The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1860-06-01
AN OFFICIAL STATEMENT
OF THE
MINNESOTA AND PACIFIC +. R. COMPANY.

MINNESOTA AND PACIFIC Z. E. COMPANY.
OFFICE OF THE MINNESOTA & PACIFIC R. R. Co. |
81. PAUL, May 2lst, 1860.
To the Editors Of the Pioneer and Democrat:
GENTLEMEN - The Directors of this
Company have ordered the second and third
annual reports to the stockholders, and the
report of the President Of the Company to
the Joint Committee Of the Legislature of
last winter upon Railroads and Railroad
Bonds, to be published in your paper, for
the information of the public. For the
purpose of showing clearly the policy of the
Company with reference to the five million
loan, you are requested to publish, also, the
accompanying letter from the President to
His Excellency, H. H. SIBLEY, late Gov.
ernor of Minnesota. 1t is proper to say
that nothing contained in these papers is in
tended to reflect upon the motives or integ.
rity of the late or present Governor, or in fact
upon any one. That they are and ever have
been as sincerely DESTROYS of promoting the
early completion of the railroads of Mime.
sofa as any one, none will deny. Yet it is
but just to the Company that its own views,
position and policy should be fully presented
to the public, which has never before been
done. Amidst all its misfortunes and the
embarrassment of the times; the opposi-
ton with which it has been met; the severe
criticisms to which it has been subjected;
the odium attempted to be heaped upon it
and its managers, it has had but one pur-
pose in view, and from which it could not
be diverted, and that purpose was to secure
the construction of its road at the earliest
practicable moment. 1t is sufficient now
to say that it will stake no step back
wards" but will yet carry that purpose into
effect.
Very respectfully,
Your obd't serv't,
EDMUND RICE, Prest.
LETTER OF EDMUND RICE TO GOVERNOR
SIBLEY.
OFFICE OF THE MINNESOTA & PACIFIC R. R. Co..
ST. PAUL, August 23d, 1858.
HIS Erceuency, Henry H. Siley, Governor of Minnesota
SIR On behalf of the Minnesota and
Pacific Railroad Company, I desire to
make known to your Excellency the great
embarrassment in which the Company will
be involved by accepting the Minnesota
State Railroad Bonds under the construc-
ton which it is understood you design to
place upon the amendment to the constitu-
ton in aid of the Land Grant Railroads of
this State.
First Before the amendment to the con.
stituton was submitted to the people, the
company entered into contract with Selah
Chamberlain, Esq, for the construction of
fifty miles Of road, ready for the rolling
stock, aud agreed to pay therefor, in part,
in first mortgage bonds.
Second. The company have made con-
tract with A. Frink, Esq, Of Pennsylvania,
for grading that part of its road from Still
water to st. Paul, including masonry and
bridging, and almost the entire payment
therefor is based upon the first mortgage
bonds of the company.
On the faith of our contract with Mr..
Chamberlain he has already expended large
sums of money and has nearly completed
the grading of from fifteen to twenty miles
of road bed.
From this your Excelency will perceive
that it will be impossible for the company
to fulfil its engagements and accept the
State loan, if it can issue first mortgage
bonds to the State only.
1t is and has been the opinion of the CON-
pany, their counsel, trustees and officers that
in respect to their first mortgage bonds the
State would stand upon the same footing as
that of any other bond-holder. This idea
was prominent during all the time the
amendment to the constitution was under
discussion in the legislature and before the
people.
1t was urged that there was no limit to
the issue of first mortgage bonds, but the
reply to that was, that no company would
be so unwise as to issue an unreasonable
amount, but must 80 limit them that the
proceeds thereof would not exceed the &C.
tual cost of the road =; otherwise they could
not find purchaser.
hiS NouPouy A@S3 40 youA AIACChOuCy
will perceive by reference to its Trust Deed,
a copy of which 1 had the honor of trans
hitting to you, fixed the issue of its bonds
to thirty-fve thousand dollars per mile
limiting them to the work actually in pro-
gress-that being as small an amount as
would provide for the construction and
equipment of the road, estimating the bonds
at eighty cents on the dollar, or the cost of
the road with accruing interest during its
construction at twenty.eight thousand dol
lars per mile.
Of this amount, twenty thousand dollars
per mile are to be transferred to the State,
and the balance of fifteen thousand dollars
per mile are the only available funds from
which the company can complete and equip
q single mile OF its road.
The first 240 sections of land to which
the company are entitled being conveyed to
the State, the company cannot for some
years realize anything from the sale of it's
remaining lands and the net earnings of
the road also being conveyed to the State,
nothing can be realized from that source.
Second mortgage bonds it would be i'm.
possible to negotiate at any price; cash SUBJ
scriptions to its capital stock are out of the
question in these times and in this country !;