The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-04-07

Of TAtfoAd onlcers, the value Of these trust
lAnGa can bsreAdlly appreciated. The lands Of
the iLnoi, Contra Railroad Company. hitherto
sod, have averaged ti3 20 per acre. Even al
80 per acre, the proceeds Of tie above con
sey4nce IN trust Eill be g., l44.OO0
These proceeds are intended to Constitute q
sink.sg fund for the discharge u the principal
q ., OJ0,00o II Company, thus parting with
the tile and right 10 convey N favor of the
stat, sAAi agree With parties for the sale Of
ahy " these Ia ads the Governor m.y approve
oil such sales, and ~ Connection with the secre-
tary u state, may execute deed, 20 The pur-
tAA.efs, but al proceeds % such sales 90 into
The Treasury, and must there remain a. a sink.
ihg land for principal. unles. required 20 nee,
adefaaI ia payment of Interest; It 81. also pro-
'ided, ~ a subsequent claus. of the Csnstitu.
Ton hat Il Company fails TO meet auy semi
annual payment Of interest, the Governor mag
ssl! he laads entirely Al his dacret ION and pro.
ieet The Treasury. IL Is further enacted by the
Legislature, 10 the matter of such forced sale
that Il any Company fail 10 provide such inter
est -lA'y days before the maturity Of interest
or principal on state bonds, issued 10 sueh
Company, the Governor may advertise and
sell the lands ia saeh parcels, and at such
umet. as he shall deem expedlent. and all such
sales shall be made by the Governor and SEQ.
Rotary Of state, ard shall b. absolute convey.
anos. d title IA fee a. far as the same NAV
have bees invested ia said Company. or in the
STATE and without any redemption or nigh, of
redemption IA any Company. or subsequent
creditor, person or persons whonsoever, but
fesefFihg TO The Company. as directed in the
Constitution, night to arrest such sale Of lands
befote the day thereof, by payment Of the sums
in default aud all expense. Incurred by the
state.
The evident purpose Of these provisions is,
that As long As the Companies meet their obi.
cations promptly and regularly, they may help
the state TO advantageous sales of the lands In
aid OF a Sinking Fund, but, IN case of any de.
t""It summary soques,ration of such Fund
and sale Of the lands may be resorted TO for
the indemnity Of the State
have now closed the consideration of the
toFie'tGfes aud Exclusive Securities, for which
The Loan OF State Credit stipulate. The latter
are designated as security therefor :" bat
alter their enumeration, the Section proceeas
to direct, As further security" that the State
shall he first mortgage bond holder TO the
whole amount of the state bonds issued and
delivered To the Companies, and nth the same
remedies by way of foreclosure which might
be secured on behalf Of that class OF creditors.
discriminate between the special or exciu.
sive securities, which have just been under dis
cnssion' aud the Concurrent Securities held by
the State. To these now invite attention.
InE TRANSFER OF FIRST MORTGAGE BONDS.
The Loan Amendment of ls5s, after giving
the State an exclusive lea upon all future rev. |
enues Of the roads, and transferring to the
state the first l53. 900 acres of land which each
Company was them or night become entitled to
sell, proceeded =" as further security" to con. |
sttut- the state Treasury n holder Of tirst |
mortgage bonds. making common cause with |
other parties who might become purchasers of |
tho first mortgage bonds OF the Com paniss. |
The language employed ia this connection was /
as fellows: "Aud, a. further security. an
amounf Of first mortgage bonds on the roads,
lands aud franchises Of the respective Compa-
nies' corresponding TO the state bonds issued,
shall be tranJsrIsd to the Treasurer Of State
al the time OF the issue OF State bonds" A
sabsequen, clause, in case of any default in
payment OF interest or principal, authorized
the Governor 10 sell the bonds OF the lefauit.
ing Company, or require a foreclosure of the
executed 10 secure the same.
As il well known. the Executive of the STATE.
IN determining his line Of duty as a public Off.
GER DID not feel at liberty TO regard the secu.
rtty here provided, as concurrent. lie there.
fore required exclusive priority of lien In favor
n the railroad bonds transferred TO the State.
Ihus limiting the issue Of frs, mortga age bonds
by eas b OF the Companies 10 .l.250.ooo.
Under an apprehension that u appliance
With the Executive requisite might affect in
uricusly it, future progress constituting an
obstacle 10 negotiations for the construction OF
'1s miles OF railroad, IN no seuse compe nsat~d
by present AID IN bslldlng sixty two and halfI
Minnesota and faciHc Railroad CON-
pany was constrained 10 refer the proper con-
struc,ion OF the Loan Bali. in this par,ic ular. to
the Sapremo Court
Fhst tribunal decided that, a. a holder Of
nrsi mortgage bends. the state had no rights
OF privileges superior TO other parties, who
might be purchasers and holders Of that class
Of securities under Deed OF rrast of said
ompany executed on the Slsi dsy Of July,
lN5N. 10 Zion Farnsw worth, Edward L. Cswles
aud William II. WEIGH. Trustees. and new re-
corded in the Office Of the Secretary Of State,
IA pursuance Of the Charter of said Company. ,
Aiias'on has been made To the rrus, Deed of
he Minnesota and Pacific Railroad COMPANY. | q
That instrument establishes the principle, that
he lands 50 heeral'y donated by Congress and
Minnesota Tor the internal impro, enc Mt Of the I
beautiful and fertile districts which stretch ,
rom The mouth Of the ~. Cro,N 10 the interna.
ionsl line, except 40 sections re conveyed 10 Z
he State. shall be placed IN the hands OF Trus. I
ces, and sGeJeetedto judicial supery ision for {
he equal benefit, share and SHARE alike Of every
naN dual who may hereafter contiba,e. BY
he purchase of railroad bond. 30 the Goa. 4
Of the enterprise. The lima, Of .
S.oo0 per mile is liked TO the issue II first q
mortgage bonds, nor can these issue. exesp, a. 4
he Construction cf the road advances in see Il
ons OF forty miles Efforts have been made I
. represent the SUM Of s.. 200. representing Il
mile OF railroad aud $40 acres Of land, a. b
but, be Il remembered, that O
Ne Company have determined 10 issue no sec. n
nd or 'hrd mortgage eeuas. The Directors n
~ resolved that the limit Of issue should be q,
10000, But on the representation of gentle "a
iAH OF great experience IN Western Railwxys. sc
as amount Vas increased 10 So. 0oo. 10 enable ca
he Company, in all time 10 come, 10 avoid the An
sertnees 40 fatal 20 many meritorioCs enter =,
sssss Ss>ss H.ssssas s.sASAss sssSS> nj.
. I1s' slnsste! 'as' every .-Ana r'An' road pS
-, so 'N~eu OF The lesse1s ~ y.
abroad experience IN the West. and .yt,r,t. -