The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-02-10
Are the University Bonds State BeRds-
And upon what are they Based


The notes OF he Bank OF N,eole, County located ct s,
Peter have been issued BY The Auditor 10 the amour,
a. 81 90. State University Bosds Ten thousand
eoaner.igoed By tho Auditor upon the same eA..-s'
Pasi Pioneer, fe 8.
we confess to not exactly understanding the
above. Will the Psonse' explain,
1t would seem, however. that q nstr basss for
bank ing is being established BY the State Ex'
ecutive and the State Auditor. sc.thout the color
on authority Of ia'c.- 1hnnssotian yesterday.
This paragraph from the minnesota" is
followed by much more to the same purpose.
If that paper had taken half the trouble to
ascertain the nature Of the above mentioned
securities that it has to misrepresent them !;
lift had applied for the information necessary
70 form right conclusion, instead of rushing
at random to n wrong one. injurious to all
the parties concerned, we should not be
under the necessity of censuring its reckless
precipitation in the premises, while crafty
inc its reasonable desire for the materials Of
q correct judgment
There is q difference OF opinion at the out
act. between tire editor Of the M'nnesotian,
and the Attorney General Of the State. The
editor says;
The d" First Mortgage University Bonds TO
the amount Of $40 600, issued by the Regents OF
the State University, on the pledge OF Their two
townships of land. are not certainly the Pub
lie Stocks issued by the Asts Of Minnesota.
Now the Attorney General has placed on
file for the advsement Of the " State Execu
tive and State Auditor an opinion just the
opposite Of this lie explicitly states that
the University bonds aforesaid are State
Stocks of Minne.ota, and as such receivable
on deposit by the Auditor as security IN
der the Banking Laws Of the State. This
opinion enters fully into the whole question
quotes all the Territorial and State legisla-
ton bearing upon the subject--and closes
with the irresistible deduction aforesaid
We happen to know that several Judges
who have been consulted, have conceded
extra. judicislly" in the same interpreta-
ton of the law. II does not require much
legal sagacity to comprehend the purport OF
the following sections of an act Of the State
Legislature, passed on March stb. last.
Bet enacted By ase I~gi'ta,@s Of the State Of
Mtnnesots
SxC. /. That the Board Of Regents Of the
University Of Minnesota, are hereby empower.
ed TO issue bonds In the name OF the said Uni
yersity Of Minnesota, and under the corporate
seal Of the said University, signed by the Presi
taH ky SecrptaFg Of said
Board Of Regents, and payable at such times
and in such manner a. the said Board may
deem best, to an amount not exceeding the
ann of forty thousand dollars, with interest
thereon. not exceeding twelve per cent. per
month.
hereby further empowered, in order 10 secure
the payment of said bonds, to make, execute
and deliver, IN thu name of the State 81 Mime
. otd, . mortgage or mortgages, on any lsnds
now belonging, or which may hereafter belong
to the said University, and said mortgage or
mortgages, signed by the President OF the
Board of Regents, and duly acknowledged by
the said President before any person authorized
to take Acknowledgements Of deeds, In this
State and recorded in the Office Of the Register
Of Deeds Of the county in which said iands are
so mortgxged and situated. or IN the county TO
which il il attached for judicial purposes, shall
be lien upon the sad lands until all sums o"'
I0g upon shiu 'hhy "'S""'h""'
Now the able opinion Of the Attorney
General shows that the University lands do
not belong to the Regents, but to the State,
and that the Regents are merely the corpO'
rate agents Of the State, in taking care OF
the University lands and property; that
the above bonds are issued for the benefit Of
the State upon its authority, and secured
upon its property -thc Regents being moth
INK more throughout than the temporary
agents Of the State, chosen periodically by
its Legislature, to carry out the objects OF
the University Grant, and the bonds being
authorized by the Legislature simply as
means to that end and are, therefore, in
every respect, State Bonds, for the redemp-
ton OF which the State is liable in the con
tingency of default in the landed securities
provided in the above act.
While upon this subject, it will be proper
to correct another misspprehensloD, which
mas obtained some currency among HIN
formed people, relative TO the iu'hc"n'y OF
the securities upon which these bonds are
based.
TIE whole amount of University bonds
issued, or authorized to be issued, is fifty
five thousand dollars, OF which fifteen thous-
and dollars is based upon a mortgage OF the
University buildings. at st. Anthony, and
the twenty. seven acres upon which they are
si,uated. These have nothing 10 do with
the University bonds IN question which
have been Issued ia the sum Of forty tsous
and dollars, under the act above quoted
upon mortgage security Of two townships
or sc OsO scres Of lard. l, has been
STATED that these lands were mortgagcd IN
the relation Of three dollars and s bali 10 The
acre. The above statement shows that they
are pledged for less than one dollar peracre,