The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-04-10
A Letter from the Auditor of the State
of New York, ON its Losses from Loans
Of State Gre dit.

A Letter from the Auditor of the State
of New York, on its Losses from Loans
Of State Gre dit.
DR.. TEFFT, the able representative from
Wabashaw County, was in st. Paul yester-
day and furnished us, in the subjoined COM
munication, with copy of an original letter
in his possession, from the Mr.. BENTON, the
Auditor of the State of New York, respect
ing the losses experienced by that State by
loaning her credit to Railroad Companies
New York has lost already about SIX AND
A HALF MILLIONS OF DOLLARS by
the operation. Will not Minnesotians take
warning from these bitter fruits, from such
policy in a sister state or will we 60 it blind
to "regret it at future day %
ST.. PAUL, April 7th, 1858.
EDIroRs MINNEsorIAN:-In the article re-
pudiating the State debt of S., 900, 900, en-.
dorsed by the MORTAL SIXTY, and in many OF
the principal papers of the Territory, will be
found the following language, viz:
"We found also, that other American
States had loaned their credit for railroads, to
one aggregate amount of not less than one
hundred millions, often with less, and never
with more security than we required, and
there is not a single instance on record aohere q
dollar of tagatiOn has been leoied or pad there
for"
Now upon this point wish merely to add
the testimony of the AUDITOR of the
STATE of NEW YORK, which is as fol-
lows:
ALBANY, Feb. 15th 1858.
Hon. Dear Sir: have your letter of tn
4th inst. and contents are noted.
am sorry have not the documents in compact form
to show you the bitter fruits to the State Of the mistdke'
policy commenced in 1888 before that time, of loan
ing the State credit to aid in the construction Of Ger
tain Railroads.
THIS State has paid $3,515 ZOO of principal an
S2,933, So 81 of interest, or has assumed to pa
and must pay these sums for the loan of its credit
sundry Railroad corporations which had become insol
vent
The practice of loanng the State credit to corpora
tons had been and DISASTROUS previou
to 1885, that the State convention of that year, nserte
provision the State Cons ution prohibiting the LIE
gislature from exercising that authority.
No loans of State credit have been made since tina
| period.
If your young State begins with a contingent debt
$4,000 900 loaned to Railroad corporations unless 20
shall have better luck than have had, you aoiU pr
bdJty regret at some failure day. Some portion
the contingent debt of the Sta arising from loans
corporations has been paid but it is quite small POI
| ton of the whole sum loaned.
Even if the State should take First Mortgage Bone
security, there will be thod devised to get
State to release postpone their lien to indi0iduo
| creditors Of the companies.
1 repeat my regret at being unable to furnish yo
with documentary information relating this matte
but the facts are now only found in large cumbe
| some volumes Respectfully ours,
N. J. BENTON, Auditor
The above letter is in my hands, and b.
fore the bill passed was read by more tina
one am ongst those members of the Leglsls
ture, who put their names to the documen
signed by the ''sxty."
Yours, &C., N. S. TEFFT.