The emigrant aid journal of Minnesota. [volume] (Nininger City, Minn. Terr. [i.e. Minn.]) 1856-1858, 1858-04-07
Il ~AUTHORITY.I

al ny troubles ended. food night.
Yours, J. " NJ
[BY AUTHoRITY.l
The Loan Bin.
an ACT proposing 81 amendment to Section ten, Ar
slcle nine Of the Constitution, and providing for the
submission of the same to the people.
Be IT enacted by the Legislature Of the State OF Mime
sots.
SECTION l. The following amendment 20 the Con
s.itution of this State is hereby proposed for publica-
sion, and approval or rejection by toe people in accord
snce with Section / Of Article Ii Of the Constitution j;
that is say, thar Section 10 Of Article Q Of the Con.
s:isution shall be as follows -
Sec. 10. The credit of this State shall never be given
Or losned in aid Of any individual, association or cor
Porstion, except that for the purpose Of e~xpediting the
construction Of the lines Of railroads. in aid of which
the Congress Of the United States has granted lands to
The Territory Of Minnesota, the Governor shall cause to
De issued anu delivered TO each Of the companies in
which said grants are vested by che Legislative Assem-
bly, Of Minnesots, the special bonds Q: the State, bearing
al interest OF seven per cent. per snnum, payable semi
annually in the city Of New York, as 3 loan Of public
credit, 20 IN amount not exceeding twelve hundred and
atty thousand dollars; or an aggregate amount to all of
ssid companies not exceeding Eve million Of dollars, in
manner following, to wit:
Whenever either of the said Companies shall produce
20 the Governor satisfactory evidence, verified By the
af6ds7its Of the Chief Engineer. Treasurer, and two
Directors OF said Company, thai any Ten miles OF the
road OF SAID Company has been actually constructed
and completed, ready for placing the superstructurc
thereon. the Governor shall ca1se so be issued and de-.
.Tered 10 such Company bonds to the amount Of one
hundred shousand dollars, sud whenever thereafter, and
IS often as either of said Companies shall produce to
the Governor like evidence OF : further construction Of
zen miles OF Its road as sforesaid, shen the Governor
shall cause to De Issued 70 such Company further like
bonds to the amount OF Ole hundred thousand dollars
Tor each and every ten miles Of road thus constructed,
anc whenever such Company shall furnish like evidence
that any ten miles OF its road is actually completed and
cara running thereon, the Governor shall cause 70 be
Issued TO such Company like bonds 90 the amount Of
one hundred thousand dollars; and whenever thereafter.
and as often rs either of said Companies shall produce
20 the Hovernor like evidence that any further ten miles
Of said road IS in operation as aforesaid, the Governor
ahssl cause 20 De issued to such Company further like
bonds &c the amount Of one hundred thousand dollars
until the full amount Of the bonds hereby authorized
shall be issued Provided, That two-fifths and no more
Of ai oonds issued TO the Southern Minnesota Railroad
Company, shall be expended in the construction and
equipment Of the line Of road frc,n La Crescent to the
point Of junction with the Transit Road, as provided by
is1 and further provided, that the Minneapolis and
Ced.r Valley Railroad Company shall commence the
construction Of their road at Faribault and MINNEAPOLIS,
and shall grade an equal number 81 miles from each Of
said places.
The said bonds thus issued shall be denorninated
Minnesota State Railroad Bonds and the faith and
credit Of this State are hereby pledged for the payment
II the interest snd the redemption Of tbs principal
thereof. They shall be signed BY the Governor, coun-
seEsigned and registered by the Treasurer, sealed with
the seal OF the State, Of denominations not exceeding
one thousand dollars, payable to the order Of the Com.
pany to whom issued, transferable by the Enforcement
Of the President Of the said Company, and redeemable
a. any time after ten and before the expiration Of
twenty-five years from the date thereof. Within thirty
days after the Governor shall proclaim that the people
have voted for a loan Of State credit to railroads, any Of
said companies proposing to avail themselves Of the
loan herein provided for, and to accept the conditions Of
The same, shall notify the Governor thereof, and shall
~i.hin sixty days commence the construction of their
road, and shall within TWO years thereafter, construct
ready for the snpeEssructure, al least fifty (5O) miles Of
.helr road. zach company shall make provision for
che pnncsuai payment and redemption of all bonds is
sued and delivered IS aforesaid, to said company, and
FOX the pnnetual payment Of the interest which shall
aocrae thereon, IN such manner as to exonerste the
Treasury Of this State from any advances Of money for
that purroza; and as security therefor, the Governor
shall demand and receive from each Of said comranies,
before any Of laid bonds are issued, an Instrument
~piedglng tho net profits Of is road, for the payment Of
aaid snteros;, and 4 conveyance 30 the State of the first
swo hundred ana forty sections Of land, free from prior
1ncunlbrancee, which such company is OF may b. ar.
ihoclzed - sell n sruat Tor the better security of the
Ireasury Of she State from loss on said bonds, which
said deed d crust shall authorize the Governor and Sec.
rsEary OF State to make conveyancas Of title to aI or any
Of such lands to purchasers, agreeing with the respective
za;!road companies therefor. Provided, That before re-
leasing the interest of the State to such lands. such sale
shall be approved by the Governor, but the proceeds Of
al such sales shall be applied to the paymen: Of interest
accruing upon the bonds in case of default Of the pay
nent Of the same, and as a sinking fund to meet any
suture default in the payment Of interest and the prin-
cipal thereof when due; and as further security, 40
amount OF first mortgage bonds, on the roads, lands and
franchises, of the respective companies, corresponding TO
The State bonds issued, shall be transferred to the Treas
nrer Of the State at the time Of the issue of State bonds,
and in case either of said companies shall make default
il. payment Of either the interest or principal Of the
bonds issued to said companies by the Governor, no
more State bonds shall thereafter be issued to said COM
psny and the Governor shall proceed in such manner
IS may Be prescribed by law, to sell the bonds of the
desaulting company or companies, or the lands held in
:rust a. above, Or may require a foreclosure Of the mort
gage executed 70 secure the same Provided, That if
any company so in default, before the day Of sale, shall
pay al! interest and principal then due, and all expenses
incurred by the State, no sale shall take place, and the
Eight Of such company shall not be impaired TO a further
loan Of State credit. Provided, if any Of said Companies
shall at any time offer to pay the principal, together
With the interest that may then be due upon any Of the
minnesota State Railroad Bonds, which may have been
ISSUED under the provisions Of this section, then the
Treasurer Of State shall receive the same, and the lia-
olils:es Of sa'c company or companies, in respect to said
bonds, shall cease upon such payment into the State
treasury, OF principal, together with the interest, az
aforesaid. Provided further, That in consideration of
the loan OF State credit herein provided, that the COM
rany OF accompanies which may accept the bonds Of the
otatei 70 the manner herein specified, shall, as a condi-
lion thereof, each complete not less than fifty miles Of
as foads*n or before the expiration of the year 1861,
: I not less than one hundred miles before the year
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