The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-01-13
Negotiation Of state Bonas Ia New York.


day, from Gov. SHELLEY, dated the 3lst. la
one OF them. the Governor states Il feel
somewhat more encouraged this morning,
las to the negotiation of the State bonds)
although nothing positive has becn done
There is growing reaction III favor Of the
bonds"
Gov. SHELLEY, in his negotiation in New
York is not acting US has been stated,
solely OIL behalf of the Minneapolis and &C.
dar Valley Railroad, with which he is con
nectcd, but is representing all the companies,
and is laboring to further the interests OF all.
In the n. L. Herald, of the 3lst, We fed
the following clear statement, put forth
by the Governor, TO correct the errors SO in
dustriously circulated in New York. at the
instance Of few men in this and other CON-
mauities of the State
New YoaK, Dee. Is, ISIS.
1t is my duty as the Governor of the
State of Minnesota, to correct publicly GER
tain misrepresentation which have been
made here relative to the bouds OF that
State, issued, or to be issued, by virtue of a
constitutional provision, a. a loan to ex-
pedite the construction Of railroads with.
in her limits. propose to effect this by
making a plain statement Of facts, leaving
your readers and the public generally TO
draw their own conclusions theretrom.
IL. a. #
sofa, as originally framed and adopted by
her people, restricted the public debt-ex-
cept ia cases Of invasion or insurrection-to
$250,000. Subsequently it became evident
that, to insure the speedy construction Of
the railways, for which the State had
received from Congress munifcent grant
of land, the State must lend her aid TO those
companies chartered by the Territorial
Legislature, to which the lands had been
transferred by the same authority for railroad
purposes. The aid was rendered especially
necessary because of the financial embarrass.
ments OF 1857, which made it impossible for
the companies TO raise money upon their
lands, as they had been authorized to do by
their charters. The other Northern States
were diligently prosecuting their roailroad
communications and Minnesota must labor
under manifest disadvantages unless she pur-
sued a like policy, and thus opened the in
terror portion Of the State to immigra-
ton.
The Legislature OF the State, at its first
session, in accordance with the mode pre-
scribed by the Constitution for its own
amendment, passed an act oaning the credit
Of the State 10 the four land grant railroad
companies to the amount Of 81 100000
each, or s. 100000 in the aggregate, upon
certain conditions, and providing for IT, sub,
mission to vote Of the people. The subject
was publicly discussed in all portions of the
State, and after the expedency and policy
OF the proposed loan had been canvassed in
oil its bearings, the vote upon the adoption
OF the proposition as part of the fundament-
al lew was taken on the 18th Of April last,
aud resulted in majority of nearly 10000
in its favor, and the Governor duly pro
claimed it to nave been Incorporated a. u
part of the Constitution Of the State.
The conditions upon which loan OF State
credit was authorized were these When
the companies shall have produced to the
Governor satisfactory evidence, verified by
the silidavits Of their officers, that ten miles
of their roads respectively are graded ready
for the superstructure, the Governor is re.
qaired to Issue the bonds OF the State to the
amount OF 100000 TO the said companies,
and so in like ratio as the work progresses.
And when the companies shall have fur
nisbed like evidence that ten miles Of their
respective roads are completed and the cars
running thereon, the Governor shall issue
bonds to the amount Of 100000 to such
company until the limit fixed by the loan
amendment is reached. The Governor has
ruled that only ouehalf Of the $4,000 900
can be issued for the grading Of the roads
and the other half when the roads are com
pleted and the cars running thereon and the
companies have each and all acquiesced in
the decision. In other words, two hundred
and City miles Of railroad through the rich.
eat and most settled portions Of the State
must be fully completed and in operation
before the whole OF the S5,00000o OF her
bonds il deiiy cred to the companies.
The securities exac,ed by the State for
the companies are as follows, TO wit:
|. They are required to execute an in
s,rument to the State pIedging the net pro
fits Of the roads for the payment Of INTEREST,"
J. A conveyance to the State. ~ trust
OF the first two hundred and forty sections
of land free from prior membranes, which
such company 10 or may tie authorized to eel
in trust, for the better security Of the treas
ury Of the State from loss on said bonds
which shall empower the Governor and
Secretary Of State to make conveyances oil
title Of any or all Of said lands to purchasers
agreeing with the respective railroad com
panies therefor the proceeds 81 such sales
to be applied to The payment Of interest
upon the bonds. 10 case OF default Of the pay.
meni Of the same. and az a sinking fund To
meet any. future default on the payment
Of interest or principal vhen du" The
aggregate smosnt thus transferred to the
State Is CT i400 acres.
B. An auosn, 81 first mortgage binds
ca the roads, lands and iranch ses Of the r.
sP.ciIss companies corresponding to toe
STATE bonds Issued shall De transferred "a