St. Cloud Democrat. [volume] (Saint Cloud, Stearns County, Minn.) 1858-1866, 1858-12-09

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as those held by the State. The Comnan;es
were respectively required to completc IN
miles before the close of 1861, 100 miles before
laoa and four fifths Of their whole lines before
w., but while this amendment prevailed
anuther proposition by Mr. Senator smith
giving the mortgage bonds held by the STATE.
a priority OF lien over all other bonds. 80
voted down. Whenever proposed in eith.-
house, it shared the same fate-the friend, of
the M asore in and out Of the Legislature pro.
claliaM e that such restriction was unncce>.
sary and would arrest, and not expedite the
constsut lion OF the roads g. ~ =
But it IS urged, that the Company may issu,
an excessive amount of first mortgage bondI.
Not SO. s., Trust Deed of July 3ist. 1854
the Company has solemn]y agreed. that M
bonds shall 10 issued except countersigned and
registered by three disinterested Trustees
that the total amount shall never exceed S35
OOo per mile; and that even these shall not
| issue except as the wo."k progresses in forty
mile sections, The Company has no other
interest except in selling the bonds at or near
n&r-hence the above safeguards. In addi-
noA, the Company, since tive decision of the
oupleme Court, has voluntarily executed
Supplemental Trust Deed, giving the Cover
nor the right to act IS Trustee, if necessary
u
while road, Charter, and lands Of the Company
IL sixty days, in time to prey ent any de-
.a!llt III payment of interest on ST. ,te bonds,
"!i-.: both ;i,ies'' is a good motto. Your
colI2:p ajcnt deems the statement. that tho
St.fe = ic>s secure now than befor, the late
.'nu1cl:t- decision, to be an error-Ilence the
pFcSen' communication. Let there b.: no at
tempt to prejudice this question. Every re-
Ne ing man should read the opiui'ous Of
! ;.itlt=cs Everett: and Flandreau and udae for
h'IrSeH II, as government and people, We
| can coopclr'e in pushing forward the railroad
enterprises, 1859 will be the NEST prospcr Qua;
year in our annals
Our columns are always open to both
sides OF every question; and especially to
any side CT the railroad interest, but in
reading the letter Of our correspondent We
arc not fully convinced that he is right
lhc TACT that the Pacific road alone refus-
ed the State prior lien as security, goes
to prove that the Governor is right.
If the Pacific road cannot negotiate
loans on second class mortgage bonds, how
shall the other companies negotiate them 7
Moreover We think the people of Min
ne*ota, III voting tor the Loan Bill under
stood that they We're to be securely by first
liens, as veil by the other two classes of
security specified. The BIZ was pressed
upon the people because of the unusual
nature Of the securities. The people in a.
Sre2ln:G:: to accept first mortgage bonds"
had no idea that az the bonds OF the COM
pan'cs were to he FIST; and the disagree
ment, at this early day, about the meaning
Of the 5ili, the haegling about the neal
ing Of these un:n1portant looking words
'';.n amount off, locks as if the Bill had
been framed on purpose to. cntrap the pec-
pic
i hen q law is to lie submitted to the
people it ought to be so framed that even
!: woman could understand it.
The Loan Bill says:
''d:'@ Is .jfHyttcr %ccur;iy On dmoust Of
Ij|j':*t ''sc2Tgs:yc I,"t}s oa tic roue7S, lands
an! .j,u;'c/5sc$ Of 'Ae yc$l,cctiyecompaa;es
co%*>Spon0:uy to IL .::t::1e Bands issued,
SiioN Re f'"":if73ct; to ike Treasurer If
Ike tSi4'e At lie tine II lie issue OF tie
,stot: BoaIs.''
Everybody understood by this, that
these bonds We're to have priority to all
other bonds The legislative debates on
the B:ll were nots :Gali::iiir to the mass Of
voters end going behind the bill 10 debates
looks Ike a trick. lad the Bill been
brought before the people with a special
clause, granting CT recognizing the right
81 thu eoia pasl;es to iS:uc seven times the a
mount c. .,onds Gil IN equal footing With
the 6 Of the State, we have no doubt they
would have vuttod Tor it, rs it Jces appear
ti'3t to is:U.l, Of such bonds is impor-
tant 10 The speedy completion Of at least
one roa}, and their object was to expedite
The building of the roads. H.
The Biil was an expression Of gener-
o''s policy on the Part Of the people
They should have been generously and
candidly dealt with. The whole affair
now looks like { peicc Of political clap-trap
instead Of a fair business transaction, in
which both parties were Of age and COM
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