The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1877-01-31
STATE RAILROAD BONDS.
A Proposition Made to the Legislature by
the Largest Owner of the Bonds.

A proposition Made to the Legislature by
the Largest Owner of the Bonds.
Gov. Pillsbury's message treated at
considerable length the subject of the
old minnesota State Railroad Bonds,'
and. in accordance with his suggestion,
the Legislature appointed joint COM
mittee to consider the question,
which promises to be one of the lad.
ing topics of the session. Mr.. Selah
Chamberlain, who holds the majority
of the bonds, has appeared before
that COMMITTEES and submitted the fol-
lowing proposition:
To the Honorable Chairman of Joint Committee on
State Railroad Bonds 49,
Coming to your State in 1858, took con-
tract from two Of your Immigrant railroad
companies to grade and prepare for the iron
portion of their roads / performed my en-
gagements, paid all my bills, and received as
my only compensation the quota OF State
bonds which, by the constitution OF the State,
had been devoted to the performance OF the
work which undertook. By these bonds
the faith OF the State was pledged to pay the
sum OF one thousand dollars for each bond in
twenty years from date, with interest at
seven per cent. per annum, payable semi-an-
nually. 'a' Sc ST. b." So
The companies to whom the bonds were
| originally granted, having failed to complete
their roads, forfeited their charters; and the
State took possession by foreclosure of the
roads, with all the work which had been
done on them. In consequence of the failure
othe State to pay any interest on the bonds,
and other causes, they soon ceased to have
any marketable value. At q later period,
when the State had conveyed the railroad
properties to new companies composed of her
own citizens, in trust, to procure the compile
ton of the roads, was again invited to come
to the State and undertake the work. was
| assured by intlue initial citizens that as soon as
the people should receive the benefits OF the
roads, they would discharge their obligations
| upon the bonds. Under the influence Of these
considerations, organized new company,
and, with means and credit drawn entirely
! from abroad, undertook the construction OF
| one OF your leading systems of railroads,
| which has expanded into the present River,
Milwaukee Il st. Paul railroad Meanwhile,
the population of the State has grown from
16O, OOO in 1868 to about 10000 in 1876, and
the assessed valuation of it's property from
$32 QUO, 600 in 1868 to $226, O0O, 900 il 1876. ~
l have often appealed to the people of the
the payment OF their Obligations Various
reasons have been assigned Tor neglecting to
90 this; among them, perhaps, the most fore
IDLE was that the railroad companies, or the
lands held by them, were liable for the pay
ment the bonds: To determine the va1idi-
~ Va ILLS SupPOSlClOu, instituted a Sultl the
Circuit Court OF the United States for the
District of Minnesota, against two OF the rail-
road companies, which, after having been
decided against me, appealed to the Supreme
Court of the United States, where the various
questions at issue were argued by the most
learned and able counsel who could be pro-
cured both from within and without the
State. -~..
As result, the highest judicial tribunal in
| the nation has determined that the railroad
companies hold their lands tree of any liens
| in favor OF these bonds; that the bonds are