The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-02-06

with four pieces of road partly finished, none
OF which would be more than 80 or IS miles
in length. and not of sufficient utility to be
OF any material service to the State or TO the
people, the roads themselves not being of
length enough to pay the running expenses.
The absurdity Of inserting such provisions
as are contained in this proposed amendment
into the Constitution of State is too appa-
rent to need argument to refute it. A Con-
stitution should always be confined to geper
al provisions, for the protection of the peo-
pie, and should never enter into subjects of
special legislation. The following extract
would be grave principle of constitutional
law for the great expounder to settle, viz
"And provided further, that the Minneapolis
81 Cedar Valley Railroad Company shall COM
mence the construction of their road at Far
rlbault." Again, should the people at any
time become satisfied of the improperly of
making further advances to these companies,
the legislative power of the State would have
no power to repeal this law, because it is
Constitutional provision indeed we are of
the opinion that it is part of this swindljnp
oesgn to SO tx this matter that there shall
be no power in the State to arrest its con-
summation, until these irresponsible compa-
mes have become possessed of the entire
$5OOO,OOO.
But again, tae first issue of 100000 to
these companies is to be made without any
adequate security whatever. 1t is simply abb
surd to talk of the mortgage bonds being any
security. VIVA. on earth have these penn-
less companies got to mortgage they have
no road, nor lands, nor have they any money
they are perfectly destitute-even the re-
port Of the select committee admits that thew
have no adequate security upon which to is
sue and sell their bonds. And yet the State is
asked to take security, which no business man
will take But it is said that if the several
companies do not pay the interest on the
bonds first issued, no further bonds can be
issued to the dcfaulting company.
This is rather high-ton reasoning for
legislative committee Giye the companies
100000, and if they do not pay the interest
on this amount they shall not have any
more! Is this the way men of business
habits transact their affairs?
But even according to the bill before the
Senate the whole amount may be drawn out
before more than two installments of inter-
est become DUE
But suppose the whole amount of $4,000
600 is expended by these four companies
as contemplated, and the State holds their
mortgage bonds to that amount, in default of
their paying the interest upon the State
bonds what could we realize upon the sale of
the securities SO held? Each companv
would have completed about thirty miles of
road, and owe tie State S1,25O,OOO. Now
what could the State realize by the sale of
this amount Of road, or by foreclosure of
tie mortgages No man at all conversant
with these matters will pretend for one mo-
ment that the State could realize fiftv cents
on the dollar of the money advanced.
But it is said triumphantly by the COM
mittee that in Massachusetts, the credit Of
the State was loaned to certain r. r. comma
MES, as was also the case in Tennessee: but
we would ask, did either of those States loan
their credit to companies aehicb co,tM not ra Use
m'aey enough to pay for the surrey and location
Of their road?
The committee must presume great deal
upon the ignorance Of the Legislature, to
talk of the net profits of the road being any
security, when it is we'll known that with the
vast amount OF usiness done by the n. Y.
II Erie Railroad the net profits amount to
nothing at all!
But when tits vast amount is expended
where is the nj )ney to come from to paw the
interest on these bonds There will become
due every six months in interest, the sum of
$4,000, or $35O,OOO per year. Does anv
one believe tho Sc several companies would be
able to raise that amount?
The idea is absurd Our State is too
young and too feeble to undertake so great a
responsibility. The people will be taxed too
severely to meet the ordinary expenses of
the State, and it is all folly for us, with only
100000 inhabitants, and those too, taxed to
the utmost in purchasing their farms and
making their homes, to talk of further taxa.
ton. The people are lily prepared to enter
into liabilities which, in the end NAV bank
rupt the State.
We are not able to assume an indebted.
ness upon securities such as no RESPONSIBLE
and experience financer would take. IF
the companies can furnish the State secnri.
ties which are ample, why can they not OBJ
tain the money upon them from those who,
have money to invest upon adequate securi-
ties? We hope the Legislature will look
we'll into this matter, and not involye the tar
payers of the S ute in an embarrassment fro,n
from mhich 1t aiU take them long time to eutri-
cate themselves.