The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-04-03
SAINT Paul, March Is, 1853.

SAINT PAUL, March Is, 1853.
To'the Editors of the Pioneer AMI Democrat
In nv last communication, think i
was fully shown that the pretended Sc
curities of the loan bill, are entirely In
sufficient for the protection OF the State
against loss. With your kind permission
| will now endeavor to demonstrate thai
the railroad compromise will, if the pro-
posed amendment to the constitution be
ratified by the people, have the power and
the inducement to defraud the State out
of the loan and thereby saddle upon the
people debt of $5,OOO,OOO. with the
accruing interest of $3.50, 900 and cost
of collection, to be paid annually fof
twenty five, or perhaps only twenty-four
years, amounting in all, principal and IN
terest, 10 the enormous sum OF at least
thirteen millions of dollars,
If ii had been the design of the Legis-
lature TO frame law empowering and in
viting these railroad companies to swim
die the State it would be difficult to ac-
complish this purpose with more cunning
than appears TO be revealed in the various
provisions of the proposed amendment.
have no doubt that a critical analysis
of the pretended securities Of this bill
when Illuminated even slightly by the
light OF experience and common sense,
will convince every unbiased and IN
preiudiced tax-paye. that if the bill be
ratified it will both empower and invite
these railroad companies to swindle the
State Allow me to call attention to the
security provisions of the bill. quote
from an officially published copy:
Each company shall make provision for the
punctual payment and redemption OF all bonds
issued and delivered as aforesaid. to said COM
pany. land for the punctual payment OF the III
terest which shall accrue thereon, in such man
ner rs to eXonerate the Treasury OF this State
from any advances Of money for that pur-
pose"
The above is all preamble to the secu-
rites; mere surplussage, and looks like a
blind TO deceive. 1t is of no effect, for
the exact securities which the companies
are TO give, are defined as follows;
and as security therefor, the Governor
| shall demand and receive from each of said
| Companies before any of said bonds are issued
an instrument pledging the net profits Of the
road. for the payment OF said interest. and
! conveyance to the State OF the first two hun
dred and forty sections of land, free from prior
membranes, which such Company is or may
be authorized to sell in trust for the better Sc
curity of the Treasury Of the State from loss
on said bonds, which said deed of trust shall
authorize the Governor and Secretary of State
to make conveyance of title to all or of any
such lands to purchases agreeing with the re-
| spectiye Railroad Companies therefor. Provi-
ded. tnat before releasing the interest of the
State to such lands such sale shall be APPROX
ed by the Governor, but the proceeds of all
such sales shall be applied to the payment of
interest accrulng upon the bonds in case OF de-
fault OF the payment Of the same, and as
sinking fund to meet any future default in the
payment Of interest and the principal thereof
when due; and as further security an amount
OF first mortgage bOnnS, on the roads lands and
franchises, or the respective companies, cores
ponding to the State Bonds issued. shall be
transferred to the Treasurer of the State at the
time of the issue OF State Bonds. and in case
either OF said Companies shall make default
in payment OF either the interest or principal
of the bonds issued to said Companies by the
Governor, no more State bonds shall shereaiter
be ssuep to sa Company; and the Governor
scrbed by law. to sell the bonds of the default
ing Company or Companies. or the lands held
in trust as above, or may require a foreclosure
vi the mortgage executed to secure the same"
Now gentle reader what do you sup
pose the above quotation from the bill
means Ii you are not familiar with tie
tricks Of law -makers and have not closely
scannad its various provisions, you may
with generous confidence infer that it
is all right and brimful of the sample Sc
curities'' so much extolled by the learned
friends OF the bill. Or, you may modestly
dismiss it from further study, as too pro-
found for your untutored comprehension;
and for your enlightenment seek an easy,
lucid and satisfactory explanation or para
phrase, from the able friends of the bill
which You will find scattered broadcast
over the Stale, in their newspaper arti-
Giles and speeches.
Allow me, however, to warn you
against the danger OF such misplaced con-
fidence. Many Of these gentlemen have
been afflicted by a strange delusion, in
fatuation, or something else, SO that they
honestly, perhaps. represent that there
are securities in this bill, which cannot
be found on fair Interpretation of an
official copy.
Let us for the present keep flefore the
people the bill to be submitted to them,
and briefly consider the foregoing quoted
extract. | think we shall see in the ap-
parent fairness and confused involution
of its guardep provisions, what will look
very like an intended deception. This
quality of the bill, may be, however, only
a remarkable accident. In dissecting the
part quoted-the famous securities-we
would briefly examine each clause in its
order, and to make the criticism clear, set
down the quotations from the bill in
it0lic$.
LIST. The ''net proftS," sc.
The availability of this security is SO
remote that the State may be swindled
out of the whole S5,OOO,OOO before there
are any '.prcftS'"
I'd. ".1nd q conceyance to the State
Of the first t'co hundred and forty sections
oftand free from, prior membranes.
Upon a fair construction of the land
grant, the State is probably entitled to re-
ceive for each road 100 sections upon To-
cation, and in advance Of completion. The
legaL title to the land will first be in the
State. The equitable title is in the COM
panies upon whom the " Extra Session"
bestowed it. This conveyance to the
Governor unites both equitable and legal
title in him, enabling him to make good
and sufficient deeds. AS will be explain
ed, the Governor is made only trustee
to execute deeds for the company.
No company will get, however, more
than 100 sections Of land, till it shall have
''completed'' twenty miles of road. AZ
ter providing for The ''comceyance to the
Sate," the bill goes on to provide further
what shall be done with this interest so