Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-04-09
: oomnlet;on of certain portions OF their

he completion Of certain portions Of 'neD
ines. , that ,
Governor Sibley has recently decided 'nA'
more stringent construction OF the Plo'
on above quoted, best accords with the On
ect proposed by the Legislature anu III IT,
ma 10 demanded by the public interests he
announces the determination 10 iSsu. @
half Of the amount of bonds authorized Ill IA
vor of each Company, on account Oh . ROAD
merely graded and only to issue 'ne 10
manning $685., 900 on proof that the prescr,b-
ed ten.mile sections are fully completed with
cars running thereon. The Minnesota and
Pacific R. R. Co., has oonformed by resolution
To the Executive construction in this respect,
and doubt not that the other Companies
will follow the example.
The Five Million Loan will not issue there
fore except as the representative of 624 miles
of road finished by each Company, or 2So
miles in operation.
For the purpose of exped;ting and securing
such a construction, the faith and credit OF the
State is pledged for the payment Of the inter,
est and the redemption of the principal OF
IS, 900, 900 of z per cent Minnesota state
Bonds. Such an application Of the puohc
credit, with a State debt limited to $2oo'-
600 for extraordinary expenditures-total
State liability S., $780, 900 with accruing inter-
est-is the limit imposed by the Constitution
to the action of future Legislatures. The Peo'
pie of Minnesota, finding it necessary to amend
the Constitution in general terms, determined
to place the rights of bondholders and the
securities exacted from the Companies, under
the protection of that instrument. No simi-
lar State loan to railroads affords this guaran-
ty to creditors, while, at the same time, the
rights and remedies of the State Treasury
against the Railroad Companies are equally
removed from the hazards of Legislative ca
price.
Section 10, of Art. 9, of the Constitution,
as thus amended, imposes upon the Railroad
Companies the obligation to indemnify the
State Treasury. The rights and remedies
for that purpose, are prefaced by the injunc
ton that "each company shall make provis
ion for the punctual payment and redemption
of all bonds issued and delivered as aforesaid
to said Company, and for the punctual pay
ment of the interest which shall accrue thereon
in such manner as to cxoneIate the Treas
ury of the State from any advances OF mo
ney for that purpose"
proceed to consider the items of "sEcU
RIrY THEREFOR"
They may be arranged into three classes
1st Forfeitures.
3D. Special or Exclusive securities, consist
ing of pledge of nett profits, and the con
yeyance to the State of 1913, 600 acres Of lant
or 24O sections, free from prior incum
brance.
Sd. The concurrent security of an amour
Of first mortgage bonds, equal to the Stat'
Bonds delivered, and transferred from tint
time to the Treasurer of State.
VII.
YoRFEITUREs.
The first forfeiture, to which compan,
may subject itself, by the terms of the LOAF
amendment will affect its right to receive fur
Their instalments Of State bonds, while anothe
forfeiture, which may prove of great impor
ance hereafter, will restore the control of tn
Land Grant itself to the Legislature, in cas-
the roads are not constructed to o prescribe
extent
l. By failure to provide for a semi-annu
payment Of interest q company forfeits Il
right to receive any more State bonds. Sin'
a definite amount of construction must pr
cede the issue of any State bonds; and, undo
the late Executive decision, there must be %
miles of completed Railroad, before the lin
of their issue is reached, of course consid'
rable period must elapse while the issue
bonds is in progress. But if single sem
annual payment of interest is neglected by
company, the issue of bonds Immediate
stops. Interest paid on the first days of Jun
and December, company may continue
receive bonds-interest unpaid, the authorit
to issue instantly ceases. The chief apprt
hension, with some DIRECTORS, has related
the early payments of interest; but it is pr
cisely at this juncture, that the full conserve
tive influence of the forfeiture under considt
ration will be exerted upon the companies.
2. The remaining forfeiture, suspende
over the directories of these roads, is embodie
in the following clause, which by their accep
ance of the State aid, has become an infexib
condition of the titles of the respective con
panies to the Congressional Land Grant:
Provided, That in consideration of IL
Loan of State Credit herein provided, tt
company or companies, which may accept IL
bonds of the State in the manner herein sp
cited, shall, as condition thereof, each con
plete not less than fifty miles of it's road on
before the expiration Of the year 1861, an
not less than one hundred miles before tn
year 1864. and complete four-fifths of tn
entire length of its road before the year 1866
and any failure on the part of any such con
pany to complete the number of miles of il
road or roads, in the manner and within tn
the several times herein prescribed, shall fol
felt to the State all the rights, title and interes
of any kind whatsoever in, and to any land.
together with the franchises connected wit
the same not pertainingo or applicable to the POI
ton Of the road by them constructed, and
fee simple to which has not accrued to eithe
of said companies, by reason of such con
strucion, which was granted to the compan,
or companies, thus failing to comply with tn
provisions hereof, by act of the Legislature o
the Territory of Minnesota vestlng said Liant
in said companies respectively"
1t will be seen, from the foregoing extract
that the Legislature of 1875, in this read
justment of the rights and obligations of tn
Railroad companies, resulting from the trans
fer to them of the Land Grant of 1857, showed
themselves to be, as the French say, masters
of the situation. By the legislation Of tb,