The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1860-06-01

to that extent the citizen bond holders do
not stand upon an equal footing with her,
and for this reason the directors of this com.
paDy with reluctance consented to modify
their original policy.
The question raised by the Executive
came upon US with startling effect. We had
not the slightest anticipation of it. 1t &C.
casioned painful endorsements, both to the
directors and the principal contractor
fact to all. We had entered into engage
ments, and so shaped the plan of future pro-
ceedlngs, that we could not comply with the
terms OF the executive without stopping
work and rendering the company liable to
litigation and delays which might have
proved ruinous.
His position was unfortunate, and taken
at an unfortunate time. Had his conclu>
slons been arrived at and made known three
months earlier. or even when the company
notified him of their acceptance of State
aid, their position might have been better.
we saw no measure of safety but in
resort to the Supreme Court for construc-
ton OF the true intent and meaning of the
constitution, an alternative which the Execu.
tive cheerfully rendered.
The company conveyed 24O sections of
land to the Governor, and also the net EARN
ings OF the road, by such proper instruments
as met his approval, and having graded and
prepared ten miles of road bed ready for the
superstructure, the company then rendered
him one hundred thousand dollars of its first
mortgage bonds, and demanded an equal
amount OF State bonds, which were refused
A proper application was then made to the
Court tor mandamus, directing him to
comply with our demand, and after argument
and dellberatlon, on the day of Deem
Der, the mandamus was granted.
But this procedure involved DELAYS and
occasioned discussions, and encouraged the
original opponents of the loan to renew their
warfare upon the measure, the companies,
the Court and the Executive, to such de-
gree as thus far to have rendered the State
bonds nearly unavailable for the purpose for
which they were intended.
That the Executive should have felt con-
strained to take the position he did is much
to be deplored.
Had he, on the other hand, fully acted up
to the spirit of the constitutional amendment,
we see no reason why the expectations of
the friends of the measure and of the COM
panies might not have been fully carried out.
Before complying with the order of the
Supreme Court, however, the Governor re-
quired the company and trustees to execute
a supplement to the original trust deed, the
principal feature of which is that in default
of payment of interest to the State Treasu-
rer, that should become due on the first
mortgage bonds of the company, the Gov
ernor is empowered to demand an immediate
foreclosure of the trust deed for the benefit of
the State, and in case of neglect on the part
of the trustees to forec,ose, the Governor is
authorized to do it.
1t contains other provisions of less i'm
portant character, for the particulars of
which you are referred to the instrument.
AS neither the charter Of the company
nor the constitution empowered the Execu
tive to make such requirement of the com.
pany, as there was and could be no conside-
ration to support the instrument, and as its
execution was compulsory, it is questionable
whether it is binding upon the conscience of
the company, or has any legal force whatever.
How far the Executive of State may
legislate upon the subject of Railroads, and
enforce conditions, to the free enjoyment of
their rights, not contemplated by law, re-
mains to be seen.
There have been executed by the company
and countersigned by the trustees and re-
gistered by them, nine hundred bonds, five
hundred of which have been exchanged with
the State for State bonds, and three hun
dred and eighty seven now remain on hand.
Thirteen have been sold at their par value
in payment of right of way in the city of
St. Paul.
Of the five hundred State bonds which
have been received by the company, fifteen
have been sold, and four hundred and eighty.
five have been paid to the contractor, Selah
Chamberlain.
As yet no stock has been issued to sub
scribers. And none of the State Railroad
bonds issued to this company have been used
for banking.
The condition of Railroad securities
throughout the money markets of the world
for the past two years, has been deplorable,
and especially those in the western States,
which have rather grown worse from month
to month. there having been no improvement
in the business of the roads that would
justify returning confidence. There have
been two short crops during that period, and
as consequence the earnings of the compa-
MES have been very inconsiderable. The
financial crash which came with great force
over the new States, was of itself disastrous
to the roads, at the time of its occurrence,
and the failure Of the crops has prevented
them from showing evidence of recovery.
The competition between the four great
Railways leading to the Atlantic has ag-
gravated the troubles, and depressed the
credit of their weaker and more westerly
neighbors.
With all these facts before capitalists,
added to the vast amount of capital that
has been nominally, if not actually, sunk in
Railways, they do not, nor can it be reason
ably expected that they will, manifest any
immediate anxiety to undertake, or furnish
the means for, new enterprises, however
desirable they may have been considered as
investments two years ago.
The efforts, therefore, which have been
made to induce them to undertake speedy
construction of the road of this company to
the Red River of the North, have so far
proved unavailing. The main efforts of the
directors have been constantly directed to
this end. What results they may produce