LAWS OF WISCONSIN,

RELATING TO

RAILROADS AND RAILROAD CORPORATIONS.

(The sections refer to the Revised Statutes.)

MUNICIPAL AID TO RAILROADS.

MUNICIPALITY MAY ISSUE CORPORATE BONDS.

SECTION 942. Any county, town, village or city may, in accordance with the provisions of this chapter, issue its negotiable corporate bonds for the purpose of paying for any authorized subscription to the stock or mortgage bonds, or both, issued by any corporation or company, organized for building any railroad, whether of broad, ordinary or narrow gauge, or made of iron, steel or wooden rails.

10 Wis., 195; 12 Wis., 617; 13 Wis., 37; 13 Wis., 433; 20 Wis., 79; 25 Wis., 167; 27 Wis., 147; 30 Wis., 597; 33 Wis., 288; 36 Wis., 383.

WHEN BONDS TO ISSUE.

SECTION 943. No bonds shall in any case be issued by any town, village or city, until the proposition for their issue for the special purpose thereof shall have been submitted to the people of such municipality, and adopted by a majority voting thereon; or, if to be issued to aid the construction of a railroad, until the proposition for the issue thereof shall have been accepted in one of the modes provided therefor in this chapter; nor shall any such bonds be issued payable after a period of twenty years; nor be issued until an ordinance or resolution shall have been lawfully passed, directing that there shall be annually levied a tax, in addition to all other taxes, sufficient to pay when due the interest annually to grow due on such bonds, and also to pay and discharge the principal thereof by the time the same shall be due; and every such tax shall be, after the issue of such bonds, irrepealable, and shall be annually levied and collected on all the taxable property on the assessment roll of such municipality, and the money raised thereby shall be kept as a separate fund, irrevocably pledged to such purpose, and shall not be employed in any other.

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LIABILITY OF MUNICIPAL TERRITORY FOR PAYMENT OF BONDS.

SECTION 944. Whenever any municipality shall incur any indebtedness by the issue of bonds or municipal obligations, all the territory embraced within the limits of such municipality shall remain liable to the payment thereof, until such bonds or obligations are fully paid; and if any such territory shall be set off or taken therefrom after such indebtedness is incurred, and no other provision shall have been made by or according to law, for the apportionment and collection of such indebtedness, toe county board of the county in which such territory is situated shall annually apportion to all such territory so set off or taken from any such municipality, a pro rata portion of the amount of tax necessary to be raised in such year for payment of principal and interest, in the ratio which the taxable property in such territory bears to the taxable property remaining liable to such debt in such municipality, according to the last assessed valuation thereof, and cause the same to be levied upon and collected from the taxable property of such terri. tory, in addition to all other taxes imposed for such year, to be strictly ap plied to such purpose; and may prescribe the manner in which it shall be applied to the payment of such debt; and for the purpose of determining the proportion to be so assessed, they may act upon the certificate of the clerk of such municipality, showing the amount of tax necessary to be raised to pay such principal and interest required to be paid in such year. 10 Wis., 195; 12 Wis., 617; 20 Wis, 79; 25 Wis., 167; 27 Wis., 147.

WHEN SUBSCRIPTION TO RAILROAD STOCK IS SOUGHT, COMPANY TO SUBMIT PROPOSITION TO MUNICIPALITY.

SECTION 945. Whenever any such railroad company shall desire a subscription to its stock or bonds, or both, it shall deliver to the clerk of the county, town, village or city, from which such aid is desired, a definite proposition in writing, signed by the president and secretary thereof, and sealed with its seal, which shall be, if accepted, irrevocably binding on such company, and which shall contain a statement of the manner in which it is desired that such subscription shall be made payable; and if to be payable in bonds, then of the amount of bonds desired, the time when payable, and whether payable before maturity at the option of such muicipality, rate of interest they shall bear and how, when and where payable, and also specifying when said bonds shall be delivered with reference to the time of the complete construction of such railroad from point to point; and within what time such road shall be so constructed as to be entitled to such aid or such bonds, or any installment thereof; and also that in consideration thereof, such railroad company will issue to such municipality such number of the shares of its capital stock or such of its mortgage bonds, or partly of the one and partly of the other, as will at their par value be equal to the principal sum of such

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bonds; and may propose that such bonds of the municipality and such stock or bonds, or both, of such company, shall be deposited in escrow with some trustee or trustees to be named, to be delivered to the proper parties, when," and as the conditions of such agreement shall be complied with by the party entitled to the same thereunder. Every such proposition shall be immediately filed, with the date of its reception indorsed and transcribed into the proper record book by the clerk receiving the same.

48 Wis., 493.

MODES OF ACCEPTANCE OF PROPOSITION.

SECTION 946. The proposition provided for in the last preceding section may be accepted so as to become mutually obligatory, in either of two modes, as follows:

First. Within three months after the filing of any such proposition with the proper clerk, the railroad company may, by a written request, require notice to be given by such clerk, in the same manner hereinafter provided for giving notice of an election to consider such a proposition, that after a date in such notice named, not less than five days from date of notice, a petition to the proper authorities of such municipality, praying that such proposition may be accepted and carried into effect, will be presented for their signatures to the resident taxpayers thereof; which petition, embracing a copy of such proposition, shall be appended as a part of such notice. If thereafter, and within four months from the filing of such proposition with such clerk, the railroad company shall deliver to such clerk such petition, embracing a copy of such proposition, and bearing the signatures of a majority of the persons residing in such municipality, who were assessed for taxes on real or personal estate in such municipality, as shown by the last assessment roll, which sig. natures shall be verified by the affidavit of some person who witnessed the signing of the same, then such proposition shall be deemed accepted, and the proper county board, town board, village board, board of trustees or com. mon council shall carry the same into efect in the manner hereinafter provided.

Second. At any time within three months after the receipt of such propo. sition, together with a request signed by at least twelve resident freeholders, that a vote be taken thereon, the respective county board, town board, village board, board of trustees or common council of the municipality to which the same is made, may in their discretion, order an election to be held; and thereupon the clerk of such municipality shall publish a notice of such election, to be held at the usual places of holding elections therein, at a time to be fixed by him, not less than thirty nor more than sixty days from the date of such notice; which notice shall further contain a copy of the proposition made by such railroad company, and shall notify the legal voters thereof to deposit a ballot, upon which shall be written or printed, "For the railroad

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proposition," or "Against the railroad proposition;" and such notice shall be posted in three public places in each election district in the municipality in which aid is desired, at least twenty days before the day of such election, and shall also be published at least three times before such election, in one newspaper in such city, village or town, if any be published therein, and, if none be published therein, then in some newspaper in the county; and if the aid is asked of a county, in all the newspapers published therein; and if no newspaper be published in such city, village, town or county, then such notice shall be published in a newspaper published at the nearest place thereto in which one is published. Such election shall be held and conducted in the same manner that general elections in such counties, towns, villages or cities are by law required to be held and conducted, except that no registration of voters shall be required; and the votes cast at such election shall be counted, canvassed and returned in the same manner as the votes at such general election, and the canvassers shall make, certify, sign and deposit with the clerk of such county, town, village or city in which such election is held, a statement of the result of such election; and such certified statement shall be presumptive evidence of the number of votes cast for or against such proposition, and also that such election was regularly held and conducted according to law. But it is expressly provided, that if the railroad company shall elect to pursue the first mode aforesaid, by causing such notice of the presentment of a petition for signature, to be given in any case, then no election shall be held, and unless such proposition be accepted in the time and manner provided in the first of said modes, it shall be deemed finally rejected.

SECOND ELECTIONS MAY BE ORDERED WHEN PROPOSITION DEFEATED AND EFFECT OF ITS ADOPTION.

SECTION 947. If any election, notified as provided in the last section, shall fail to be held on the appointed day, or if a majority shall vote against the railroad proposition, another election may be ordered by the proper board or council of such municipality, upon the same or a different proposition of such railroad company; to be called, held and conducted in the same way; but not more than two elections shall be held in any one calendar year, upon propositions from the same railroad company in the same county, town, village or city except on a petition signed by not less than one-fourth of the legal voters who voted at the last general town meeting or charter election, as shown by the poll lists.

SECTION 948. If any such proposition shall be accepted in the first of the modes herein before provided, or if at any election held as above provided, the majority of all lawful votes cast shall be for the railroad proposition, then the proposition so made by such company shall be deemed obligatory as a mutual

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agreement on such company and such municipality; and the respective county board, town board, village board or board of trustees, or common council of such municipality, shall, as soon as may be, cause subscription to be made on the books of such company for such stock and bonds thereof as were proposed to be issued, and shall provide by ordinance or resolution for executing and issuing such bonds of the municipality, in accordance with such agreement, by the proper officers; and the deposit of the same in escrow, if it be so agreed. But no such bonds shall be delivered, or be valid if delivered, until the road, to aid in the construction of which such bonds were voted, shall have been completed and in operation, by the passage of cars continuously from one terminus to such points as such company shall have agreed to construct the same, in consideration thereof. But if such municipality shall have voted for such railroad proposition, and shall have subscribed for such stock or bonds of such company, and in reliance thereon such company shall have faithfully performed its agreement, no defects or or irregularities in any of the proceedings preliminary to such election shall invalidate such agreement, or release such municipality or any officer thereof from the obligation and duty to carry out the same.

48 Wis., 549.

MUNICIPALITY MAY MAKE SUBSCRIPTION TO CAPITAL STOCK OF RAILROAD

COMPANY.

SECTION 649. Any county, town, village or city is hereby authorized to make to the capital stock of any railroad company, or to the mortgage bonds thereof, or both, a subscription, to be paid in money, lauds or other property, instead of by the issue of bonds, upon a proposition to be made by the railroad company, and accepted in one of the modes and in the same manner and according to the same provisions, in all respects herein before provided for making such subscription, and the issue of bonds therefor. Such subscriptions shall be paid in one or more installments, at such times, not exceed ing three years from the completion of the contract therefor, and after such parts of the work of constructing the railroad aided shall have been done as shall be agreed upon; and the last installment shall not be paid until the railroad shall have been completed ready for passage cars of cars to the place to which it shall be agreed to be built in consideration of the aid so granted. If such agreement and subscription thereon shall be made it shall be the duty of the proper officers of such county, town, village or city respectively from time to time to levy and collect such tax in the same manner as other taxes are levied, as shall be sufficient to pay the installments as the same shall fall due according to the terms of said agreement. No such subscription shall be made for an amount which, when added to the then existing indebtedness of such municipality, will made a sum exceeding five per centum on the value of the taxable property therein, tó be ascertained by the last previous assessment for state and county taxes.