The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 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,

ing to Proposition Of
Bondholders.
! EXECUTIVE CHAMBER ST. PAUL. Oct l2, 1881,
-Gentlemen of the Senate and House of Represen.
tatives: You are convened under circumstances of
| peculiar urgency. The solemn obligations of the
State, issued twenty three years ago. are rapidly
approaching maturity. and no means have yet
March 2. 1881, providing for the adjustment Of
these obligations has been declared void by tho
supreme court Of this State; and by the same su-
stitution. adopted in 1860, requiring the settle
ment Of these bonds to be submitted to 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 impair mept 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
| bnnal has affirmed not only that the power is
vested in the legislature but the duty is imposed
| 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 attainabe. In my judgment no
| subject OF superior importance has ever challenged
| considerate action will depend direct material in
teres;s to the amount of about a4,OOO,OOO and
the hnal determination of a question that has
proved fruitful 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-
rOau bonds should be paid in full, principal and in
! terest believe that no course short of this is
consistent with the honor and integrity of sover-
egn state, so FAR as relates to its voluntary
! top. But lnasmuch as the holders of the bonds
have upon their own motion proposed an adjust
! ment upon more favorable terms. an opportunity
ie presented for discaarging the whole debt by par
ual payment, without any necessary compromise
OF our good name.
This offer by the bondholders and the resulting
act OF adjustment based thereqpon regard
tions submitted a proposition which you accepted
by the passage of reciting the same and pro-
vlding 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 YVES
S2nonea ino So 6t thas While t. the compact remains
is rendered moro obligatory aud the mode OF such
performance smplified by the action of our highest
| Judicial authority.
Under these circumstances the duty of the lesis-
lature seems to me obvious and imperative. The
reasons which induced the adjustment legislation at
public policy and honor which cannot be mistaken
| What was then conditional, and to some extent
| matter of doubt and experiment. now rests upon
the lmmutable 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 deHberative body. to attain the ends
OF justice, entered into contract involving some
Lt, T.
oraoie performance OF that contract now that the
! way has been made clear, easy and certain deem
1t unnecessary to reiterate the motives which should
I impe you to result SO desirable. However it may
have been heretofore, the Aiinnesota State railroad
bonds are now clearly on footing precisely similar
in al 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
are solemny pledged The legality of their issue IS
as unQueStloned as that of other State bonds al
their redemption devolv"s surely upon the same
legislative authority But If any discrimination
| could rightfuly be made between the several ob-
| cations issued by the State it should clearly not be
against these bonds They not issued through
hasty or ill-consioered 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 consummated under the solemn
! form of constitutional amendment The issue of
| no other bonds jealously scrutinized or so
carefully guarded and it may we'll be questioned
whether any others have conferred greater benefit
upon the State
Chershing these views as to the Just and valid ma
ture Of this Indebtedness, could not consistently
sanction its qualified settlement t;idI not look upon
the proposition of the bondho!ders and the resulting
Legislation of last winter 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 save some 81 ,GOo-
! 900 to the State without loss Of honor, or incur
OF constant annoyance and an opportunity for po-
cal juggery. 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-
vicions can refuse the final payment Of an honest
] debt. An individual who does this while able to
pay Justly incurs the scorn Of his honest neghbors
| what must be thought OF a prosperous State that
! does it, using its sovereignty as its shield?
The holders OF more than $2,OOO,OOO OF tie
whole issue of $2,275. 600 have deposited their
bonds with the state auditor. accompanied with
written agreement to accept, in bonds or cash.
| 30 per cent, Of the nominal amount of such sur
| rendered bonds and coupons, in accordance wi b
the act Of last March, Many Of the bondholders
have demanded the return of their bonds
the dsS0n no of the supreme court
| the ground that the contract remains binding upon
the parties, the decision having affected only the
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: bat 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
amount in full satisfaction Of his claim, on the tx
| press condition that the adjustment be consum
mated during the present year: and there is
adhere to similar terms of settlement if speedily
concluded We have thus an opportunity to hon
arahly settle this debt up, terms of 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
The act of the last legislature proposing an
| amendment to the constitution devotng the pro-
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
new action to be taken, in order to submit the pro-
| posed amendment to the people at the approaching
| general election The average price realized thus
far for the lands sold is about 81 per acre. and the
| fund from such sales already amounts to $500, ,OOO
In view OF the rapid settlement OF the country it is
believed that the total which will be finally re-
allied from the sale of these lands will
reach $4,000, 900, sum nearly or quite sufi-
cient to pay the whole Indebtedness without re-
! course to taxation. That there may be no wrong
impression S.a on your minds REGARDING the whole
| former decision Of our supreme court, past-due
coupons draw interest," as well as tie bonds to which
In accordance with this decision the whole debt
would amount. on December l. 1881, to about
! $s,200.00O, and. should the pending proposition
! be about $4.OOO,OOO.
If this opportunity be not Immediately embraced.
am fully persuaded it will never occur again, for
1t cannot longer be expected that partial payment
vii! hereafter be accepted by the holders Of these
obgatons 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 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
native? What are all our fair possessions, what
the bountifu gifts Of nature and the proud achieve
ment OF industry, If we preserve not our honor as
their crown and shield? OF what a, all are the in
M stitutions and the prosperity Of which We boast?
| These are but perishable things, withdrawing
the stay and fullment conferred by love of justice
| may bury us. in their ruins: Like the brazen
| trappings purchased by loss of virtue, the pros
| perity we parade may be our badge Of shame
Every bushe! of wheat and barrel of -four we send
abroad will bear the indelible brand of repudiation
In every reputable community, reference to what
| should feed an honest pride will provoke jeerng
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 your earnest at
| tentioA.
| 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 wou-
der Of the world: that we may deserve the reward
of generous prosperity, and invoke the blessings
of Almighty God-I entreat you as parting word
to perform a simple act of justice which shall for
| - fha ham fip0