New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1881-12-28
STATUS OF THE NEW RAILROAD
BONDS.
St. Paul Pioneer Press.

St. Paul Pioneer Press
Inquiry at the State House ELECTS
The fact that up to the present time
none Of the Minnesota State rail-
road adjustment bonds have yet
been issued and that it is not likely
that any will be issued before Janu.
airy I'd next. The claims commits
sion, owing to the necessary alb.
sence ofthe Attorney General, will
not have concluded its labors before
to-day aud until that time
it will be impossible to deter
mine the exact value Of the bonds,
by the several holders, or
what amount of new bonds shall be
exchanged therefore, till the amount
of deductions to be made on account
of these claims has been settled.
It will be remembered that the
adjustment act authorize d the Gov
ernor to settle the old bonds by ex.
changing therefore new 5 per cent
bonds, to draw interest about the
time the old ones became due, or
two years from January LIST next,
the interest of the old bonds to be
calculated to that date. But it is
also provided that if the Governor
could negotiate the adjustment
bonds at a less rate of interest than
5 per cent. he might issue the new
bonds to draw interest from Janu.
airy 1, 1882, and either exchange
them for the old bonds, with inter-
est calculated to that date, or sell
them in the market and pay the old
bonds in cash. The Governor
promptly resolved to pursue the lat
ter course. Immediately after the
passage Of the act he made strenuous
efforts to place the new bonds at 4
per cent; but soon found that this
was impossible. In fact, the exist.
ing condition of the money market
was not favorable to the profitable
negotiation of the large amount Of
State bonds. The holder Of nearly
half of the old bonds, Selah Cham
berlain, who at first refused to &C
cept new bonds at less rate of in
terest than 5 per cent. as the acI
provided, finally consented to &C.
cept ~ per cent. bond, and it was
finally resolved to issue the new
bonds at this rate of interest. At {
meeting held in the latter part Of
November by the board of invest
ment, consisting Of Chief Justice
Gilfllan, the president of the Board
of Regents, Gen. Sibley, the Gov
ernor, the State Auditor and the
State Treasurer, it was decided tx
invest some Of the trust funds of thu
Statc in the new adjustment bonds
and the Governor was authorized t,
use his discretion in the matter. [
has, therefore, been determined tina
some $500, 900 Of the internal i'm
provement land funds, some 5000,
900 of the permanent uniyersit.
fund and about $4,000 If the per
manent school fund shall be invest
ed IN the new bonds.
In pursuance Of this understand
ing some of the Missouri 6s and tn
United States 4 per cents. in thes
funds have been sent East to he sol
at the market price, the proceeds t
be reinvested in the new State 4
per cent. bonds. The State will n
alize large premium on these otl
} Ell bonds to be sold, and profit {
from $4,000 to 500, 900 will inul
from the several funds from tt
transaction. No difficulty is like|
to be encountered in placing a
these - per cent. bonds at pa
About 81, 600, 900 of the $4,000
will be absorbed in the several tru
funds above mentioned, and the re
E mainder will 60 to the bond holder
, $4,000, 900 or more to Se]ah Char
berlain and the rest to the 9th
creditors who are entitled to ne
bonds of 81 900 or multiples therec
OF course, when fractional parts
:, ST 600 are due, these Suns must
!. paid in cash, and it is only nece
: sary therefore for the State to 81
;. such an amount of Londs as will !
a,,ize the sum necessary to pay t
. $3.50, 900 of claims to which the Ia
. - limits the awards Of the commissi,
i and the fractional parts Of $40
! due to individual bondholders in e
:. cess to the new bonds which tn
- will receive. Probably not mo
, than $500, 900 Of cash will lie nec'
f. sary to pay these.