Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1877-05-10

work as it progressed. He ruled also that
the bonds of the companies to be delivered
to secure the payment of the state bonds,
should constitute a first lien upon all the
lands, franchises and other property Of the
companies ; but upon an appeal to the
Supreme Court of the State, that tribunal,
after a full discussion, issued a perenlptory
mondamus to the Governor to issue the bonds
,cihtout demanding IN return erclusive first
mortgage bonds.
OF the five million dollars of State bonds
provided for by the amendment, two million
two hundred and seventy-five thousand dol
lars only were issued. That every require
ment prescribed by law as preliminary to
the issue of the bonds was complied with,
and that no fraud attended their issue, is
emphatically asserted by Gov. Sibley, in his
first message to the legislature, after the
issue of the bonds. In his annual message
in 1859, he says:
"There is no good reason why these bonds
are not now worth as much as other State
stocks, unless, indeed, the State intends to
repudiate her obligations, a consummation
which none but those who have no regard
for public honor and good faith would ven
ture to advocate. The bonds have been
issued under the solemn sanction of the
constitution, every prerequisite having been
strictly observed, and in case of default in
the payment of interest and principal, the
State is bound to acquit herself OF the
liabilities she has voluntarily incurred. l
trust, therefore, that you will decide this
grave and important question in such a
manner as to demonstrate abroad, that the
representatives of the people of Minnesota
will not for a moment tolerate reputation.
Far better that We be visited by pestilence
or famine, for these are the instruments OF
God, far which we are not responsible but
our own act in violation of public faith and
the pledged honor of the State, would sink
Minnesota for all time to come, beneath the
contempt and indignation of the civilized
world"
1t is claimed that only the level and easily
graded portions of the lines of road were
graded by the proceeds of the sale of State
railroad bonds, that heavy work was passed
by and that therefore the grading done was
not within the spirit of the law, and that
the law was in that way evaded, &c., &c.
In a legal controversy'it would be a sut1i-
cient answer to this to say, that no bonds
were allowed to be issued until the grading
was actually done and the Governor salts
fed by proof of the fact of completion of
each ten-mile section. This was done in
each instance ; the Governor was made by
the laws the Judge ; his decision is conclu.
sive, and the State and people bound by it.
That such decision was honestly made, on
satisfactory proof, no one that knows Gov
ernor H. H. Sibley will for a moment doubt.
The facts are that, on some of the roads,
the grading wa commenced, at the prairie
level, above or beyond the river bluffs, but
in all these cases the grading thus COM
menced was continuous, not in patches.
The companies had no money to pay with
but these State railroad bonds, which they
were only entitled to receive upon compile
ton, ready for the ties, of each continuous
section of ten miles of road. Their own
bonds could not be sold, and the others only
promised, but the facts are, the managers of
these roads believed that by securing con-
tinuous grading from the summit of the
bluffs on the credit of the State bonds that
the road so graded would give the companies
credit and enable them to sell their o,cn bonds
and raise means to complete the portions so
u%ncompleted, finish and iron their roads,
Tue object was not to build part of a road
that would be Of no value, but in tits way
secure the line so as to operate the roads
and derive revenue from it.
The bonds delivered by the State were not
guarded by any conditions or ~recitals, but
were absolute and unconditional obligations,
the form of bond adopted is a matter Of con-
sequence, and for your information a copy
of one is here given which, with variations
of name of company, &C., will show the form
of all of them.
UNITED STATES OF AMERICA.
STATE OF MINNESOTA.
Secen per cent. &eren per cent.
$1,000. $1,000,
Railroad Bond No. $50. No. 553 Railroad Bond.
The State Of Minnesota acknowledges to oace,
and promises Opay to the order of the Mime
ap0lis and Cedar Valley Railroad Company,
at the Metropolitan Bank, in the city of New
York, OF at such other place in said city as
may be hereafter designated by law, the sum
OF one thousand dollars, or the first day of
December, A. D. one thousand eight hum
bred and eighty-three, with interest at the