The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-11-01

ANoV0WocI IaSt tulS COmpauy cuIC.cu Iuto
contract with parties, in good credit, resid
ing in Philadelphia, and always heretofore
successful railroad builders and managers,
for the construction of its entire road from
Saltwater to Breckenridge, and from st.
Anthony to the British line, all to be COM
pleted and equipped within the lifetime of
the grant of lands for railroad purposes
made by Congress, to wit: The Sd of March,
1867, on condition, however, that the Legis.
lature should restore to the company the
franchises and property, free from the lien
of the State, previously sold by the Govr
ernor, and bid off on behalf of the State.
This condition was complied with by the
Legislature, and the company, as we'll as
the public, generally had high hopes of the
completion of the road from st. Paul to
st. Cloud during the present year.
But just as, and while extensive prepare.
lions were being made to carry on the work,
the terrible rebellion broke out, which is
now deluging the land WITH blood, and pros.
trated the contractors pecuniarily, alike
with hundreds of thousands of others who
but the.day before were able to command
any amount of capital requisite for the car
rying out of any sound business project.
This contract, therefore, had to be reluc-
family abandoned.
Believing, however, that there was suffi-
Gent merit in this road to justify its cons
pletion from st. Paul to St. Anthony,
even in the worst pecuniary conditions of
the country, the Directors renewed their
efforts to accomplish that work at least
during the year 1861, and after mourning
much expense in laying the matter before
great number of railroad builders, they sue.
ceeded in making an agreement with
Messrs. Winters & Drake of Ohio, to de.
post ten thousand dollars with the Govern
or, on or before the first day of July last,
and to complete and equip the road to ST..
Anthony on or before the first of January
next, in accordance with the requirements
of the act of the last session of the Legisla.
| ture.
For this the contractors were to be paid
the bonds to the amount of one hundred
and twenty thousand dollars, secured by a
| first mortgage upon the road from st. Paul
to st. Anthony, and were also to receive
one hundred and twenty sections of land.
Inasmuch, however, as question existed
as to the validity of the sale made by the
Governor in June, 1860, the contractors re.
quired that there should be foreclosure
and sale of the lands, franchises and proper
ty of the Company, held in trust by the
three Trustees to whom they had been con.
veyed in July, 1858, to secure nine hundred
outstanding first mortgage bonds of the COM
pany, (six hundred and twenty-five of which
are held by the State in exchange for six
hundred State Railroad Bonds. in accords
ance with the Loan Amendment to the Con.
stitution J and also reorganization of the
company: and they further required and
received Bond of Indemnity to the effect
that such foreclosure, sale and reorganiza-
ton should be had, and in default thereof,
that the ten thousand dollars to be deposit
cd with the Governor should not be lost to
them, &c.
Prior to the execution of the contract,
its terms and conditions were made known
to the acting trustee in New York city, and
he, for himself and the others, advtsed and
consented to the sale of the property and
franchises as the only method by which the
completion of the road could be secured,
and the interests of bondholders, other
creditors and stockholders, could be saved
from total distinctions; and accordingly it
was then and there arranged that the sale
should be made as soon as practicable; that
Immediately thereafter the company should
be reOrganized; that new and unassessable
stock should be issued to the old stockholders
for the full amount of their original SUBJ
scriptions that the bondholders and other
creditors should have new bonds, secured by
mortgage, for their respective claims; that
the trustees, having priority of lien upon
the proceeds of the sale, to the extent OF
their salaries for three years, and their dis
bursements for counsel fees, clerk hire, Office
rent, &C., should make up the amount of
their claims, and the bid for the property
should be at least equal to such sum which
was estimated by their counsel at forty>two
thousand dollars. The amount bid was to
be paid to the trustees in bonds secured by
mortgage upon one hundred and twenty
sections OF land, and upon the road from st.
Paul to st. Anthony, being subordinate
upon the road, however, to the lien of VIM
ters & Drake.
The property was sold for the sum last
named, on the 18th day of August last,
and all the papers Immediately prepared for
the consummation of the plan before as
sented to.
The Trustee aforesaid, however, left New
York within few minutes after the sale, to
be absent for ten days only, but bis absence
was prolonged for more than month, and
with the exception of one day, has contin>
ued ever since.
1t is understood that he has been all or
most of the time somewhere in the wake of
General Frem0nt's army.
About the 23d of September be executed
a deed and sent it to one of bis co-Trustees
for his execution also, but with Instructions
not to deliver it to the purchaser of the
property unless the amount bid, $4,000,
should be paid in cash or in bonds secured
by first mortgage, having priority of lien
over the one agreed to be given to Winters
& Drake.
This thew, the contractors, did not see fit