The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-06-16
Shs 8atIand Daily Gluhs
MINNEsOTA's REPUTATION.
SATURDAY, JUNE Ie, 1877.

FROM the meager returns received IRON
the election held in Minnesota, Tuesday
June II. IL would appear that the majority
of the people Of that state had placed
themselves squarelY in favor Of repudi
alton. II the fact is as the returns seem 10
indicate, Minnesota will enjoy the unenyi-
able distinction perhaps "nototiety'
would he the better word-of being the
only northern state open to that charge. 1t
is true that several of the other northern
states have, at different times, under tenn
porary embarrassment defaulted in the
payment of interest, but 10 every instance
they have, in some way or another, recog.
nized their obligations and effected settle
ment with their creditors.
The points in the case are, in hriei. as
follows 10 1873 the state issued two mil
lions, two hundred and seventy five thous-
nddollars of bonds to four land grant rail-
road companies, in aid of the construction
of their several railways, aud received in
return therefor an equal amount of the first
mortgage bonds OF the railroad companies.
In process Of time the companies defauted
in the payment of interest, and, as has been
too common with railroad comdanes, be-
come bankrupt. Immediately on the de-
fault, the state foreclosed the mortgage,
and, thereby. acquired the title TO the prop
srty, including some two hundred and forty
miles Of railway, graded and ready for the
iron, and several million acres Of land.
Another result followed the default of the
railway companies. The state, although
coming into the possession Of the property
;hus created, defsnted in the payment of
the interest on the state bonds 80 issued,
and, not only ny concurrent acts OF the
legislature, but direct vote OF the people,
repudi ated the principal and interest Of the
bonds.
The bonds were issued in strict compile
Rnce with law, and the faith and credit of
the state were pledged for the payment of
the principal and interest thereof; and,
since the first default, the several govern
ora OF the state have repeatedly called the
attention OF the several legislatures to the
subject, and have urged that provision he
made for payment. These means failing,
in order to establish an equitable lien on
the property, suits We're commenced by the
bondholders against the several companies,
which were decided against the plaintiffs,
both in the circuit court and the supreme
court OF the United States, on the ground
that the state was the principal debtor and,
therefore, primarily liable TO pay the bonds.
both principal and interest.
Upon this point, we cannot do better than
quote the language of the court. Judge
Dillon, of the circuit court, said THAT
''thebonds are legal obligations Of he state,
land binding upon II in law, honor, and jus
tce, have no dIubt. II the State were
suable In the courts, there can be no
doubt that the bonds would be legally
enforceable against it," The supreme
court of the United States, in its decision,
said; "The bonds issued are legal obliga-
tions. The state is bound by every con
sideralion OF honor and good faith to pay
them. Were she amcnablc 10 the tribu-
mails OF the country, as private indiyidu.
ais are, no court of justice would with.
hold its judgment against her in AN sc-
" uon for their experiment"
These decisions ought to have brought
home 10 the people OF Minnesota profound
sense OF the odium which rested upon the
state; but, IN addition to this, the general
convention Of the Baptist and Congregs-
uonal churches of the state, and the Pres,
bytery OF st. Paul in effect, the Presby terlan
church of the state-At their last meetings,
resolved tina: 1t was the religious duty of
every christian in the state to do all in his
power to relieve the state from the dlshonor
OF reputation, and provide for tho honor
able settlement of the suspended debt of
the state.
As q resHlI Of this action of the several
religious denominations Of the state, and
the language used by the courts, the last
legislature passed an act looking at a COM
promise Of this indebtedness and settle
ment of these bonds, by the payment of
some Atty cents on the dollar by the issue
OF new six per cent. bonds of the state.
Minnesota is one of the most prosperous
states In the Union, and, in proportion Ia
her population, one of the most wealthy
but, as we have said, has voted squarely In
favor OF reputation and, alone OF northern
states, has dishonored her obligations and
violated her plighted faith. We will moi
waste words by calling attention to the
manifest comparison which may be made
in reference to the regard paid to plighted
faith, and TO constitutional and legal obi.
cations in the north and south--our readers
can make the comparisons, draw the infer
encs, and decide who is entitled 10 throw
the first stone.