Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-04-09

he State shall be flrst mortgage bona noider,
% the whole amount of the State Bonds is
sued and delivered to the Companies, and
With the same remedies by way of foreclos-
IRE, which might be secured on behalf of that
class of creditors.
discriminate between the Special or Ex-
elusive securities, which have just been under
and the Concurrent Securities
held by the State. To these l now invite at
tention.
THE TRANSFER OF FIRST MORTGAGE BONDS.
The Loan Amendment of 1858, after giving
the State an exclusive lien upon all future |
revenues of the roads and transferring to the |
State the first 1853, 900 acres of land, which |
each company was then or might become en-
titled to sell, proceeded 'as further security"
to constitute the State Treasury holder OF
first mortgage bonds, making common cause
with other parties, who might become pur-
chasers of the first mortgage bonds of the
Companies. The language employed in this
connection, was as follows: -
"And, as further security, an amount Of
first mortgage bonds on the roads, lands and
franchises of the respective companies, cor
responding to the State bonds issued, shall be
transferred to the Treasurer of State at the
time of the issue of State bonds" A subse-
quent clause, in case of any default in pay
ment of interest or principal, authorized the
Governor to sell the bonds of the defaulting
company, or require foreclosure Of the mort
gage executed to secure the same.
As is well known, the Executive of the
State, in determining his line of duty as apub-
lie officer, did not feel at liberty to regard the
security here provided, as concurrent. He
therefore required exclusive priority Of lien
in favor of the railroad bonds transferred to
the State thus limiting the issue of first mort
gage bonds by each of the companies to
81, 25O, 900.
Under an apprehension, that compliance
with the Executive requisition, might affect
injuriously its future progress, constituting
an obstacle to negotiations for the construction
of 55s miles of railroad, in no sense compen-
stated by present aid in building 62a miles
the Minnesota and Pacific Railroad Company
was constrained to refer the proper construc
ton of the Loan Bill in this particular, to the
Supreme Court.
, That tribunal decided, that, as holder Of
first mortgage bonds, the State had no rights
or privileges superior to other parties, who
might be purchasers and holders of that class
!, of securities under a deed of trust of said
company executed on the 31st day of July
1853 to Elon Farnsworth, Edward P. Cowles
f and William H. WEIGH, Trustees, and now
recorded in the Office of the Secretary of State
in pursuance of the charter OF said company
F Allusion has been made to the trust deco
of the Minnesota and Pacific Railroad Com
pany. That instrument establishes the prin
ciple, that the lapds SO literally donated by
t Congress and Minnesota for the internal i'm
f provement of the beautiful and fertile districts
which stretch from the mouth of the St. Croi!
to the international line, except240 sections re
f conveyed to the State, shall be placed in tn
E hands of trustees and subjected to judicia
e supervision for the equal benefit, share ant
f share alike, Of every individual who may here
e after contribute, by the purchase of railroa'
e bond, to the consummaGon Of the enterprise
: The limit Of $4,000 per mile is fixed to tn
S issue of first mortgage bonds, nor can thes
e issue except as the construction of the roa
a advances in sections Of forty miles. Effort
J. have been made to represent the sum $50, OOC
0 representing mile of railroad and 3, $40 acre
h of land, as disproportionate; but be it re
j. membered that tho company have determine
J. to issue no second or third mortgage bond:
# The Directors first resolved that the limit {
>. issue should be $50, 900, but on the represer
il tation of gentleman of great experience
e western railways, the amount was increase
0 to $s5 900, to enable the company, in all tim
|. to come to avoid the sacrifices so fatal
$ many meritorious enterprises from usuriou
l. floating debts,
: trust sincerely that every land grant roa
v in Minnesota will avail itself of the lessons {
railroad experience in the West; and entirel
o reject, from its future policy, the principle
:. discrimination or preference among creditors
e XI.
Il FURTHER REGULATIONS FOR THE PAYMENT Q
e INTEREST.
0 In only one respect, does the Loan amend
e ment, contemplate the Intervention of the Leg
It islature. In case of default the Governo
It is directed to proceed, in such manner as ma
IS be prescribed by law, to sell the bonds of til
l. defaulting Company or Companies, or tn
= lands held in trust, or may require foreclt
e sure of mortgage executed to secure tn
bonds.
e By an Act passed August 18th, 1858, it
l. provided that the payments of interest an
S principal by the Companies, shall precede b.
y sixty days the similar payments on accoun
: of the State bonds. An interval thus exists
e within which, if the Companies fail to pay
n "the Governor shall Immediately proceed
= provide for such payment or payments, and
i indemnify the State for such payment or pay
Enents, or responsibility, by sale of sufticien
! amount Of the lands of the defaulting Com
t pany, or by sale of the lands pledged, or fore
t closure Of the mortgage or deed of trust {
Y such defaulting Company, or by all or an
: such means of Naturalization"
: The Governor may, on such default, imme
: diately advertise for thirty days in thre
}, newspapers published in the City of Ne,
= York, and in one newspaper published at tn
y seat of government of this State, that stuff
= Gent amount Of first mortgage bonds of sucl
:, defaulting Company shall be sold on the 70,
e tieth day after such default, in the City g
Nou, VorI- 70 fbo I;,l,o,< kill.