Red Wing sentinel. [volume] (Red Wing, M.T. [i.e. Minn.]) 1855-1861, 1860-01-07
,fa doubtful and untenable character, vi ich,

as tnev purpOrt on their face to I've issued in
pursuance Of the provisions Of an amcnd-
mcnt to the STATE Constitution to loan the
public credit, for the purpose of cxpeditinS
the construction Of lines of Railroads (not
merely the grading Of Railroads), whoe yer
has acquired them Ly 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 attcsted 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
tlors on the !uItllment Of which, they might
use. transfer or negotiate them; and that it
determined the whole special or contingent
responsibility Of the State under the cond-
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, rs 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 by deceiving 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
ment, totally unfit and unrcady for the sup
,evstructurc, from their being executed in de-
tachcd portions instead Of commercially and
continuously, with the bridges no, built, aud
the 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
ers roads are surveyed and, in part, graded ];
and that, therefore, the clear mortgage Sc
curity on the. roads. required by the amend
'nent as u pre- requisite I" the deliver Of the
bonds to the Companies, has not been hon.
testify and in good faith given to 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
sio!atad in the issuance Of the State Rall-
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 le-
gal and constitutional existence cf the whole
Loan Policy in all its ra,nifications from the
beginning to this time. while, at 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 a
body elected as. and claiming to be, the Leg.
islaturc Of the State, but which, against pro
test, acted substantially as a Territorial Leg
islalue, under Territorial Officers, aud 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
this the Loan Amendment to the State Con
stitution was adopted by the people prior to
the admission 81 our State into the Union,
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.
ceclings had, or obligations incurred, OF
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 tie questions
what is the true limit and nature Of the OBJ.
legation Of the State Of Minnesota to the
holders of her special bonds; and VIVA,
plications Of our State affairs, growing on,
ment generally. Twill now, however, pro
coed to give my own views upon all those
points, for your consideration, and approya
or rejection. / set out with this position
that it is my earnest desire, in whateve,
suggestion I offer, or recommendation
make, to settle all of these complications i,
such way AS will hest preserve the repu
.ation Of our State, by meeting to their full
est obligation her pledges Of faith ane
credit" whether special or general-;n sucl
a way as will not Cypress the people, anc
will oppose the least obstacles to the tina
completion of GU, Railroads, in whole or i;
part. r. A." ''"! s5''s! IT! .7-. f@gl ." ~
First. before reviewing the extent Of on,
obligations to the present holders of the
Especial bonds, it may be we'll TO inquire who
|they probably are, and under what circum.
stances and at what rates they have proba.
IDLY obtained them. is'2 ne
1t is my belief, from all the information ]
can obtain, that much the greater proportion
Of the said bonds are still in possession OF
control Of tbs Railroad companies or their
immediate representative, the contractors
for the grading received, ut least by the
former, at the rate of $4,000 mile tcr such
grading, an amount admitted to much ex.
coed its actual cost while tho other and
the smaller portion Of the bonds, were, un.
doubleday, with very few exceptions, re:
ce!yed Or purchased by their present hold
ers grestly below par value-cither in hyl
ipot'!ecat'oon OF ,pawn Tor small advances,
i and sin e, forfeited or as gratu;tie; for
IdouhtIn services, or liberal salaries Tor less
I Questionable ones or, in exchange. for de-
p:eca,ed currency bought up at heavy dis
counts he whole amount of the special
bonds racciyed BY the Auditor for Hankn.y
purposes was $5v90OO: Of which Sl33, 900
have been retired; leaving 1926, 800 OF them
still deposited in tho Banking department.
In my opinion, our, obligation us a s ate.
to those who bold the special bonds, whe,h.
er the Railroad Companies, or others, must
in all fairness be measured BY y comprehen-
sve view Of the. whole circumstances under
which they were originally issued; By the
conditions OF Their issue by the object
sought to b. Obtained by their delivery to
the ltailroad Companies !; by the utter dis
appointment Of confidins people, at the re-
suit Of their generous loan of public credit
4 which friv0a fho,,nN s,,~l:.,<,