Saint Paul weekly Minnesotian., 1859-01-08

The Minnesota Bonds I'm New York;.
Mr.. Sibley.-.Ths Operations or the
railroad Managers .Depreciating the
Bonds. N-.-' 3 ,l2-------S4.a
We learn with great regret that Mr.. SIBLEY
and the Railroad Managers who are now in
New York City, experience considerable II
not insuperable difficulties in disposing of the
Railroad State Bonds. Capitalists do not
seem satisfied to take these bonds, at any,
thing near par, along with the risk OF Railroad
Companies without capital, meeting promptly
the. annual interest thereon and it is said
to be now nearly reduced to sine qua 'o''
that an extra session must be called BY Act
ing Governor SIBLEY, and the People taxed,
before they can be sold at all, or anything
near their face can be realized for them
Since Mr.. SIBLEY went on, it is learned the
difficulties in the way of negotiating the bonds
have been increased-that gentleman not be-
ing able to bear a cross-examination as to the
understanding under which the people voted
for the Loan, particularly as to whether they
or the Railroad Companies were to meet the
interest on the bonds. To the questions put
to him, he has answered by demurring, trst'
to calling an extra session Of the Legislature
toget Ter, and secondly andespecially declining
to call it together for the purpose Of imposing
State tax toAmeet the Interest," tax which
he very well knows, if even legislature
should be induced, by hook or crook, to levy,
the people would not be able to pay!
We hear further, that the Railroad Compa-
nies and their agents, have themselves, by
their own acts, been the principal means OF
depreciating the bonds.
These acts are frst,-as is alleged d,-that
DR.. BoRup of the Banking firm of BoRuP q
OAxEs, did, some months since, hypOthscate,
or deposite as security for notes OF hand,
about 5000 of the bonds that were issued
to the Cedar Valley Railroad Company; rea'
lizing therefor only 80 and 60 cents on the
dollar-the Doctor, who is shrewd and able
financier, [for himself,] charging the company,
it is said, three per cent. a month for his
valuable financial services in the transaction
This splendid operation is constantly thrown
/ in the teeth of our Railroad friends, as being
their own judgment of the value of these
Bonds.
Still another point, made by the capitalists
is, the action of the Acting Governor and Au,
ditor of State, in originally fixing the value Of
the bonds given as security for issuing the
Glencoe notes, as being worth only in the
proportion of $4,000 currency to $25, ,ooC
bonds deposted-and they have before them
in New York the Pioneer Dc Democrat con-
tanning the article announcing with great ex'
.ltation this decision of the State officers
Though SIBLEY, the Auditor and the Pioneer
have since all crawfshed on this original po
sition, their new ground is well understood in
New York to have been taken under peculiar
kinds of pressure; and Mr.. SIBLEY is sorely
troubled to account satisfactorily to Wal
Street for his two different positions, assumed
so near together!
And lastly: the recent offer of the Mime
sofa and Pacific Road, to pay two years in
terest in aduance, and then sell them at par Of
less, is damaging the bonds considerably
This offer is practically and really, an offe1
to discount the bonds on their face taoenty pei
cent, or in other words to take little less
than 80 cents on the dollar for them Thi!
has made what was bad before still worse. L
is thought there to indicate IN eagerness tt
realise, at any sacrifice; which excites dis
trust on the part of capitalists.
| D~-:I"., oil +l.:". ~ -----t '"""i' auction n
the stocks at 1OO4 is regarded in New Yorl
as disreputable attempt to deceirs someb0d!
it is there supposed, the PEOPLE of MIME
sorA-and the whole thing has at length as
sumed, we are sorry to soy, the sombre com
plexion which we stated at the commencement
of this article-and that is, that a tar on TIL
people must be lsuied before the Railroad man
ayers can realize par ON the Bonds.
For our part, we are bound in all cando
to say, that the People Of Minnesota are no
prepared, at this time, to be taxed for any sucj
purpose.
They would rather see the Roads stopped
and wait until better times come, to RESUME
them.