Saint Paul weekly Minnesotian., 1859-01-15

by such opposition TO the Railroad interests
he could secure their influence to elect him
Senator, in order to get him out of their wav
as Governor. But the plan did not succeed,
and he is obliged to persist in his course, to
preserve an apparent consistency. i!'9aH e-,.n
Three of the Railroad Companies have
complied with his requirements, and executed
first mortgage upon all their property and
franchises, to trustees to secure the payment
of principal and interest Of the 81 ,25O, 900 Of
State bonds to be issued to each company
The fourth Company (the Minnesota and Pa
cific, have made first mortgage upon their
property and franchises, to trustees, to secure
$23, 100000 of bonds to be issued, none to be
valid unless countersigned by said trustees,
and not to be issued faster than at the rate of
$35, 900 for each mile of road actually built
the whole being intended to cover the estima-
ted expense Of constructing the $50 miles Of
road included in their main road and branch.
They completed thirty miles Of road bed
with culverts and bridges completely ready
for the superstructure, and rendered $500, 1000
of the bonds thus secured to the Governor,
with the necessary deeds of lands granted by
the United States, and demanded $500, 1000 of
State bonds Governor Sibley refuses to de-
liver them, because the first mortgage bonds
rendered as security have not an egcJusiue
priority of lien. The Company applies to the
Supreme Court for nandamus, directed to
the Governor, to compel delivery by him of
the State bonds, and the majority of the Court,
Chief Justice Emmett, and Atwater, j.
(F1andrau, j., dissenting) decided that under
the amendmentltO the constitution, the Com
pany is entitled to $500, 900 of State bonds,
and issues m0ndamus to compel their de-
livery by the Governor. II While not particu-
larly admiring our Supreme Court, nor ap-
proving the loan of State credit for internal
improvement in any case, ! cannot see how
different decision could have been made in the
premises. .. E-. ~ -sr.y
Is there anything in. these facts calculated
to alarm the public as to the security of our
State stocks loaned to the NJ. P. Railroad
Co.? Is there any evidence of bad faith or
mismanagement in the matter? Contrary to
the fears of most of us who opposed the loan,
the companies have taken hold of the matter
Of construction most energetically, have bar
gained with the most eminent and responsible
railroad contractors of the whole country
(such as De Graft and Selah Chamberlain of
Ohio) to put in running order, long before the
time stipulated in their several charters, much
more road than the State loan will build and
they have already graded, with bridges and
culverts complete, as many miles as, when
roned ready for the cars, will cost the whole
amount Of the State loan. They have dis
bursed already nearly one million of dollars,
they have exhibited an an energy and ability
to push on, even in these times of pecuniary
pressure, which have astonished everybody
they have done more than their charter or
the amendment to the constitution required
them to do, and have asked the Governor to
do only what he is required by the constitu-
ton and the law to do. In short, they have
thus far exhibited the most perfect good faith.
And how stands the security of the State
for her loan of bonds to the r. R. companies?
The amount of her bonds thus far issued to
them is probably not a quarter part of the
five million dollars. The balance is only to
be issued as the work on the railroads actual
ly progresses. On these bonds the State holds
security as follows: . f.. ........
First, conveyance to the State from each
of the four companies of 240 sections Q53,-
600 acres) of the lands granted by the United
States to aid in building the roads. This
makes in all Ga, 400 acres of land of unsur-
passed fertility, lying mostly within six, and
all within fifteen miles of the roads now being
built -. . ..,..., e.. .., w.
Secondly, An exclusive lien upon the net
profits of several roads. This, too, is re-
gion where the face of the country is such as
torequire but very light grades and few curves,
where the SHOWS are light and dry, and there
is scarcely any wind in the winter, and where
there are no floods to wash away the track
and bridges.
Thirdly, An amount of bonds secured by
first mortgage upon the roads, franchises and
other property of the several companies, equal
to the amount of State bonds loaned. These
first mortgage bonds are only issued as fast
as needed to construct the roads, at the rate
of $35 200 per mile.
These are the securities which the State has
for its loan of credit. Land worth as much as
the whole amount of the loan, the net income
of the roads (Which ought surely to pay the
interest on the bonds loanedD, and the first
mortgage bonds of the several companies,
equal to the amount of the State loan.
With these securities, what reasonable
ground is there for fear that the State of Min
nesota will be the loser by her loan to the rail-
road companies?
With these securities behind the plighted
faith of our State Ga State whose population
has grown from 1000 in 1850, to 100000 in
1857, State of greater resources than any in
this Union, whether we look at her soil, clim-
ate, location, mineral wealth, or all combined)
is there any good reason for panic among
capitalists as to Minnesota State bonds loan
ed to the railroads, which are to build up our
State, develope its resources, and multiply its
population ' 49,.
Of one thing you at the East may well rest
assured. The idea of repudiation of liabili-
ties assumed by our State will never be toler-
ated here. If Eastern editors, by pretended
fears Of such result, do their best to bring
it about, or if anonymous correspondents Of
the N. Y. Tribune, hailing from st. Paul, hint
at such possibility (Which they would be
kicked out of the State for intimating at home)
the people of this State cannot be justly held
responsible for their declarations. Principal
ly settled from New York and New England,
Minnesota has population inferior to that of
no State in the Union for energy, thrift and
State pride. No politician in this State would
for moment intimate the possibility of re-
pudiation of State debts. They will be paid
to the last dollar, ift takes the last acre of the
poorest farmer in Minnesota. Much more,
amply secured as is the State by the railroad
companies, may capitalists be assured that
no default will be allowed in meeting the inter-
est and principal on our State bonds.
Yours, &C., NIcoLLET.