The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-03-18

started in prosperous times, and are now
considerably under way. But the people Of
Minnesota are not satisfied to give our
Southern rivals another years start, and
lore, in consequence, our share Of emigration.
They prefer TO use the credit Of the State,
and thereby secure the expenditure of five
millions Of dollars, il they can make sure Of
two hundred and forty-eight miles Of CON-
pletsd road or five hundred miles of road.
bed ready for the iron, and can so bind the
Companies az completely to exonerste the
Treasury. This is done by the terms Of the
Loan of State credit. Minnesota, by adopt
ing the measure, shows her own confidence
in her scheme Of Internal Improvements,
and the creditors Of the Railroads will find
the State vigilant trustee for their benefit
and her own security
1t is this cooperation between the State
and People in the speedy and efficient con-
struction Of our railroads, which is all that
capitalists require. They took 10 The roa,is,
as Their principal debtor. They ask for no
taxation Of the people-they do not wish it
nor is there single advocate of the loan
measure in the Legislature or out Of it, who
proposes any thing OF the kind. The money
can be had to start these roads at the open
ing OF navigation, as we are crediby in
formed, provided the assurance can be given
that the State of Minnesota will assume the
relation Of Trustee between capitalists and
the Companies.
We propose to devote this article to the
Securities held by the State against any
payment by the Treasury for interest Or
principal on the State bonds issued.
/. By q future TO provHie The deputng
payments Of interest, Company to,te,t the
right TO reoe're any further instrument of
State tond,.
This provision has not been sufficiently
considered in the progress of the discussion.
1t became OF value, when the principle was
adopted, that no State aid should be given
until there was definite amount Of actual
construction. Under this rule, the issue of
bonds il a guaranty of work done--when
the limit of their issue is reached, there is
two hundred and forty-eight miles OF railroad
as its equivalent. OF course, this will take
time; but il Company fails to meet single
semi-annual payment Of interest, the issue OF
bonds Immediately stops. The matter regu-
lates Itself every six months. Interest paid,
the company may continue to receive bonds
interest unpaid, the authority to issue in
SANITY ceases. At the outset, therefore, if
not a year or two hence, there is much vir.
tue in this clause and We know Of many
DIRECTORS, who have no fears except for the
first payments Of interest. When the roads
get fairly started, they say all apprehension
may be dismissed. These first payments Of
interest, as well as the funds requisite to con-
struct the first ten miles ready for the su-
perstructure,will probably be furnished from
subscriptions to capital stock, which will, of
course, increase under the new impulse.
,. Tie adt profits ot the roads wH be-
come an important uem Of security for the
payment Of interest on State bondS.
We are aware that the opponents of the
measure are accustomed to sheer at the
pledge Of nett profits to the State but all
experience in Iowa and Missouri shows that
the first twenty five miles of road extending
west OF the Mississippi river, is invariably
profitable This pledge Of nett profits will
become available, therefore, long before each
company will receive the total amour, of
State bonds issued; and when the whole
siyty-two miles are in operation, who can
doubt that the first care Of the stockholders
viii he 10 provide ior the interest on State
bonds a., otherwise, there would be no
chance for dividends. Such a pledge of
nett profits was the only security reserved by
Missouri for tie paymen, of interest by the
Hannibal and st. Joseph road on loan Of
two millions, but Il was sufficient . and, il
found so even before company begins con
struction, las in the instance just citel,)
certainly the assurance grows doubly sure,
as construction is pushed forward. At
prcsentthe Hannibal and st. Joseph road is
operated seventy-tive miles, and the trans
portation exceeds the most sanguine calcula-
tions Of its projectors. A pledge OF its nett
profits would now be recognized as ample
security for thre ,inss the original loan of
State credit nor is there Minnesota Land
Gran, road but will exhibit rs favorable
state Of things. with the same amount Of
construction into the Interior
; The Smk,ng F'md for The REDEMPTION