The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1867-10-17
THE RAILROAD BONDS.

NO. ID.
THE RAILROAD BONDS.
4A'E@ets from. Oovernor Ramsey's
Aessags Of 1850.
l now proceed to speak Of the com.
pI1cations growing out of the unfortu-
nate Loan Amendment to our State
Constitution, adopted on the 18th of
April, 1863. I need not go into any
elaborate argument to prove to you that
the Leading idea under which the people
OF Minnesota voted that Loan of Public
Credit, vas, that through such endorse.
ment BY the State Of the Land Gran,
Railroad Companies, Railroads would
most assurcdly be built and put in ope.
rat'oo' and that, too, speedily-in thei,
building contributing to the revival Of
prosperity, and their completion secur.
ing it. Nor will it be denied, On the
part Of the Companies, that while they
solicited and accepted the loan of the
special bonds OF the State, they solemn
y engaged not only to build the Roads
without fail, but to save tho State harm
less from ever paying dollar Of interest
or principal on the bonds. But from
present sppearances, and I say it With
great regret, neither the expectations of
the people nor the promises Of the Com
panies are likely to be realized. If it
is s1nquired what the Railroad Compa-
MES have thus far done to meet their
obligations to the State aud the people
Of Minnesota, the answer is a most IN.
satisfactory summary. They have, on all
their several lines, graded au aggregate
Of about 24o miles Of road, which they
allegs is ready for placing the SUPER
structure thereon. Upon the faith of
such grading being faithfully executed,
which is said to be doubtful, they have
d'awn about 81, 300, 900 Of the Special
Bonds Of the State, entitled "Minnesota
State Railroad Bonds" But, fer this,
they have not completed or put in ope-
ration, one mile Of Railroad. They have
not brought into the State one pound Of
iron for that purpose. The idea of
building aud operating Railroads by
the present companies is generally
abandoned even by themselves, as it is
BY everybody else. Aud three Of the
Land Grant Railroad Companies, to wit,
the Minnesota aud Pacific, the Mime
apolis and Cedar Valley, and the Tran
sit have just defaulted in the payment
Of interest on the quotas of the State
Railroad Bonds. While, also, the people
Of Minnesota, in debt, overtaxed, suffer-
ing losses from deprecated Railroad
currency, are poorer, if anything, than
they were before the Railroad Loan
Policy to make everything prosperous,
was inaugurated. Such is the summary
Of these results we have reached, from
tho final working ont Of tho Constitu-
tional Loan Amendment. + +
But it is not only the removal Of a
hindrance to immigration, which de-
mands that conflicting views Of the ex-
tent Of the State obligation for the
Bonds aud her immediate duty in the
premises, should be harmonized or at
least sileueed by the immediate adop-
ton of some settlement as the one per-
manent policy Of Minnesota; but also
because it is extremely desirable to re.
move, as speedily as possible. 50 vexing
question from our State politics, and
not allow it to remain for years, to dis
turb our elections, perhaps divide our
people into Bond and Anti Bond par
ties, aud intorduce annually into our
Legislative halls, an element Of discord
and possibly of corrupti6n,-all to end
just IS similar complications in other
States have ended: the men who will
have gradually engrossed the possession
Of all the Bonds at the cost of few
cents on the dollar, will knock, year
after year, At the door of the legislature
for their payment in full; the press
will be subsidized the cry Of repudi.
alton will be raised all the ordinary
means of procuring Legislation in doubt.
fal cases will be freely resorted to un'
til finally, the boudhoIde1s will pile up
almost fabulous fortunes, obtaining .
recognition Of their disputed paper and
it, payment At par! ***
Tho argument by some, in favor o.
the perfect validity Of the Bonds il
question, aud OF the obligation Of the
State to meet them fully, and pay them
without qualification or reserve, you n,
probably familiar with, and it need mo-
that I should here recapitulate them
But there are others, who, by plausi'
bic if not conclusive arguments, main
tain, that under all the circumstances
and under the provisions Of the Con
stitutional amendment itself, the State
of Minnesota Il not in law or equity
bound to pay one cent Of these Bonds ;
and the reasons by whieh they support
90 extreme if correct, most i'm.
portant a position, should be caudidly
presented for your judgement respect
ing their force aud oogeuey. Those
vho take this poatiou, deny that they
are in any sense the advocates Of repu
diation. They profess to be in favo'
Of paying ill tho honest indebtedness,