New-York tribune., 1877-06-12
TO-DAYS STATE ELECTIONS.
THE BoND QUESTION IN MINNESOTA.

THE BOND QUESTION IN MINNESOTA.
| CHANCE FOR TIE STATE TO FUND HER RAILROAD
BONDS AT THE RATE OF 80 CENTS ON THE DOL
LAR-THE BoNDHOLpERs' PROPOSITION oN-sohe
OPPOSITION TO TIE PROPOSED CONSTITUTIONAL
AMENDMENT. -
special election of great Importance WIZ
be held in Minnesota to-day tie result of Wn"h WI" pe
of far more consequence the young state thah 'hat Vi
auv election held within borders dun6 the past ten
years. The question to be voted upon IL proposeu
amendment to the state ConSltltlon oeVo'iiis
the 500 900 acres OF Internal Improvement Lanas
snd the proceeds thereof 10 'he apus'"'n' ~
of the Minnesota State Railroad bonds, M
| accordance with an act approved March l, 1877
In 1857 Congress granted 100000 acres OF puoho
land to the Territory of Minnesota to aid in the cohsc
ton of railroads These lands were ceded by the Lesis
ure to various railroad companies but the pane Oh tn'
year made it impossible to buld r"hfoaos VIZ"
lands Next year, In obedience 10 the popu
| lar will a constitutional amendment authorz-
ing the issue OF State bonds 10 aid the com
panes in constructing their roads was submlte" 10 '
people This amendment ratified Apli TO- lo0o' ny
OF %, ,023 to 0733 II authorized the Legislature
TO issue S5oO0OO0 of state bonds, aud the railroads
were required to on the land grants
in return for the state bonds Minnesota became STATE
on May IL, 1853, and in December of The same year
Gov Henry H. Sibley began issue the bonds Before
doing so sought require the railroad companies 10
execute exclusive rsmOrigage bonds but the supreme
Court of the State ordered him, by mandain 10 issue
the bonds which he did to the amount OF S2,2'o'ooo
The railroad companies pad these bonds TO contractors
and succeeded In lS5s59 in grading about 25O mics OF
roadbed Owing to the Effects Of the panic OF 1897
however they were unable TO sell their own bonds or
convert the state bonds into money The CONTRACTORS
| stopped work. and in 1850 the Legislature pro-
| hibited the further issue of bonds The mort
cages on the lands were foreclosed, and the
State by purchasing the lands franchises, and graded
AN tIo wi
mortgaged TO secure bonds These lands were after
ward given TO new railroad companies and the roads
were finally completed. The holders OF the State bonds
sought the cost OF grading from the new com
pancs, but the Uuited States Supreme Court decied
that the State the primary debtor, aud liable on its
bonds The State, however practically fepndiated the
debt having mp present time paid no interest upon
the bonds These bonds principal and interest tat per
cent?, now amount to about 100000 They VIII iuly
mature within six years, when the total sum due VIII DC
about s1O,0OoO00.
After many unsuccessful efforts the bondholders sue
ceedcd in malng proposition 30 the last Legislature
which met with favorable reception and the election
to-day will decide whether the people are wiling TO ac-
cept it, Tne bcndhoders propose to take new per cent
bonds TO run 80 years rate OF about 30 cents on the
dollar of the State Indebtedness and surrender the Ola
bonds The total of the bonds, II the consti-
tHonal amendment is ratified, will amount TO about
S35C0002 Unt 1850 tAeIe WIN Dc noilg I3I & Ire
10 pay. c interest the new bonds untll tha u"te
Commissioners ascertaned the whereabouts OF about
81 10000 the State bonds Almost all OF the holders
OF the puds then traced have siIned their Willingness
to accept the proposed settlement and Il = stated that
no bondholder mas thus far replied uniavoiapy lhs
cEzcus the State earnestly urge the adoption O
The proposed endment and have been WORKING laru
sections of the state The Hon Leonard b. Hodges. who
opposed the original Loan SAID In recent etier; We
can't plead the Baby Act and pretend to be honorable
men. y good name Is better than great riches ana
| state that can raise 40,oO0,000 bushels OF wheat
per annum ana sell IT at 81 30 Per bushel can
| afford 10 whine much longer because she got
| cheated in horse trade twenty years ago"
| Bishop Whippe favcrs the amendment and says II.
VIII be one OF the happiest days OF his lie when this
load of shame" taken away from the state All the
eXGoycrnOrs OF Minnesota ia favor Of the PROPOSE
tion eSGoV. Horace AUSTIN third AuditOr ar WASH
nou is the oay one Of the Governors who does not be-
l!eve VITA the United States Supreme Court thai the
elnitably bound TO pay the face vdiuc OF the
bonds but .ags wnnd vote for tac auicnuLent II
/ f.f..f f..-lI.