Morris tribune., 1881-10-20
GOV. PILLSBURY'S MESSAGE.
Delivered to the Legislature Of
Minnesota in Extra Session
October IL.
An Earnest and Forcible Plea for
Bond Adjustment accord
ing to Proposition Of
Bondholders.

EXECUTIVE CHAMBER, ST. PAUL, Oct. 12, 1881.
-Gentemen of the Senate and House of Represen-
tatives: You are convened under circumstances of
peculiar urgency. The solemn obligations of the
State, issued twenty y-three years ago. are rapidly
approaching maturity, and no means have yet
been provided for their redemption. The act of
March q 1881, providing for the adjustment of
these obligations has been declared void by the
supreme court of this State: and by the
preme authority the amendment to the State con-
stitution, adopted in 1860, requiring the settle
ment of these bonds to be submitted to a vote of
the people, has been decided to be void, as repug-
nant 10 that clause in the constitution of the United
States which prohibits the impah ment OF the obi-
CATION of contracts.
The whole matter is thus remanded to the legis-
lature for final action through the decree of our
court of last resort and that able and impartial tr
buna has affirmed not only that the power is
vested in the legislature but the duty is imposed
upon that body to provide for the adjustment of
these long dishonored bonds.
In view of the convictions heretofore repeatedly
expressed upon this subject need not here en-
large upon the weighty considerations involved in
the result now attainable. In my judgment no
subject of superior importance has ever challenged
the attention of legislative body. q pom your
considerate action will depend direct material in
terests to the amount of about $4,O00,OO0 and
the final determination of question that has
proved a fruitful source of embarrassment and
deeply involved the honor of our beloved State.
My individual preference is that every dollar Of
the debt represented by the Minnesota State rail-
~
terest. believe that course short of this is
consistent with the honor and integrity of sover
elgn State so far as relates to Its own voluntary &C
ton. But inasmuch as the holders of the bonds
have upon their own motion proposed an adjust
ment upon more favorable terms. an opportunity
s presented for discharging the whole debt by par
tlal payment, without any necessary compromise
of our good name.
This offer by the bondholders and the resulting
act OF adjustment based thereupon l regard
sentially contract The holders of these obliga-
1ncit 1yulI oh ,ta1
by the passage of an act recitng the same and pro-
viding means for its performance. The supreme
court, while condemning the means thus provided,
has itself reached the end proposed by rendering
the decision upon which legislative settlement was
conditioned, so that while the compact remains
binding upon both parties, its faithful performance
is rendered more obligatory and the mode of such
performance simpfed by the action of our highest
judicial authority.
Under these circumstances the duty of the legis-
lature seems to me obvious and imperative. The
reasons which induced the adjustment legislation at
the last session reinforced by considerations of
public policy and honor which cannot be mistaken.
What was then conditional and to some extent
matter of doubt and experiment, rests upon
the immutabe basis of adjuditated law and Justice.
Both the power and the duty to provide for this
adjustment being lodged in the legislature, it seems
clear to me that the simple performance of duty
is the only question new involved. And cannot
believe that deberative body. to attain the ends
Of justice, entered into contract involving some
means of questionable legality. will fail in the hon
orable performance of that contract now that the
way Deeu uldue CLEAR, easy anu certain i uet
it unnecessary to reiterate the motives which should
mpel you to result so desirable. However il may
have been heretofore, the Minnesota State railroad
bonds are now clearly on footing precisely similar
in all respects to that of other obligations bearing
the great seal of the State signed by its executive,
and for the payment of which its faith and credit
soemnly pledged. The legality of their issue is
unquesioned as that of other State bonds and
their redemption devolves surely upon the same
legislative authority. But if any discrimination
could rightfully be made between the several obli-
CATIONS iSSued nv State if shOu6 clearly hN
against these bonds. They not issued through
hasty or ill-consdered action but after long and
exhaustive discussion before the legislature, the
people and by the public press. Their issue was
sanctioned by the direct and overwhelming vote of
the people. and consunmated under the solemn
form of constitutional amendment The issue of
no other bonds was so jealousy scrutinized or so
carefully guarded, and it may we'll be questioned
whether any others have conferred greater benefit
Cherishing these views to the just and valid ma
ture of this Indebtedness, could not consistently
sanction its qualified settlement GidI not look upon
the proposition OF the bondholders and the resulting
legislation of last winter as in the nature of an
unfinished contract, the honorable completion of
which is demanded alike by sound policy and by
every consideration pertaining to the credit and
reputation OF the State The practical question
simply is whether shall now some 81, ,OOO,-
900 to the State without loss of honor, or incur
the reproach of reputation, keep going a source
of constant annoyance and an opportunity for pc
tica jugglery and in the end pay the debt in full
for it cannot be possible that an intelligent and
progressive people, with moral and religious con-
victions, refuse the final payment of honest
debt. An individual who does this while able to
pay justly incurs the of his honest neighbors
What must be thought of a prosperous State that
does it, using its sovereignty as its shield?
The holders Of more than $2,O0O,OOO OF the
whole issue of $2,275,OOO have deposited their
bonds with the state auditor, accompanied with
written agreement to accept, in new bonds cash,
so per cent, of the nominal amount of such sur
the act of last March. Many of the bondholders
have demanded the return of their bonds
since the decision of the supreme court,
which demand has been refused on
the ground that the contract remains binding upon
the parties the decision having affected only the
means of performance, and that the bonds cannot
fairly be withdrawn until the legislature shall have
taken action in the matter. Others, while still
offering liberal concessions, express their unwilling
ness to adhere to their original proposition in view
of the decision of the supreme court and the marked
enhancement of the value of their bonds; but Mr..
Selah Chamberlain the holder of about one-half Of
these bonds, has adhered to his contract and re-
newed his proposition to accept SO per cent of the
press condition that the adjustment be consum
mated during the present year, and there is reason
to believe that most of the other bondholders will
adhere to similar terms of settlement if speedily
concluded. We have thus an opportunity to hon
araby settle this debt upon terms of rare liberay:
and it is because the soundest expediency and the
imperative demands of justice thus uuite to demand
prompt action that have felt it my duty to conven
you In extra session.
The act of the last legislature. proposing an
ceeds of the internal Improvement lands to the pay
ment of the adjustment bonds has been rendered
imperative by the decision of the supreme court.
1t will, therefore, be necessary to promptly read
just and enact its provisions to conform to the
pew action to be- taken in order to submit the
posed amendment to the people at the approaching
general election. The average price realized thus
far for the lands sold is about 81 per and the
fund from such sales already amounts to 5000 ,000
In view of the rapid settlement of the country it is
believed that the total sum which will be finally re-
reach $4,000.o00, sum nearly or quite suffi-
cient to pay the whole Indebtedness without re-
course to taxation. That there may be no wrong
impression on your minds regarding the whole
amount due on these bonds, would say that by
former decision of our supreme court, past-due
coupons draw interest well the bonds to which
they are attached, and should interest be computed
in accordance with this decision the whole debt
We would ndo amount. @ on December l. 1881, to about
SS,2OO.OOO, and, should the pending proposition
be consummated, the saving to the State will thus
be about $4.OOO,OOO.
am fully persuaded it will never occur again, for
1t cannot longer be expected that partial payment
will hereafter be accepted by the holders Of these
obligations in view of the ability of the State to pay
in full and the verdict of its highest court assign
ing to the legislature the duty to provide for pay
ment. Unless, therefore, the pending settlement
be now completed, we will be confronted with the
bald choice between total payment and naked
reputation. Dare We contemplate this final alter
native? What are all our fair possessions, what
the bountiful gifts of nature and the proud achieve
their crown and shieldp OF what avail are the in
stitutions and the prosperity Of which we boastp
These are but perishable things, withdrawing
the stay and fulment conferred by love of justice
may bury rs in their ruins. Like the brazen
trappings purchased by loss of virtue the pros
perity We parade may be our badge Of shame.
Every bushel of wheat and barrel of -four we send
abroad will bear the indelibls brand of reputation.
In every reputable community, reference to what
should feed an honest pride will provoke jeering
reminders of our disgrace and the beautiful name
we bear will become synonym of public dishonor
Senators and representatives, without question
ing the sincerity Of such of you as differ from me
in opinion-according to each and all of you the
purity Of motive claim for myself am pro-
foundly impressed with the conviction that this
grave question cannot be safely postponed, and
ask you by every consideration Of equity. public
policy and fair dealing to give it your earnest at
tention.
For the enduring welfare Of the fair
State we have chosen as our home;
as we would justly share in that national
heritage Of financial honor which is the won-
der of the world: that we may deserve the reward
of generous prosperity. and invoke the blessings
of Almighty God-I entreat you as o parting word
to perform simple act Of Justice which shall for
put at rest the haunting spectre of repudia-
tion, and place our young common wealth irrevoca-