Warren sheaf., 1882-01-05

10 meet at the call OF the state superintendent
and the committee on arrangements, were also
adopted, and the convention adjourned sine
die.
RAILROAD ADJUSTMENT BONDS.
They Are Now In the Hands Of the State Off
GERS for Signature, Preparing for Issue
About January 2-HistOry of the Efforts for
Negotiation, Ending in the Issue of Four and
Half Per Cents.
From the Pioneer Press 24th
Inquiry at the State house elicits the fact
that up to the present time none Of the Min
nesota State railroad adjustment bonds have
yet been issued and that it is not likely that
any will be issued before the I'd of January
next. The claims commission, owing to the
necessary absence Of the attorney general, will
not have concluded it's labors before next
Wednesday, and until that time 1t will be i'm
possible to determine the exact value
of the bonds deposited by. the several
holders. or what amount of new bonds shall be
exchanged therefor. None can be issued.
therefore, till the amount of deductions to be
made on account of these claims has been set
tied. In the meantime, however, the state
auditor is diligently engaged in making the
necessary preliminary calculations so that as
soon as the claims commission shall have made
it's awards it will take but few days to close
up the business. All the bonds, some 1000 in
number, have been engraved and delivered
and large part of them have received the sig
natures of the governor and score
tary o, of state, though but few have
tor But this Work will be done as ,s soon as % the
other preparations for the issue of the bonds
soall have been completed
It will be remembered that the adjustment
act authorized the governor to settle the old
bonds by exchanging therefor new per cont,
bonds, to draw interest about the time when
the old bonds became due, or two
years from January l next the interest
Of the old bonds to be calculated
to that date. But it also provided that if the
bonds at a less rate of interest than per cent.
he might issue the new bonds to draw inter-
est from January l. 1882, and either exchange
them for the old bonds, with interest calculated
to that date, or sell them in the market and
pay the old bonds in cash. The governor
promptly resolved to pursue the latter course.
Immediately after the passage Of the act he
made strenuous efforts to place the new bonds
at per cent; but soon found that this was
impossible. In fact, the existing condition of
the money market was not favorable to the
profitable negotiation of large amount of
State bonds. The holder Of nearly half the old
bonds, Sean Chamberlain, who at first refused
to accept new bonds at less rate of interest
than per cent as the act provided, finally con-
sented to accepta 412 per cent bond. and it
this rate of interest At a meeting held in the
latter part of November by the board of in
vestment, consisting of Chief Justice Giltillap,
the president of the board of regents Gen
Sibley, the governor, the state auditor and the
state treasurer, it was decided to invest some of
the trust funds of the State in the
new adjustment bonds, and the governor was
authorized to use his discretion in the matter
1t has, therefore, been determined that some
$500, 900 of the internal improvement land
fund, some 5000. 900 of the permanent uni
versity fund and about $500, 900 of the per
manent school fund shall be invested in tho
new bonds.
In pursuance of this understanding some o.
the Missouri Is and United States per cents
in these funds have beon sent East to
be sold at the market price, the proceeds
bonds. The State will realize large premium
on these and other bonds to be sold. and
profit Of from $50, 900 to $1OO, 900 will inure
to the several funds from the transaction No
difficulty is likely to be encountered in placing
all these 4la per cent. bonds at par.
About 81 ,0OO,o of the 81, 100000 will be
absorbed in the several trust funds above
mentioned and the remainder will go to the
bopdholders, So, 100000 or more to Selah
Chamberlain and the rest to the other credi.
tors who are entitled to new bonds of
81 900 or mnltiples thereof. Of course when
fractional parts of 81 900 are due, these sums
must be paid in cash, and it is only necessary
therefor for the State to sell such an amount
OF bonds as will realize the sum necessary to
pay the s. 80, 900 of claims to which the law
limits the awards OF tho commission aud the
fractional parts of 81, 900 due to individual
bondholders in excess Of the new bonds which
they will receive. Probably not more than
$5OO,OOO of cash will be necessary to pay
these.