New-York daily tribune., 1858-11-20
THE RAILROAD SWINDLE IN MINNIE.
Sofa.
Correspondence Of The n. Y. Tribune.

Cptrespondepoe OF The n L. Tribrne.
ST. Paul, MINNESOTA, Nov TO- 1853
The curtain has just fallen upon the close of the
second act in the great Railroad Loan tragedy Of
this State and dark and gloomy prospect never
presented itself to the people of State than now
stsres the poverysircken people of Minnesota boldly
IN the face. As the question has now assumed form
n which the people Of the East-especialy your cap
ialists-may be interested, it may be well to briefly
state the case as il now stands
When the Railroad Loan was first proposed, the
Companies interested simply proposed that the State
or bonds As security for these bonds, they agreed
and embodied in the amendment to the Constitution
authorizing the loan the following conditions:
sgs %ss a % M q. ao,
ad .sd CS%Po"y ard 70, q. e rsseSs & S@y.ts a
ate the Tea'uvy Of this State fro. any Advance Of MONEY 70,
ss security therefor the Governor shall demand and
receive esch Of said Companies before any Of said bonds
Issued an psdsG the met profits 90 90 it's IT, IS.S St
the hund red and forty sections Of land free from Po
% IN I o the br .s"ly i the Sa.gy Of
om said bonds which said deed of trust shall sutor1e
respective R.IOsd Cowpsns: therefor Pr0rs'a That before
BE- approved BY the Governor but the Of al such sales
iond i 10 ees ee.s Of default q The pymsD, same
sinking to meet any future default in the pay %ens Of IN
security an mortgage bonds the roads iand'
e.d ane Of the ,sps.,s sorpan ss,'1nsng 90, M
Stat at the hms Of the issue Of State bonds"
Upon such conditions, and ten thoussnd times as
eured by rsrOad orators that in no possible contin-
Cenoy could the people be called upon to pay single
dollar either of interest prr cPal of the bonds the
loan voted.
Without stopping to give the details OF the manage
mont of the railroad companies from the time the loan
was voted. their repeated violations by the conditions
upon which it was granted the gross corruption which
has characterized their whole course thus far, 1t is
enough for the purposes of this letter to say that they
now refuse to execute the State the First Mort
gage Bonds" called for by the act, but propose to
issue TwEsTYTHREf MILLIONS OF First Mortgage
Bonds" and deliver to the State an amount OF such
bopds equal to the amount OF State bonds received
ly them To this most dishonest and monstrous
proposition which violated the main condition upon
which the people voted the loan, and which, IN fact
robbed the people their security for the payment OF
the bonds issued to the Companies, Gov: Sbley dis
sented and promptly refused to issue the bonds
But the spoilers were not to be cheated OF their
prey either by constitutions or Governors, and they
therefore appealed to the Supreme Court, from the
decision Of the Governor, and asked that mandamus
be granted compelling the Governor to sign and issue
the bonds. The argued yesterday before the
Court and this morning they decided that the writ
must ISSUE Judge Flandreau dissenting.
What course the Governor will now pursue remains
TO be seen but if he decides under the action Of the
Court issue the bonds, let Wall street prepare TO
receive an army of friends from this State each
loaded down with the precious documents" They
will of course be handsomely "got up" duly embei-
Eshed with "cuts of railroads completed, and trains
Of from seven to ten coaches all " crammed' with
passer gers passing them, while in the prettest
and "most attractive" type the words STATE RAIL
ROAD BoNps" will fom sort of " semi circle" over
the upper half of these precious and valuable dccu
mepts On the whole, they will, think, be just az
pretty $ picture, and will doubtless "go of in
Wall street Ike hot cakes.
Buttheie is another feature of this Railroad Bonds
transaction which is Of Importance not only to the
holders Of these bonds, whoever they may be- but
which bids likely to prove important affair in the
history of our State.
That the people Of Minnesota can pay the interest
sccuuulaing on these bonds one believes and that
they will not pay it, may predict, be set down AS
certainty To pay their present taxes, and carry on
the State Government, is all or more than they can
DO and so soon as the interest on five millions OF Rh
road Bonds becomes due, You WILL fear, see MiNsfs-
dsgrsoed by tn al most unbcarable OF all dl-grsces
--RrPVDIArlos That there will be any good excuse
Tor such a course no one will claim but yet, loaded
down as the people are by financial burdens, and
wholly unable to meet the obligations they so uuwisey
incurred they will be driven to that most dishonorable
q all causes, reputation.
Nor ~iu they want for excuses. poor though they
may De for such course. In vo,ing Ia Issue these
bonds 10 the Railroad Companies they did il upon the
express conai,ion that the Companies would gye them
hrtt mortgage bonds security for the pa ayment Of
The Stale bonds. But now the Companies come boldly
fwsid and rob them through the aid of the Supreme
Court, Of the very securities upoo which they were
induced to vote for the loan.