The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-12-31
The Financial Condition OF NlinnesOta.
TO THE EpiToH OF THE HERALD.

10 THE EpIToH OF THE HERALD.
New YoRk Dec %, 1853
II my duty as the Governor az the State Of Minnesota 70
correct publicly certain Misrepresentation which have
been made here relative the bonds Of that state issued
TO be issued by virtue OF constitutional provision q
loan TO expedite the construction OF railroads within her
limits. propose effect this By making plain state
ment OF facts leaving your readers and the public gene
rally TO draw their own conclusions therefrom.
The constitution OF the State OF Minnesota, originally
framed and adopted by her people, restricted the public
debt--excep in of invasion insurrection-to
$250000 Subsequently it became evident that to in
the speedy construction OF the railways for which
the State had received from Congress muncent grant
of land the State must lend her aid to those companies
chartered By the Territorial Legislature, to which the
lands had been transferred By the authority for rail
road purposes. This aid rendered especially neces
sary because OF the financial embarrassments of 1857
which made IT impossible for the companies to raise
by their charters The other Northwestern States
diligently prosecuting their railroad communications and
nnesota must labor under manifest disadvantages unless
she pursued like policy, and thus opened the interior
portions of the State to immigration.
The Legislature Of the State at its first session in accord
ance with the mode prescribed BY the constitution for
own amendment, passed act oanng the credit Of the
State to the four land grant railroad companies to the
amount Of 81 ESQ 600 each, So 900 900 in the ag
gregate, upon certain conditions, and providing 70
its submission to vote Of the people. The sub
the State, and after the expediency and policy Of
proposed loan had been canyassed in all its bearings IN
vote upon the adoption Of the proposition as part Of the
fundamental law taken the 18th of April last
resulted in majority of nearly 900 in its favor,
the Governor duly proclaimed TO have been ncorpora'
ed as part of the constitution Of the State. /,
The conditions upon which loan Of State credit
horized these: When the companies shall have pro
duced to the Governor satisfactory evidence verified b,
the adavits of their officers, that miles roads
respectively are graded ready for the supersucure the
Governor Is required to issue the bonds of the State TO the
500 to the said companies and SO in like
ratio as the work progresses And when the
shall bave furnished like evidence that ten miles Of her
respective roads completed and the running
thereon the Governor shall issue bonds to the amount Of
100000 to such company until the limit fixed by the
amendment reached The Governor has ruled that only
half OF the So 900 600 be issued for the grading Of
the roads, and the other half when the roads
peted and the running thereon and the companies
have each and ali acquiesced in tue decision In other
words two hundred ami fifty miles Of railroad through
richest and most settled sporons of the state must Be-
fully completed and in operation before the Of the
So 600 GOO Of her bonds is delivered TO the companies
The securities exacted b. the State for the companies
are as follows to wit
/. They required to execute instrument, TO the
State edeng the net proas of the roads for the payment
OF INTEREST,"
q conveyance to the State trust OF the first two
hundred and fery sections OF land free from prior
brances, which such company is be authorized 10
sell in trust fer the better security of the treasury Of tho
State from loss on said bonds "wheh shall empower the
title Of any O. all Of said lands to purchasers agreeing
with the respective railroad companies therefor the pro-
cees of such sales to be applied to the OF nte
rest the bonds in OF default Of the payment o
the same and as sinking fund TO meet any future de-
fault on the payment of interest principal when due"
The aggregate amount thus transferred to the State Ia
Ola 400 acres
8. can amount Of first mortgage bonds the roads,
lands and franc Of the respective companies
pondng the State bonds issued shall be transferred
the Treasurer Of the State the time of the of State
bonds The construction to be given to the phraseoogy
of this section constituted the made between the
Governor and hc companies which has excited much
comment the former insisting that required priority
Of lien 10 the bonds OF the companies to be delivered to
the State over all others, and the companies affirming that
the true Interpretation would place the State upon the
he hnId
well known that the Supreme Court decided that the
son assumed by the companies the correct one but
il should be borne in mind that this decision in
affects the character OF the securities previously de
scrbed. The Governor while he expressed his willing
TO submit to the construction given TO the law by tho
highest legal tribunal OF the State required OF the
panies such change modification of their trust deeds
to authorize him, the agent of the State
absolute foreclosure and sale OF all their roads,
lands franchises, within sixty days after the
renee Of any default in the payment OF interest The in
erest on the bonds Of the companies delivered to tho
State in accordance with the requirements of the
section being due and payable sixty days in advance of
the sen annual interest due upon the State bonds,
foreclosure sale be made of default tho
part OF the companies in time TO protect the credit Of the
State bonds when interest thereon becomes due and
prccudes the necessity Of other legislation that purpose
The Governor empowered case OF default on the part
q the companies IN the payment Of interest or principal
when due In his discretion but IN such may
be prescribed by law either o sell the bonds OF the de-
aang compancs or the anas held in trust az above or
| fault might require.
"
the would admit the circumstances under which tho
loan Of State credit authorized by the people, tho
conditions upon which II was made, and the securities
enacted by the State. The early completion OF the rail
roads being indispensable to the prosperity Of the State in
| developing her resources, the loan amendment was
adopted, as has been stated with a singular unanmy.
Minnesota s much the largest State the Northwest
being more than twice the size OF Iowa and in her c
mate sod and the excellence OF her cereal productions she
Is not surpassed Her population is composed mainly of
emgrants from New England, New York, Pennsy lvania
and the Western States. The rapd,y with which she has
advanced without precedent In the history OF tho
West In 1850 her tables showed 5000
people, and a comparatively small OF property.
IN 1858, although regular has been taken
estimated that her population amounts TO nearly quarter
Of Million and the Auditor Of the reports the tax
able property 70 be more than $50 900 000
In view Of this statement Of facts the simple question
for capitalists 10 determine Is whether the bonds OF MIN
nesoa, issued with the sanction Of vast majority Of her
people, without distinction OF party and backed by
rites Of unquestonabe character and value are not N
desirable Of investment those OF any other
| State In the Union.
The work upon each of the four railroads has been pro
secuted with great vigor and bonds issued by tho
Governor until they thoroughly examined and reported
upon under oath, by competent engineers appointed by
| him for that purpose
HfNIiy Il. srBIEY Governor Of Minnesota