The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1855-02-17
Veto Message OF the Governor.
Gentlemen Of the House of Representatives

SSncoeaN 81 Al Which, ~ OE1SIu0tcu, Dill H>o' ~
entitled an act to amend on act to incorporate
the Minnesota aud Northwestern Railroad
Company, with my objections to its becoming
a law.
By the 9Th section of said act, the charter
granted to the Minnesota and Northwestern
Railroad Company is expressly re enacted !;
which brings up all the questions that arose IN
regard to the powers, privileges and franchises
therein granted. If the same persons who
composed the last House of Representatives,
also composed the present it would be needless
for me to enter into the subject in detail but
under existing circumstances feel it public
duty to point out the objections that are in
my Judgment so manifest therein. 1t will be
borne in mind that the grant of lands made by
Congress to the State of Illinois, approved
Goth September. 1850, in substantially the
same land differ but little even in terms,) as
that made to this Territory by the act OF Con-
gress approved 29th June, 1854. By an act
Of the Illinois Legislature approved Feb'y 10th,
1851, charter was granted to the Illinois Cen
trail Railroad Company, by which they were
to receive the lands to aid in constructing Ger
tain roads therein named. Said charter is sub
stantialy like that granted to the NJ. & NV.
R. r. Co., by the legislature of Minnesota at
its last session, and re-enacted by you at the
present session, except that the charter to the
NJ. & n. w. r. r. Co. leaves out nearly, If
not quite, all the guards and securities express
ly provided for in the Illinois charter.
The first guard against imposition or fraud
in the Illinois charter is found in the 18th Sec
tion which provides that " Immediately upon
the organization of said company, and the pre-
sentatiOn to the Governor of the State of ILL
nois, of a certificate signed by the corporators
hereinbefore named, and duly acknowledged.
accepting of this act of incorporation, and
certifying to the due organization of said cor
poration ito the subscription of the capital
stock thereof by the corporators hereinbefore
named and their associates, of the sum of one
million of dollars, and the bona .fde payment
of 20 per cent. thereon TO the Treasurer of said
Company, verified by the af6davits of the pres
ident and treasurer Of the Company, which
said certificates shall be fled in the Office OF
the Secretary of State" 1t will be seen that
illinois required the guaranty for the construct
ing, &C., of said road that 20 per cent. on one
million should be actually paid in. The Min
nesota charter only requires that 10 per cent.
shall be paid in, nor does it require them t.
report under oath that one cent has been paid
into the Treasury in good faith.
2. The Illinois charter, in the 10Th section,
requires the company to deposit three hundred
thousand dollars ($3OO,OOO)of registered canal
bonds or funded internal improvement bonds
of the State of Illinois, or two hundred thous-
and dollars in specie, or two hundred thousand
dollars in U. S. 6 per cent. stocks, ruth the
Treasurer of the State to be returned to SAID
Company ON the compilation of so miles of said
road avithin the time and according to the pro
Uisions of the charter. Minnesota has no such
security and, strange to say, she refuses to ask
it l have yet to learn that the Illinois Gen.
trail Railroad Company are not as responsible
and as reliable as the NJ. & n. w. r. r. Co.,,
and frankly confess it utterly beyond my COM
prehension to see why Minnesota should not
guard her interest as amply as did the State
of Illinois. Again, while Illinois secures to
her people per cent. in money of the gross
proceeds of her road, Minnesota asks only per
cent. on the net proceeds.
3. Illinois, then, requires the Governor to
make deed to said company in fee simple of
all the lands granted her by Congress, and ST.
simultaneously with the execution of said deed,
by her Governor that is to say, mortgage
is to be executed to trustees by said Company
on all the lands conveyed by the Governor
to the Company, expressly to secure and guar
antee to the State of Illinois, the first and pr-
or heir on everything thus mortgaged of every
kind and description whatever.
First, to secure the completion of the road
and branches within the time, and upon the
conditions and in the manner in the charter
provided. Minnesota has required of the NJ.
& N. w. r. r. Co. no such security but, on
the contrary, has refused to ask it. If the II.
linois Central Railroad Company accepted
these terms, and gave these securities, why is
it that Minnesota does not thus secure the peo-
Piles rights? Surely, Minnesota is not more
able, in her tender infancy, to risk her lands in
the hands of a corporation, than Illinois with
her million inhabitants Surely, Minnesota is
no less liable to imposition than was Illinois
By the 9th section of the Minnesota charter
" the fee simple" is granted to the corporation
without any further act or deed,"
and the Governor is directed to give an addi-
tional deed if required by the Company g" to
vest in them a more perfect title" 1t will be
obs rived that when this title is complete, the
company have the power under the 10th Sec
ton, to mortgage the road, franchises, lands
and materials belonging thereto, thus empow-
ering the company to borrow any amount Of
money they need in constructing the road
This money they may use ut will, and in any
way they choose, either to bank upon, in New
York, or, speculate in any way the most prof.
table dividends can be realized for three wears,
and not expend one dollar on the road, against
which Minnesota has no remedy until the ex-
piration of the first three years, and then she
can only have forfeiture of their charter and
bring suit at the end of said three years for
he value of the land thus misapp led. Who
will she then sue? The officers and stock
holders of course! Who are they2 l do not
know, nor do presume that any member of
this Legislature does. the officers and stock
holders of to-day may not be the officers and
stockholders then They may each be respon-
sible now, but they may all be bankrupt then
Against which unfortunate contingency Illinois
took good care to be amply secured against
which unfortunate contingency, Minnesota has
no security whatever, and refuses to ask it
What service can the forfeiture of their char
ter be, if they thus misapply your funds? 1t
only brings you back where you started, after
having lent your lands for the Company to
raise money upon. And here another question
arises whether the bond holders who loaned
the money to the Company cannot hold the
lands thus mortgaged, and enforce title. This
position will be still stronger if Congress
should not disapprove the charter now before
them for then it will have equal force with
any act of Congress. For failure to disap-
prove is equivalent, presume, to an approval.
1t IS true, the patent is not to be issued until
a certain part of the road is completed, yet it
must be remembered that the company have
three years to complete fifty miles, and Mime.