Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1877-05-10
THE STATE RAILROAD BONDS.

D grant Of 100000 acres Of the public
domain, to DC used in building railroads,
ccrtaia of which were to he completed
ten years, or the lands were TO
revert to the government. Within the
SAME year portions of the land were coded
IL corporations, now known as the st.
Paul & Pacific, the Wlnona & st. Peter,
the Southern Minnesota, the ST. Paul 4
SIOUX City, and TIC Minnesota Central.
following this action the
the financial crash Of 1857 and 1858 was
prccipitatcd upon the country, shifting
every industry as with a paralytic stroke.
The lands were not available and the
holding them were unable to
money with which to build their
respective lines. Emigration was turning
its tide upon Is, our natural resources
were being developed, and there wss Il
pressing demand for carrying facilities.
Everybody felt that railroads were indis'
pensuble, and that they must be had If
possible. 1t vas during the prevalence
Of this feeling that the Legislature con-
vened in December 1857. At this session
an Amendment Of the Constitution was
proposed, authorizing the issue Of State
bonds to the amount Of S5,000,O02, to aid
iu the building Of certain railroads. The
proposition Was submitted to the people
and carried by q vote Of $1,000 in favor of
the Amendment, aud 5000 against it. In
order to secure the State in any contin-
sercy the constitutional amendment pro.
vided that the Companies receiving any of
the bonds should mortgage to the state the
lands ccdcd to them 10 aid II construct
ing their lines and also all Of their rights
and franchises as railroad corporations.
After taking this precaution against loss,
and providing also that no bonds should
be issued to any company until it should
have completed the grade of ten consecu-
tive miles of its line. Under this contract,
work was done and bonds issued to
the amount of $22715,0C0; but it becoming
evident that the companies would be
wholly unable TO put any part Of their
lines into operation for want of means.
the State foreclosed its mortgage upon
their lands, roads beds and other fran
chiscs, and transferred the whole to
other companies who undertook, in cor
sideration Of such transfer to complete
the scvcra! roads, and they built them and
have ever since operated them to the great
advantage Of every material interest Of the
State. Such are the simple facts concern
ing the issue and the use OF these bonds.
Directors and regulators may seek to
distortthcm but they are facts still, and will
so remain. At this point we arc met with
the assertion that the State, although she
issued the bonds and characterized them
with full faith aud credit, was only az
accommodation maker,'-thet she OF
RIGHT should sustain 20 responsibility
that all she intended by issuing the bonds,
was to aid the railroad companies by
loaning her c~redit,-that she had M in
%tentlon, whatever, CT mourning any pre-.
cuniary liability, and therefore that non
attaches. Is such an assertion, entitled to
respect: 1t puts the State before the
world in the attitude Of a person obtain.
ing property under false p%retenses.
Let US draw i parallel which the
humb!est man in the State can under
stand. 4. desires TO build q mill and
utilize a water power upon the lands of
B., for the public use and for individual
profit. Not having either money or credit
sufficient for the enterprise, his town in
its corporate capacity, in consideration of
the benefits which it expects to derive
from the improvement, loans to A. $4,000
in bonds of its own issue, and to secure
the loan, takes a mortgage upon his mill
site and all the franchises pertaining to
the same. A. cxpends the loan, and all
the other money which, he can raise, and
yet finds himself unable TO complete the
mill. To sccure itself against loss, the
town torecloses its mortgage, takes posses.
sion Of the m%ortgaged property and trans.
fers it to 3. in consideration of his finish.
ing the work and putting the mill into
operation. lie tuIdils his agreement and
the community in common with himself,
enjoys the advantages of the Improvement.
In the mean time, the interest upon the
bonds Of the town has accrued and been
dom an6o1 Int Dovp,opt 20 roc,,,od -
the grounds that the town intended t do
no more than aid 4. to get money,-tbat
1t was no part Of its purpose to pay any
oan which he might be able to procure
by hypothcca,ing the towns bonds.
Whist will an honest mar say Of such
prevarication as this? Yet, if the town
were like a State, a sovereign, beyond the
reach Of legal process, the holders of her
bonds might whistle! AS strange rs it
may seem TO honest men, such isprecisely
the attitude Of til. State toward those who
hold its bonds, issued with the express
consent of the people, and in full conform
ity with the law. In view Of these facts
We are unable to understand how any
Honorable man can question the validity
Of those bonds; but the law sometimes
CLAIMS more than its just, and is is
argued in this case that the State has not
received a full consideration for the
amount Of bonds outstanding. THIS may
be, and probably Is so, but the State alone
10 at fault. We do not think that all her
acts have been wise, but we do insist that
she Is morally bound to perform all that
she agrees TO do, and the face Of these
bonds bears ....cr solemn promise to PAY
them. If called upon, she is, in the light
Of all precedent, in duty bound to meet
obligationsin full, but the holders,
recognizing the existence Of equities in
favor Of the State, ask her IN the spirit
compromise 10 come forward with q mole.
~ Of the debt, promising to accelSone
half u satisfaction Of the whole c1aim.
This proposition We consider 10 be both
Just and, generous, and we believe the PEG.
pie w~ill,accept it in the same spirit in