New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1881-02-23
THE STATE BOND QUESTION.

ana House OF Representative Oh the
old railroad bond question, at their
meeting on the Sd inst, received
from Mr.. Selah Chamberlain, the
heaviest holder Of the Minnesota
State railroad bonds, the following
proposition for the adjustment of the
bonds held by him.
TO the legislature of the State of
Minnesota;
Your memorialist respectfully sub.
mits to your honorable body the fol-
lowing proposition, for the adjustment
of the Minnesota State railroad bonds
held by him: He will deposit imme-
diatc|y, upon the approval by the gov.
ernor of all act substantially embody-
ing the provision submitted, all of the
Minnesota State railroad bonds held
or controlled by him, viz: 1000
bonds, with the interest coupons at.
tached, with :the State auditor to be
held by said officer in trust, and the
question of the legality of the issue of
the said bonds and the States liabili-
ty thereon, the amount Of such legal
liability thereon, if any, to be submit
ted to the supreme court Of the State
of Minnesota, and after arguments
heard and evidence presented, if the
opinion of the tribunal to which the
matter might be submitted be ad-
verse to the liability of the State for
the payment thereof, then the auditor
of the State shall, if the judgment is
against the validity of all the said
bonds and every part Thereof, he may
and is hereby authorized to cancel
and destroy them, but if in the opini-
on Of such tribunal said bonds are val
id and legal obligations against the
State, in whole or in part, then he
will accept in lieu thereof, and in full
satisfaction Of said bonds and coupons
new bonds Of the State to All a1nout
squal to so per cent. of the amount
declared by said tribunal to be legally
payable thereon; said new bonds to
have thirty years to run, and to bear
interest at the rate of six per cent. per
annum, payable semi.annually, prln.
cipal and interest payable in the city
of New York, the legislature to make
adequate provisions for the payment
of the semi. annual sinterest Of said
substituted bonds as it natures, and
for a sinking fund for the payment of
the principal at maturity.
On the 18th inst. the committee re.
ported two bills to the Senate for the
settlements Of Ike bonds. One of
them provides that the Judges, to
whom the question of the legality OF
the bonds is to be submitted, shall
first determine and decide whether
the Legislature has power to provide
for the payment, adjustment or settle
ment Of the liability of the State on
said bonds without submitting the
matter to a vote Of the electors Of the
State, and if said judges shall decide
that the Legislature has no such pow
er, then the judges shall take no fur
Their action to determine the legalit,
of the bonds. The bill also provide:
for the payment Of the bonds in new
bonds at so per cent. of the amoun
declared by the judges to be due
| thereon, said new bonds are to ru,
thirty years and bear interest at thu
rate Of six per cent. per annun. Sec
ton eight provides in similar man
ner for the payment of all legal an(
valid claims which accrued for work
labor, or for services performed, O.
for provisions, boarding Of CONTRACTOR
workmen Or others, or for money fur
nished, in connection with the loca
ton or construction Of the lines O
railroad Of the Immigrant RAILROAD
companies. The second bill provides
for the preservation of the proceeds O
the sale of the internal improvement
land, in orderthat they may be ap
piled to meeting the interest on thu
adjustment bonds, and for establish
ing sinking fund for the redemp
ton of the principal.
The proposition of Mr.. O. :nber
lain is certainly fair eno~.. ant
none should object to have the legal
ty of the bonds, and the business O
the claim, settled. If the bonds were
fraudulently issued, the tribunal tt
whom they will be submitted will
have no trouble in determining tn,
same, and if the claim is just we be
lieve the State will never receive
more liberal proposition for their set
Element.