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

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Debate In the State Senate on tho Rail-
road Bonds.
The S>patc last evening, in committee
Of the VI pie had under consideration
Senator Pochler's Joint Resolution to
authorize commission named to inquire
into the State s liability upon the railroad
loan bonds of 1858. Senator Poehler
said he thought the question to be one of
such importance as should not be post
poned, and he believed it was for the
Legislature to first move in the matter.
The report of the committee had but
strengthened his opinions. The question
would trouble the State until it was set
tied. 10 wait for the bond.
holders to unite on some propo-
sition would not benefit the
State but rather, he believed, the
sooner the matter was disposed of the
better for the States credit. He under.
stood that on the two subsequent adver-
tised State loans there was only one bid
from outside of Minnesota, and that for
but $4,000 at only ninety cents on the
dollar. These loans had been taken care
of by use of the school fund. but the
State credit had not been restored. The
effect had been depreciation of. town, city
and county credit, and consequent heavy
loss to the taxpayers of1the State.
He would improve municipal
credit by determination Of the question of
the State liability on these we'll known
repudiated bonds. If there was State
debt he would settle it.. If there was
not he would make it known. Or if the
State owed, but would not pay, he would
say so and have done with it.. -
He understood the special committee to
hold that the State acted as trustee for
the general government. But the de-
nomination of the bonds and the language
of the same, as fixed by the constitu.
tional amendment, showed that the peo-
pie expected to be responsible for pay.
ment of the same. The repeal of the
amendment could not repeal the obliga-
ton incurred. = -
But the committee object that there
was no vote on the question of increasing
the State debt. Yet the vote did imply
a guarantee Of these bonds, and except
the State was responsible for payment Of
them, of what benefit could they have
been expected to be to the railroads
For one he admitted something was
due to the bondholders, and did not
know of many who would say other
wise. The people knew they
were creating obligations against
themselves but that they were protected
by all the security which could be given.
When the companies failed to pay the in
terest on the bonds the State took advan-
tage of their default and seized their
property. If there was no obligation on
part of the State it could not have taken
the property. Then, when the State had
taken lands, road beds and franchises,
which secured it for its loan Of its prom
Use to pay the bonds and interest, it dis
posed of the same.
He would find out to what amount the
State was legally or equitably liable aud
did not know why the inquiry should be
delayed. 1t was not against the dignity
Of the State to say it wished to settle,
nor would it look we'll to hide behind its
sovereignty. A settlement or comprom-
Use could be better made now than five
years hence. He believed they could
have been better settled five or ten years
ago than now, for the facts connected
with the issuing of the bonds are fading
away. But the permanent evidence of in
debtness is on the bonds, attested
by the signature of the Governor
and sealed with the great seal
IF o+o hat ho
removed by redemption of the bonds.
And these bonds will appear whenever
the State is mentioned in any money mar.
ket Of the world.
We have the benefits We expected when
the bonds were issued. The great rail-
ways of the State would not have been
built so soon but for the grading in 1858.
That was the foundation for our railroad
system, the benefits of which could not
be overrated. He believed if they were
without railroads to-day they would
vote the bonds again to secure
them, though they might better protect
themselves
He thought the State was losing by
delay and hoped something would be
done. A committee, outside of the Legis-
lature, could give more time and careful
consideration to the subject than Legis.
1ative committee could.
SENATOR DONNELLY
moved to amend that the commission
should also inquire whether the internal
Improvement lands may be used for set.
Element of the bonds, which amendment
was accepted by Mr.. Poehler.
SENATOR WILL1sTON
Waa of 4ho e