The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1877-02-01
STATE RAILROAD BONDS

STATE RAILROAD BONDS.
Proposition xado to the LeeislaturA nv
the Largest Owner Of the BoIds.
Gov. Pillsbury's message treated at
considerable length the subject of the
old sMinnesota State Railroad Bonds. -
and. in accordance with his suggestion.
the Legislature appointed a joint com.
mlttee to consider the question.
which promises to be one of the Lad.
ing topics of the session. Mr.. Selah
Chamberlain, who holds the majority
Of the bonds, has appeared before
that committee and submitted the fol.
lowing proposition
Te the Honorable Chairman Of Joint Committe on
Coming % to your OURS State in 1853, took . con-
tract from two Of your land grant railroad
companies 70 grade and prepare for the iron
gagements. paid all my bills, and received as
my only compensation the quota OF State
bonGs which, the constitution OF the State,
had been devoted to the performance Of the
work which undertook. By these bonds
the faith OF the State was pledged to nav the
sum Of one thousand dollars for each bond in
twenty live years frem date, with interest at
nually.
The companies to whom the bonds were
originally granted, having failed to complete
saets sets r2ads forfeited their Charters and 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
tion OF the roads, was again invited to come
to the State and undertake the work. was
assured by influential 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
rom abroad, undertook the construction OF
one OF your leading systems of railroads,
which has expanded into the present River.
Iowa and Minnesota divisions OF the Chicago.
Milwaukee Il St. Paul railroad. Meanwhile.
the population OF the State has grown from
l6O,OOO IN 1853 to about 700, 200 in 1876, and
s32, ,oO0, 600 in 1868 to 1926, ,000, ,0t0 ia 1876.
s*a nave often appealed to the people Of the
PA Gtate 10 redeem their pledge, and provide for
the payment OF their obligations. Various
reasons have been assigned for neglecting to
90 thls among them, perhaps, the most fore
Idle was that the railroad companies, or the
lands held by them, We're liable for the pay
ment OF the bonds. To determine the validi-
y OF this supposition, I instituted suit in the
Circuit Court of the United States tor the
district of Minnesota, against two Of the rail-
road companies, which, after having beer
decided against me, appealed 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 pro-
cured both from within and without the
State.
As result, the highest judicial tribunal in
the nation has determined that the railroad
companies hold their lands tree Of any liens
in favor ct these bonds; that the bonds are a
direct and primary obligation Of the State,
and that the State, if amenable to the process
of the courts, would be. compelled to pay the
bonds, principal and interest, according tn
their terms and finally, that he Constitution
and laws devolve upon the Legislature, with
out su omission to vote OF the people, the
while, amid the vicissitudes of business, l.,
in common with many of the creditors of the
State, have become seriously incovenienced
by my inability to realize anything upon this
large obligation.
The question is presented whether l shall
walt until the state Is ready TO pay the entire
debt, or whether by a voluntary offer on my
part to compromise the claim for a portion Of
the amount due, shall induce the Legisla-
ture to make an immediate and final settle
ment. In view OF the uncertainty OF life, or
the disagreeable alternative ofleaving to my
heirs an unsettled claim, and Of the desira.
bility OF freeing myself in advancing age, from
the anxieties and uncertainties incident to the
situation, have determined to adopt the lat
ter alternative, and am now here to make a
proposition so much less than my legal claim,
and so manitestly advantageous to the State,
that trust shall be met with correspond
ing spirit Of compromise on the part ofthe
representatives of the people.
The bonds bear date December lat, 1885,
They are for 81 900 each, mature December
lst, 1883, and bear interest at seven per cent.
per annum, payable semi annually. The
whole number issued was 2,275. On the LIST
day Of June, 1877, there will be due upon each
bond,
81 coupons of 935 each ...... ...... 81 ,295 90
Simple interest at Z per cent, upon
coupons since they (coupons)be-
Principal Of bond (unmaturedj. ~. 1000 90