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

Minn<sota and Racifc Companv, hay. ai3-..
ing main and branch line, might
sell two quantities of 100 sections, -'..- -.. p
each included within q continuous .sE g.G-
railroad section Of 20 miles in
length =. ~: 15s, 900 acres
Southern MSnaesota as grantee of the T. ..:-@ -
Minnesota Valley line might sell as r. ,,c,f ~frt-
above one quantity of 120 sections 76,s00 !"
Transit as grantee of one line ditto ,'.,.-'~4J g
to Southern Minnesota. ....-.., 7s,soo "s'i
Minneapolis and Cedar Talley, gran. s. rr.t t.-.
tee of one line, but on account Of
deficiency in land grant, finding "s u.
only 1859 acres per mile for 20 -,
miles ........,. 49,. 80. 2s,7so ;"
Southern Minnesota, as grantee of ..'--'
Root River line ditto to NJ. &c. L--a.s -g.i
v.R. R. Co., o,...............,.... 2s,7so. !"
Beyond these quantities of land, immediate
ly reducible to possession and available for
sale, the value of the munificent grant devoted
to the public works of the State, was contin-
gent upon the confidence of capitalists.
The hopes and plans, which attended the
Inauguration Of the Railroad system of Min
nesota, were identified with the continued
prosperity of the community. In the collapse
of credit, which closed the year 1857, the
Railroad interests foresaw postponement,
apparently inevitable, of the sanguine expec-
tations which had ushered summer Of activ-
ity. Nor were the public unaware of the ma
ture of the obstacles, thus suddenly interpo-
sed to the consummation of projects, so de-
pendant upon the favorable aspects of the
financial world
The suggestion was at length made, that
the State of Minnesota was adequate, by the
use of the public credit, to prevent suspen-
sion of these important enterprises. Then
followed winter of active discussion, result
ing in the submission of a Constitutional Pro-
vision authorizing the Loan of State Credit to
the Land Grant Railroads. On the 18th of
April, 1858, the amendment was ratified by
u large popular majority.
desire, without unnecessary repetition, to
present an impartial exposition of that meas
ure. a 1sa-2 n - r'l- .....77 .-'rf'- 3
5 .sl...ra, slf,yL ,z.r TIN .-sslsg-.a e.,
LOAN OF STATE CREDIT TO RAILROADS BY TIE
STATE. OF MINNESOTA. ..-.r-.
For the purpose of expcditing the construc-
ton of the Land Grant system. of roads in
Minnesota, a special issue of the bonds of the
State is authorized, bearing interest at seven
per cent per annum payable semi-annually in
New York, and which mature on the 1st day
of December, 1883, or twenty y-fve years from
date. The amount i,sued to each Company
cannot exceed twelve hundred and fifty thou
sand dollars, and the total issue is limited to
an aggregate amount of five millions of dollars.
The manner in which these bonds may issue
is thus detailed in the Constitutional Provis-
ion:
"Whenever either of the said Companies
shall produce to the Governor satisfactory
evidence verified by the affidavits Of the Chief
Engineer, Treasurer and two Directors of
said Company, that any ten miles of the road
of said Company has been actually construct
ed and completed, ready for placing the super
structure thereon, the Governor shall cause to
be issued and delivered to such Company
bonds to the amount of one hundred thousand
dollars, and whenever thereafter and as often
as either Of said Companies shall produce to
the Governor like evidence of a further con-
struction of ten miles Of its road as aforesaid,
then the Governor shall cause to be issued to o.
such Company further like bonds to the
amount of one hundred thousand dollars for
each and every ten miles of road thus con-
structed and whenever such Company shall
furnish like evidence that any ten miles of its
road is actually completed, and cars running
the Governor shall cause to be issued
to such Company like bonds to the amount of
one hundred thousand dollars /: and whenever
thereafter, and as often as either of said Com.
panes shall produce to the Governor like evi.
dence that any further ten miles of said road
is in operation as aforesaid, the Governor shall
cause to be issued to such Company further
like bonds to the amount of one hundred thou
sand dollars, until the full amount of the bonds j.
hereby authorized shall be issued Pfopided,
That two-fifths and no more of all the bonds
issued to the Southern Minnesota Railroad Co.
shall be expended in the construction and
equipment of the line of road from La Cres-
cent to the point of junction with the Transit &
Road as provided by law; An1 further pro-
ruled, That the Minneapolis and Cedar VAL
ley Railroad Company shall commence. tie
construction of their road at Farihault and
and shall gradean equal number
Of miles from each of said places" 70 F g.'
While the Loan Of State Credit was under
discussion, prior to its ratification by the peo-
pie, the prevalent construction was, that q
Company might entitle itself to the full amount
Of bonds authorized to be issued, either by
the complete construction of 62A miles, or by
grading twice that distance ready for receiving
the permanent track. In the case last stated,
"a road-bed prepared for receiving the su-
amount of state aid would
be limited to $4,000 per mile, while the ad-
vance of bonds upon a full construction of 62t
miles by each Company, or 25O miles by all,
can never exceed $4,000 per mile. ..
: 1t was urged, in favor of giving such an op- 3
ton to the Companies, that Railroad Com q
pany,. by the sale of first mortgage bonds or q
subscriptions to it's capital stock, might pro- II
vide the means, otherwise than by the sale Of
State bonds, to lay down the ties and iron, g,
and equip road and unless such arrange
ments could be effected, that the public might
be- very certain that any Company would
take $40, 900 per mile for 62a miles of road, 10
completed and in operation, rather than re-
ceive 900 per mile for double distance,
with no prospect but to leave the road-bed
useless and liable to be injured by the weather
and otherwise. But, it was soon ascertained,
hat rails and rolling stock could not be ad-
purchased with railroad securi.
ties alone, during the present reaction against =
all western enterprises, and most of the COM IA
tracts, executed by the Minnesota Companies q
under the impulse of State aid, provided for