The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1867-07-11

". B MITCHELL. EDlIoh.
Thursday, July IL. 1867.
THE MINNESOTA STATE RAILROAD
.-.z,s - BONDS.
A State can never afford to be un-
Just to It's creditors, It is As much
bound in equity, if not law, to meet its
proper obligations As is an individual.
The principle is the Same. In either
case it is founded upon right and hon.
or.
But the reasons are equally 4, strong
Why State should not b. unjust to it.
self. And although the cases when
this becomes a matter for consideration,
are not so frequent as the reverse, yet
they are sometimes to be met with;
and even now is just such an one pre-
scented to the people of Minnesota.
To the Ilder settlers of the State
there is little need to explain any.
thing concerning the early history OF
the Minnesota State Railroad Bonds.
But there are thousands to whom the
facts are all new, and as the question
concerns them equally with the others
wo will briefly review tho circumstan-
ces attending the issue Of these bonds.
In 1878 the people of Minnesota
became almost Wild upon the subject
Of Railroads. The matter was discuss
cd by day and by night, in city and in
log-cabiu, by tho legislator and the
.trapper, and the greater the discussion
the more intense the excitement, until
the matter eliminated in 1858, April
18th, in the adoption of an amendment
to the Constitution of the State author
king the issuing Of special bonds to
the amount Of Five Million Dollars to
expedite the construction of the four
Immigrant lines Of railroad. The COM
panies were to receive one hundred
thousand dollars whenever any ten
miles Of the road was constructed ready
tor the superstructure, and an addition
al one hundred thousand dollars when.
ever any ten miles was completed and
the cars running thereon. Under the
provisions Of this amendment, bonds to
the amount Of two million three hun
bred thousand dollars were obtained by
the Companies, although they did not
place in running order one single mile
OF road. The whole matter was so pal
pable sham and cheat that the peo-
pie, by an almost unanimous vote, No.
vember 9Th, 1860, prohibited any fur
ther issue of the bonds.
Thus the matter rested until last
winter, when the Legislature proposed
to render the State fully liable for the
complete payment Of these bonds, prin-
clpal and interest, making an aggregate
Of about four million dollars. The
question to be decided by the people at
the polls naxt fall is, whether they will
assume the payment of this immense
sum, which will continue to increase
with its accommodating interest-wheth-
ct they feel that they ought to ply it ;
or whether they Will demand that j
tair and equitable plan shall be prepar-
ca and Submitted -f,- -th~i--~rr-.-~l
The whole case should be- considered
calmly, and acted upon consclsntiously,
with view both to the rights of the
bond-holders aud to the rights of the
State.
For the more than two millions of
bonds issued by the State to the Rail-
road Companies, it received in return
two hundred and forty miles of grading
mark the fact, simply gradiug-in
sections OF ten miles scattered here and
there on the pra;ries. No ties, no iron
rails, no locomotives, no cars were tc
De found on the credit side of the
M
books. The whole labor consisted in
rambling entertainments or shallow
Plow'ng, scarcely in either case afford.
ing any discernible difference between
their line and the ordinary surface Of
the almost plain-like ptairies over which
they passed. 1t was mere play-da,
work, and very liberal estimate Of The
expense has allowed five hundred dol
lars per mile, or FIVE thousand dollar,
Tor each OF the ten miles that broueh,
to the companies one hundred thousane
collars in bonds. Allowing thai
amount As being represented BY thes,
miles Of grading, there is a balance O
n'nety-hve thousand dollars for ever,
ten miles for which the State receive;
not the slightest equivalent. Tb,
bonds, to the full extent of the ;ssue
passed into the hands Of few men
capitalists, by whom they arc, in grea
part, still held.
Nov, shall the people of Minnesota
tax themselves to pay these bopd-hold
erS the par value Of the bonds thew oh
tanned with sd slight IN effort, toeethe
with the accrued interest Of the min
years that have passed i? or shall the
pay only the cost-the real v,lue-o
the bonds?
Inc State cannot be compelled to pa
one single cent. 1t is at the option q
the people whether these bonds sh,1
be worth any more than the paper tho
are printed on. The matter is entirel
one OF honor; and We can conceive =
no principle of. honor which sbould i'm
pei a people to rob themselves, to en-
tail an oppressive debt upon their chi
dren, and to crush the brightest pro.
poets Of their State in order r. sv.,,