Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-09-10

The No TAXATION Arguments Of the Pho.
neer and Democrat I'm April, 1883.
The Pioneer apd Democrat, in April, 1858,
when the S5,OOG,OOO Loan Bill was before
the people for their approval at the polls, pub
hshed series of editorial articles sustaining
the measure, and urging its adoption by the
voters.
AT that time 1t represented. there was no
danger of taxation-that the State was merely
a contingent "endorser'' for the Railroad
companies merely trustee for the bond
holders-who in holding the bonds would Gun
derstand perfectly" that the companies would
provide for the interest-and that "the State
Government would impose no Taxation for
the purpose"-that the people would regard
it "as the companies debt" the only degree
of liability on the part Of the State being to
'..force the prompt payment of interest and
principal by the Railroad Companies"
As the Pioneer is now making objection to
the Republican party because its Platform on
State Policy is precisely the position of its ed
itorials in April, 1858, we copy one Of them
as follows:
LOAN OF STATE oREDIr-IN No SENSE STATE
While Minnesota is willing at this season
of depression in the financial world, to prevent
a postponement of construction upon her Land
Grant roads, by loan of public credit, yet the
Constitutional amendment has been carefully
framed to EXCLUDE the POSSIBILITY of TAN
ALTON.
Each company shall make provision for
the punctual payment and redemption of all
bonds issued and delivered as aforesaid, to
said Company, and for the punctual payment
of the interest which shall accrue thereon, in
such manner as to exhonerate the Treasury
of this State from any advances of money for
Y that purpose'-such is the emphatic injunc:
0 ton Of the Section, which instantly proceeds
4 to provide !'security therefor"
The tern. "loan Of public credit has come
> to be as well understood in the stock market
) as endorsement" or guaranty in CONNER
t, cial circles,
Every successive holder of the State Rail-
!, road Bonds understands perfectly, that THE
COMPANIES, receiving the aid of public credit,
70 are required and expected under fatal forfeit:
1t ures and sacrifices to PROVIDE for INTEREST
is and PRINCIPAL; that THE STATE GOV
CISNmLN4 ltA t"f VOL INV AtA-A1f1
TON FOR THE PURPOSE; that the peo-
pie authorizing this loan regard it, and have
x the right to regard it, AS THE COMPANYS'
at DEBT, with that degree of liability on the
-, part of the State which will satisfy the bond
49, holder that the securities held by the Treas
~ ury will FORCE the PROMPT PAYMENT
st Of INTEREST and principal BY THE R4ltt:
- ROAD COMPANIES +. - /" .''' l.
re The State holds this language to capitalists
az Here is a system of roads, every portion
~ of which is trunk for and extended and val
ID liable portion of countIy-as if only one line
x was projected through district as large as
Massachusetts-andi in aid of its construction
Congress-: has appropriated five million acres
of land Except for the financial crisis, the
20 companies charged with building these roads
~ and vested with the lands granted for the pur:
pose, would have commenced active opera:
n tons this spring. 1t is now evident, that
ch without aid this cannot be done, especially IL
competition with Iowa and Missouri, whose
roads were started in prosperous times, snt
are now considerably under way. But thu
ch people of Minnesota are not satisfied to givt
on on our Southern neighbors another years start
Of and loose, in consequence, our share OF emf
ID, grafton. They prefer to use the credit Of tn
nd State, and thereby secure the expenditure o
be- five millions of dollars, if they make sure o
va two hundred forty-eight miles of completed
road, or five hundred miles of road bed read.
err for the iron, and can so bind the companies q
nb; to exonerate the Treasury. This is done b.
eid the loan of State credit. Minnesota, by adopt
Imv ing the measure, shows her own cOnfdenc
EST. in her scheme of Internal Improvements, ant
:, the creditors of the Railroads will find tn
'cn State a vigilant TRUSTEE for their benefit an
OF her own securityn
]. 1t is this cooperation between the State an
Il People in the speedy and efficient constructio
"a of our Railroads, which is all that capitalist
N require.
es- They look to the roads, as their PRINCl
IA PAL debtor. ..s..
all. THEY ASK for NO TAXATION OF TIL
- PEOPLE-they DO NOT WISH IT-nor
the there single advocate of the measure in tn
the Legislature, or out of it, who proposes an
ats thing of the kind.
ave The money can be had to start these road
eir at the opening of navigation, as we are cred
try bly, informed, provided the assurance can b
given that the State of Minnesota will assum
hic the relation of Trustee between capitalist
me- and the Companies.
oel But the opponents Of this measuare PEE
y, sisted in misrepresenting this pointGraisin
ma the false cry of taxation UNTIL effectuall
check-mated by the Card Of the Members
ion the Legislature! .-... .star