The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-03-08

no TAX LOT payment OF the OOn0S issued
and the other that there should be no
further issue of the bonds. The same
year was passed the law authorizing the
States foreclosure upon the roadbeds,
land grants and franchises Of the compa.
MES. + a5s& 'sE..s. tssszfSS tSSs
In 1866 commissioners we're appointed
to inquire as to the ownership of the
bonds. . nv SS@&
In 1867 the Legislature proposeda sink
ing fund for adjustment of the bonds,
which proposition WAS defeated by the
people. They would not provide any
means for payment Of the bonds. They
did not recognize any obligation for their
paym ent BY the State. ..s--
s ~ In 1876 the Legislature proposed that
the holders Of the bonds might have the
internal Improvement lands in exchange
for their bonds. This was adopted BY
the people, l8,257 to l2,409, but the re.
quired number Of bonds were, never, dc.
posted. So - ~
In 1871 the Legislature proposed to
provide for an equitable adjustment of,
tho bonds by commissioners to inquire
whether there was q legal or equitable
obligation against the State. And this
Wt&S OCl06ISO Wy CuS people,
Besides, in 1850, the loan amendment
was exDunged from the constitution, a's.'*s*
On every occasion but one, then, the
people, by large majorities, have said no,
they would not set the question ut rest.
The one exception was on the proposition
to exchange lands for the bonds.
He doubted whether any parties hold
the bonds without ,tice. The validity
Of their issue was denied from the first.
State papers did all they could to dis.
credit them, and they never had market
value. -, ri a.ns,-,...... ~,.,s, po.
The State occupies the position of 4
maker of negotiable paper obtained with
out consideration or by fraud. PROPOSE
tons for settlement should come from the
bondholders. Litigation was now pend.
ing to decide whether the succeeding
companies are not bound to pay the
bonds, and his objection to the pending
resolution was that it would furnish an
other club to enforce full payment by the
State. He would favor commission to
receive proposals from the bondholders,
because he wanted the question settled,
and the sooner it was settled. he thought,
the better it would be-for the bond
holders. -. 90 2; !:
SENATOR SMITH OF RAMSEY,
had also opposed the original issue of the
bonds.
[Mr. Murray here moved an amend.
ment instructing the commission to re.
ceive proposals for settlement for the
bondholders, which motion subsequently,
prevailed
Mr.. Smith, continuing, said oil under.
stood the matter when the bonds were
issued and many said the State would
have the obligation to meet. He spoke
of the number of miles of roadbed con-
structed for the bonds and
said besides they paid larIe
expenses Of surveys and for tho plats for
the lands which were given to the State
as trustee. ..
When the companies defaulted, it was
on their own first mortgage bonds, not on
the State bonas. Next, new companies |
being necessary, the State granted the
lands and franchises to the new compa-
MES cleared of every lien. The State |
took away the companies property-all |
the security the bondholders had other |
than its plig htcd faith. 1t would appear |
the State here assumed both the moral !
and the legal obligation for payment of
the bonds.
But he would not sustain the PROPOSE
ton to be sued. H. would first inquire |
and have all the facts made known so
that the Legislature and people, knowing !
the conditions under which the bonds |
were received, would know all the cqui.
ties involved.
In conclusion he said the bonds accom-
plished what was expected in considera-
ton. The State has gained the railroads
and the population, but the thousands of
people who have come since their issue
need information on the subject to
determine their obligation intel(igcntly.
SENATOR DoNNELLY
Moved to add to the resolution that the |
report Of the commission should not be
binding on the State, which motion finally
prevailed.
Mr.. Donnelly said it was a fact that the
Republican party came into power upon
reputation of the five million loan,
which was fraud and delusion; a folly |
upon the part of the people. He would
not vote for the proposition of Sem
of our obligation on the bonds to the
courts. The signature Of the Governor
and seal of the State upon the bonds con.
stituted legal claim; on presentation of
bond any court in the world would give
judgment against the State. On the 9th.
or hand the State was in such position
that it would be cowar lily and impolitic
to shrink from inquiry into its liability.
He had been called repudiator, but he
was ready to negotiate for an equitable