Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-02-01
THE RAILROAD BONDS.
MEMORIAL FROM cHAs1BERLA1N.
Done and Asks the Legislature to Make
Him Proposition for Settlement.

To the Honorable Legislature of the State of
Minnesota:
Your memorialist respectfully represents
that in the year 1858, he contracted with
three Of what were known and called the
Land Grant Railroad companies of the Ter
ritory of Minnesota for the grading of GER
tain portions of their respective roads.
That pursuant to and in perfect fulfllment
of said contracts, your petitioner completed
fifty miles of continuous grading upon the
Minnesota & Pacific railroad; thirty -seven
and one-half miles on the Minnesota Valley,
now st. Paul & Sioux City, and twenty miles
on the Southern Minnesota railroad, all to
the acceptance of His Excellency, Hon. b.
b. Sibley, the Governor of said Territory.
That he also constructed many bridges
over streams crossing the line of said grad
ing, and fully completed said road and
bridges ready for the superstructure; that
most of said grading and bridging, except
in some few instances where the line of the
road has been changed by the present COM
panies, are now in use by the present owners
of said road.
And your memorialist further shows that
all that he ever received for the labor and
materials SO furnished by him was the bonds
of the State of Minnesota, known as Mime
sofa State Railroad bonds; that no part of
the principal of said bonds has ever been
paid.
That your memorialist received said bonds
in good faith, and that at the time he re-
ceived them they were secured by mortgage
which the State held upon the valuable land
grant of said companies, as we'll as upon the
road bed and bridges constructed by
your memorialist as aforesaid; that
after the failure of said companies the State
of Minnesota foreclosed said mortgage and
took all of said property into its own hands;
that your petitioner applied from time to
time to the executive and legislative author
tiles Of the State for relief while said prop
erty was still in its hands, and at the request
of the Legislature submitted various propo
sitions for adjustment of his claims, but
none were SO fortunate as to meet the ap-
proval of the Legislature; that in particular
he urged upon the Legislature the justice of
so disposing of the property in the hands of
the State as to provide fund for the pay
ment of all just Indebtedness incurred in
the grading of said railroads, but was as
sured that the State of Minnesota had no in
tention to repudiate any just claims, but that
the bonds were issued to secure the building
of said roads, aud as soon as this object was
accomplished provision would be made for
the payment of her bonds, but that
to secure this object it would be
necessary to dispose of the prop
erty in the hands of the State as gratuity
to capitalists who would undertake to COM
plete them; that your memorialist believing
that there would remain after providing for
the payment of the Indebtedness contracted
by the original companies in grading their
road beds, amply sufficient property to in
duce the completion of the roads, continued
respectfully to demonstrate against this mode
of disposition, but his arguments not pre-
vailing, the Legislature decided to make an
absolute gift of all said property to capital
lists who would embark in said enterprise,
and your memorialist was urgently solicited
to contribute to this object by using his in
fuence with capitalists to secure the organi-
zation of company to build and complete
one of said lines of road, with the assurance
that all that the State desired was to secure
the roads which were the consideration for
the bonds, and that being accomplished
would make prompt provision for the. pay
| ment.
Your memorialist did accordingly exert his
influence and secured the organization of a
company which proceeded to build and equip
and put in operation the Minnesota and Ce-
dar Valley railroad, now known as the Iowa
and Minnesota division of the Milwaukee &
st. Paul railroad, q road with which your
memorialist had never had any previous con-
nection; that upon the completion of said
railroad your memorialist again applied to
the Legislature for relief, but was met by the
ho+ %I,o
ceived as gratuity the entire property which
had been set apart as fund for meeting and
providing for the claims against the State
arising out of said bonds, we're in equity
bound for their payment to the extent at least
of said fund.
That desiring to exhaust all just means of
securing indemnity, your memorialist caused
suits to be instituted against said companies
for the purpose of enforcing such equities,
| if any there were, and spared no pains, effort
or expense TO secure a favorable decision;
that he secured the services of the ablest
counsel that the bar of the nation affords to
present the cause properly to the Supreme
Court of the United States; that the case
was fully and exhaustively argued and care
fully considered, and resulted in decision
that the present companies were and are
liable because the State of Minnesota was
the principal debtor, and was itself liable for
| their payment.
That after his failure to hold the present
companies, he again made application to the
Legislature for relief, and was again request
ed to submit proposition for adjustment,
which he accordingly did; that although it
appears to your memorialist that he has ex-
hausted every suggestion which the State
authorities have ever made, and he always
endeavored in every possible manner to meet
their wishes, he has not been SO fortunate as
to secure favorable consideration; that be-
| lieving that it is the sincere desire of the
Legislature and the people of Minnesota to
arrive at just and equitable adjustment of
these matters, and that there is no DISPOSE
ton to deal unjustly by the public creditors.
Advancing age and the infrmitives attendant
thereon, admonish your memorialist that if
in his lifetime the large expendi.
lures which 10 the prime of his years, al
most a generation ago, he was induced to
contribute to the development of the great
resources of this new, vigorous and prosper
GUS commonwealth, are to any extent reim-
bursed, relief must come speedily, and your
memorialist is persuaded that the members
Of your honorable body, coming fresh from
your constituents, are far better acquainted
with the views and wishes of the people than
he can be, and will be much more likely to
frame scheme of adjustment which, while
administering some measure of Justice to
the public creditors, will SO adjust the scale
of payment as to promote the honor and