Daily globe., 1881-02-08
THE STATE BONDS.

Consultation Of the Joint Legislative
| Committee Last Eveninz-A gub-con,-
mittee Instructed to Prepare Bill on
the Basis of selah Chamberlain's Prop.
osition, and Also TO Cover Claims for
Labor and Material Furnished for the
Original Construction of the Road Beds
fof Which the Bonds Were Issned.
meeting was held at the Metropolitan
last evening of the legislative Joint special
committee on the old State railroad bonds, at
which Representative Dunn submitted a prop
osltion for allowing the claims against the
State of the bondholders to be litigated. Rep
resentative James Smith, Jr., offered an
amendment in the nature of a substitute but
accepted in place of his resolution offered By
Senator c. F. Buck, as follows:
"ResoJucd, As to the sense fthis commit
tee that the proposition of Mr.. Chamberlain
should be accepted, and to that end the chair
man is hereby directed to appoint sub-cor-
mittee of three to propose bill with suitable
provisions to carry the acceptance of said
proposition into effect; and that the bill be
made general so as to embrace all holders of
said State railroad bonds who may wish to
avail themselves of the act, and also the IN.
with the location or construction of the old
land grant railroads, prior to tbs time when
the State acquired and transferred said
lines of road, and report said bill 10 this com
mites as soon as practicable"
Mr.. Smith, Jr., in speaking c; this resoiu-
ton, argued that the furnishing of labor and
material, which would now be statuts
then all equitable or just claim against the
property which the State had disposed Of.
a member of the committee suggested that
Mr. Chamberlain, as a principal stockholdsr
in one of the new companies, received from
the State as gift the roadway which he had
constructed for the bonds, and which was
acquired by the State under its mortgage.
roadways constructed by Mr. Chamberlain
were not those given to the new organizations
with which he was associated.
Senator Case wanted to hear from represen.
tatives of the people who have voted down
former propositions for settlement OF the
bonds. Mr.. Chamberlain had been heard from
by his attorney, and he thought it would be
well to invite some representative of the pop.
ular view to address the committee and msnl.
bers of the legislature.
Senator BUCK, Z. F., remarked that while
Mr.. Chamberlain had asked to be heard, the
committee would be glad to hear opponents Of
his proposition. Another member of the CON-
n!ttee said that he regarded himself, as on the
committee of claims, representing the people;
that be expected persons who had claims to
maintain them by argument and evidence, but
that the other side was naturally his as rep
rssentative of the people.
Representative Dunn advanced ths proposi.
ton that the people have not, since 1850, voted
not to pay the bonds, but have rejected only
certain conditions of settlement proposed By
the Legislature. They have not voted directly
fhn n..pct:Sn Of ori,inp n ne0Ci0U
the bonds He also argued that the claims fer
labor and material could not be considered as
in any sense claims upon the Stats.
Senator Powers referring to Hon. Gordon E.
Coles presentation, at the former meeting, of
the claims of the bondholders, commented
upon Mr.. Coles having been attorney general
when the States mortgage was foreclosed and
when the roadbeds were given by the State to
the new companies. That side, he said, had
been ably represented and there was now no
opportunity for preparation on the other side.
The bondholders' claim, he said, will not ma
ture until after the next election and he would
propose to let the matter first go TO the people
for their calm discussion. He, therefore,
offered preamble and resolution setting forth
that another election viii take
place before maturity of the bonds,
that the present legislature was not
elected on the bond issue, but that many mem
bers are pledged to their constituents against
payment of the bonds; and resolving torecom-
mend that no action oe taken OH the matter at
this time, but that it be made an issue Mt the
next election, with view to deliberate discus
sion of its merits.
A member asked how il could be made all
Issue, ana the Senator answered, "Oh, that can
be done easy enough"
A vote was had upon Senator Powers
proposition, and it was negatived with one
vote in favor. Senator Bucks proposition as
quoted above was then adopted, and the chair
man, Mr.. Daniels, named for the sub commit
tee Messrs. James Smith, Jr., sabin and Buck,
and the meeting was adjourned subject to call.