The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1877-06-07
The Bonds.

questions. The old bonds, 1926 in
number, for $1,000 each bearing seven
per cent interest, were issued in. 1883.
The interest now claimed to be due on
each bond is s2,l10 making the
amount of each $1,000, bond s3,11O.
For this sum It is now proposed to Is
sue new bonds equal to $3.50 running
thirty years at six per cent. The
present assessed valuation Of the taxa
bic property in the State is s219,OOo,
600. If the entire amount Of old
bonds should be converted the new is
sue of bonds would be, in round num-
bers. s3,5OO,O 900; and the annual ia
terest thereon $4,000 To raise
this sum, if it had to be done by di.
rect taxation, would require an annual
levy of a little less than one mill on
each dollars assessed valuation. Prac-
tically. on each quarter section OF
land, assessed at 5000, the annual tax
for paying the interest on the new
bonds if issued. will be ffty-seven
cents. To relieve US Of even this
burden. it is proposed to pay the in-
terest with the proceeds Of the Inter.
nal Improvement lands. The law
passed last winter, providing for the
issuing of new bonds, provides also,
for the payment Of the interest for
two years, so that there is no interest
to be paid until 1880. This statement
Of the facts in the case, no one will
dispute, and it ought to relieve the
minds Of any who are fearful that the
adoption Of this proposition will add
largely to tho amount Of their annual
taxes. The efforts that have been
made to frighten people into opposi.
tion to the measure with the bug.bear
of burdensome taxation is an insult to
popular intelligence.
Among other absurd statements,
made to frighten those who do not
have facilities for examining the mat
ter for themselves, is the one, that
there is nothing in the law to prevent
payment in full Of the old bonds and
when the lands are set apart, BY popu.
lar vote, for that purpose the bond
holders may demand payment in full
and the land will have to be 60 applied
The law is explicit, that for every
$1,000 bond and accrued interest, they
shall receive new bonds equal to 81,
$50; ie: for every s3,l10 Of the
debt as it now stands they shall re.
eeive ST. $50 in new bonds.
These bonds have been declared, BY
the highest tribunal in the land to be
the legal obligations Of the State. In
the case Of Selah Chamberlain ". the
southern Minnesota Railroad Compa'
ny and the st. Paul & Sioux City
Company, brought to obtain payment
Of the bonds out Of the property con-
veyed BY the State to those companies,
Judge Dillon Of the U. 8. Circuit
Court used the following language:
~.rhas the bonds held BY the plaintiff
ore the legal obligations Of the State
and binding upon it in law, honor and
justice, I have NO doubt. In th'
amendment to the constitution tht
faith aud credit Of the State arc pledg
cd for the payment Of the interest and
and redemption Of the principal Of th'
Ionds, they are signed BY the Govern
Or and bear upon their face the grea
sssl Of the State; they were Issued =
the plaintiffs and Others for grading
and work actually done upon tho road
at tho rate specified in the eonstitu
tional amendment and tho State Oh
taiusd the benefit Of the securities !
- ~ See sN6amn;Hnakion and n