Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1881-11-10
RAILROAD BOND SETTLEMENT.
Full Text of the Bill, Which has Become
Law, for the Final Settlement of the Old
StaIa Railroad BCnOs,

WutEedS, lucEb nave lOE lOuS timo cAiotoes ess
still remain outstanding, certain controveEted
claims against the State. commonly known as Min
nesota State railroad bonds, and certain other
claims referred to in this act the validity OF an an
which claims has ever been and still is disputed by
the State; and whereas, certain holders OF sucn
disputed claims have recently made propositions
for the compromise and settlement of said claims
held by them, which propositions are now peno-
ing, and the substance of which propositions is en-
braced within the provisions hereinafter contained:
and whereas, it is considered to be desirable and
thereof that all such conroverted claims, If possi-
BILE, should be compromised, settled and ex-
tingushed Therefore:
Be it enacted by the legislature of the State OF
Minnesota:
Section l. Any holder of said Minnesota State
railroad bonds who desires to avail himself OF the
provisions of this act, must deposit his bonds
and coupons with the state auditor, accompanied by
an agreement in writing obligating himself to ac-
cept in lieu of such bonds and coupons, and III ful
payment and satisfaction thereof, so per cent. OF
coupons less any deduction hereinafter provided for
in cash. or in new bonds of the State, as provided
for in this act Provided, however, that where there
has been compliance with the requirements OF
the adjustment of the Minnesota State railroad
bonds" approved March 2, 1881. the same shall
stand and be considered as compliance with the
provisions of this section.
Sec. q 1t shall be the duty of the governor and
state auditor to cause to be prepared new bonds of
the State, which new bonds shall be styled Mime
sofa state railroad QiJuStmenG DOnuS, anu Dear
date July frs. ~, one thousand eight hundred and
eighty-one QSS1). and shall be of the denomina-
tion Of one thousand dollars (Sl,OOO each, and on
their face shall be made payable
thirty years from their date, at the option
of the State of Minnesota, in the city of New York
with interest, after January l. SS4, payable semi
annually in the city of New York, at rate not ex-
ceeding per cent. per annum, and shall have cou-
pons attached for such interest, and shall pledge the
faith and credit of the State to the
Of Said new bonds shall he signed by the governor
and attested by the secretary. of state under the
great seal of the State, and the coupons shall
have the names OF the governor
and secretary of state 1T thereto and nd
the state auditor. and upon being executed, coun
tersgned and registered, and soon practicable
after the passage of this act the governor shall de-
liver to the several owners of the Minnesota State
railroad bonds, their heirs legal representatives,
who shall have deposited their bonds with the state
auditor as aforesaid, such an amount of the new
bonds shall be equal to SO per cent. of the par
value of principal and interest of said Minnesota
State raih DAD bonds and the coupons thereto, on
the first day of January, one thousand eight hun
dred and eighty-four usS4) less any deductions
terest to be computed at S per cent per
annum after the passage of such act,
and take from said several owners
and holders Of said Minnesota State railroad bonds
so deposited as aforesaid, release under SEAL re-
citing the number and denomination of the State
railroad bonds which said new bonds are taken in
payment and settlement for. and acknowl edging
full satisfaction from the State of all liability
said Minnesota State railroad bonds so owned and
deposited by such person, which release shall be
filed in the State auditors office The first cou-
pons shall be made payable on the first day of July,
one thousand eight hundred and eghty-four Il Ss4)
and thereafter the first days of January and July
in each year, until the ma urty of said bonds: pro-
vided that at its election the State may, and in
said bonds shall draw less rate of interest than
5 per cent, shall in lieu of said bonds, pay cash
holders of said Minnesota State railroad bonds SO
deposited as aforesaid, any of them, sum equal
to SO per cent: of the par value of principal and
interest of said Minnesota State railroad bonds
and coupons on the day when said payments made
taking the release under seal from the holder
as in the case of delivery of bonds herein be-
fore provided: and TO that end the governor, audi
tor and treasurer of state are hereby empowered in
their discretion negotiate at not less than par the
bonds to be issued under the provisions of this act
and apply the proceeds to the payment of said hold
ers of Minnesota State railroad bonds as herenbe
fore provided, and for the purpose of carrying out
the provisions of this proviso said bonds may be
made to bear interest from January 1, SS2, inter-
est payable semi-annually thereafter. And in case
of the delivery of said new bonds any fractional
sum less than 81 900 may be paid in cash. And
whenever any of said Minnesota State railroad
bonds or the coupons thereof, or any bond of the
State is paid under the provisions of this act or
otherwise, the treasurer or officer paying the
shall stampor cause to be stamped thereon, in large
letters, the words cancelled and paid, and. on the
first Monday in each month the state treasure r
sna,i the presence of the governor and state aud
tor, burn up all bonds and coupons that shall have
been cancelled and paid by him during the preced-
ing month or any previous time, and said treasurer
shall keep the number and description of the bonds
destroyed which shall be certified to be correct
by sad officers present at their destruction and be
INCLUDED in the annual report OF the state treasurer
Sec 3.-The judgments mentioned and referred
to in chapter one hundred and fifty-two t152),
page three hundred and thirty-eight 1881 of the
special laws of one thousand eight hundred and
.;,yfry- n sptnr1
on on Computed in the same manner n
and at the same rate as upon said
Minnesota State railroad bonds and coupons, shall
be settled and adjusted by the payment TO the plain
tifs therein, their heirs, attorneys, executors or
administrators, of SO per cent. of the amount so
due therein, either in new bonds of the State, in
money, in manner as provided in the preceding
section. for the settlement of said Minnesota State
railroad bonds; provided the plaintiffs in said judg-
ments, their heirs or legal representatives, shall
accept the same in full settlement and satisfaction
of all claim and demand against the State on ac-
count thereof.
Sec. a. Any person having subsisting, legal
and valid claim against either OF the land grant
railroad companies which receives any of said Min
nesota State railroad bonds from the State, or
against any contractor, subcontractor other per-
son which accrued for work, labor or services per-
formed in the location construction Of either of
the lines of railroad of said companies, or for
boarding engineers, contractors, sub-contractors,
workmen, or others while engaged in the location
or construction of said lines of road, any part
Cl6f6OI or IOr Qlr6 OF teams, OF fOr
men or teams. goods other supplies, ties, piles,
timber, lumber, stone or other material furnished
for actual use in the location or construction Of
either or any part of said lines of railroad. and
which claim so accrued prior to the time when the
State acquired said lines of railroad and transferred
the same to other companies, may have the same
adjusted and settled as herein provided.
Snch claimant shall file petition with and ad-
dressed to the state auditor within thirty days after
the passage of this act, verified by himself, agent
attorney, to be true to the best of his knowledge
information and belief, setting forth the nature and
character of his claim and against whom it accrued
and subsists, and asking for an adjustment of the
same under the provisions of this act. Any error.
mistake or defect in any such petition may be
remedied by an amendment in the discretion of the
commissioners hereinafter mentioned.
The petitions which have been filed with the
state auditor under chapter 1O2 of the general
laws of 1881, entitled, An act providing for the
adjustment of the Minnesota railroad bonds, may
stand and be considered and treated as filed under
this act The governor, attorney general and state
auditor are hereby constituted commission to
consider and pass upon said claims. any two of
whom may act, and the determination of any two
shall be considered the act of the commission
They shall fix npon the time and place for hearing
the same, and NAV appoint clerk, and adjourn
from time to time in their discretion.
1t shall be incumbent upon the claimant to estab-
sh his claim and that it is of the character herein
contemplated, by the same legal evidence as would
be required to establish the same facts in an action
against the party primarily liable therefor.
Ii said commission finds any of said claims or any
part thereof to be of the character and description
hereinbefore mentioned they shall report the
amount thereof with interest, up to December /,
1881, and in connection with which road it accrued
and file their report in the office of the state auditor
The statute of limitations shall not be allowed to
defeat or operate against any such claims Said
commission may embrace its determinations upon
all he claims in one reporter NAV make and file two
or more reports.
There shall be paid by the governor to the own
ers of such claims as shall be found by said COM
mission Of the character and description hereinbe-
fore in this section mentioned, their heirs or
assigns, agent or attorney, either in cash or new
bonds OF the state OF the tenor and effect mem
toned in section of this oct, an amount equal to
30 per cent of the amount of principal and interest
as shall be found due thereon by said commission.
Provided, that no bonds, coupons thereof, issued
by either of said land grant railroad COM
panies, nor the claim or demand for an
action OF which the same was issued,
nor any claim or demand for money
loaned or advanced for either of said companies
shall be considered or taken to be claims provided
for or within the meaning of this section, and no
such claims shall be allowed by said commission.
And further provided. That the aggregate amount
OF money or new bonds to be paid on account of the
claims provided for in this section shall hot exceed
the sum of $4,000, which sum- If insufficient
therefor in full. shall be divided pro rata on the
same. And provided further, That the amount
which shall be so allowed on said claims shall be
respectively apportioned pro rata upon such of said
bonds as were issued on account Of the line Of
railroad in connection with which said allowed
G aims respectively accrued, and shall be deducted