The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1877-06-07

4
be done at a less cost is true; but who
is to blame for that, but the people
themselves, who adopted and ratified
the unconstitutional amendment, after q
full discussion OF the questions. and2af-
ter being warned of the probable re-
suits. 81.
FORECLOSURE OF MORTGAGES. NEW
| COMPANIES UNDERTAKE AND COM
PLETE THE ROADS.
The foreclosures of the mortgages of
trust deeds, took place; the State was
reinstAted in the possession Of the fran.
cllises and lands granted to the default
ing companies, and acquired in addi-
ton, the ownership Of the roads that
had: been graded; and she was then in a
position to apply all this valuable prop
erty to secure herself against liability
for the outstanding bonds. But here,
again, the people were clamorous for
the continuation and completion of the
railroads; and the legislature but car
ried out their wishes, by turning over
all the property to new corporations,
coupled with the sole condition that
they should construct the railways
within a reasonable time. That pro-
ceeding not only deprived the State Of
the resources she held for meeting her.
bonded Indebtedness, but it fixed be-
You'd question her responsibility to the
bondhOlders. Nevertheless, my belief
is, that the measure was 4 judiciouS
and wise one, for it secured the COM
pletion of the magnificent system of
railroads, which has since been the
means of immensely increasing the
population and taxable wealth of the
State. It is certain that the new COM
pani3S would not have undertaken
these enterprises, but tor the advant-
ages offered by SO many~miles of grad
ed road. If, therefore, Minnesota had
to pay every dollar of the principal and
interest of the bonds, the investment,
in view OF the grand results accom-
plished, would be highly profitable
one. She has, consequently, not even
the poor excuse of not having received
an equivalent for her bonds; and repu-
diation on her part would be more in
famous than that of the State bf Mis-
sissippi. which never received dollar
for the bonds she entrusted to the Plan
ters' Bank, to be negotiated for her
benefit, and yet that State has been
held to "a full accountability for her neg
lect to provide for their payment, and
is now utterly without credit in the
great money centers at home and a.
broad. That Minnesota is not III much
better repute, is shown by the fact that
the attempts of her officials to place
her bonds. upon the market outside of
the State have met with no success for
the past ten years. Such is the report
of the State Treasurer.
MIR. CHAMBERLAIN AND OTHER BOND
HOLDERS OFFER TO COMPROMISE
FOR HALF TIE LEGAL CLAIM.
The proposition Of Mr.. Chamberlain,
for himself and other bondholders, to
receive about fifty cents on the dollar
for what is due them, in bonds due in
thirty years with per cent. interest,
instead of Z, which the old bonds bear,
can he accepted by the State without
dishonor; whereas she, herself, could
not have made such an offer to the
bondholders without absolute disgrace.
Never. in my judgment, will another
opportunity be offered for a settlement
OF this veXed question, upon terms e.
qually favorable to the State, should
the pending amendment be rejected.
TIE EFFECT OF THE PENDING PRoPo-
Ol11ONs
Let us examine briefly the effect of
the proposition should it be accepted
by the people, formucl misunderstand-
ing exists upon this point.
1t is proposed to authorize the 500
900 acres of internal improvement land
to be disposed of for the purpose of
meeting the payment of the interest
and Il large part of the principal of the
bonds to be issued. BY the report of
the State Auditor it appears that $685.
600 in cash and interest contracts, had
been received up to last winter, from
the sales OF portions of this land
Should the whole be disposed of even
1T the rate for which the school lands
are sold, to-wit, six dollars per acre,
the sum total would be So ,OOO, 900, APP
plicable to the extinction of the bond
ed indebtedness. But there is every
reason to believe, that this fine body Of
land will sell for an average OF nine OF
ten dollars per acre, if judiciously plac-
ed upon the market. The provision
for the retention III the Golfers of the
State. of a sufficient number of new
bonds released by the holders. to meet
the interest on the entire issue until
the year 1880, would give ample time
for the accumulation from the sales of
lands to pay the interest from that year
forward, and at the same time to form
a sinking fund from the surplus to pro-
vide for . large proportion of the prin-
cipa} when it shall become due in thir-
ty years, so that the cry of largely in
creased taxation III carrying out this
measure is without foundation in fact.
Meantime, the State, freed from the
charge of reputation, which now so
injuriously affects her credit and all
her material interests, would receive
large accessions to her population and
wealth, and fresh vigor and energy
would be infused into every branch Of
stood, us the result Of favorable vote
OH the amendment, that q large pro-
portion of the professional and bust
ness men in the State are earnest ad-
vocates Of the measure, regarding the
ton as "a contamination devOutly to
he wislled.'' Even those who believe
the terms to be too favorable for the
bondholders must admit that an ad-
verse decision by the people would be
attended with very disastrous effects
upon all our interests, and utterly de-
stroy the confidence OF the financial
world in the honesty of the people of
the State. It won Id he regarded as an
act of rank reputation, and our unfor-
tunate Minnesota would be held up to
the scocn and reprobation of all Chris
tendon.
TIE NATURE OF THE OPPOSITION.
The opponents of the contemplated
settlement are, by no means, agreed up