Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-02-09
BONDS AND CLAIMS.
Consideration by the Special Committee of
Propositions Embodied in a Bill Drawn
Up by Its ub-Committee-No Final Ac-
ton Had and the Bill to be Further Con-
sidered this Evening.

| tion Had and the Bill to be Further Con
sidered this Evening.
The legislative joint special committee, or
the State railroad bonds, met in Metropoli
tan parlor last evening to receive from the sub
committee the draft of bill prepared, under
instruction of the committee, for acceptance
OF the proposition OF Selah Chamberlain, but
| general in its application, and also applicable
TO the claims for unpaid labor and material
| furnished to the old railroad beds.
ABSTRACT OF THE BILL.
The bill as reported by the subcommittee is
prefaced by preamble setting forth that the
bonds will soon mature and that the holder OF
one thousand of the bonds has proposed to de.
posit his bonds in trust with the State auditor,
the question of the liability of the State to be
submitted to the supreme court and trled be-
fore 1t. If the decision is adverse to the pay.
| ment the auditor to destroy the bonds; bat If
| the court holds them legal and valid obliga.
tions then the holders are to receive In piacs OF
| them new State bonds to the amount Of fifty
per cent. of what is decided to be due The
new bonds to be thirty year, SIX per cents, in.
terest payable semi-annua1ly.
Section l requires the State auditor to pub
provisions Of this act. All holders of the
bonds who wish to take advan-
tage Of the act must deposit
their bonds and coupons, within thirty
days after the publication, with a written
agreement authorizing destruction of bonds
and coupons if the decision is adverse to their
legality and obligating themselves, in case of
favorable decision, to accept in full payment
30 per cent. IN new bonds.
be deemed Of no validity and are declared can.
celled and no payment Of principal and inter-
est shall ever be made thereon.
Sec. 8. Authorizes and requires the supreme
court judges to hear, consider and determine
the matter. First they are to decide whether
the legislature has power to provide as in
this act for adjustment of the bonds without
submitting the matter to popular vote. If
they decide in the negative, no further action
tive, then the court will proceed to determine
the liability of the State and the
amount thereof on the deposited bonds. In
case of disputed ownership of bonds the judges
are also to hear, determine and report on the
ownership. A majority of the Judges shall
determine all questions.
Sec. 4. The attorney general to appear in
behalf of the State. Any citizen of the State
may also appear and contest the liability of
the State.
Sec. S. The auditor is to lay before the
court all the deposited bonds and coupons,
with the names Of owners aud also statements
of claims (see section g filed under this act
Sec. 9 provides for destruction of the de-
posted bonds If the decision is against their
validityand for the issue of the new bonds if
the decision is against the State. Balances of
less than 500 are to be paid in money. Each
of the three Judges is to be paid $4,000 for his
services under the act
Sec. requires the judges also TO fix the
amounts due on the Graham judgments, to be
paid fifty per cent? in new bonds.
Sec provides for passing upon and paying
(ffty per cent? in new bonds claims for
work, services, provisions, boarding, money
or material furnished to the construction of
the original roadbeds which were seized by the
State. Their payment to depend upon their
validity and the decision as to the liability of
the State on the bonds.
Sec. 10 and II provides for payment of
interest on the new bonds from the taxes paid
by railway companies
CRITICISM AND DISCUSSION.
Mr.. Baxter desired to have brought in with
this bill another providing for determining by
popular vote whether the internal improve
ment lands should be applied to payment of
the bonds If the latter are held valid. After
some remarks the chair was instructed to ap-
point subcommittee to report the land bill
and on suggestion of Mr.. Baxter it was in
formally agreed thai final action should not
be taken by the committee on the pending bill
until the other was before it.
Mr.. Powers, objectng to the act altogether,
felt that the first and second sections as they
stood were fagrantly wrong. Here it was
provided that after the bonds are decided to
be obligatory upon the State, we were only to
pay fifty per cent. and that those holders who
do not come in and agree to take half what is
decided to be due them, should have nothing
He would not wish to advertise that to the
world. It would place the State in worse
position than now, after our own tribunal
should have decided the bonds q valid and just
debt, to offer only 50 per cent. and fatty re-
pudiate those not brought in under the bill.
Mr.. James Smith, Jr., remarking that some
of the bonds are claimed to have been obtained
by fraud and that 1t is prcsumable that all
which are honestly held will be brought in, ,ad-
mitted that the second section was hard one,
but urged that the question was how to ac-
cept the proposition and yet protect the Seate.
Messrs. Baxter and Daniels proposed that the
second section be changed to read that the
bonds not submitted shall not have any benefit
of this act, which, after some discussion was
informally agreed to.
The use Of the word "iudges" in place of
stcourt," through the bill WAS questioned and
it appeared to be agreed that the word .'court"
should be used.
Ilere was some CONVERSATION ae TO the seleo-
tion of judges, the popular feeling on the
question and as to the facts and arguments
for and against payment of the bonds, IN the
course Of which Col Crooks referred to the
resolution of the Republican convention of
1885, The five million loan bill, he said, was
a failure, but that convention said the matter
must be settled honorably. It didn't plead
the baby act.
Mr.. Case--But other Republican conven.
tions resolved differently.
Col Crooks-Yes. That party has always
contradicted itself.
A Member-Didn't Democratic convention
deny the bonds.
Col. Crooks-Ne The Democratic party is
always right.
When section 8was reached Mr.. Dunn OBJ.
jected to its phraseology, wanting inserted
after the word "claims, ""against the State. {"
They were not, he argued, in any sense good
claims against the State, whatever they may
have been as against the contractors or com
panies.
Messrs. Smith, Jr. Buck and Crooks urged
that the claims were equitably against the
State, which had taken and disposed of the
property which had been their security.
Mr.. Smith thought if the claimants gave
labor or mate rials to improve the property
there was no reason why they shouldn't have
the opportunity to prove their claims. He
thought the State should be in the same posi-