The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-01-27
The Question for Tax Payers.

The M,anesotiaa-the Anti- Mnnesotian--
attempts to bolster up its arguments in favor
OF /" Reputation by reference to the posi-
ton taken by the PIONEER AND DEMOCRAT
upon the Governors construction Of the law
affecting the securities which the companies
are to afford the State, as the condition of
the $1,000 900 loan.
Our position then was and now is, that
the best policy for the companies to pursue
to give value to their bonds, is to place
them upon basis of securities, imme
diately convertible, which would, in
any event, obviate the possibility Of being
obliged to resort to q State tax to meet the
accruing liabilities of interest and principal.
Our belief was, and is, that the adoption Of
the Governors Interpretation Of the law
would have put the sulliciency Of the secu-
rites beyond doubt in Wall street, and
removed the contingency Of taxation to re-
deem the conditional engagements Of the
State beyond the bounds Of probability.
On the other hand, as we are left by the
ruling of the Supreme Court without o
prior lien upon the assets Of the companies---
the securities diluted in o loan without any
limit but the necessity Of the case--it is not
improbable that exigencits may arise in the
affairs of the companies in the course Of
years, which will make resort to taxation
necessary to relieve, at least, temporary
inability on their part to meet the obi
cations guaranteed by the State.
If the bonds should be favorably negotia-
ted and no financial obstacles arise from de-
preciated credit, OF other causes, to the
successful prosecution Of the roads to pay
ing point, this contingency of resort to
taxation, co,dd not oeew. The improbality
that this necessity will arise is in direct pro-
portion to the financial success of the COM
panies; and il this necessity should arise
from any cause, at any time, the burdens
which will be entailed upon the people will
be in The direct ratio of the it-suecess of the
companies IN Val street.
And it is for this very reason, OF the init
mate involvement of the finances of the
state in the credit Of the companies, that it
becomes of the highest moment that every
tax paying citizen Of Minnesota should ex-
ert his utmost to give the highest pos
sible value 10 the State bonds in the
hands of the companies that the COM
muni'y should do whatever within it
lies to sustain the credit and facilitate the
operations of the companies. II is impos-
sible to escape from the sequences Of our
position by any other avenue than by the
completion of our Railroads on the best
possible terms, and thus to give tangible
aud sure value to the securities upon which
the State depends.
The security which we ofler 10 Wall
Street, and which capitalists look to az the
bone and marrow Of the whole. is really the
PLEDGED FAITn OF THE STATE OF MIME.
sofa, apart from the coaterals offered by
the companies TO secure the State from loss.
The men who seek by systematic Sian
der to undermine the credit Of the State,
who fling the fire brand Of" Reputation
into the citadel OF the public integrity
these are the authors oil all the troubles cx-
perenced by the agents Of the State and the
Railroad Companies in the negotiation Of
the loan. Il is the secret and the avowed pro-
prietors Of the Nnnesot,an and half
dozen other msn who have personal resent
ments to CRAFTY in the ruin of the Railroad
Companies, aud who to plunge the stiletto in
the hear. Of Hector, would burn up Troy
these are the men "rho d.i IT. and who
ar doing It now, AMI have ssou;to do il at
any cost Of public interests or private re
puta,ion.