New-York tribune., 1877-05-30
MINNESOTA SITE BONDS.

MINNESOTA STATE BONDS.
Minnesota enjoys the unenviable distinction
of being the only Northern or non-sayehold-
mo state open to the charge OF reputation
Other Northern States have, under temporary
embarrassment, defaulted upon their interest,
but in all instances they have in some way
recognized their obligations and made some
sort of settlement with their creditors MIN
nesota stands alone i'll completely ignoring
her lust debts when able to pay them
The story is old and too familiar to require
detailed narration. The salient facts are that
Minnesota in 1853 issued $2,275O0O State
bonds to four land grant railroad companies
to aid in the construction OF railways, ana re-
ceived in return from the companies an equal
number of their first mortgage bonds. The
companies failed. The State Immediately fore
closed the mortgages, and thereby acquired
title to TIER property, winch embraced several
million acres of land and 240 miles of graded
railroad ready for the superstructure. The state
then defaultpd upon the interest of the T2,275,-
600 bonds, the proceeds Of which had been
used by the companies in creating the very
property which the State had by its foreclo-
sure proceedings acquired, and by concurrent
resolutions of her Legislature and by direct
vote of the people of the State squarely repu-
dated them.
This action has always been a stain upon
the credit and character OF the State. Ihe
bonds were issued in strict conformity to law,
and the "faith and credit of the State" were
IN express terms "pledged for the payment OF
" the interest and the redemption OF the piin-
cipal" Gov. Sibley. under whose admins
tiation they were Issued, and most OF the sub
sequent Governors Of the State, have repeat
edy called the attention of successive Legs-
latures to the subject of these bonds, and
urged that provision be made for their pay
mcnt; and the bondholders have year after
wear urged the justice of their claims and
vanly prayed for relief. Finally, all other
means failing, suits were brought by some OF
the bOndhOlders against the railroad companies
to whom the State gave the property which 1t
he'd acquired by its foreclosure proceedings.
Their object was to establish an equitable lien
upon the property itself which had been Greg
atcd by the proceeds of these bonds and
originally pledged for their payment, and
which they claimed should be sacredly devoted
to that purpose. But the suits were decided
adversely to the plaintiffs, both in the Circuit
and i'm the Supreme Court of the United States,
or the ground that the State was the primary
debtor and liable to pay the bonds. On this
popt. Judge Dillon of the Circuit Court said {:
That the bonds are legal obligations of the
" State, and binding upon it in law, honor,
" cYd Justice | have no doubt. If the state
"wcre suable ~ the courts, there can he no
"dJubt that the bonds would be legally en-
..r 1. - "a rt of
the United States, in its decision, said: " The
"bonds issued are legal obligations. The
Estate is bound 10y every consideration of
honor and good faith to pay them. Were she
"amenable to the tribunals of the country, as
"priyate individuals are, no court OF justice
would withhold its judgment against her IN
"an action for their enforcement"
These judicial decisions, and especially that of
the HIGHEST court, brought home to the citi-
zeus of Minnesota with painful emphasis
SENSE Of the odium which rested upon the
STATE, and produced a profound impression
upon her best people. Three of the leading
religious denOmipations-th General State
Convention of the Baptis Church, the State Con-
ference Of the congregational Church, and the
PresbytcTy of st. Paul, representing the Pres
byteiian Church Of the Stdte-tOok most de-
csiye action on the subject in their annual
meetings last Fall, declaring it to be the relig-
ions duty of every Christian member of the
Commonwealth to do all in mis- power to re-
Eeve the Stale from the dshonOr of virtual re-
pudiation, aud TO provide for the honorable
settlement OF ;he suspended State indebted
ness The result of tins renewed agitation was
the passage of an act by the last Legislature
looking 10 the Compromise and settlement of
these bonds, by the payment, in new per
cent bonds, OF something more than 90 cents
upon the dollar. This act Is to be submitted
to a vote Of the people upon the 18th day OF
June next. We assume that the result Of the
vote cannot be a matter of doubt and that
the action of the Legislature will be ratified
by an overwhelming and well nigh unanimous
vote TO do this will measurably at least
remove from the young growing, great and
promising State Of Minnesota its only stain.
TO DO otherwise VIII be to brand it with new
dISAJnOF
FLETCHER HARPER.
The death of Fletcher Harper, which took
pIace Yesterday at his residence i'm this