The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1871-04-13
THE BILL FOR THE ADJusTlDNr
OF THE BOND DEBT.

THE BILL FOR THE ADJuyTMnNr
OF THE BOND DEBT.
In last weeks ISSUE We published 10
fall, the second time, the bill passed By
the last Legislature to stest the validity
aud provide Cor the equitable adjust
ment of certain State Railroad Bonds"
being such as were deposited by Selah
Chamberlain and few other individu-
ais last year under the provisions Of
the bill for using the Internal Improve
uent Lands in liquidstisg the debt
After a careful examination Of the pro
visions Of this Act, Ne zeal compelled
to oppose it, for the following. among
other reasons: ass E.s,...ssss. I Il. .4stoI
Firss.-If the vote at the special
election shall be in the Affirmative, The
whole matter viii then have passed ont
Of the hands Of the people, and they
will be powerless to protect themselves
against any scheme or combination
which may be formed. The adjustment
Of liabilities amounting to (poss,bly)
nearly fue millions Of dollar. will DO
left with three men, any or oil Of whom
may reside without the State of Minne-
sota.' Indeed, practically, this trust
will rest in the single hands of Gov
ernor Austin, who has sole authority 10
appointing these Commissioners. This
is responsibility which should never
be committed to any one manor to
any three men, with all the poesibili-
ties which may be- involved in their
selection. If this Act had provided
Tor the appointment Of Commissioners,
with duties similar to those now pro.
scribed, and required that their report
should be submitted to . vote Of the
people, for adoption or rejection, at the
next or some following general election,
the most serious objection would be re.
moved. As it now stands, the people |
have literally no voice in the adjust
ment Of tho bond claims. They arc
permitted ouly' to vote as to whether or |
no they shall be adjusted under this |
bill. They may be tolerably certain
that they cannot well be compelled to
pay more than ibe face of the bonds
with the accrued interest; they have
not the slightest assurance that the
award will be any less. They do not
even know the names Of the three men
who are to decide upon: the disposition
Of millions of dollars Of their prop
erty. In short, they are entirely at the
mercy of Governor Austin and tho
Commissioners whom he may appoint.
We claim that the adjustment itself
ought to be submitted to the people,
and not the question ~ to whether
there shall be an adjustment; for that
this should DO has always been admit
ted. -
Second.-The time for holding the
election was appointed with a view to
keeping away from the POLLS the ma
jority Of those who would be certain to
cast their votes against the bill-the
farmers. The early part Of May is one
Of their busiest seasons. The special
election Of last gear, on this same bond
question, demonstrated that less than
half the usual vote could be called out,
aud the greater portion Of that was cast
in the cities and larger towns. A full
vote is just what tho supporters Of the
bill DO not want.
TAird.-But about two weeks are al
lowed for the Governor to make bis
appointments, and for the Commission
ers to organizs, receive the testimony,
make their decision and prepare their
report. They should have had fully as
many months. There was no need for
this unsecmly haste, and the State must
be the sufferer by it The St. Paul
Press gives as its opinion that "ahy
three men, learned in law, who could
not settle this [meaniug. the legality of
the bonds in five minutes, must DO poor
sticks indeed" The fact that the
Press considers the old bonds legal and
a jut demand to their full amount
against the State, mag throw some light
on the tendency Of this "opinion."
Fourth.-The sliding scale Of. in
terest is calculated to deceive those who
may casually examine the bill. While
the interest for the first year Is only two
per cent, yet the difference between
that and seven pei. cent. is added to tho
principal, and 50 on each following year
until the seven per cent. rate is reach
ed-thus conspoaading the interest. Is
There are other objections, less ma.
teriaL The section providing that the;
interest, and eventually tia principal,
shall be paid from the fund derived
from the tax on railroads, means direct
taxation. That fund is now . portion
Of the regular revenue of tho State,
and if taken for this purpose an equal
amount must DO supplied by an in.
creased rate Of taxation. This III not
very material, however, a. when the
bonds or any portion comes to DO paid,
it must be done by tax-only let the
workings Of this section be Thoroughly
understood. The question a. to the
right of the Legislature, under the
Constitutoin,to clothe these Cpmmission,
ers with judicial powers, is doubtless we'll
taken, but it, involves a technicality
rather thana principle Of actual JUS