Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1876-10-19

s THE STATE RAILROAD BONDS. s
We, heretofore expressed. our views con:
corning These boa1s. They were issued 1
In accordance with a vote of the people,
hence they .re m authorized claipaagalnst
the State. and therefore valid. The COM:
monwealth never realized but small por, !
ton, If it realized any portion of their
face value. S0me of them were taken at
par hy persons who supposed them to be
first class securities, while others were
bought by persons who knew that they
were q swindlc, and hence they were
bought for very small sum. 1t thus ap-
pears that The bonds arc in the hands at
two classes Of holders-onc of which is
known to the law a. '.innc cent" because
without any knowledge Ct the facts, they
had q right to presume that the bonds
were o just claim, and one that was :un.
disputed. The other class had knowledge
Of all the facts and the circumstances, and
they bought the bonds at q low rate, cal.
culating TO speculate upon them at the ex-
pcnse of the State, hence they are consid-
cred in one sense as guilty parties. An
official inquiry made by the authority 1T
the legislature some years ago. disclosed
the fact that the aggregate amount real
lied by the original corporations from
their sale, was about one third Of their
face value. The State isl legal sovereign.
She cannot be coerced-she can repudiatc
the clam arising upon the bonds, and tie
holders are without a remedy at law;
but the State is in one sense moral agent.
She is under obligation TO do right, just as
much as though she were scn.ient per:
son-hencc her sovereign power is no
greater than her moral obligations. If
she may not be compelled, her action
should be such that she ought not to bc
compelled. What then is right in this
cases The State endorsed the bonds, thus
imparting to them the weight of her char.
acter, and the value Of her pledge that
they should be redeemed. Size has never
realized anything to her advantage by the
transaction. Those persons who bough.
The bonds, knowing that it.. the State
paid them she would be loser to the tx.
tent OF the amount paid, ought to get no
more than the purchase cost them, with
interest on the Investment Such wen,
into the speculation with their eyes open
but they who took them innocently should
he saved harmless. %@s,$- ~
This then is what the State should do
VIZ: ascertain as nearly as possible wha
the bonds cost the individual holders
and ado 10 that sum, proper interest upor
the money paid. The State ought TO los,
the amount necessary 10 settle in this way
because she offered an inducen,ent TO III
Iprrsons 10 invest in her securities. Thosl
who bought the bonds knowing the cir
cumstanccs, could claim nothing at III,
hands of the law If the State were suablc
and in equity they must he content to &c
back their own with interest. That small
class who paid par value should he <re
garded in the light Of benetactors Of tn
State, and entitled 10 the highest consid
eration-thcy should have dollar for dol
lar upon their Investment. This is tn
equitable, and We think the honorabl,
course, and we hope and expect it Will no
be long before the State will adopt it, ,,nt
thus remove the stigma Of reputation.