The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-05-17
The Old Railroad Bonds.

The Old Railroad Bonds.
The Supreme Court of the United
States has rendered a decision in
the case Of Selah Chamberlain
against the St. Paul and Sioux City
and Southern Minnesota railroad
companies of this State, sustaining
the decision Of Judge Dillon in favor
of the defendants. This suit was
brought to test the question whether
the railroad companies were liable
for the debt secured by the old State
railroad bonds, and the decision Of
the court denies such liability. These
bonds, it will be remembered, rep
resent a loan of the credit Of the
State to the original land grant rail-
road companies. They purport to
be bonds of the companies endors-
ed by the State, and were to be
paid, principal and interest, by the
companies. TO secure the State
against defalcation by the compa-
MES, the latter mortgaged to the
State all their road-beds, rolling
stock, lands, franchises, &C., and, in
1862 this mortgage was foreclosed
and the State took possession of the
mortgaged property.
Soon after the State conveyed the
same property to new companies,
composed mainly Of the same men
who formed the old ones, but organ
lied under different charters and
with different names and to all in
tents different associations. Upon
these no conditions were imposed
making them liable for the payment
of the old bonds, or giving the State
any lien whatever upon their proper
ty because Of the existence of such
bonds. OF course, all responsibility
for the payment Of that debt was,
by these acts of foreclosure and sub.
sequent disposal of the property,
assumed by the State; and while
justice to the State may and does
make it the duty of the new CON-
panies to pay this debt, inasmuch as
they received the benefits of the ex-
penditure, the State has voluntarily
1ebarred itself against all demands
upon them to do so.
On the other hand, the present
owners of these bonds gave some
thing for them, and justice to them
demands that they shall be paid.
And the State has voluntarily placed
itself in a position to become the
only party responsible for such pay
nlent, and its credit must suffer by
continued refusal to discharge this
obligation. The time has been when
an arrangement could have been
effected with the bond-holders, by
which the debt might have been can
celled with much less cost to the
State than the payment of the face
Of the bonds and interest, but with
a perversity natural to those who
are asked to submit to an imposition,
and through the influence of shys-
tering political lawyers, the people
have refused consent to any settle
.ment involving an acknowledgment
Of responsibility for the debt.
Now, that the highest authority in
the country has declared the State
liable for the debt, we hope an ar
rangement will be made as soon as
possible, and on the very best terms
for the state that can be effected.
True, the act Of giving the bonds
was a foolish one, but Minnesota
will not be the only State that has
paid dearly for her folly, when she
takes up the bonds, nor will she
have paid nearly so great price as
several others if she pays the bonds
in full.
Our attention has been called to