The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1860-10-12
MIR. Banning's Railroad Policy

MIR. Banning's Railroad Policy
Saturday evening a respectable audience
was drawn to Irvine's Hall for the purpose
of hearing an address from Mr.. VIM. L. Ban
ming, on the proper course to be pursued in
relation to the Railroads, the State Railroad
bonds, &c.
Mr.. Banning said he did not come there
as partisan, although be heartily endorsed
the doctrines of the Republican party, and
hoped no one would doubt the genuineness
of his Republicanism. He had attended
the meetings of both political parties, and
had often gone home sick and sorry1hat the
great question of State policy, which was
of such vital Importance to every inbabi-
tant Of the State, was so often ignored. He
admired the doings OF the Republican State
Convention upon the Railroad question, and
deprecated the cowardice Of the Democratic
Convention-the very fact that the Demo-
Gratis refused to have any committed policy,
would make him vote the Republican ticket.
The State, with population of 10000,
was said to be over $4,000 900 in debt
which was constantly increasing-the Rail-
roads were abandoned, and the elements
were washing them away. 1t is said that
we are to be taxed for this, and therefore
this question was the most important that
could be brought before the people. Poll
ticians were following charlottesville
Democratic party did not come out like
statesmen and men to meet such state of
things.
He laid down the following propositions :
First.-Minnesota does not owe one dol.
lar on the Minnesota State Railroad Bonds,
or at least the obligation to pay these bonds,
either principal or interest, does Lot attach,
or is suspended, until the holders of the
bonds put the cars upon the roads in &C.
cordance with the terms of the Constitution
and their solemn bargain with the State.
Second.-Inasmuch as the State has both
a legal and equitable defence against the
payment of the bonds, it is our bounden
duty to set up such defence:
1st.-Because it will protect the honor
of the State from the interested assaults of
the holders of these bonds:
2d.-Because it will protect our over
burdened people from an unjust and fraudu-
lent claim:
3d.-Because it will ensure the prompt
completion of our railroads by forcing bend
holders to build the roads and save their
bonds.
He said Minnesota did not owe the bonds,
and if we do not owe them, men of all
parties must set up the defence embraced in
the first proposition. States cannot set up
the plea of bankruptcy-it was infinitely
better to set up the defence that we do not
owe the bonds. Set it up, and hurl back
the charge of reputation in the faces of
those who utter it. His purpose was to
build the roads, and the question was, how
shall we get at it? His purpose was to see
the cars running within three years, and at
the same time to maintain the honor of the
State. He wished to drive and hold and
force the bondhoders to build the roads.
Mr.. Banning proceeded to argue at some
length, whether under the loan amendment
to the Constitution the State owes the bonds
before the holders put the cars upon the
road. In the Constitu: ion, at first, the
power of taxation was limited to the $780,
900 loan and the ordinary State expenses
the power to levy taxes is limited to these
purposes, and the point is whether the loan
amendment enlarged this power. He thought
it was not intended by the loan amendment
to do this-the loan amendment express.
ly forbids this. The faith and credit OF
the State are not pledged to pay the debt,
but the State, as faithful trustee, is to pay
the proceeds OF the sale of roads and franz
chises, to the holders OF the bonds. 1t was
not contemplated that the bondholders should
look to the State for the payment of the bonds
and interest. There can be no more i'm
pregnable defence for the State than the
first proposition. The conditions and con-
sderation run With the bonds, aud upon a
failure of either, the bonds are necessarily
cancelled. No other State has ever issued
bonds like these 10 their inception or charac-
ter-our bonds contain an express condition,
upon the failure of which the bond is cam
celled. He explained the difference between
bond and commercial paper-the endorser
of a note has to pay, in the failure OF a
principal, but the maker of bond does not
unless the consideration is adequate.
We propose, now, to set up this defence,
to protect the State and ensure the compile
ton of be roads. The condition was that
when the roads were graded the bonds
should be issued, but the condition prece..
dent Of their payment was, that the roads
should be built. That was the condition
of the bonds, and until this is performed the
legislator who voted 10 pay principal or