The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-04-08

of railroad oftcers, The yalGe Of thsss trust
!snd. can be readily appreciated The l.nds Of
the HllEol. Ceatral Railroad Company, hitherto
sold. have averaged tl2 50 per acre Even al
80 per acre. the proceed. Of the above con
ysyanee Ia trust vii be ts.li4, D09-
These proceeds are iutsnded 10 constitute a
sinking fund for the discharge Of the principal
Of g., 900. 900. II . Company. thus parting with
the title and night 70 convey In favor Of tie
state, shall agree with parties for the sale Of
any Of these la bds. the Governor may approve
Of such sales, and IL connection with the S-crs
tsry VI state, may execute deeds TO the puf
ch4sers, but all proceeds Of such sales 90 into
the Treasury, and must there remain - . sink
ing fand for principal. unlsas required 10 meet
default in payment Of interest 1t lie also pro-
vided, In q Subsequent clause Of the Cohstitu-
ton that II Company fails TO meet any SEM
annual payment Of interest. the q GOVERNOR may
sell the iADds entiEey al his discretion and pro.
teet the Treasury. 1t Ia further enacted by the
Legislature, In the matter of such forced sale,
that any Company fail To provide such inter.
est siIty days before the maturity Of iatsresi
| or principal on state bonds, issued to such
Company, the Governor may advertise and
sell the lands in such parcels, and at saeh
times, - he shall deem expedient, and all such
sales shall be made by the Governor and See.
| Rotary Of state, and shall be absolute convey.
Ances of title in fee as far a. the same may
have been invested in said Company, or IN The
state, and without aay redemption or right OF
redemption 10 any Company, or sabssqaen,
4 or uh M
reserving to the Company. IS directed in the
Constitution, . right 10 arrest such sale Of lands
before the day thereof, by payment Of the sums
In default and oil expenses incurred by the
State.
1 The evident purpose Of these provisions il,
that a. long ~ the Companies meet their obi
cations promptly and regularly, they may help
the State 20 advantageous sales OF the lands In
aid Of . Sinking Fund, but, in case Of any de-
fault summary sequestrA'ion Of such Fund
and a sale OF the lands may be resor,ed to Tor
the indemnity Of the State.
| ihAve now closed the consideration Of the
| Forfsitures and Exclusive Securities. for which
the Loan Of State Credit stipula,es. The latter
are designated as security therefor" but
\ 49, sHth chtAct1dou wv Stthou PtVttcL7
TO direct, "ss further security" that the State
shall be . hrst mortgage bond holder TO the
| whole amount OF the State bonds issued and
| delivered To the Companies, and with the same
remedies by way Of foreclosure, which might
be secured on behalf Of that class OF creditors.
discriminate between the special or exclu.
-ive securities, which have just been under dis
/ a ~ -
| the State. To these now invite attention.
TN. TRANSFER on FIRST MORTGAGE BONDS
The Loan Ame ndment Of 1855 after giving
the State an exclusive lien upon all future rev.
enues of the roads, and transferring to the
State the hrs, l53. 500 acres OF land which csc b
Company Was then or might become entitled to
sell, proceeded. - as further security" 10 con
stitute the State Treasury q holder Of first
mortgage bonds making common cause with
other parties who might become purchasers OF
the first mortgage bonds of tho Companies.
The language employed In this connection WAS
- follows: "Aad. rs further security an
amount Of first mortgage bonds on the roads,
iands and franchises OF the respective Compa-
MES, corresponding TO the State bonds Issued,
shall be tansfsrrsd to the Treasurer Of State
at the time Of Ia. issue OF State bonds A
subsequent clause, ia case Of any default IN
payment OF interest or principal, authorized
the Governor 10 sell the bonds of the default
| ing Company, or Tsqs,rs a foreclosure OF the
mortgage executed TO secure the same.
As Is well known. the Executive of the state,
In determining his line OF duty as a public OFF
GER, did not feel At liberty To regard tho secu-
rty here provided, a. concurrent lie there.
foTe required exclusive priority OF lien IN favor
OF the railroad bonds transferred to the State.
thus limiting The issue OF first mortgage bonds
by each Of the Companies TO 81. 100000.
Under an apprehension that . compliance
with the Executive requisite, might affect in
juriously it's future progres--constitntug an
obstacle TO negotiations for the construction OF
SIS miles Of railroad, in no sense compensated
by present aid in baiiding sixty two and . hall
miles-thc Minnesota and Pacific Railroad Com
pAny was constrained TO refer the proper con-
struc,ion OF the Loan Bill, In this partic ular to
the supreme Court.
That tribunal decided that, as holder of
first mortgage bonds. the State had no rights
or privileges superior TO other parties, who
might be purchasers and holders Of that class
OF securities under Deed Of Trust Of said
Company executed on the sist day Of July.
lsSs. 20 Elon Fsrnsworth, Edward =. Cowles
aud William II. Weleh, Trustees, and now re-
corded in the office of the Secretary OF State,
In pursuance Of the Charter of said Company
Auusion has been made 10 the Trust Deed OF
the Minnesota and Pacific Railroad Company.
That instrument establishes the principle, that
the lands so liberally donated by Congress and
Minnesota tor the internal Improvement Of the
beautiful and fertile districts which stretch
from the mouth Of the 81. Croix TO the interna-
tioual line. except 40 sections re conveyed to
the State, shall be placed IN the hands Of Trus'
tees, and subiectedto judicial supervision for
the equal benefit. share and share alike, OF every
individual who may hereafter eontribute, by
the purchase Of a railroad bond, to the con
summation of the enterprise. The limit OF
SIS 600 per mile 10 dXed 10 the issue OF frst
mortgage bonds, nor can these issue, except -
the construction Of the road advances in sec
tons Of forty miles. Efforts have been made
10 represent the sum OF SIS ,oeo, representing
Q mile Of railroad and 5 $40 acres Of land, -