The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-04-03


ry of State to become the conveyancer.
and deed executors for the Railroad Com.
panies. When company sells the lands
they will be bound by the amended con.
stitution they have sworn to support, tc
make deeds to purchasers agreeing wiM
tie respecttice Railroad Companies there
tor" Though the State is to be swim
died, and these State officials know the
fact, they cannot change this constitutions
al provision for the protection of the
State, but must obey it, without discre-
ton. The rights Of the "purchasers" and
parties will enforce this construction.
Next in order in this bill of iniquities, is
an ostentatious "Provided," omnibus of
other like projections of ''the Treasury of
the State"
oh. Provided, That before releasing The
interest Of the State to such lands, such sale
shall be approved by the Governor"
Thus before this grand swindle shall
have been played out and the confiding
u PEOPLE 80 and available lands all
sold by the Railroad Companies, "such
sale shall lie approved by the Gorernor. "
The Governor has no discretion, the COM
mand is imperitive. If "such sale' was
made subject to the approval or disappro-
val of the Governor, the law would be
different, but the constitution thus amen
ded will say, ''such sale SHALL BE APP
PROVED by him. This is, however, af-
ter all only one Of the apparent blinds of
the bill, as if to hoodwink the people in
to the belief that the Governor is made
the guardian Of the public interests. But
if our Interpretation were doubtful, he is
required as already shown, to sign the
deeds, to any purchaser who may agree
with the Railroap Company, and by that
act of course exhaust all his authority and
in fact approves the sale, which he could
not refuse to do, so as to effect the rights
Of third parties; so long, at least, as the
Companies are not in default in the pay
ment of interest, if then. We must hasten
through this analysis Of the securities"
the next clause begins with promis-
ing SHUT"
9TH: "But the proceeds Of all such sales
shalt BE applied t. the payment Of interest &c
c,uing upon the bonds m case Of default Of
the payment Of The same, and as a shaking
Jund to meet any future default in the pay
me"t Of interest and the principal thereof
achen DUE
The Company has already been made
the trustee to sell the lands and receive
the proceeds, and as trustee, there being
no provision to the contrary, will hold the
proceeds" to pay interest in case of de-
fault, sand as a sinking .fand," which
may, perhaps, sink so deep into the pock-
cts of the Railroad Companies, that it
will require miraculous power to accom-
plish the resurrection Of even a ghost of
the sinking fund.
The remaining security, .'un amount of
first mortgage bonds" has been sufficient
ly riddled already.
After any company shall have drawn
quota Of the loan, and defaulted in pay
ment Of interest the bill provides the fol-
lowing remedy to save the people from loss
and consequent oppressive taxation, and
here ends these much extolled safeguards
and ample securities:
7th. "The Governor shall proceed in such
manner as may be prescribed by law, to
sell the bonds Of the defaulting company
or companies or the lands held in trust as
above, or may require foreclosure of the
mortgage executed to secure the same"
The distinctive, cor" may be construed
by the railroad men in their favor. At all
events if the bill pass, their friends will,
at the June session, prescribe the reme-
dial law, and when it is remembered, that
this will be done by the same Legislators
that passed the loan bill, there is surely
no violation Of probabilities, or even Of
certainties in surprising, that their legis-
lation will be in accordance with the be-
hests Of the railroad companies.
Now, after this analysis Of the securi-
ties, which l believe to be in accordance
with strict legal Interpretation and con-
struction, let us indulge in a prophetic
glance into the future to see how the swim
die may be worked out.
We will suppose the time to be the first
Of June, 1858. Each company has sold
its 100 fections Of lands, and holds, or
has divided, or otherwise disposed of the
proceeds, coni;ded to it for g the better
security OF the treasure Of the State. -
The directors have received in consider
alton OF services, depot grounds, &C., &C.,
ten or fifteen millions of first mortgage
bonds ; they have sufficiently sraded their
road, over the most level lands of the prai-
ries, or they have done batter if you please
TO draw its shares Of the loan.
AT this stage of the game, the roads are
in debt to the State $5,0O0,OOO' What
will the railroad men, as shrewd fanciers
do then? They may do this bankrupt
their respective companies, and extinguish
the debt. A quick way TO make five mil
lions, for which there are abundant prece-
dents Under the old banking system,
the most profitable part Of the business
was to expand, and then break, buying
their promises, start anew, and repeat the
same operation. many expert business
men and professional linanciers travel the
same beaten track to wealth rnd honor,
and why should not railroad companies?
By such coup de grace the companies
VIII, III single strOKe OF masteIly policy,
sink the trust iunb and wipe ont an on
erous incumbrance. Shall we expect NOR
tai railroad kiters, in pursuit of improve
ment under difficulties, to resist so magni-
ficent chance for speculation Would
it be fair to treat them as culprits for yeal-
ding to a tenn so powerfully seduc-ioatpt
tive as this ? Besides, they will then
have a multitude of reasonable extenua-
accidents, &c., &c. To
serve the State they will periodically
cause their respective companies TO be sold
out for the benefit of the bondholders.
they, themselves holding most of the bonds
the suffering and disappointed State, the
balance.
And then zee may see the old vampires,
revamped with some fresh associates, into
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