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

SMITH, Jr., !
paid s~emi-annually, at the place or places
aforesaid, on the first day of June and De-
cember of each year, on the presentation
and surrender of the proper coupon hereto
attached.
This bono is issued under authority of an
amendment to the constitution of the State
of Minnesota, adopted by the people on the
10Th day of April, 1858, and proclaimed by
the Governor of the State on the 5th day of
May, 1858.
Witness the Great Seal of the State Of Min-
1,esota and the signatures of
[GREAT SEAL. the Governor and Treasurer
of the State, at St. Paul,
Minnesota, on the first day of December,
A.. D. 1858, and of the State the first.
Countersigned and registered.
HENRY H. SIBLEY, Governor.
GEO. w. ARMSTRONG, Treasurer.
Pay the above bond, and all accruing
interest as maturing, unto bearer.
The Minneapolis and Cedar Valley Rail-
road Company hereby waive the present.
ment, demand, and notice, of this bond and
the interest coupon thereto attached.
B. PR1NGLE,
President of the Minneapolis
and Cedar Valley r. r. Co.
$$335. Coupon No. 2. 1875.
The STATE OF MINNESOTA
Will pay to the bearer thirty-tive dollars, on
the first day of December, 1859, at the Met
ropolitan Bank, in New York city, being
six months interest on bond No. 5553.
G. w. ARMSTRONG, Treasurer.
Your attention is here called to the first
clause in the bond, viz, 1.-The State Of Mn
nesota acknowledges to Que and promises to
pay;;'' also the first clause of the interest cou-
pom, 1.-THE State Of Minnesota wiU pay bear
en-" These positive declarations and pro-
misses were made by the State to the holder
of the bonds without a single condition or
word of qualification.
The Land Grant Companies having no
available means except the bonds, failed in
1859, leaving about $50 miles of graded road
bed.
The next Legislature, which convened in
January, 1860, at once put stop to any fur
Their issue of bonds, which had been prepared
under the amendment and not yet issued.
(See page 3O3 of General Laws of $780,
They also passed a law directing the Cover
nor to foreclose the mortgages given to
secure the State from loss on the bonds, and
to bid III the lands and graded road-beds in
the name of the State. page 266, General
Laws, 1867 In accordance with the law,
the Governor proceeded to fOreclOse the
mortgages, and they were all foreclosed, and
all the lands, franchises and graded road
beds were bid IN by him, in the name of the
State, for a nominal sum, sufficient merely
to cover the expenses of the sale, and which
the Legislature appropriated the following
winter. See extract from Gov. Ramsey's
message for 1861:
"By this action, as was contemplated, the
State has again become possessed of her
munificent congressional grant and the
franchises of the late companies have re-
verted. In short, we are in the same con-
dition as to the railroad lands and railroads
as on the day when the Legislature of 1857
assembled in extra session, except that we
have about 240 miles of graded rOad-bed."
From this time, until she could find par
ties to build the roads, the State held all the
land grants, and all the graded road-beds
and bridges which had been paid for with
nothing but her bonds, and she held all this
property solely as security from loss or liza
bility on her bonds, which remained entirely
unpaid.
While very few people could then be found
who would admit that they favored repudi-
alton, all were exceedingly DESTROYS that the
roads should be built, and it was generally
conceded that all the State wanted was the
roads, and if she could get them she would
cheerfully pay the bonds. The Legislature,
therefore, instead of applying the property
to the payment of the bonds, offered to give
it to m companies who would build the
roads.
The State being unable to find capitalists
willing to pay anything for the roads and
land grants, offered them to parties free, on
condition that ten miles should be built each
year, and in some instances as many as four
successive grants were made before capital
could be enlisted in their construction.
The companies who finally constructed
the roads were new and distinct companies,
having no relation to the failing ones, and
in no way responsible for their defaults.
The property %mortgaged by the Minnesota
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