Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-03-05


Editorial OBSERVATION-DISCLOSURES Taxes
for the $5,OOO,OOO Loan.
Dear Readers Of the Ninnesotian i: In a
former letter l mentioned, that the Homestead
Bill and the question of State Taxes to pay !
the interest On the State Railroad Bonds,
seemed the principal public topics which were
exciting the popular mind of the State out of
st. Paul first offered for your considera-
ton some facts and few suggestions upon
the Homestead R:ll and I now proceed to
consider, in some of its aspects, the other
topic.
In the first place, find great curiosity
amongst the people to know the terms upon
which the New York house of WINsLow, LIE
NIER Co. have agreed to negotiate the Bonds.
They do not seem to comprehend the neces-
sity for so much secrecy about the matter.
The impression which this attempt at SECRECY
produces, is, that all is not right-that the
terms and stipulations are not such as will
bear the day-light-not such as will bear close
scrutiny or free discussion. have heard the
observation, that as the People gave the lands,
and then the money capital, it is their right
to be made acquainted with every step taken
for the disposition of the Bonds. I merely
laughed at this, and asked in reply, if they
were not aware that there was a power in
Minnesota above and beyond the people-an
imperit in imperio-which claimed also rights
the right to live by their wits-live off the
public without works. they did in the old
Moccasin times of the Indian trade--and as
they still claimed to ive,-a Moccasin Arts
tocracy, in fact, whose right to do as they
pleased with the peoples money, without
caring for their wishes, was based on long con-
tinued ussge-an Azistocracy with rights
founded, like all AristocEacies, on venerable
wrongsi"
Notwithstanding, however, the profound Sc
crecy in St Paul in regard to the terms upon
which the Bonds are tobe negotiated, it would
seem that in other portions of the State the
injunction of secrecy is not so stringently OBJ
served. Thus, find it very generally ru-
mored through the interior, that the following
are among the terms of the proposed negotia-
ton:
! 1st. That it is not correct, that the compa-
MES are to give Prior Lien or First Mort
gage to the State; but that they are to give
such prior lien on their lands to WINsLow,
LENIER & Co., who will act as the common
trustees Of the Roads, to control the amount
of first mortgage bonds to be issued.
I'd. That the 400 mile system of roads is
to be practically abandoned for the present,
and no more road made than they think will
surely "pay" at this time: That is to say,
that the Root River Valley Road, commencing
at La Crescent opposite La Crosse, is to be
continued only short distance up the Valley
and then, avoiding Chatfcld, short cut, Of
25 miles is to be made across to the Transit
Road, avoiding Winona-then the Transit
Road is to be finished through Rochester un.
ii, its intersection with the line Of the Cedar
Valley Road-then, from this intersection, tn,
latter Road is to be completed to Mendoza ant
St. Paul-and then 90 or 60 miles only O
the Minnesota & Pacific Road is to be com
pleted from st. Paul via st. Anthony, north
ward, up the Mississippi.
This would make a continuous line from the
East to St. Paul, connecting with the Milwau.
kee and La Crosse Road at La Crescent and
La Crosse. 1t would be somewhat round
about, to be sure but it would be something
tangible for our money, and there would b.
little hope of its being finished. How the
$5,OO0,OOO can all be appropriated to make
this continuous line do not see. Of course, tt
build even this line would require concentra
ton of all the means and credit of all the com
panies. The project involves the abandon
ment, practically, of the Minnesota Valley
Road-of the most of the Transit Road, ane
of great portion of the Root River Road
and the abandonment of the Saltwater branch
of the Pacific Road and of its connection with
ST. Cloud, Red River and Big Stone Lake, fol
the present -
l do not give this programme as entirely re-
liable, but as probable rumor, which if true
accounts in part for the reluctance of the ne.
gotiators to let the facts be known for fear Of
alarming the people living upon the abandon
ed lines, whose money will be taken, in viola
ton Of the understanding, to build roads in
which they have no immediate interests.
| Sd. That, on these stipulations being agreed
to, Wnspow, LES1ss 4 Co., win advance 80
cents on the dollar on the Bonds issued.
! 4th. That they will then take them to Eu.
rope and endeayor to negotiate them at q fix.
ed minimum price-which is said to be about
IS cents on the dollar-and that out of the
| proceeds they are to receive a per centage
but how much, even rumor does not say. In
other words, the Bonds are to be hypotheca'
ted or "put up the spout" or pasored for 80
cents on the dollar, and as much more as can
be got for them.
Such are the terms which that wonderful
negotiator, SHELLEY, is rumored to have achiev-
ed in disposing of the State Bonds. If true,
they amount to consigning the interests and
property of the State to the tender mercies of
a Wall street house, which only year ago
suspended payment! l forbear further COM
ment until know whether the terms are cor
rectly represented by these rumors, or not.
BY the way, some of Mr.. SIBLEY's bro
Their negotiators in New York, since their re-
turn home, quiz not little the Great Mecca
sin for the airs he put on when he first arriv-
ed in the great city. He intimatcd to NED
RICE, ]. W. NORTH and others, that he thought
they had not gone the right way to work-if