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

only one thousand three hundred
and thirty nine acres per mile for
twenty miles. S.7s
SsstAon kussescsa IS grantee OF Root
River line. ditto 20 NJ. & [. V.
II IT, 70. OBSERVATION-DISCLOSURES. 70. II
Beyond these quantities Of land, immedi
aiely reducible 10 possession and available
for sale, the value Of the munihcent grant
devoted 10 the public works of the State
was contingent upon the confidence of cap,
itAlists.
The hopes and plans. which attended the
Inauguration Of the railroad system OF Min.
nesota, were identified with the continued
prosperity of the community
In the collapse Of credit which closed the
year 1857. the railroad interests foresaw a
postponement, apparently inevitable, of the
sanguine expectations which had ushered a
summer of activity Nor were the public
unaware of the nature Of the obstacles, thus
suddenly interposei 10 the consummation OF
projects, 50 dependent upon the favorable
aspects of the financial world.
The suggestion WAS at length made, that
the State of Minnesota WAS adequate. by
the use of the public credit, to prevent a
suspension Of these important enterprises.
Then followed winter of active discussion.
resulting in the submission of Constitu
tional Provision authorizing the Loan of
State Credit 10 the Land Grant Railroads.
On the 18th of April. 1858, the Amendment
was ratified by large popular majority
! desire without unnecessary repetition
To present an impartial exposition Of tha,
measure.
LOAN or srArE CREDIT TO RAILROADS BY THE
STATE OF MINNESOTA.
For the purpose Of expediting the con-
struction of the Land Grant system OF roads
in Minnesota. a special issue of the bonds OF
the State is authorized, bearing interest at
seven per cent. per annum, payable semi
annually Ia New York. and which mature
on the LIST day of December 1888. OF twenty
five years from date The amount issued to
each company cannot exceed twelve hun
bred and fifty thousand dollars, and the
total issue is limited to an aggregate amount
of five millions of dollars.
The manner In which these bonds may
issue Is thus detailed in the Constitutional
Provision
Whenever either of the said companies
shall produce to the Governor satisfactory
evidence. verified by tue aili.i~sil vi IN.
Chief Ell sineer- Treasurer. ard two n
recton Of said company, that any ten miles
Of the roa.t ot said company has beer actu-
ally conssrncied aud completed. ready for
plscing.tise Superstrsctare thereon. the g low
ernor shall cause to be- issued and delivered
to such company bonds 20 the amour, II
one hun ;se5 thousand dollars, snd wheuex-
er there's Ten. aai as oftc1 RS c..hr. q all
companics sasi' produce So tbr Governor
like eviosuca 81 a gHrtlsr c,uslr,rrtiou of
ten mile 81 ~ road ~ aiuroaai,i. then tn.
Governor shall cause 10 be Issued IL such
company further like bonds to the amount
of one hundred thousand dollars for each
and every ten miles of its road thus oon-
structed; and whenever such company shall
furnish like evidence that any ten miles of
its road Is actually completed and carr run
ming thereon, the Governor shall cause 10
he issued TO such company like bonds 10
the amount of one hundred thousand dol
lars and whenever thereafter, and AS often
As either of said companies shall produce TO
the Governor like evidence that any further
ten miles Of said road Is in operation AS
aforesaid, the Governor shall cause To lie
issued to such company further like bonds
to the amount Of one hundred thousand
dollars, until the full amount Of tho bond.
hereby authorized shall be issued prot.ded.
That two-fifths and no more Of all bonds
issued tn the Southern Minnesota Railroad
Company shall be expended in the construc.
ton and equipment of the line Of road
from la Crescent To the point Of junction
with the Transit Road ss provided by law !:
and further pror,dod, That the Minneapolis
and Cedar Valley Railroad Company shall
commence the construction of their road AT
Faribault and Minneapolis, and shall grade
an equal number Of miles from each If said
places -
While the Loan Of State Credit was under
discussion, prior u its ratification by the
people, the prevalent construction was
that company might entitle itself to the
full amount Of bonds authorized 20 be issu-
ed, either by the complete construction Of
sixty-two and half miles, or by grading
twice that distance ready for receiving the
permanent track. In the case last stated
q road bed prepared for receiving the super
structure, the amount Of State aid would
be limited 10 ten thousand dollars per mile :
while the advance Of bonds upon full con
struction Of sixty-two and a half miles By
each company or two hundred and fifty
miles by all can never exceed twenty thou
sand dollars per mile
| IL WAS urged in favor Of giving such an
option to the companies, that a railroad
company, by the sale Of first mortgage bonds
or subscriptions TO its capital stock. might
/ provide the means otherwise than by the
/ sale Of STATE honda To Law down the ties