The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1877-05-17


the present plan is to be adopted. If
they think that they can settle on the
basis of paying so cents OH the dollar
and give the proceeds of the internal
improvement lands for that purpose,
let them vote Eyes" on the 18th of June
next. If this plan does not strike them
as good one, they will vote ''no, "and
the matter will lie over until better
plan can be devised.
THE S7,ATERALLROAD BONDS.
BRIEF HISTORY OF THE BONDS THE
PROPOSED PLAN OF PA YlfEN1-7IIE
OBLIGATION OF THE TE-OUI9
RUINED CREDIT
In the last issue of the ADVANCE we
gave the proclamation of the Governor
for a special election to be held on the
18th Of June next, to vote upon the a.
dcption or rejection Of the plan propos-
ed by the last Leg islature for paying
the old railroad bonds of the State.
As most of the readers of the ADVANCE
are new corners and unacquainted with
the history of these bonds, we propose
to give, in as brief space as possible,
some account which will cover the main
points in the case.
HISTORY OF THE BONDS.
In 1857, Congress granted to the Ter
ritory of Minnesota six millions of acres
Of land to aid in the construction of
railroads. In the same year, the Leg
islature coded portions of these lands
to certain railroad companies. But as
the lands at that time would not build
the railroads., the commonwealth was
asked to loan it's credit, and according
ly, a constitutional amendment was
proposed and ratified by the people, au-
thorizing the issue of five millions of
bonds 10 aid in the construction of the
land grant roads. Of this five millions
provided for, only $2,275,0O0 were is
sued. And this was done only after an
engineer, appointed by the Governor,
had examined and certified to the grad
ing done. The roads on which this
grading was done and on which the
bonds were issued are now known as
the St. Paul & Pacific, the Wirona &
st. Peter and the St. Paul s. Sioux
City.
The companies failed in 1850 leaving
some $50 miles of graded road bed.
The Legislature of 1860 passed a law
directing the Governor to foreclose the
mortgages, aid under this, the mort.
cages were foreclosed and all the lands.
franchises and graded road-beds were
bid in by the Governor, for nominal
sum. Instead of applying this proper.
ty to the payment of the bonds> the
State offered to give it to any compan.
les which would build the roads. Ii
1852, this property was transferred te
companies which went on and built
the roads.
The facts are, then, that the road.
were built and have been in operation
for some years, to the great benefi: O.
the State; that the bonds are still ont
standing and neither interest nor prin
cipsl have been paid, and that Mime
sofa bears the reputation Throughout
the world of having repudiated her Oh
legations.
ttwas urged that rs the new com
panies paid nothing for the lands an,
the graded roads, the property ougl.
to be applied to the payment of til
bonds. Suit was therefore brought :,
gair,st certain of the new companies
but the United States Circuit Court
and. on appeal, the United States Su
preme Court, decided that the Stat
was the primary debtor and liable t
pay the bonds.
TIE QUESTION OF FRAUD.
1t is claimed that. tie constitutions
amendment providing for the issue G
the bonds was adopted by fraud, O
that the question was carried by unfai
means. the people voting under undu
excitement aud misapprel,ension. Vi
on this point, we know nothing, nc
having been resident of the State a
that time. We only know that til
State issued its bonds, and that it la
paid neither principal nor interest.
THE PROPOSED PLAN or SETTLEMENT
The ghost Of reputation rising wher,
ever the credit Of Minnesota is consit
ered, and the constant demand of I'll
hond:ho'dtrs for III adjustment, indu.
eA the kast Legislature to adopt Il pl;,