,999.07
Amount paid for incidental expenses	8,091.30
Total estimates	$126,571.35
RECAPITULATION.
Total amount of assets	$147,414.00
Total amount of liabilities	69,078.70
Balance to company's credit	$78,335.30
Deduct Washington county unpaid stock	68,000.00
Leaves assets for Louisa county	$10,335.30
W. C. Wilson "Secretary."
March 31, 1857

pg 227

It was found, however, that more money would be needed, and steps were taken which resulted in the calling of an election to be held on May 16, 1857, to vote upon the question of the county subscribing $100,000 in addition to the amount subscribed originally.

The petition asking the county court to order this election was signed by 490 taxpayers, which was considerable more than the number required by law in order to compel the submission of the question. We give below the tables of the vote by townships on the question of this additional $100,000 subscription:

Township	For	Against
Elm Grove	17	15
Eliot	26	7
Columbus City	31	286
Concord	0	89
Grandview	13	175
Jefferson	267	4
Marshall	71	7
Morning Sun	56	48
Oakland	0	53
Port Louisa	20	78
Union	0	63
Wapello	425	6
Total	926	831

The records of the county court show that this vote was canvassed by Francis Springer, county judge, and James C. Stirlen and Jacob Mintun, justices of the peace, and that they considered the returns from the townships of Concord, Marshall and Wapello to be defective but did not think proper to reject them and that thereupon N. M. Letts and Micajah Reeder, tax payers and voters of the county gave notice that they would contest said election.

Jefferson township cast 271 votes at this election, while at the election held just about one month previous, the highest vote cast on any state or county office was 111, and in August following, when the new constitution was submitted, the total vote on that question was 94, being 73 for it and 21 against it. History does not say whether these 150 extra voters came from New Boston or "Bogus Island," or whether they merely failed to come out at previous and subsequent elections.

In accordance with the notice of the contest, a number of the prominent citizens who were opposed to the additional subscription for the Air Line, contested the election held on May 16th, employing Henry O'Connor, of Muscatine, and Charles H. Phelps, of Burlington, and they were successful.

About this time a new railroad project came into vogue, being known as the Iowa Union Railroad Company, which was proposed to run from Iowa City southeasterly through Oakland township, crossing the Iowa about at Todd's Ferry. According to the map which was used at that day, it would seem that this Iowa Union road was to connect with the Keokuk, Mount Pleasant & Muscatine railroad near where Columbus Junction now is. On this map the ...

pg 228

... latter road is shown as extending north and south through Marshall and Columbus City townships, running a little west of the old William Helmick farm in Marshall township. It seems that the Air Line advocates and the Iowa Union advocates combined forces, for on June 22, 1857, we find that petitions signed by more than one-fourth of the voters of the county were presented to the county judge, asking him to submit at the August election the question whether the county would subscribe $100,000 to the Air Line Railroad Company, and also whether it would subscribe $100,000 to the Iowa Union Railroad Company, and in accordance with the provisions of law these two questions were submitted to the people and voted on, on Monday, August 3, 1857. The first proposition carried by 717 to 639. and the second carried by 709 to 592. The same men who had so successfully contested the election of May 16th, also contested the one of August 3d and the following item taken from the Wapello Intelligencer of September 24, 1857, sufficiently states the result of the contest and the points decided: "The injunction upon the issue of the bonds of this county to the Air Line and Union railroads was granted by the supreme court in full bench, on the 10th inst. The ground for the injunction was the illegality of issuing county bonds for a greater amount than $50,000 under the new constitution. The points held by the court were, first, that although the stock was subscribed, the bonds were not issued prior to the adoption of the new constitution, and a debt of more than the above amount could not be created; second, that the vote in favor of the loans did not create the debt until the issue of the bonds by the county judge, whose official act alone, as agent of the county, made the loans binding."

So far as we have been able to discover, this case was not officially reported; but from a statement in the paper it was probably decided under Section 3. Article 11, of the constitution, which was adopted upon the same day that the subscription was voted, it being the clause that prohibits any county or other political municipal corporation from becoming indebted for an amount exceeding five per cent on the amount of taxable property thereof.

We have been unable to find anything which definitely states just how long after this injunction the work was continued on the Air Line road, but it was probably discontinued within a few months thereafter. Mr. Chase, the con tractor, and John Bird and some others recovered judgments against the Air Line company in May, 1858. These suits were begun in Louisa county and transferred to Des Moines county for trial. Some light is thrown upon the matter by the proceedings of arbitration between Levi Chase and the Air Line company, which were had under an agreement dated September 20, 1859, whereby the railroad company and Levi Chase agreed to submit to Judge Thomas W. Newman, H. H. Hawley and Fritz Henry Warren as arbitrators all matters of difference between them, arising from or growing out of the contracts between them for building a certain portion of the road of said company in Louisa and Washington counties. By a subsequent agreement Judge J. C. Hall was substituted for H. H. Hawley as one of the arbitrators, and on February 23, 1861, the arbitrators filed their decision as follows:

"To the Hon. District Court of Louisa County, State of Iowa:

"The undersigned arbitrators chosen by Levi Chase and the Philadelphia, Fort Wayne & Platte River Air Line Rail Road Company to hear and decide ...

pg 229

… certain disputes and differences existing between said parties growing out of certain contracts for the construction of a portion of a certain Rail Road therein named all of which will more fully appear by the articles of submission hereto attached and marked exhibit A, would respectfully report, that they caused due notice of the time and place of hearing the matters submitted, to be given to said parties, and in accordance therewith the arbitrators and each of the paries (parties) litigant appeared at the office of Hall, Harrington & Hall in the City of Burlington, Des Moines County, State of Iowa, the said Chase in person and the said R. R. Company by Samuel Townsend, president of said company and Charles H. Phelps and D. N. Sprague, his attorneys, and in the presence of both of said parties the said arbitrators were duly sworn and qualified to perform their duties as arbitrators under said submission.

"Both parties expressing their readiness to proceed to the trial in said cause and no objection appearing we proceeded to hear said matters in dispute, and the same proceeded with the hearing of testimony until the evening of the 20th of February, A. D. 1861, and adjouned until the next morning at 9 o'clock. We met again at the appointed time and place and proceeded with the investigation of the matters and things in dispute from day to day until the 23rd of Feby., 1861, and having heard the testimony submitted, and the argument of parties and their counsel, and fully considered the evidence find the following, to wit, that there was a full settlement of said parties made August 7, 1857, for work, labor, &c, &c, under said contracts in evidence, except as to work done on abandoned line.

"We find that at the time of said settlement and prior thereto there was due said Chase on notes & interest & on labor, &c. performed since said settlement & on percentage reserved by the R. R. Company under the contract		$57,903.15
Also damages from breach of contract, less work on abandoned line		$57,156.27
Total. amt. due Chase exculsive (exclusive) of Judgements in District Court		$115,059.42
"We find that said Chase has recvd of the company since settlements made August 7, 1857, as follows:
Sundry collections of stock due the company on Sub & interest on same	$5,192.91
Proceeds of 15 Louisa Co. Bonds sold at 45 cts. on $ and interest	$8,887.50
2 Louisa Co. Bonds at $1,000 each and interest on same	$2,500.00
Stock of Co'y. recvd on contract	$3,500.00
		$20,079.51
Net amt. due Chase on general account to date		$94,979.91
"We also find that the R. R. Company is entitled to a credit of	$9,500.00
and interest on same to date of May 6, '58—for County Bonds (19) sold	$1,305.50
Total	$10,805.50

pg 230

which credit should be applied on Judgement in D Court of Des Moines County, Iowa, in case of J. Bird vs. said Company, for $13,770.54 rendered May 6, 1858, and made as of the date of the judgement leaving due on said jdmt. May 6, '58. balance of $2,965.04, which was then the true amt. due on same.

"We also find that there should be a credit on Judgement of Levi Chase vs. said Company for the sum of amts. of stock, &c. collected for the company & int. on same to May 6, '58, $734.80, which credit is to be on judgement in Des Moines Co. Dist. Court rendered May 6, '58, for $12,703.05—leaving balance due May 6, '58,—to said Chase on same, $11,968.25.

"From which finding we hereby make and report the following award, to wit, that said Philadelphia, Fort Wayne & Platte River Air Line Rail Road Company is justly owing and indebted to Levi Chase from the evidence seen & heard the sum of Ninety-four thousand Nine hundred and seventy-nine Dollars and ninety-one cents ($94,979.91), exculsive (exclusive) of the judgements he has against said Company above referred to, and to draw ten per cent interest from this date. We also award that credits be duly entered on the judgements which said Chase holds against said company according to the aforesaid finding to bear date of May 6, 1858.

"We also award that each of said parties litegant pay one-half of the costs of this arbitration—There being none claimed except our fees for services 4 days at 21$ per day—$84.00, which is the amt. agreed by the parties in the submission. February 23, 1861.
               J. C. Hall
               T. W. Newman
               Fitz Henry Warren,
               Arbitrators."

So ended the great Air Line railroad project, which was intended to make (and doubtless would had it succeeded) of Wapello one of the leading cities in the state and an important station on a great thoroughfare between Philadelphia and the Pacific coast. But with the death of the Air Line the $100,000 bonds issued did not die. Their payment, however, became a live question along about 1868, at which time numerous suits were commenced against the county in the federal courts to enforce the payment of the bonds and the coupons. This railroad bond question in which so many of the counties of the state were interested, had already brought about a sharp and decisive conflict between the decisions of the courts of this state and the federal courts, and furnishes one of the most interesting chapters in the legal history of this state. In the early decisions of the supreme court of Iowa on this subject it had been held by a divided court that the counties of the state had a constitutional right to issue bonds in aid of railroad enterprises, but in December, 1859, the court settled the matter so far as this state was concerned by holding the issuance of such bonds to be beyond the power of the county and declaring the bonds themselves to be void. Shortly after this latter decision a suit was commenced in the district court of this county to enjoin the supervisors from levying a tax for the purpose of paying these bonds. The court granted the injunction and made it perpetual. Relying upon this injunction for their protection and being backed up by an almost overwhelming sentiment of the people, the board of supervisors refused to pay the judgments rendered in the federal court and in consequence...

pg 231

... of that refusal the federal court issued a writ of mandamus, ordering the board to levy taxes for the payment of the judgments against the county. Still the board refused and the United States marshal arrested the members of the board for contempt in failing to levy the taxes in accordance with the writ of the federal court. Members of the board at that time were Benjamin Jennings, Elm Grove township; H. C. Blake, Morning Sun; J. Q. Buffington, Columbus City township; John Deihl, Wapello township; Henry A. Keyes, Oakland township; Richard S. Strong, Jefferson township; Robert Carson, Union township; James R. Letts, Grandview township; F. F. Kiner, Marshall township; S. A. McDaniel, Concord township; Levi Stephen, Port Louisa township; and P. D. Bailey, Eliot township. The members of the board were taken to Des Moines and required to give bond in the sum of $500 each for their appearance before the United States court at its October term, 1869. The legislature in 1868 had passed an act intended to provide the way for the counties owing railroad bond debts to settle them, and negotiations were carried on with the attorneys for the bondholders looking toward some sort of a compromise. In November, 1869, the board of supervisors ordered a special election for December 29th following, upon the question "Shall the county of Louisa settle its debts owing on bonds and coupons, issued to aid in the construction of the Philadelphia, Fort Wayne & Platte River Air Line railroad." This was to be done under the act approved April 2, 1868, before referred to. This election brought on a heated controversy which will be fairly understood by reading some of the various communications and editorials found in the newspapers of that time.

Andrew Gamble, who was a member of the board of supervisors in 1869, but not a member at the time the board was placed under arrest, had come to the conclusion, very reluctantly, that there was no way to prevent the payment of these bonds, and he was very anxious that the county should take advantage of the act of the legislature authorizing a settlement by the issuance of new obligations, and he addressed the following communication to the taxpayers and voters of the county: "Fellow Citizens: Doubtless you are all aware that sundry persons have obtained judgment in the Circuit Court of the United States against this county, amounting in the aggregate to about seventy-five thousand dollars. These judgments all draw interest at the rate of seven per cent from the date of their rendition, and were all obtained on the coupons of the bonds issued to the Philadelphia, Fort Wayne & Platte River Air Line Railroad. At the late called session of the Board of Supervisors of the county, a tax of eighteen mills on the dollar of all the taxable property of the county was levied to aid in paying off these judgments. This amount with the previous levy for state, county, school, road, and other purposes, swells the aggregate of your taxes this year to very nearly if not quite four per cent of all your taxable property! and presents to every taxpayer in the county this serious question: How is this tax to be paid? Can we pay it? There is in my opinion but one answer to these questions, and that is, practice strict economy and resolve to do it, even if it costs some sacrifice. It were worse than useless for you or me to indulge in invectives and criminations against the holders of this class of our indebtedness, or those who, by their votes, brought this burden upon us. Suffice it to say we have for years fought these creditors of the county from the lowest to the highest of our state courts, and today it is but...

pg 232

... poor consolation for them to tell us as they do in the Lee county habeas corpus case, that, although these bonds were issued contrary to law and are therefore null and void, yet when we get into the United States courts they have no power to help us. This debt is a lien upon every foot of land in Louisa county, and, much as we may dislike to do it, it will have to be paid, and in my humble opinion the sooner this is done the better it will be for us and for the county. I hear some persons say that they will pay all their other taxes but refuse to pay this. A more unwise or impolitic course could not well be devised by the worst enemies of the county. It is the same old song that has been sung over and over again until we are brought to the very brink of ruin, or what is worse, repudiation. When these bonds were first issued we commenced paying the taxes on them, and had we continued to do so, all would have been well: but in an evil hour we, almost with one accord, refused to pay, under what now proves to be the delusive hope that we could avoid the payment of principal and interest altogether. Now every one regrets that such a course was taken, and realizes how easily he could have paid his proportion yearly. Now a portion of the people proposes to remedy the error we then committed by doing the same thing over again. Again, it is well known to everybody that a few years ago we could have bought up our entire indebtedness at less than fifty cents on the dollar, but those in authority refused to do so, and the people backed them in their refusal. In the meantime we have paid the lawyers and the court officers several thousand dollars in fees, that had much better been applied to the extinguishment of the debt, yet today we find ourselves beaten at every point, and judgments against us to a large amount, which some feel unwilling and others unable to pay. I am asked daily on what terms our creditors are willing to compromise. To all such I can only say that whilst we continue to fight we cannot expect much in the way of compromise. If we propose to pay only at the tail end of an execution, we may as well and had better retain our self respect by asking no favors of any one. No, my friends, we must change our course of policy on this question if we would accomplish anything. We must pay this tax in good faith and the sooner we do it the better it will be for us, as by pursuing such a course we will convince our creditors that the fight is over and that we are willing to submit to the decision of the courts. By pursuing this course we shall also save all further expense of useless litigation and be able successfully to appeal to our creditors for an extension of time, should that be desirable. In conclusion, fellow citizens, I beg your pardon for volunteering to you this advice, but I could do no less under all the circumstances. Over sixteen years ago I counseled you through this same medium not to issue these bonds, but you disregarded my advice. You have a perfect right to do so again when I advise you to pay them."

And we find in some of the newspapers of that day vehement editorials against voting to settle the indebtedness. We take a few sentences from an article in the Wapello Republican of December 25. 1869: "We shall vote no, because we are unwilling to pay the whole of these railroad bonds and the accrued interest and because we do not wish to take any step that would look as though we were willing to pay them. The laws, justly interpreted, do not compel us, because the bonds were issued without the due sanction of law, and morals do not compel us because the railroads with whom we contracted failed to fulfill their part of the engagement, and because we received no equivalent …

Photo of F. F. Kiner, Levi Stevens, Robert Carson, P. D. Bailey, H. A. Keyes, J. R. Letts H. C. Blake, Richard Strong, S. A. McDaniel, John Diehl, J. Q. Buffington, Henry Jennings

...

pg 233

... for our money. Yet the bondholders want us to vote 'yes' and having adopted their compromise law they expect us to issue them new and valid bonds for their old and doubtful ones, with all the accrued interest."

In the litigation connected with the payment of these railroad bonds from beginning to end, the board of supervisors employed many able lawyers and did everything in their power to prevent the payment of the bonds. D. C. Cloud, of Muscatine, perhaps had more to do with the defense of these cases on the part of the county than any other one lawyer, and the following article from him, written to the Chicago Post, contains much interesting information and shows the position taken by the county at the time. We take Mr. Cloud's article from the Wapello Republican of December 26, 1869:

"As the attention of the public is at the present time somewhat engaged in discussing the apparently belligerent attitude of the people of those counties in the state of Iowa who issued their bonds to railroad companies, and as we are neither nullifiers nor secessionists, nor even repudiators, permit me to attempt to give what I understand to be our position. To do this intelligently, I must go back to the time of the issuing of the bonds. Prior to the year 1853 it was a question frequently discussed in all those parts of the state where the people expected railroads to be constructed, as to whether municipal corporations could aid in their construction. Most all those persons who pretended to any legal knowledge contended that such power did not exist; that it was expressly denied or withheld by the constitution of the state and that there was no statute authorizing it. About this time a case was made in Dubuque county, and report said that our supreme court had decided that the power existed under the constitution, and that Section 114 of the Code of 1851 gave the corporations power to subscribe stock to railroad companies. I say report said so, for in fact no opinion was filed with the clerk of the court as provided by statute, nor was it ever seen until it appeared in 4th Greene's Reports, published in 1858. When this volume was published it contained an opinion by the majority of the court in favor of the authority. Nearly all of the bonds ever issued in this state were issued and negotiated before any opinion or decision was written, filed with the clerk of the court, or published; consequently, those who took the bonds from the railroad companies did so upon mere report as to what the court had decided, and did not act upon any knowledge derived from an adjudication of the question involved; in other words, they were not 'innocent purchasers.' I do not know fully the history of the issuing of these bonds, save in one or two counties. Louisa county subscribed $100,000 stock to the Philadelphia, Fort Wayne & Platte River Railroad Company in 1856, at a time when the nearest point upon which any work was being done on said road was at least two hundred miles distant. Yet in order to get possession of the bonds of this county, the company began work in the county, called for and got the bonds of the county as fast as they could, and so soon as they had got the full amount, suspended work, and until the present time have done nothing on the road. They disposed of the bonds for a small consideration (some as low as twenty- three cents to the dollar), and the county got nothing for them. The railroad company guaranteed the payment of principal and interest of the bonds, and put the proceeds in their pockets. Muscatine county issued bonds to the amount ...

pg 234

... of $150,000 to the Mississippi & Missouri Railroad Company in January, 1854, under the following circumstances: The company organized as a corporation under the laws of Iowa to build three divisions of their railroad in Iowa. The first division extended west from Davenport via Iowa City, the second from Muscatine west to the Missouri river, and the third extending from Muscatine to Cedar Rapids.

"The proposition whether the county should aid in the construction of the second and third divisions of this road by subscribing $150,000 stock was submitted to the voters of the county in October, 1853, and the vote being in favor of the proposition, the county judge issued the bonds to the above amount. These bonds were issued and sold, upon the guarantee of the company, before any decision of the supreme court was written or filed, and did not upon their face refer either directly or indirectly to the authority under which they were issued to aid in the construction of the railroad. They simply recited that the county owed George C. Stone, or bearer, the sum of $1,000 (that being the amount of each bond) for money borrowed, and that the faith of the county was pledged for the payment of the interest and principal, as they matured, neither the second nor third divisions of the road were ever built, yet our bonds were taken and sold, and we are called upon to pay them.

"Many of the other counties were swindled as badly and some even worse than those above named.

"Owing to a diversity of opinion in the different courts, we have got into an unsettled state upon this bond question. The first decision of our state supreme court that was filed and published was the case of Clapp vs. Cedar county, 5 Iowa, page 15. In that case a majority of the court decided in favor of the validity of the bonds, because of the decision of the Dubuque case, but say they had not yet seen the opinion in the case; but, as it had been decided, they would adhere to that decision, and, at the same time, state that the authortiy to subscribe stock to railroads was not conferred by Section 114 of the Code of Iowa (the section that Judge Greene when he published his fourth volume, decided did confer the power). This decision was made in 1857, and after most of the bonds of the different counties had been negotiated. Following this decision some three more were made of the same import in 1858 and 1859. All of these decisions were made by a divided court, one of the three judges (Judge Wright) dissenting. Following these decisions, commencing in 1859, the supreme court of this state rendered some six of seven decisions reversing former decisions, and deciding that the power did not exist under the constitution of the state, nor had the legislature enacted any law by which these municipal corporations could become stockholders in railroad companies. These decisions were made by a unanimous court, and have become the fixed and settled law of the state, and were made before the question was passed upon by the United States supreme court. The case of Gelpeke vs. the City of Dubuque (1st Wallace, page 175). is the first in which the United States courts decided adversely to the decisions of our state courts , and we think that decision unjust and in conflict with the laws of the United States, and the rule of decisions as established by that court. In the case of Leffingwell vs. Warren, decided but one year before the Gelpeke case, Justice Swayne .in the opinion of the court, says, that in...

pg 235

... questions arising under state laws, the United States courts will follow the decisions of the state courts; that such decisions are as binding upon them as the text, and that when state courts change their decisions, the United States courts would follow the last settled decision (I do not quote verbatim, but give the substance).

"In the Gelpeke case Justice Swayne, while he recognizes the rule in the case of Lefhngwell vs. Warren, says: 'It cannot be expected that this court will follow every such oscillation, from whatever cause arising, that may possibly occur.' In other words, he calls the first decisions made by a divided court, at one time, based on the ground, and then on a new and distinct ground, without harmony or order, 'settled decisions,' and calls the uniform and unanimous decisions of the state courts for a number of years, decisions that are in harmony with the constitution and laws of the state oscillations, and refuses to follow them as we think, in violation of the express law of congress enacted in 1789, and now in full force. We are now in an oscillating situation. On the one hand we have the decisions of our courts against the validity of these bonds; on the other, the United States courts in favor of the validity of the bonds, with writs of mandamus coming thick and fast. The edict of this court has gone forth and we are commanded to pay whether we can or not. The United States court is sending its officers among us, commanding us to submit, and threatening us with the military power of the government if we do not yield. Some of us have resolved to adhere to the decisions of our state courts, believing that some rights are still left to the states, and that under the laws of the United States even the supreme court must respect those rights, and while we do not expect to secede from the Union, or arise in our majesty to resist forcibly the power that is crushing us to the earth, we do expect to use all legal means we have in the vindication of our rights. We will resist as long as we can, and if we must pay in, will get off as cheaply as possible. We do not recognize the debt as just; we claim to have been swindled; we do not look upon ourselves as repudiators, but claim that the bonds having been obtained by fraud, and sold and guaranteed by the railroad companies, the holders of those bonds should look to the companies with whom they have dealt for their pay. By order of the United States courts, taxes have been levied in some of the counties as high as six per cent. We cannot pay them. If we cannot get rid of these levies, of course property will be seized and effort made to sell it. We do not intend to purchase each other's property. The bondholders must purchase, and as they leave our counties with a long train of lame and blind horses, worn out mules, no-horned cows, old wagons and steers, with a few old threshing machines, and other articles too numerous to mention, they will probably feel disposed to sell out at a discount, or should they attempt to sell real estate (which they cannot do if there is personalty), they will not find it possible to prosecute a suit in each individual case. Our position is to defend as long as we can; and if no satisfactory settlement can be had, then by all lawful means to retard and prevent the collection of these unjust judgments, in the hope of being able to compel such a settlement as we can accept, and not without a faint hope that the supreme court of the United States, as it oscillates from one position to another, may oscillate so far as to decide in accordance with the settled decisions of our own courts, and ...

pg 236

...relieve us from the oppression resulting from fraud in the first instance, followed by unjust decisions of courts."

In this paper there is much other literature on this subject, some of which will be of interest as indicating the rather curious legal positions taken at that time. The following is an extract from an article in reply to the article of Andrew Gamble which we have heretofore given: "Again we are admonished to pay such judgments and bonds for the reason 'that these debts are a lien upon every foot of land in Louisa county.' That proposition is startling, and may have induced some persons to pay who otherwise would have not. It is equally as absurd as startling. Let us see: Who are these judgments against? Louisa county. To whom must these judgment creditors look for their money? Louisa county. Who owns the land and town lots in this county? Surely Louisa county does not own every foot. Louisa county may own some swamp land and upon that the lien may exist, but on no more."

The same paper contains the position of Hon. Rush Clark, of Iowa City, who at a railroad bond convention held at Muscatine a short time before that had delivered one of the principal addresses. This convention, by the way, was attended by delegates from eight counties, viz: Lee, Muscatine, Johnson, Washington, Louisa, Iowa, Poweshiek, Jefferson and Cedar, and was presided over by J. B. Grinnell, governor, and Samuel J. Kirkwood was chairman of the committee on resolutions. Among other things Mr. Clark said: "We are told the courts have disposed of this question and decided against us, but resting on the merits of the question, we deny that judgments by the federal courts are a lien upon the property of citizens. . . . The judgments are conclusive a? to corporations, but not as to citizens; as to county or city, but not as to people. Private property is safe from the debt of a municipal corporation. It is the same as a creditor saying that if he cannot collect what A owes him he will collect from B. His neighbor, the bondholder, took the worthless bonds from the county and city in their own trust and now demand that individual taxpayers shall pay it. Let them take the property of the county. What if that property is exempt from execution? The bondholders should have thought of that when they took the bonds. . . . We are not counties—I am not Johnson county. There is a refuge for the people which we should have and will have if we stand firmly by our rights."

The Muscatine convention before referred to declared that the recent decisions of the federal courts involving railroad bonds seemed "subversive to the authority and dignity of our state courts, and dangerous to the rights and privileges of the citizens of the states if not positive and unwarranted encroachments upon the jurisdiction of the state courts, and recommended the payment of all taxes except the railroad bond tax, and a refusal to pay that until all legal and practical remedies were exhausted."

The voters of the county at the election on December 29, 1869, refused by an overwhelming majority—almost unanimously—to accept the proposition to settle the bonded indebtedness under the recent act of the legislature, the people resting in the belief that the federal courts either could not or would not enforce the payment of the taxes. This belief had been strengthened by reason of the fact that in the early part of the year 1869 or perhaps earlier, an application had been made to the federal court in a case concerning Washington or John- ...

pg 237

... son county bonds for the appointment of a commissioner to levy and collect the taxes, and this application had been heard in Des Moines by Supreme Court Justice Samuel F. Miller, and overruled, and it was hoped that the United States supreme court would take the same view of it. But this hope was groundless. The United States supreme court reversed Justice Miller's decision, and as a result the United States marshal was sent here and began the collection of the taxes. After he had collected some taxes (we have not been able to ascertain just the amount, but believe it to have been about $6,000) the marshal departed. As this is the only case in which a "foreign" officer has ever been sent to collect taxes in this county, the notice issued by the United States marshal at that time was published in the papers of the county will doubtless be of interest:

"To the Taxpayers of Louisa County:

"The undersigned has been appointed by the U. S. Circuit Court at Des Moines to collect the tax levied to satisfy certain judgments in favor of Francis Fellows and Adolph Knipper. I can be found at the County Treasurer's Office, where all persons who have neglected to do so are requested to call and pay their R. R. tax. These taxes bear one per cent a month for the first three months after the 1st day of March, two per cent a month for the second three months, three per cent a month for the third three months, and four per cent a month thereafter until paid. And the Court has directed me to collect from the delinquent taxpayers my costs and the costs of the Court.

"The late period at which this order has come into my hands will prevent me from making personal demand or selling personal property, except in those cases where the taxpayer has no real estate. The real property of all persons who fail to pay their taxes will be duly advertised and sold.

                “G. W. Clark,
                     “U.S. Marshall.
                “By J.S. Clark,
                    ”Deputy

The matter was arranged so as to dispense with the presence of the United States marshal and to have the taxes collected in the ordinary way by our county officials. This arrangement was largely brought about my Andrew Gamble, Francis Springer and W. S. Kremer on the part of the county, and Grant & Smith, of Davenport, attorneys for the principal bondholders. The people generally began to pay these taxes in August, 1870, and the greater part of them were paid by December, 1873. The amount of taxes paid for these Air Line bonds from November, 1869, to January, 1879, amounts to $275,806.25.

The following report made by County Auditor Allen, in June, 1870, shows the expenses of the litigation that had been paid at that time and an estimate of those still unpaid:

"To D. C. Cloud for Atty. fees	$1,241.50
To Henry O'Connor for Atty. fees	$324.50
To C. H. Phelps for Atty. fees....	$224.49

pg 238

To D. N. Sprague for Atty. fees	$599.00
To Tracey & Hurley for Atty. fees	$175.00
To J. Tracey for Atty. Fees	$325.00
To J. S. Hurley for Atty. fees	$354.00
To Bird & Sprague for Atty. Fees	$25.00
To G. B. Corkhill, Clerk U. S. Court	$571.80
To G. W. Clark, U. S. Marshal	$192.00
Expenses of Board in attending U. S. Court and Special Sessions	$1,463.00
Costs Pd. in Case of Bolter vs. County	$173.28
Total Paid	$5,555.57
Amount of Court & Atty. fees now due and unpaid estimated at	$1,000.00
Total costs	$6,555.57
"Respectfully submitted,
"Wm. G. Allen, Co. Auditor".

Another item of expense is the taxes originally levied in 1856, 1857, 1858 and 1859, for the payment of the interest on these bonds. The amount collected in taxes then was about $16,299.70. The total cost of our Air Line railroad experience therefore was about $298,665.52.

Here we close a subject which has been both interesting and expensive to the people of this county. At the time the road was first proposed a great majority of the people were anxious to aid it because they believed in it. After it failed, the great majority of the people of the county criticised and condemned many of the men who had been instrumental in furthering the project. Looking at the matter from this distance and considering the immense benefit that would have accrued not merely to Wapello and to Burris City, but to the entire county, by the building of this road, the men who favored it were partly in the right. We know now, however, and have learned it at a great cost, that it would have been better to listen to the voice of those who pointed out the fact that the enterprise did not have sufficient capital behind it, and who were anxious that the obligations of the county should be issued in such a way that they would only be payable in the event that the county secured the railroad.

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