The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-03-06
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MINNESOTA LEGISLATURE.
TUESDAY, MARCH 2, 1855.

| SENATE.--The Senate was called to Or
der at 81 O'Clock, and the usual preliminaries
being gone through, with, 81 .lfln .,
The Committee on Engrossed Bills report
ed Nos III and ll3 correctly engIossed
| BILLS READ AsFHlRD TIME AND PASSED.
! S. +. No. ll7isrA bill proposing amend,
ments to Sec. T. ARTS s, was taken up, and
passed-yeas 20.
The Loan Bill mo. ll2) was then, on mo
ton of Mr.. SKINNER, taken up, read
third time and put on its final passage.
The Clerk proceeded to call the roll, when,
on calling the following gentlemen's names,
they made the accompanying explanations
Mr.. d. SMITH, of Hennepin, said:
Mr.. President-I desire to give my rea-
sons for the vote am about to give. -,
Doubling, sir, the policy OF paSs!ns OH
IF this inheritance before being admitted into
the Union as State, and also the necessity Oh
loaning the credit Of the state Of isrr'ory
las the case may Beg to the several Land
Grant Railroad Companies, IN order TO eiaa.
ble them to commence at an early day, and
prosecute with rspidity work upon their
resnectiye roads this season, because be-
lieve that in the present state OF the money
market. and in the condition that it will
|
months. that the Railroad Companies, with
their valuable and extensive grant of lands,
have sufficient resources within themselves to
get money the coming summer, aud prosecute
their works without any further aid from the
State. But, sir, my only reason for being
reluctant in voting for this bill and aiding in
presenting it to the people in its present con-
aition, is that it does not throw around them
the, safeguards they deserve to secure them
amply against the payment of the principal,
and particularly the interest upon the bonds,
and insufficient to justify the departure from
the rule that long experience has shown to
be wise and prudent, for States not to loan
their credit, or contract debts for internal i'm
provements, except in very extraordinary
cases still, sir, believing in the doctrine that
the people of State have the right to con-
troll all their internal concerns, and that it is
the duty of their representatives in all pecu-
MARY affairs and upon all questions of expe-
diency, to carry out the wishes OF their con-
stituents; and have confidence in the decis-
ion the people will make in this matter after
! proper in vestigation. Hence, sir, being rath-
er of the opinion that majority of the peo-
,ple l have the honor in part to represent de-
: ire to vote even upon this bill in the cOndi-
IL IN that it no is, rather than not to be al
10, we'd to vote on any measure OF the kind, l
sh, Ill vote ave. under protest, with the hope
tina the other Ho use will so amend and per-
feet the bill (as have tried to do) and send
it b, ack to us that can willingly and cheer
fully give it my support.
Mr.. HODGES of Olmsted. said he desir-
ed tt explain his position, and the reason OF
his ote before the bill was put upon its flnal
!, passa ge. He had long been convinced that
! it wa not in accordance with sound policy
| for q Government or State to engage ex-
! terslvely in works of internal Improvements.
! His reason convinced him that it was only
. upon extraordinary occasions that a State
shoul1 loan it's credit to sOulless corporations.
But the late financial revulson bore heavily
upon ma, ~ of our fellow citizens, and they
desired tb. vt the State should step in and fur
nish the me. ans to Railroad Companies, tor
the immediat construction OF the four Land
Grant Roads. as a measure OF relief from
present embarra ssment. On account OF this
prevailing desire. and also tAe known desire
and feelings of his constituents. whose wishes
he was bound to res yect, and whose servant
he acknowledged him. elf to be- he bad con-
Guided to vote for a bill providing for such
amply secure the State az ail.'st the payment
of either the principal or interest OF the
bonds issued to such Comp anles, and guaran-
tee the faithful appropria ion OF the loan
to the construction of the respective Kali
roads.
This was his mtimatum TIL is he believed
to be what his constituents de. handed at his
hands. Being unacquainted wi tn the fSall-
road Directors, he had acted and should act
without consulting the wishes oft 'ther mem
bers of the Senate, or of outsiders, upon his
own judgment as to the securities required
by the bill.
He said the only portion of the i'll, re-
quiring that any part of the respective roads
should be completed within given tim,: was
contained in Mr.. Smiths amendment. "A
forfeiture of their lands and franchises is the
penalty for the non-fulfilment of that p,' ar
ton of the contract upon their part. Man. Y
doubts are entertained as to whether an
amendment to the Constitution can be adOp-
ted which shall compel the Companies to for
| felt veSted rights upon q certain contingency.
His colleague expressed his doubts upon the
matter yesterday, and as he is familiar with
| the officers of these Companies, he is supposed
to speak &c cathedrG. But admit that that
portion of the bill is effective and binding, he
asked what then are the securities for the
payment of the principal and interest propos-
ed to be given by the bill.
| He examined the securities with reference
to contingency which certainly might hap
pen, and which ivould happen, if the compa-
MES were dishonest and irresponsible (as
they had been represented to be) and if they
should desire to obtain the loan faster than
they expended it in the construction of the
roads, and if they should desire to avoid the
payment of portion of the interest and prin-
cipal. For every ten IN lies of grading done
by the respective companies, each company
could receive State Bonds to the amount of
100000. Each company could receive an
aggregate amount of $l,25O0O0. Then up
on grading 40 miles, each company could
receive the whole amount of 81, 900.
This grading could be done in ten mile sec
tons where it would cost the least. Some
of the companies could grade the 100 miles
in such places, if they should chose to do so,
that it would cost much less than the amount
they would or could receive from the State.
They could also grade that amount before
more than one installment of interest would
become due. That installment they would
of course pay, in order to secure the issue OF
their full amount of bonds. But suppose
that thereafter, such company should neglect
or refuse to pay the interest as it became
due ! What would the State hold us secu-
rity against loss The nett profits of the
roads. That is acknowledged to be nothing.
As further security she is to have the first
mortgage bonds of the respective companies
corresponding in amount to the State bonds
issued. Those miglh have furnished some Sc
curity to the State if Mr.. Cooks proposed
amendment had been incorporated in the
bill I; it provided as follows that " the first
mortgage thus transferred to the State Trea
surer shall be the first lien upon and take
precedents over any other bonds that may
he issued upon the first fifty miles of road
which said Companies may respectively con-
struct" ........ .,.....t~.. a:s.4