Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-02-19
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The Negotiation Of the Bonds..Intersss
neutrality-suspicious..
We have eight from dark corner" A
communication in the Hasting Ledger of the
18th says:
1.-THE time is past to discuss the advantages of
OF paying the tax upon the Railroad bonds. We
have only to hope that they will nerer be negotia
ted"
This is becoming the prayer and ardent
hope Of every man Of thought and intelli-
gence, who regards the permanent good of
the State.
If the Bonds are negotiated at all, on any
terms, the result cannot but be disastrous to
the State and the people at large, however
much few individuals may be benefited.
1t is growing evident to thinking men, that
the idea under which the people voted the
loan was Authorization; and that the policy
Of undertaking a Railroad sytem Of 400
miles, without capital in the Companies, and
depending entirely on State aid from SO young
community as ours, was most mistaken
one!
To persist in this wrong policy after dis
covering our mistake, is but to plunge deeper
and deeper into the mire.
To step short at once, and either retrace our
steps, or try back on new track to the start
ing point, is true wisdom.
But under that fatal Constitutional amend
ment, the "stop-short" and "retracing-steps"
policy is impossible, if the Companies persist
in going on.
We are in the hands of the Phiistines, tru-
ly, without power to help ourselves. Only
one hope is left US for salvation.
This is, that there may be an utter failure
to negotiate the Bonds at any price!
Then we can compel them to come to terms
compel them to stop in the career of ruin;
compel them to surrender up lands and char
tiers, and forego the further issue of bonds, as
the price of being helped out of the difficult
ties they will labor under from non-negotia
ton of the million and a half already received.
This is what the Hastings writer means
when he says our "only hope" of avoiding
taxation for the Railroads is, that the Bonds
will nerer be negotiated"
Let no man delude himself by thinking,
that if the Companies go on and expend the
whole five millions, there is the least prospect
of their meeting the interest on the State Easls,
aoithout taxation Of the people!
There is not dollar of real capital invested
in their stock; nor, consequently, are there
any legitimate stockholders. The directors
and officials form the entire company in each
Case
With the difficulty already thus far expe-
rienced in obtaining money on the State Bonds
when backed by the State and Railroad off,
Gals both together, is it reasonable to expect
tn ""ilroad Companies alone, will be able to
obtain any more money when the five millions
are all gone, and they are thrown back upon
their oWn minded credit, and means and rep
utatipn in the money markets of the world
The idea is preposterous. Its absurdity is
acknowledged by the leading Railroad men
themselves
1t matters not whether they they give a
prior lien on their lands to the State or issue
their own "frst mortgage bonds based on the
lands as a security. In either case, capital
lists will see, that the first prerequisite money
loaners look at, the payment of the interest
punctuauy,-would be hopeless. The lands
are wild and consequently unproductive-
The country where they are chiefly located is
scarcely surveyed and none of it is yet in
market But if the lands were surveyed and
in market, no sales could be made of them to
any considerable amount to meet the interest
Because they are nearly all at the extreme
ends Of the Railroad lines They are in q
wilderness, which for many years must re-
main such-until the country this side of them
is more densely settled. Their being on the
line Of the proposed Railroads gives them at
present no practical value. When the Roads
shall be finished, they will no doubt be valua-
BILE But to make them worth anything tan
gible in money value, the Railroads must be
finished up to theml To do this will require
at least FIFTY MILLIONS OF DOLLARS I!
Now, we submit it to reasonable men if
this is not selfevidently, hopeless sum to
expect to borrow: or even the tythe of it,
without other security to offer for the loan
except those remote and at present worthless
lands. Did even capitalists consider the
lands of some account, they would look to
the character of the men, and their response
bility, who are controlling the Roads, and, on
whose honesty they must depend for the faith
full expenditure of the money loaned, to con-
struct the Roads up to the locality of the
lands. The capital of the world has latterly
been..severely handled by Railroads, swindling
and peculation and sharp practices. Moneyed
men are sick of Railroad investments, (which
they do not find in the hands of dishonest
and extravagant men to pay even in thickly
populated countries, and on through lines of
travel How much more timid must they be,
of investing FIFTY MILLION OF DOLLARS in will
derness Roads, without connections,
lated and detached-and especially, when they
see in their managers men whose hands are
reeking with corruption from La Crosse Rail-
road associations, and ON whose brows they
see stamped the 6" mark of the beast'' from
their own unblushing bribery of the Legisla.
lures of Minnesota, first to obtain these lands.
and afterward for license to plumber the peo.
pie through this five million loan. We say,
therefore,
THAT, soith or aeithout PRIOR LIEN or mort
gag - the State, it is hopeless to anticipate