Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-10-13
THE GOVERNORS MESSAGE

Liz UV UANVA y III UOOAUG
The Reasons for Calling an Extra Session
Of the Leeislature---Gov. Pillsbury Con-
clusively Shows the Importance of Set
thing the vexed Bond Quest on.
The following message was read by Gov
to the Legislature, in joint conven
ton, at II a. m. yesterday:
GENTLEMEN OF THE SENATE AND HOUSE OF
REPRESENTATIVES:
You are convened under circumstances Of pecu-
liar urgency. The solemn obligations of the State
issued twenty three years ago, are rapidly APP
6ar anu MO o Sei March
g. 1881 providing for the adjustment OF these ooli-
cations has been declared void by the Supreme
Court Of this State; and by the same supreme au-
thority the amendment to the State Constitution
adopted in 1860, requiring the settlement of these
bonds to be submitted to vote of the people, has
been decided to be void as repugnant to that clause
hibits the impairment Of the obligation OF con-
tracts.
The whole matter is thus remanded to the Legs
lature for final action through the decree OF our
court of last resort, and that able and impartial
tribunal has affirmed not only that the power is
vested in the Legislature but the duty s 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
subject Of superior importance has ever Challenged
the attention of Legislative body. Upon your
consderate action will depend direct material in
terests to the amount of about 81 600 600 and the
final determination Of question that has proved
q 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 Railroad
Bonds should be paid in full, principal and inter-
est. believe that no course short Of this 1s con-
sisent with the honor and integrity OF sovereign
But inasmuch as the holders of the bonds have up.
on their own motion proposed IN adjustment upon
more favorable terms, an opportunity is presented
for discharging the whole debt by partial payment
without any necessary compromise OF our good
name
This good offer by the bondholders and the re-
sultng act Of adjustment based thereupon regard
as essentially contract. The holders of these
obligations submitted proposition which you ac-
cepted by the passage of an act reciting the same
and providing 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, 80 that while the COM
pact remains binding upon both parties, It's falth,
the mode of such performance simphfed by the
action of our highest Judicial authority.
Under these circumstances the duty OF the Legls-
ature seems to me obvious and imperative. The
reasons which induced the adjustment legislation
at the last session are REINFORCED by considerations
Of public policy and honor which cannot be mis-
taken. What was then conditional, and to some
extent matter of doubt and experiment, now
rests upon the immutable basis of adjudcated law
and justice. Both the power and the duty to pro-
vide for this adjustment being lodged in the Legs-
ature it seems clear to me that the simple per-
Torrance of duty is the only question now in
volved. And cannot believe that deliberative
body, which, to attain the ends of justice, entered
into contract involving some means Of question
able legality will fail in the honorable perform
ance Of that contract now that the way has been
made clear, easy and certain deem It unnecessary
to reiterate the motives which should lmpel you TO
result so desirable. However it may have been
heretofore, the Minnesota State Railroad Bonds
are clearly footing precisely similar in all
respects to that of other obligations bearing the
for the payment of which its faith and credit are
solemely pledged. The legality of their issue is as
unquestioned as that of other State bonds, and
their redemption devolyes as surely upon tne same
could rightfully. be made between the several
obligations Issued by the State it should clearly not
be against these bonds. They were not issued
through hasty or in-considered action, but after
long and exhaustive discussion before the Leglsa-
ture, the people, and by the public press. Their
issue was sanctioned by the direct and oyerwhelm-
ing vote Of the people, and consummated under
the solemn form of constitutional amendment.
The issue of no other bond was 30 jealousy scru-
dnized 30 carefully guarded, and it may well be
questioned whether any others have conferred
x
Cherishing these views as to the just and valid
nature of this Indebtedness, could not consistent
ly sanction its qualified settlement did not look
upon the proposition Of the bondholders and the
resulting legislation Of last winter in the nature
Of an unfinished contract, the honorable compile
ton 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 we shall now save some
four millions of dollars to the State with
out loss of honor, or incur the reproach of re-
lf,ks, - forf
ance and an opportunity for political jugglery, and
in the end pay the debt in full; for it cannot be
possible that intelligent and progressive people,
with moral and religious convictions, can refuse
the final payment of an honest debt. An lndl-
,idual who does this while able to pay justly
incurs the scorn of his honest neighbors. What
must be thought OF prosperous State that does it,
using its sovereignty as its shield?
The holders Of more than 81. 600 of the whole
issue Of S2275 900 have deposited their bonds with
the State Auditor, accompanied with written
agreement to accept In new bonds or cash, fifty
per cent. of the nominal amount of such surren-
dered bonds and coupons, in accordance with 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.
ana that the bonds cannot fairly be Withdrawn
until the Legislature shall have taken action in the
matter. Others while still offering liberal conces-
sons, express their unwingness 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 Chamber
lain, the holder Of about one half of these bonds.
has adhered to his contract and renewed his pro-
position to accept fifty per cent of the amount in
full satisfaction of his claim on the express cond
ton that the adj ustment be consummated during
the present year. and there is to believe that
most of he other bondholders will adhere to sim.
liar terms. of settlement if speedily concluded. We
have thus an opportunity to honorably settle this
debt upon terms of rare liberality. 1t is because
the soundest expediency and the imperative de-
nlands of Justice thus unite to demand prompt
action that have felt it my duty to convene you
in extra session.
The act of the last Legislature, proposing an
amcnd1nentto the Constitution devoting the pro
ceeds of the Internal improvement Lands to the
payment Of the adjustment bonds has been rem
dered imperative by the decision of the Supreme
Court. 1t will therefore be necessary to promptly
re-adjust and re-enact its provisions to conform to
the new action to be taken, in order to submit the
proposed amendment 70 the people at the ap-
preaching general election. The average price
realized thus far for the lands sold is about 81 per
acre. and the fund for such sale already amounts
N G6l0 n view of he mid oft no