The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-03-18
LOAN Of STATE CREDIT ron Rail-
ROADS.
ARTICLE TWO

For the purpose Of expediiing the con,
Aruction Of the Land Grant System 0froad-
in Minnesota, special issur of State bonds
Is authorized. bearing interest at seven per
cent. per annum, and rcdeemable at any
time after ten and before the expiration OF
twenty-five years from the date thereof but
the amount issued to each company IL lmi'
ted To twelve hundred and fifty thousand
dollars. or an aggregate amount Of i've nil
lions Of dollars,
The manner in which these bonds will is.
sue. may be briefly stated AZ follows;
Whenever and IA often IA either OF said
companies shall produce TO the Governor
satisfactory evidence, verified by the Chief
Engineer. Treasurer, and two Directors OF
said company. that the grading, masonry
bridging, and other work necessary 10 pre-.
pare ten miles Of road for the superstructure,
or permanent track, has been completed, the
Governor shall cause 10 be Issued and dcliy-
cred TO such company, bonds to the amount
of one hundred thousand dollars and when
ever, aud ~ often "a said company shall pro-
duce like evidence, that ten miles Of road
ARE completed and ears running thereon, the
Governor shall cause to b. issued and deliv-
cred to such company, like bonds to the
amount Of one hundred thousand dollars, ur-
ill the whole amount Of bonds authorized is
issued.
This provision obligcs the respective com
paulcs 10 construct ten miles OF rad, ready
for receiving the ties and iron, before any aid
IL received from the State Under no circum
stances can the loan of State credit take
place 10 the full amount authorized in favor
OF each company, without securing the con
struc,ion Of sixty-two miles, with cars run
ming thereon, ar distance Of one hundred and
twenty flour miles. fully graded and prepared
for receiving the permanent track. In the
case last supposed, the amour, Of State and
would be limited Ia $4,000 per mile while
the advance of bonds upon the iull cons,ruc.
ton of sixty'two miles by each company, or
two hundred and for,ycigh, miles by all.
can never exceed 100000 I~r mile.
With these safeguards, and the certainty
tina, the companies could never ploc, them
selves in u situation 10 receive the State
bonds without very considerable expend.
turc on their own part beyond the amount
received from the State, the Legislature did
not think it advisable 10 control the precise
proportions in which the grading and track.
laying should be- donc. We think this was
wise and liberal policy. although We are
aware that il is urged as an objection. A
Company, il Is said, might choose to grade
double distance, or one hundred and TWEEN.
,y four miles. exhausting the whole amount,
of 81 100000 in 40 doing rather than take
$4,000 per mile, and put the cars in mo
ton over si,ty.twc miles. We put the OBJ
lection strongly bu, for one, VIZ cannot se
its force, Why should Company do So,
unless they hal provided the means, other.
wise than from the prrceuls Of the State
bonds, to lay down the ties and iron AMI put
on the rolling stock II Company pre-
frs TO spend the whole million and quarter
in preparing a road-bci to the mos, remote
Of our present Employing and
dispensing laborrs almost to our Western
boundary. and making corresponding mar.
ket for materials and provisions over dcu-
bic ARIA OF country, shall We Object II
there is one argument more promincn, IN thc
public mind than any other in favor OF the
loan, Il is that an equal amount OF capital
will thereby be drawn into the State, and
distributed in all directions by the sps'iy
construction OF the roads; and shall VT raise
m cutlery, iorsoo,h, because a Railroad Com
pany can 30 arrange It's affairs as TO keep
and circulate the whole sum here a, home
and provide from stock subscriptions and by
the use Of railroad credit aloue, the means