Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-02-04
THE RAILROAD BONDS.

SeIah Chamberlain Submits a Proposition
The Minnesota Courts to Decide What
Is Due and He Will Accept One-Half of
the Award-A Meeting in the Senate
Chamber Yesterday.
The Senate and House being in recess, the
joint special committee on the old State rail-
road bonds met in the hall of the House of
Representatives. Almost all the members of
the Senate and House of Representatives were
present, besides large number of prominent
citizens of the State. members of the bar OF
St. Paul, and State officers.
Mr. Daniels, chairman of the committee,
called the assemblage to order. All the mem
bers of the committee but Mr.. HUM were
present.
Senator Crooks presented communication
from Selah Chamberlain, in which he stated
that he had constructed certain grading and
bridge work, and that all the compensation
he has received was Minnesota State railroad
bonds; that the State had foreclosure upon
the securities; that he had at the time OF such
foreclosure been informed that there was no
disposition on the part of the State to repudi-
ate the bonds; that the bonds were not paid,
and that he had instituted proceedings to OBJ
tain payment on bis bonds, but the courts had
held that the roads were not liable for their
payment, and that the State of Minnesota was
SO liable.
Senator Pilsbury moved that the commit
tee hear Mr. Chamberlain on the question
either personally or by his attorney.
Hon. Gordon E. Cole was then introduced,
and said he was instructed to make the follow
ing proposition in behalf Of Mr.. Chamberlain,
who was the holder of one thousand OF the
State railroad bonds:
1< i, Ats eIo4,, of4 Sfofa IF MinnaSnfa
Your memorialist respectfully submits to
your honorable body the following PROPOSE
tion for the adjustment of the Minnesota State
railroad bonds held by him.
He will deposit Immediately upon the ap-
proval by the governor of an act substantially
embodying the provisions herein submitted,
all of the Minnesota State railroad bonds held
or controlled by him, viz: 1000 bonds, with
the interest coupons attached, 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 liability there
on, the amount of such legal liability thereon,
if any, to be submitted to the supreme court of
the State, which, in case any OF the judges are
disqualified from sitting for any canse, may be
constituted as provided by section 3 OF article
6 of the constitution of the State of Minnesota,
and after arguments heard and evidence pre-
sented, if the opinion of the tribunal to which
the liability of the State for the payment there
of, then the auditor of the State shall, If the
judgment is against the validity of all of said
bonds and every part thereof, be and hereby is
authorized to cancel and destroy them, but if,
in the opinion of such tribunal, said bonds are
valid and legal obligations against the State,
in whole or in part, then he agrees that ne
will accept in lieu of, and in full satisfaction
of said bonds and coupons, new bonds OF the
State to an amount equal to fifty 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 per
cent. per annum, payable semi-annually, prin-
cipal and interest payable in the city of New
York, the legislature to make adequate pro-
vision, in the act in the acceptance OF this
proposition, for the payment of the semi
annual interest of said substituted bonds, as it
natures, and for sinking fund for the pay
ment of the principal at maturity.
s. CHAMBERLAIN.
Mr.. Cole then proceeded to make
a strong argument in behalf of the validity
of the bonds, stating that he appeared both as
Mr. Chambcrlain's attorney and also as a
citizen of the State. He compared the condi-
tion of the State when the bonds were issued,
the lack of transportation and the expense of
reachiAg market, with the present time,
arguing that the roads which the bonds had
brought had many times more than paid for
them by increased value they had given our
products. The history of the issue of the
bonds was elaborately recapitulated and a
good case made out for their payment. The
speech of Mr. Cole made profound impress
sian upon his hearers.