New-York daily tribune., 1859-01-01

I'VE copy from The NIrdnkte Ners tie detab Of
formidable organization of ralroai farm mortgaSors
on the hne Of the La Crosse and Mlwsuksc Rs,rc.t,
foot to resist the claims Of the mortgages Tn
ktrs regards this movement az only cootemplst stin2
~ ssstarce through the courts. We trust this may Be
the fact, though for uron simple and p~scess u
would hardly seem necessary to sit With cioesd
doors. Whatever may BE- the result Of tbs lit
gstior proposed 70 be instituted, Il is not likely
that the holders Of the mortgages viii reaixs
on their investments in q hurry. Nor viii she
State Of Wiscoosin ccme out Of her financial nud-
die with savory reputation than Mississippi, u
she ecws another year to pass without devtsog vS-
| orous ways and means Of reiief."
Gov. Sibey Of Minresota has pablsaed the annexed
stsemeut 10 regard the issue ot S,ste bonis 10 rs
! reads: ..I
NEwYoRK Doc. 2s, 1851
Il is my duty as the Governor Of the State OF NH
nesota to correct publicly certain
which have been made here relative TO the bopds u
that State seed or 10 be ssued by virtue OF ooo-
stitUtiona provision, as loan TO expedite the cea'
s'rucon Of railroads within her limits. propose 70
effect this by making psin statement Of fscts. Law
rg your reacers and the public generally o draw thef
own conclusions tberenom.
The Constitution Of The State Vi Minnso)A Is org
inaly framed and adopted by her peoS Restricted
tie public debt-excspt IN cases Of nvsoa OF insur
rectop-t to $3.50 OO0. Subsequently,, became evdcat
that to insure the speedy construction OF the rways,
for which the State has received from Congress mn
fcspt gfsnt of land the State must lend her aid 70
those companies chartered by the Territorial Legs,a
ture to which the lands had been transferred by the
same authority for railroad purposes. rn's sid w~
rendered especially necessary because oi the financial
embarrassn-ats OF 1857 which mwie Il impossible for
the companies 10 raise money upon their lands as they
had been authorized t. do by their charte The othsr
North Western States diligently prosecuting ther
railroad communications; and Minnesota must labor
under manifest Disadvantages unless she pursued
like policy, and thus opened the interior poreoos
the State to immigration. ,
accordance with the mode prescribed by the Const'
tuition for It's amendment passed sn act losnios
the credit OF the State to the four land grant rarosa
companies to the amount of 81 30 OOO each or *oVo
GU in the aggregate, upon certain confjpons, ana
providing for its submission TO vote Oh tue peop's
The subject publicly discussed IN all poruoasot
the State, aud after the eIpedlency and pohcy ot e
proposed loan had been csnvssseo in all lts bearings
the vote upon the adoption OF the propostos - psn
of the fundamental sw was taken on the 10th os Ap
last and resulted in majority Of nearly Dooo m its
favor and the Governor duly proclaimed IL 70 nave
been incorporated as part Of the Constitution ot tho
Stste. .s,..
authorized were these: When the companies shall
nave produced to the Governor satisfactory evidence.
verified BY the afiiayits of their officers, that Toe
miles OF their roads respectively are graded read ot
the superstructure, the Governors required 70 ssu0
the bonds of the State to the amount of tlW,'
90 10 the said companies, aud 80 IN hke rasio
"a the work progresses. And when the companies
shall have furnished Ike evidence that ton niles of
their respective roads completed and the cars run
ming thereon the Governor shall issue bobds 70 the
amount of 100000 to such company until the unl'
6.ed by the loan amendment is reached Lae m Lover
he's ruled that only onehsn OF the ~ othse
half when the reads are completed ana t9s cars ius
ming thereon and the cospsnies have sach ana a so
gussced in the decsoo. In other words TWO nanaass
sna y miles .. .. sa 1.ss must Be fully
and IN operation before the whole Of the 5000 no Ut
her bonds is delivered to the companies
lhe securities exaoted by the State TOR tho com-
DaJies ale 40 follows, to WIT:
They are required to execute an instrument To tho
State pedgiDg the net profits of the roads tor shs
3 A conveyance to The State in trust of the frst
two hundred ana forty sections Of land fre from pror
membranes, which such company Is or may Do
authorized to sell In trust f0s the better security vi
tine treasury of the State from loss on said bondss
which shall empower the Governor AMI Secretary OF
State to make conveyanoes of title Oh any or al On
said lands to purchasers agreeing wna the respeo.
tive railroad companies therefor the proceeds Of
such sales be applied to the payment OF interest
upon the bonds in Of default OF the payment OF
the same and as q sinking fond to meet any future
demands on the payment Of interest OF pnncipaa
when due. The aggregate amount thus Transferred
to the State is GA, 400 acres.
g. "An amount Of first mortgage bonds on the
roads lands aud franchises Of the respective conps
pies corresponding to the State bonds issued shall be
transferred to tho Treasurer OF the state at the uns
of the issue Of State honda. The construction TO be
given to the phreseology of this section Constituted
the issue made between the Governor and the compa
nes which has excited 80 much comment, the former
insisting that 10 required priority Of hen TO tho bonds
Of the companies 10 be delivered 70 the State over al
Others and the companies Affirming that tne true IN
t.rpretatcp would place the State upon the same foot
ing with the holders Of first mortgage bonds IL 10
well known that the Supreme Court decided that the
pOstion assumed by the comp panies was tne correcs
oIe but should be borne in mind that this decision
n no affects the character VI the securities pro.
viousIy described. The Governor while he Expressed
his wulng to submit to the construction gwen "
the iav by the highest legal tribunal of tbs State, re-
auired OF the companies such change or mo1incauon
Of their trust deeds 10 authorize hun, ~ the sgem
of the State tO canss absolute foreclosure and sss
Of oil their roads, lands or franchises, wilma SKY
days se n the occurrence Of any default IN the pay.
mept OF aterest. The interest on the bonds OF tue
empaDes delivered to the State 10 accordance With
the qure ments of the foregoing section being dnc
ard payable sixty days 10 advance OF the SEM annos
interest due apon the State bonds, foreclosure snd
comp paoes in time to protect the credit of the Ssss9
bonds when the interest thereon becomes due, ena
preeudes the necessity Of other legislation Tor thas
purpose. II ..,.n,. ~,
the part of the Companies IN the paynent o.
manner as may be prescribed by law, eithr " 70 seI
the bOIds Of the defaultirg companies or tue hnds
Leld ia trust above, or may require ior rsciosuSs
of the mortgage executed to secure the ssms estas
greater less gravity of the default might require
have tbus set forth, In brief erns 40 the nar
ture Of Il case would admit the crcumst .nces under
which the loan vi State credit vas authorized ~ sns
people, the conditions upon winch VS. mne, an"
The securities enacted by the State. The early com
petion OF railroads being 10 the pros
o,ry Of the state in DC 1eiopng her rssoascss, toe
loan amendment was adopted 80 has been staSeo' WIN
O singular anaIindty A. A.,
west being more than twice the size Of Iowa, ana In
her climate soil and the excellence o. Der ostes pro
ductiops sbe il not surpassed. Her popalstion 10
nr,nno.sa ,a;nIv NJ emgrapts from New. England.