Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-02-10

y
of the legislative committee on adjust.
ment of the State railroad bonds, Mr..
Smith, Jr., presented, for the subcom-
mittee, draft Of the bill as proposed the
previous evening for constituting the
proceeds of the internal improvement
lands 100000 acres a sinking fund for
payment of the principal, at maturity, OF
the new bonds proposed to be issued
under the pending bill for adjustment of
the old railroad bonds. The principal
features of this land bill relate to invest
ment of the proceeds of the lands and to
submission Of the bill to the people.
Mr. Pillsbury argued that the principal
of the proceeds of the lands will!
be enough to pay the principal OF
the bonds, and that the interest arising
from investments of the sinking fund
should be applied to paying. the interest
of the bonds. He thought the lands
would create fund of three million and
half dollars, and be sold mostly within
five wears. Further, he would prefer
that the bonds be redeemed as fast as the
State is able to take them up.
Afr. Powers thought the new bonds for
redemption of the old railroad bonds
should be redeemable in five years and
due in thirty years.
Mr.. Pillsbury moved that new land
bill be drawn, providing that the proceeds
of the lands be applied to payment OF
principal and interest, according to his
views, as expressed above.
Mr.. Dunn reduced the motion to writ
ing. some informal talk was had, the
motion was adopted, and Messrs. Pills
oy,1 70 Tro II
land bill
The bond adjustment bill was then
considered, and 1t was agreed that the
preamble and bill should be so amended
as to provide that the new bonds shall
be for thirty years, but redeemable at
any time, at the option of the State, after
fivo years.
1t was agreed that the publication re-
Quired by section one, should also be
made in Minneapolis and St. Paul.
Section two, it was also agreed, IS to
be amended so that the prohibition
against holders who do not deposit their
bonds, will be reduced to declaration
that they shall have no benefit under
this act.
Mr. Dunn raised the question whether
the word Judges" as used in the bill,
should not be "court, ''and after some
discussion it was stated by some mem
bers that the supreme court as a
court, could not take original cog
nizance in this matter, but as judges con.
stituted by the original bill special
tribunal Of arbitration they might act.
Hon G.. E. Cole was invited in to eX-
plain his opinion on the point raised, and
stated that while there was doubt as to
whether the supreme court could take
cognizance of the matter, the judges
might he constituted special tribunal,
which the legislature is competent to
create, and from which might be obtain
ed in advanced decision upon the va
Iidity of the constitutional amendment
relating to the old railroad bonds.
In ANSWER to Mr.. Dunn, Mr.. Cole stated
that it was competent for the legislature
to create for this purpose special trib-
unal of equal jurisdiction with the su-
preme court. But the special tribunal is
board Of audit, as 1t were, having no
power to enforce its decision.
Points raised by Mr.. Dunn as to juris-
diction, constitutionality and procedure
under the act as now proposed, were dis
cussed at length by the lawyers on the
committee.
COL Baxter was of the opinion that if
the arbitration as proposed by the bill
should be carried out, both parties would
be bound by it and no court would de-
clare the contract void because of the de-
cision of this special tribunal on the con-
stitutional amendment.
Mr.. Dunns doubts were not removed.
He questioned whether his oath to sup
port the constitution could be rcconciled
with this proposition to allow a special
al n ofo 11,,i, ,forf
diction to set aside the constitutional
amendment. And he questioned the au-
thority of this proposed tribunal to justi-
fy the proposed acts of State officers in
carrying out the provisions of the bill
Mr.. Cole was of the opinion that the
special tribunal would be of equal juris-
diction with the supreme court.
After some further conversation
Mr.. Dunn's objections were passed, and
section eight, relating to claims for labor
and material furnished to the old rail-
road beds was taken up.
Messrs. Dunn, Crooks, Baxter and 9TH
ers desired the language changed in &C.
cordance with the agreement at the pre-
vious meeting, so that the section shall
apply only to illegal or equitable claims
against the State of Minnesota" and it
was understood this amendment would
be made.
Discussion was then had of the clause
in section providing that the produc-
ton of the bonds shall be prinaG fdcte evil
dence in favor Of the owners as in the
case of other negotiable instruments.
Messrs. Dunn and McCracken were op-
posed to this clause, claiming that it
would waive rights of the State as to con-
ditlons of the bonds and certain points
of its defense as against their validity.
After some discussion it was agreed to
limit this clause so that the production
of the bonds shall be pri1aa facie evidence
only of the ownership, and not as to any
presumption in favor of the claimant
1t was then agreed that this bond adj
iustment bill should be reported to the
Senate, and the question came up as to
the form of the report.
Messrs. McCracken and Dunn were op-
posed to a favorable report. The former
said he would oppose any bill which did
not submit the question to the people.
Mr.. Pillsbury said he knew the bill would
require amendment as to its financial
provisions.
Meccre MoCreoken and Pou-aro ,o+;nr