Saint Paul weekly Minnesotian., 1859-12-03

IL.
Those heroes O. Of the, sword and pen pen, 1870 8
| Campbell and Scott beside-D 70 9pa'
sns The Tariton PLAID, and Ls6ooln green, las1
t. Can be nought else hnf scoha'sptide. .so
sIae About half past one o'clock wecsms away.
The last thing we remember seeing was the
President making more punch, while two or
three persons were trying to sing as many
different songs. i;d9ff leIIioe To- e9rah9 Il ?
T. .ainie-e--. II alGss- Id uaei-l llozr8- ID
/ whas sskalIweoAofwiih tho STATE Rail.
Is bEa Tsdjoaroad Bondss ssris bsrsnus
The session Of the Legislature is 20 near at
hand, that it is time discussion was resumed
as to the remedies for Cur financial difficult
ties, and as to how the Railroad Bond question
| is to be settled. The new editor of the St
Anthony Necs,g U. Thomas, Esq, has been
giving this subject considerable attention
lately. We copy one Of his articles below,
headed Repudiation' While not at this
prepared to endorse all his views, We ask for
them an attentive perusal. They are those
evidently Of thinker, and deserve, therefore,
consideration aA 'ta's2a .aA25sAsf7SaA iIgoaa.
REpuDrAr1oS.-To refuse to pay an honest
debt is an act of moral turpitude to refuse
to discharge merely technical obligation may
be simply an act of justice to oneself, The
former involves the loss of character the lat
ter only incurs the liability to legal PEN
atty sJo.ia -a..i.a s.a.reg Gorl -go.y
| This is positive distinction, and one which
we must keep in view, while determining the
| future action Of our State in relation to the
State Railroad bonds. fsta5 5Dd .rs& f-s8.
The cry of reputation will undoubtedly be
raised IN opposition to any attempt to re-
| duce the State indebtedness below the face
of the bonds now issued. 1t is a cry which,
appealing as It does, to the instructive love of
honor which men naturally feel, would have
great weight with many minds Yet ration
| ally examined, it will be found to have no
real force in the present case. 1t should not
drive us by the semblance of honesty into a
course of fatal injustice to ourselves and our
| own interests. "' % " =
What are the facts? Nearly two and a
| half millions of bonds have been issued and
delivered to the Railroad Companies at ra-
| ito of $10, 900 of bonds for every mile of road
graded for the superstructure. These were
| issued upon the express pledge of the Com
| panies, that in no event was the State to be
called upon to pay either principal or interest.
1t was understood by the Companies, and
by every dealer in such stocks was it well
known, that these bonds were of the nature of
accommodation paper, and were to be met by
the parties who should negotiate them.
| The State received no consideration for
them, cave the remote and future benefit to
accrue from the final completion and opera
ton of the roads. --~"
| These bonds are now outstanding, and
| there is nothing to show for them but certain
unsightly banks of earth, the cost of which
has not erceeded So 900 per mile upon an aver
age. 'as5 t-'.a 15 al B. a.-.a
| a Where are the bonds? A few of them
| perhaps are in the hands of merchants and
| others upon some of the lines of road, who
have received them in satisfaction for goods
and work, furnished the contractors. Some
OF them are in the State Auditor Office, the
basis of Railroad money yet in the pockets of
the people a few of them have been handed
over for the redemption of protested notes Of
broken Railroad banks. Large amounts have
been disposed of as corruption fund, and are
in the possession of lobby men and women,
and of retired directors, as the price for yield
| ing place to other and bolder financiers,
| The balance are in the hands of the direc-
tors and other officials of the roads or their
satellites, or have been pledged at a ruinous de-
probation as security for money borrowed to
carry on operations. So fully was the char
acter of these bonds, and the expressed stip-
ulations under which they were issued, known
to the public, that we do not believe q single
bona tide sale of bond has been made, ex-
cept a very low price, commensurate with the
risks and the fear of non-payment No one
has bought without full notice of the equita-
ble offset which the State was likely to set up,
should she be called on to pay the bonds.
We know that it is the policy of the law to
recognize no Offset to negotiable paper, which
has been transferred before maturity and
that these bonds may perhaps be claimed as
Of the same nature. In the case of a promis-
sorry note transferred, as we have said, no
failure of consideration could be pleaded
no abatement from the face of the paper could
be claimed. The holder could enforce the
''bond" to its very letter. .e .
| But in the case of the State Railroad bonds
this is not so; there is no way of suing
State, or of enforcing by any process what
ever the payment of those obllgations-save
by Legislative enactments. Their whole val
ue rests upon the credit and honesty of the
State; and we fully appreciate the necessity
Of acting in matter of such Importance and
delicacy in such manner as to bring no dis
honor upon our escutcheon. .av % ,
Justice we must do whatever it cost, for on
the other hand we can better afford to lose our
| character and reputation than to lose our
money.
We are satisfied that no more equitable
rule can be applied to these bonds, (when by
default of the Companies the State shall be.
come liable) than this; TO PAY THE
| HOLDERS OF BONDS JUST THE
AMOUNT OF THEIR COST TO THEM,
WITH A REASONABLE INTEREST, AND
NO MORE. IS -. rr.-.rzr- s.,. Be-. T. s. g
| How to ascertain the truth in each case,
and how to apply the principle, is a much
| more difficult problem. The work should be
| confded to a Legislative committee, with full
power to investigate thoroughly the merits of
each claim. Such committee should consist
] of the ablest, most penetrating men in our
| councils, men the least liable to imposition by
| specious representations. and impenetrabie to
persuasion or intimidation--men who should
be able to look behind the first appearance,
and to apply severe judgment to interested
evidence. --.-s.-
Such a compounding would involve no pos
tive injustice.
The merchant or contractor would receive
his pay for work or merchandise actually fur
nished. The innocent holder of broken bank
notes would have them redeemed. The hold
er Of corruption bonds would receive nothing,
or only SO much as he might manage to ob-
tain through the want of omniscience on the
part of investigating committees. The bank
er who had loaned upon the security Of these
bonds would receive his principal and interest
=. The buyer of these stocks upon speculation
would receive his money invested, with inter-
est, and no more. The State cannot afford to
enrich him by a liberaiity which would ruin
herself ssa fora.s-f I'D ar...o
Such we hold should be the policy Of our
State when it shall become liable for any of
the obi .ations we have described.