Red Wing sentinel. [volume] (Red Wing, M.T. [i.e. Minn.]) 1855-1861, 1860-01-07


Under this last category, they place the
holders Il the Minnesota State Railroad
Bonds. Not that the bonds they hold were
40, regularly acquired bat then, i, is con
tended. they are not State Bonds in the or
binary form and with the ordinary general
State obligation for their redemption, but a
sw cial class Of bonds, issued for special
purpose, upon special conditions, and for a
certain consideration. That they are called
in the constitution, the special Bonds OF the
State, their special and restricted character
being still further indicated by their name
of Minnesota State Railroad Bonds That
as they purport on their face to be issued in
pursuance Of the provisions 0: an amci:d-
mcnt 70 the Sta!e Constitution to loan the
public credit, for the purpose Of vxpcditins
the construction Of lines OF Railroads (not
merely the grading Of Railroals), whoe yer
has acquired them by transfer by endorse
mcnt Of the President of said Company has
done SO with full notice on the record, that
u fundamental law limited the authority of
the State offici:ls who att:sted them and
delivered them to the Companies that by
its closing proviso, it restrained those Com
panies as to the time when, and the condi
tiors on the !uifillment Of which, they might
use, transfer or negotiate them and that it
determined the whole special or contingent
responsibility Of the State under the condi-
tional pledge Of its faith and credit, for their
redemption and that, therefore, they
bought them under known risk and can.
not claim payment, Independent of consid
Grafton, as being innocent purchasers.
Still another argument used against the
obligation of the State to pay these grading
Bonds, turns upon the allegation, that some
ofthe Companies have obtained most of
them hy deceving the State authorities into
delivering them without every legal pre- re-
qnsitc for their issue having been observed.
That by most of the Companies the bonds
were improperly drawn: upon imperfect
grading, that was, contrary to the amend.
nent, totally unfit and unrcady for the sup
cEstructurc, from their being executed in de-
tachcd portions, instead Of connec:edly and
continuously, with the bridges no, bllt, and
tie heavy work Of the lines often omitted.
That, also, the right of way has not been
acquired from the individual land owners
through whose property the lines of the sew
er' roads are surveyed and, in part, graded :;
and that, therefore, the clear mortgage Sc
c"rity on the. roads. required by the amend
'uent as pre- requisite to the deliver Of the
bonds to the Conpa' les, has not been hon
eSt].y and in good faith given t. the State in
exchange Cor her bonds. Upon these allie
CATIONS, 1t is argued that the letter and the
spirit ofthe Constitution, have alike been
vio!atad in the issuance of the State Rail
road Bonds, and that the State is not in law
or equity bound for their redemption
There is yet another purely legal and
technical argument urged by some, which
strikes more deeply and broadly at the )e-
sal and constitutional existence cc the whole
Loan Policy in all Its ramifcations from the
beginning to this time. while, ut the same
time, it is one that could not affect our NOR
al obligation to pay. II IS based upon the
allegation that the Loan Amendment to the
Constitution was submitted for the sanction
OF the people, through law passed by u
body elected as. and claiming to be, the Leg
islaturc Of the State, but which, against pro
:cst, acted substantially as Territorial Leg
islal,re, under Territorial Officers, and tina.
the said law was approved only by the Sec
rotary Ct the Territory, acting rs Governor
under the Organic Act. That in addition to
stitution was adopted by the people prior to
| u,
and while the original State Constitution Of
Minnesota was still under consideration by
Congress, pending our application for admis-
sion. That We were finally admitted by
Congress under our original constitution,
solely, and that the amendment and all pro.
cecdings had, or obligations incurred, or
bonds issued in pursuance OF its provisions,
are without force or validity.
have thus far given you the arguments
rather Of others than myself, touching the
proper answers to be made to the questions,
what is tn, true limit and nature of the OBJ
legation Of the State Of Minnesota to the
holders Of her special bonds; and what
should he done in settlement of the com
plications OF our State affairs, growing on,
of their issue and out Of the Loan Amend.
,nent generally. will now, however, pro.
coed to give my own views upon all those
points, for your consideration, and approval
or rejection. l set out with this position
that it is my earnest desire, in whatcve,
suggestion [ offer, or recommendation
make, to settle all Of these complications j,
such way as will best preserve the repu
.aton Of our State, by meeting to their full
est obliga ion her pledges Of faith anC
IC'tuit, "uetIe1 SpeCIai VI Seus11i-iu SuCL
a way as will not oppress the people, anc
will oppose the least obstacles to the tina
completion of on, Railroads, in whole or i;
part. = I.E -
First before reviewing the extent Of on,
. obligations to the present holders of tho
special bonds, i. may be we'll TO inquire who
they probably are, and under what circum.
, stances AMI at what rates they have proha.
bly, obtained them.
1t is my belief, from all the information ]
can obtain, that much the greater proportion
Of the said bonds are still in possession O,
control Of ths Railroad companies or their
Immediate representatives, the contractors
for the grading : received, at least by the
former, at tho rate of $4,000 mile fer such
grading, an amount admitted to much ex-
coed its actual cost while tho other and
the smaller portion Of the bonds, were, un-
|doubted'y, with very few exceptions, re
ce!;e>l or purchased by their present hold
erS s'estIy below par value-cither in nv
jlothecaton or pa~n Tor sua!! advances,
inii ST. e forfeited Or AS gra.u;ties for
i."'ihtt!! service, Or liberal salaries for less
/ questionable ones or, in exchange fox de-
p.ec;atca currency bought up at heavy dis
counts. he whole amount of the sou,i,i
7 bonds racriyrl nv thu nI;,nr fan I,,