The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-02-08
STATE RAILROAD BON lis.

considerable length the subject OF the
Cd minnesota State Railroad Bonds,
and in accordance with his suggestion
the Legislature appointed joint com
mittee to consider the question, when
promises to be one OF the leading top
les Of the session. MI. Selah Cham
berlain. who holds the majority OF che
bonds, has appeared before the COM
mittee and submitted the following
proposition:
To the Honorable Chairman OF Joint Committee Oh
state Railroad Bonds.
Coming to your State in 1858, took
a contract from two of your land grant
railroad companies to grade and pre-
pare for the iron portion Oh tntlr
roads. [ performed my engagements,
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 per
Torrance Of the work which ! under
took. By these bonds the faith OF the
State was pledged to pay the sum or
one thousand dollars for each BOND LII
twenty-f five years from date. with H.
terest at seven per cent. per ahhan,
payable semi-annually.
The companies to whom the bonds
were originally granted, having failed
to complete their roads, forfeited their
charters and the State took posses
sion by foreclosure of the roads, with
all the work which had been done on
them. In consequence Of the failure
of the State to pay any interest on the
bonds, and other causes, they soon
ceased to have any marketable value.
At later period, when the State had
conveyed the railroad properties TO
new companies composed OF her own
citizens, in trust, to procure the COM
pletion Of the roads, | was again In
yited to come to the State and under
take the work. / was assured by IN
f1oential 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 a new company, and. with
means and credit drawn entirely from
abroad. undertook the construction Oh
one Of Your leading systems OF rail
roads. which has expanded into the
present River. Iowa and Minnesota di-
visions of the Chicago, Milwaukee 4
st. Paul railroad Meanwhile, the
population Of the State has grown
! from 150, 900 in 1853 TO about 700, 600
i in 1876. and the assessed valuation OF
IFS property from $50 600, 600 in 1868
to 1925 ,000 90 in 1876.
have often appealed to the people
of the State to redeem their pledge,
and provide for the payment Of their
4
been assigned for neglecting 10 do
this among them, perhaps, the most
foTcible was that the railroad compan-
les, or the lands held by them, We're
liable for the payment OF the bonds.
To determine the validity OF this sup
position. | instituted q suit in the
Circuit Court of the United States for
the District OF Minnesota, against two
Of the railroad companies, which after
having been decided against me. | ap
pealed 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 procured both from within
and without the State.
As a result, the highest judicial tri-
8 UUL1d4 Ill Llir uI6lpl i1s&1 I%tS1t 1AAAAA1a
that the railroad companies hold their
/ lands free of any liens IN favor OF these
bonds that the bonds are direct and
primary obligation OF the State, and
that the State, if amenable To the pro-
cess Of the courts. would be compelled
TO pay the bonds, principal and interest
according TO their terms aud finally
that the Constitution and laws deyOlye
upon the Legislature, without sIbmiss-
ion to vote Of the people. the duty
of providing for their payment. Mean
while. amid the yIciSsitudes OF
business, /. in common with many OF
the creditors Of the State. have become
curiosly inconvenienced By my lnabili-
ty TO realize anything upon this large
obligation.
The question Is presented whether
:! shall wait until the State il ready TO
pay the entire debt, or whether BIZ q
voluntary offer or my part TO compro-
mise the claim for a portion OF the
amount due. | shall induce the Legls-
I lature TO make III immediate and flnal
settlement. I'm view Of the uncertain
/ ty OF life. or the dlsagresable alterna-
1 tive Of leaving 10 M heirs an unset
! tied claim, and of the deslTabliIty OF
I freeing myself It'd advancing age from
the anxleties and uncertainties Incl
dent to the situation, have determln-
! ed 20 adopt the latter alternative, and
am now here to make a proposition SO
much less than my legal claim. anu 80
manifestly advantageous 30 the state,
that I trust | shall be met with cor
responding spirit OF compromise Oh
the part or the representatives OIL the
people.
The bonds bear date December Ist,
1855. They are TOR $1,000 each, ma
ture December 1st, 1883, and bear n
terest at seven per cent. per annuTnt
payable seIni-annuaIly- The whole
number issued was 2.2T5. On the Isl
day of June, 1877, there viii be due
upon each bond,
81 coupons of $35 each ..-.---...-- 81 70 "
Simple interest st Der cent upon
coupons since they tcouponsl be- :
Principal of bond FunInaturedf - Low Y
s3,1I0 8