The St. Cloud journal., 1876-02-24
THE OLD RAILROAD RONDS.

THE OLD RAILROAD pONDS.
The matter Of the disposition Of
the old State Railroad bond questi on
came up Saturday in both branches
Of the Legislature. In the Senate
Mr.. Pochler introduced bill Gre
ating commission to investigate
and report upon these bonds. The
commissioners are to be Geo. L. Otis,
Of Ramsey; C. E. Vanderburg, Of
Hennepin; O. P. Stearns, OF St.
Louis; T. q. Mcclure, Of Stearns
L. K. Aaker, Of Douglas; NJ. J.
Severance, of Blue Earth VIM.
Schimmel, Of Nicollet; Geo. w.
Batchelder, Of Rice; Samuel Lord,
Of Dodge; ]. Q. Farmer, Of Fill
more William Mitchell, of Winona ;
J. S. G. Honnor, Of Redwood; and
e. T. Wilder, Of Goodhue. They
are instructed to make a thorough in
vestigation Of all facts relating to
the Minnesota railroad bonds, to the
end that the legal and equitable obli-
cations of the State in connection
with said bonds may he ascertained
and determined. The commission is
authorized to send for persons and
papers, to examine witnesses, and
shall report to the next Legislature.
The Governor is authorized to fill any
vacancies in this commission.
In the House Mr.. Petit, from the
Committee on Ways and Means, to
which was referred 80 much Of Gcv.
Davis's message and Gov. Pillsbury's
inaugural as refers to the railroad
bonds, with instructions to report by
bill or otherwise, made a lengthy re-
port. The action of Michigan, Indi-
anna and Arkansas, under circum.
stances similar to our own, in which
compromises were made with the
holders Of certain kinds of bonds, is
referred to. The committee say: "In
our own case, if the State has equi-
ties which would entitle her to a
compromise-as your committee and
the people Of the State generally be.
lieve she hast is not necessary, as
some argue, that the State should
pay the Five Million Loan bonds,
principal and interest in full, and
ask no questions. What is required
is that, when the bondholders are
ready to make such settlement as in
the nature of the case would be fair,
or as near fair as practicable to both
the bondholders and the people Of
the State, that the State should meet
them half way. When that time ar
rives let a committee Of the Legisla-
ture come to an agreement with the
bondholders as to the basis of settle
ment, and let the Legislature submit
the proposition to the people of the
State at once for ratification; pro.
viding fully as to the manner Of SET
tlement, leaving no contingency un-
provided for, as was done when the
proposition was submitted providing
for paying the bonds with the 500,.
600 acres of internal improvement
lands. In this way, your committee
are confident an early and equitable
adjustment may be efectedsat any
time when the bondholders shall
choose, on their part, to make the eff:
fort, either directly or through an
authorized agent"
The committee think that some
concert of action among the bond
holders is prerequisite to any settle.
ment. A "disinterested tribunal" is
considered wholly unnecessary, as
there is no evidence that the State
cannot agree upon terms with the
bondholders whenever the latter shall
think worth while to act in concert.
The State is disposed to deal fairly
and literally with the bondholders,
and will pay all she ought to pay.
The committee scout the idea that
the credit of the State is suffering in
consequence Of the interest on these
bonds remaining unpaid. AS they
say, the credit Of the State is good for
any money she might wish to borrow; !;
the credit Of her merchants and other
business men is as good as that Of
men of like means in any other State,
and all our railroads have been built
since these bonds were issued, the in
terest on which remained unpaid
from the start.
The report concludes as follows !:
Should proposition be submitted
to the present Legislature by the
bondholders, proposing to accept Of
new bonds for the old ones upon eq-
uitable terms, the new bonds not to
draw to exceed six per cent interest,
your committee would recommend
that the Legislature should submit
the offer to the people of the State
for ratification or rejection. And Fl.
nally your committee would say that
in their opinion-as the matter now
stands-the State should issue new
bonds upon the terms suggested as
soon as practicable under the provis-
ions Of our constitution, whenever
the bondholders may make an offer
to accept Of new bonds upon these